PROJECT REPORT

MARKETING STRATEGIES

WITH REFERENCE TO KENTUCKY FRIED CHICKEN

Submitted by Rhythm Relia

B.Com(H) IIIrd Year Roll No.-02, Section C

CERTIFICATE
This is to certify that Rhythm Relia, Roll No. 02 student of Shaheed Bhagat Singh College , University Of Delhi (South Campus) has

completed his research work titled Marketing Strategies With Reference to Kentucky Fried

Chicken under my

guidance and supervision

.The work submitted is genuine and authentic.

Date:

Prof. O.M. Aggarwal (project mentor)

ACKNOWLEDGEMENT

With deep sense of gratitude I acknowledg e the encouragement received from my mentor Prof. O.M. Aggarwal, for his valuable guidance and the confidence he instilled in me, that helped me in the successful completion of this project report. His professional guidance immense help to me. was indeed of

Also, this acknowledgement would remain incomplete without thanking the sta ff of KFC(Faridabad) ,Haryana for their whole-hearted and kind co-operation.

RHYTHM RELIA

Introduction of Company
KFC Corporation, based in Louisville, Kentucky, is the worlds most popular chicken restaurant chain, specializing in Original Recipe , Extra Crispy TM, and Colonels Crispy Strips chicken with home style sides and five new freshly made sandwiches. Every day, nearly eight million customers are served around the world. KFCs menu everywhere includes Original Recipe chicken made with the same great taste Colonel Harland Sanders created more than a half-century ago. Customers around the globe also enjoy more than 300 other productsfrom a Chunky Chicken Pot Pie in the United States to a salmon sandwich in Japan. KFC continues reaching out to customers with home delivery in more than 300 restaurants in the United States and several other countries. And in quite a few U.S. cities, KFC is teaming up with other restaurants, Taco Bell and Pizza Hut, selling nearly fifty years ago; Colonel Sanders invented what is now called home meal replacement selling complete meals to harried, time-strapped families. He called it, Sunday Dinner, Seven Days a Week.

Today, the Colonels spirit and heritage are reflected in KFCs brand identity the logo features Colonel Harland Sanders, one of the best- recognized icons in the world.

KFC History
The Kentucky Fried Chicken was founded by Colonel Harland Sanders (born on September 9, 1890) at the age of sixty-five. KFC is currently one of the largest businesses of the global food service industry and is widely known around the world as the face of Colonel Sanders. Every year, over a billion KFC chicken dinners are served featuring the Colonels finger lickin good special recipe. The Colonel has spread his industry currently to more than eighty countries and territories globally. At the age of forty, Colonel Sanders began cooking for travellers in his service station located in Corbin, KY. However, rather than coming in for service for their cars, hundreds of people began coming to the Colonels station specifically for his food. So he expanded his new up-andcoming business by moving across the street to a hotel and restaurant that seated one hundred and forty-two people. While cooking here, Colonel Sanders perfected his secret blend of eleven herbs and spices for his special recipe that is still used today. With his special cooking techniques, Sanders station became famous and he was recognized for his amazing cuisine by the Governor at the time, Ruby Laffoon in 1935 when he was made a Kentucky Colonel; hence the name

Colonel Sanders. In 1939, Colonel Sanders restaurant won the top spot on Duncan Hines Adventures in Good Eating. After his amazing start-up in 1952, the Colonel devoted himself for the rest of his life to his chicken franchising business. To spread his famous recipe, he spanned the country in his car from his small business in Kentucky to cook his chicken for restaurant owners and their employees. If his subjects loved it like his other customers had, the Colonel made a deal with the establishment, saying that they would pay him a nickel for each chicken they sold in their restaurant. So many restaurants agreed that by 1964, the Colonel had over six hundred franchised outlets in the United States and Canada for his chicken. Also in 1964, Colonel Sanders decided to sell his interest in the United States Company for small change (only $2 million) to a small faction of investors, such as John Y. Brown Jr., the governor of Kentucky from 1980 to 1984. However, Colonel Sanders continued to be the public spokesman for KFC and in 1976, he was named the worlds second-most identifiable celebrity by an independent survey. With this new group of investors undertaking the Corporation, KFC expanded and matured quickly. The Corporation was listed on the New York Stock Exchange on January 16, 1969, only three years after it had gone public on March 17, 1966. Then, after the KFC Corporation was acquired by Heublein Inc. on July 8, 1971 for $285 million, the company grew to an enormous three thousand and five hundred franchised and company-owned restaurants worldwide. Subsequently, Heublein Inc. was next acquired by R.J. Reynolds Industries, Inc. (currently RJR Nabisco, Inc.) in

1982, making Kentucky Fried Chicken a subsidiary of Reynolds. After that, in October of 1986, PepsiCo, Inc. made a purchase of $840 million from RJR Nabisco, Inc. However, in January of 1997, PepsiCo, Inc. revealed that it would be making KFC and its other small quick service restaurants Taco Bell and Pizza Hut into an independent restaurant company known as Tricon Global Restaurants, Inc. The company also stated that it would change the corporations name to Yum! Brands, Inc. in May of 2002. This corporation, which currently owns A&W All-American Food Restaurants, KFC, Long John Silvers, Pizza Hut and Taco Bell restaurants, is the world's principal restaurant corporation in terms of system units, having a stifling thirtytwo thousand and five hundred units in over one hundred countries and territories.

Sadly, after travelling two hundred fifty thousand miles every year visiting his restaurants around the globe, Colonel Sanders died of leukaemia at the age of ninety in 1980. Interestingly enough, this enormous, global corporation all started with simply a sixty-five-year-old gentleman and a chicken.

KFCIndia
KFC is the worlds No.1 Chicken QSR and has industry leading stature 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 owns other leading brands like Pizza Hut, Taco Bell, A&W and Long John Silver. Renowned worldwide for its finger licking good Food, 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 Sanders 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. Putting behind violent protests against its entry in the mid-1990s, American restaurant chain Kentucky Fried Chicken, better known as KFC, has thrived on the growing fascination for fast food among the Indian middle class to chart a major expansion plan in the country through small-town penetration and innovative products. Like its other American peers like Dominoes, Pizza Hut and McDonalds, this Louisville, Kentucky-based chain has also started tweaking its classical chicken recipes and introducing new ones like fiery grilled chicken and vegetarian dishes to suit Indian food habits. KFC, which operates in 109 countries and claims to have more than 15,000 outlets around the world, expects to ramp up its restaurants in

India to 500 by 2015, riding on eager and aspirational customers in its smaller cities. "We are growing at a CAGR (compound annual growth rate) of 70 percent. We already have 150-plus restaurants in 30-plus cities and are confident of reaching our target of 500 by 2015," Dhruv Kaul, KFC India's marketing director, told media on the expansion process that started in 2005. "We'll mainly expand within the metros, but also in cities like Durgapur, Calicut, Kochi and other tier-two towns. The reception we are receiving in new towns is very, very encouraging," Kaul said. There has been a series of launches this year that included popcorn chicken, cappuccino, crushers and vegetarian and chicken rissoles, apart from the fiery grilled chicken. Speaking about the new product, he said it was developed entirely within the country and was six months in the making. "It went through six months of rigorous testing and the feedback we received was extremely encouraging as the flavour was well liked. It has done extremely well in the 10 days since its launch," Kaul said. "It's a fiery product based on the Indian palate," he added. Made with juicy chicken pieces, fiery grilled chicken is marinated and seasoned with a blend of herbs and spices, and then grilled to perfection via a unique 'steam roast' process, developed specially for KFC. Asked if the new product would find its way to other KFC restaurants in the South Asian region, Kaul did not rule this out. "I can only speak for India but we have a robust exchange of ideas and

products. We are inspired by the market and so I wouldn't be surprised if this product even moves outside the region," he said. KFC had a rather shaky start in India, seeing violent protests from nationalists, farmers, health activists as well as animal rights activists that saw the vandalisation of its first outlet in Bangalore. The company has now put that behind and moved on.

KFC's Entry in India

Foreign fast food companies were allowed to enter India during the early 1990s due to the economic liberalization policy of the Indian Government. KFC was among the first fast food multinationals to enter India. On receiving permission to open 30 new outlets across the country, KFC opened its first fast-food outlet in Bangalore in June 1995. Bangalore was chosen as the launch pad because it had a substantial upper middle class population, with a trend of families eating out. It was considered India's fastest growing metropolis in the 1990s. Apart from Bangalore, PepsiCo planned to open 60 KFC and Pizza Hut outlets in the country in the next seven years. However, KFC got embroiled in various controversies even before it started full- fledged business in India. When the issue of

granting permission to multinational food giants to set up business in the country came up for discussion in the Indian parliament, some members from the opposition parties were vocal in their displeasure... Problems for KFC From the very first day of opening its restaurant, KFC faced problems in the form of protests by angry farmers led by the Karnataka Rajya Ryota Sangha (KRRS). The farmers leader, Nanjundaswamy, who led these protests, vehemently condemned KFC's entry into India, saying that it was unethical to promote highly processed 'junk food' in a poor country like India with severe malnutrition problems. Nanjundaswamy expressed concern that the growing number of foreign fast food chains would deplete India's livestock, which would adversely affect its agriculture and the environment. He argued that nonvegetarian fast-food restaurants like KFC would encourage Indian farmers to shift from production of basic crops to more lucrative varieties like animal feed and meat, leaving poorer sections of society with no affordable food. KRRS held a convention on

November 01, 1995 to protest the entry of fast food multinationals and the Westernization of local agriculture... The Aftermath By late 2003, PETA further intensified its campaign against the cruel treatment meted out to chickens by KFC through protests at regular intervals. Celebrities like Anoushka Shankar, daughter of the legendary sitar maestro Ravi Shankar, directly supported the cause of PETA. Anoushka, a sitarist herself, wrote a letter to the top management of PepsiCo condemning the continued cruelty of KFC in spite of repeated requests of PETA. The organization also had the support of other celebrities like the famous cricket player Anil Kumble (based in Bangalore), popular Indian models like Aditi Govitrikar, the late Nafisa Joseph and John Abraham, who promoted vegetarianism. Film actresses like Raveena Tandon and Ameesha Patel also took up the cause of animal abuse. Undeterred by the continued protests, KFC added three more outlets to its existing one at Bangalore. KFC also announced a major expansion programme for 2005. Sharanita Keswani (Keswani), KFC's Marketing Director, said that as the retail business was poised for a boom in India, they considered it the

right time for expansion... Feeling positive about the flourishing malls in all big cities, Keswani revealed that this time KFC planned to have a presence in prime locations or in a mall where turnout would be assured. The company aimed at targeting cosmopolitan cities like Chandigarh, Pune, Kolkata, Chennai and Hyderabad, where mall culture was fast developing. PepsiCo also decided to concentrate on the expansion of KFC since its other brand, "Pizza Hut", had successfully established a strong foothold in India. Vegetarianism was predominant and was a way of life in India. Many people ate non-vegetarian food only occasionally and avoided it during festivals or religious occasions...

Mission Statement

To sell food in a fast, friendly environment that appeals to pride conscious, health minded consumers

Goals of KFC
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 grow, striving always to be the leader in the market place changes. Generate consistently superior financial returns and benefits our owner and employees.

To establish in India our position as leading WQSR (Western Quick Service Restaurant) chain, serving good value. Innovative chickenbased 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.

KFC specialized in chicken and they says,

No bodys cooking like KFC today and we are the chicken experts There is no competitor for spicy chicken which is made by KFC

Values of KFC
Focus all our resources to our restaurants operation because that is where 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 and more. 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.

Porters Five-Forces Analysis

Entry For the current Indian market for fast food, it is not difficult for a fast food restaurant to enter the market. However, it would be extremely difficult to take over already running major fast food chains' dominancy in India or even make a significant amount of profit. While there are enough people in urban India for any restaurant to survive, KFC holds the first-mover advantage into the 'non-veg food specialty food segment' that gives them free reputation. Customers, especially children who are used to going to KFC as a treat or reward from their parents or grandparents, are not going to want to go to other restaurants theyve never heard of. The brand name is already established. Also, there is already a large variety in the numerous western-style dining places in India, such as McDonalds, Pizza Hut, Domino's and Subway, and any new fastfood entrants would just be presenting something very similar to whats already there. While small Neighbourhood restaurants generally have low barriers to entry, these are the barriers to entry for similar restaurant businesses to enter the fast-food chain market. Buyer/SupplierBargainingPower The customers of KFC, especially as individual buyers, have almost no bargaining power because if only one customer threatens to no longer eat at KFC, the store is not going to lower its price because the cost of losing one customer is not very great. The suppliers, like the buyers, have very little bargaining power.

In terms of food, KFC, upon its move into India, urged many of its U.S. suppliers to also extend branches into India. KFC also began helping local suppliers by giving them technological support to improve their products. This is a brilliant strategy because the supplies that KFC would otherwise need to import from the U.S. can now be obtained domestically, and if the U.S. suppliers decide to raise their prices, KFC can easily switch to the local suppliers. This gives us a brilliant strategy. With this strategy, KFC created competition among its suppliers, lowering the supplier bargaining power. In terms of human resources, labor cost is extremely low because the supply of non-skilled workers great exceeds the demand for them. With so little buyer and supplier bargaining powers, KFC is able to have a very tight control over its prices and expenditures. SubstitutesandComplements As mentioned above, there are a few major competitors in the fast-food industry in India for KFC, namely McDonalds, Pizza Hut, Domino's and Subway. The substitute products, in this case, would be burgers, pizza, and sandwiches. Though they are competitors, their primary products differ greatly from each other, in that they sell, chicken, burgers and fries, pizzas, and sandwiches, respectively. Traditional Indian dining, home-cooked meals, and grocery stores with

ready-to-eat foods are also substitutes, as families could choose any one of these over fast food for a meal. These substitutes are definitely considered healthy as compared to the fast food chains. Even foods from street vendors count as substitute goods. While other fast foods serve as substitute to KFC, they can also serve as complements for fast foods as a whole. If the general price of fast foods goes up, KFCs price rises as well, and the same can be said of the quantity sold of these products, which make them complements to each other. KFC also sets up stores located near popular tourist attractions, so tickets to these tourist spots are also complementary goods because the more people tour these attractions, the more customers KFC will get. Rivalry Unlike what one would expect, KFC has little rivalry with similar fast-food chains in India. The primary reason is that their core products are different, as in they sell different kinds of fast foods with very different tastes and styles. For example, if KFC raised its price for chicken by a small amount, Indian chicken lovers who may not be as accepting to pizzas (many Indian people strongly dislike the taste of cheese) are not going to switch to Pizza Hut just because the price for KFC increased. In addition to that, these restaurants have such different target customers that the fluctuation of price for one restaurant is not going to affect the others. For example, a full meal at KFC ranges about Rs. 100, whereas a full meal at Pizza Hut can cost over Rs. 300. The drastic difference in price assures no price competition between these restaurants.

Environmental factors and opportunities

Political : The operations of KFC are affected by the government policies on the regulations of fast food operation. Currently government are controlling the marketing of fast food restaurant because of health concern such as cardiovascular and cholesterol issue and obesity among the young and children in the country. Governments also control the license given for open the fast food restaurant and other business regulation need to follow such as for a franchise business. Good relationship with government in giving mutual benefits such as employment and tax is a must for the company to succeed in any foreign market.

Economic: Though for last 1 year their was economic slowdown all across the globe but the sales of KFC and other fast food chains did not slow down to that extent that of other sectors in. The GDP (Purchasing Power Parity) is estimated at 2.965 trillion U.S. dollars in the year 2010. The GDP- per Capita (PPP) was 2700 U.S. dollars as estimated in 2008. The GDP- real growth rate in 2007 was 8.7%. India has the third highest GDP in terms of purchasing power parity just ahead Japan and behind U.S. and China. Foreign direct investment rose in the fiscal year ended March 31 2007 to about $16 billion from just $5.5 billion a year earlier. There is a continuous growth in per capita income; Indias per capita income is

expected to reach 1000 dollars by the end of 2007-08 from 797 dollars in 2006-07. This will lead to higher buying power in the Hands of the Indian consumers. So taking into A consideration the economic factors of India KFC are safe. The only danger to it will be if there is a terrorist attack in India and the victim is KFC. Socio cultural: India is the second most populous nation in the world with an approximate population of over 1.1billion people. This population is divided in the following age structure: 0-14 years 31.8%, 15-64 years 63.1% and 65 years and above 5.1%. There has also been a continuous increase in the consumption of fast food in India. The social trend toward fast good consumption is changing and India has seen an increase of 90% fast food consumption from the year 20022007. This increase is far greater than the increase in the BRIC nations of Brazil (20 per cent), Russia (50 per cent) and China (almost 60 per cent). Thus this shows a positive trend for fast food industries in India.

Technological: The Indian fast food Industry is heating up with a lot of foreign players entering the Indian market. The technological knowhow and expertise will also enter the

Indian market with an increase in competition. With the lower rates and increase technology the fast food counters are attracting youth by giving them attractive deals. For e.g. KFC and Dominos pizza. For a fast food restaurant, technology does not give a very high impact on the company and it is not a significant macro environment variables. However KFC should be looking to competitors innovation and improve itself in term of integrating technology in managing its operation. For example in inventory system, supply chain management system to manage its supply, easy payment and ordering systems for its customers and wireless internet technology. Implementation of technology can make the management more effective and cost saving in the long term. This will also make customer happy if cost savings results in price reduction or promotional campaign discount which will benefits them from time to time. Environmental: As one of world largest consumer of beef, potatoes and chicken, KFC always had been critics for world environmentalist. This is because high consumption of beef causing the green house effect by methane gasses coming from the cows ranch. Large-scale plantation has effect the environment and lost of green forest opening for plantation activities. Vegetarian environmentalist criticizes the fastfood giant for cruelty to animals and slaughtering. In America, once KFC want to introduce whale burger causing uproar because whales are endangered species. Before using paper packaging, KFC once had been criticized for being insensitive to pollution because of using ne based packaging for its food products. Imagine millions of people purchase from fast food operator and how is the impact to

world environment by throwing away those hard to recycle packaging. Our world is getting concern on environment issue and business operating here should not just care for profit, but careful usage of world resources for sustainable development and care for environment safety and health for our future generation. Critics and concern from all public or activist should be review and support if necessary to ensure we play our social responsibility better.

Summary of current situation

SWOT analysis mean strength, weakness, opportunities and threats and the SWOT analysis of KFC are:

STRENGTHS Goodwill and reputation: The company certainly has earned a good name and reputation by its previous products and services in the market. It is even more recognised in other markets outside India, where the company is among the leading fast food giants. The brand is recognised and

trusted in India for its quality products, price, and customer service. It therefore has a good head start and enjoys a good chance of becoming a leader in Indian fast food industry. Employee Loyalty: Employee Loyalty is one of the major strengths of KFC. The turnover rate in the company is amongst the lowest in the industry. Customer Loyalty: Despite gain by Boston Market and Chick-fill A, KFC customer base remained loyal to the KFC brand because of its unique taste. KFC has continued to dominate the dinner and take out segment of the Industry. Ranks highest among all chicken restaurant chains for its convenience and menu variety. It generates $1B revenue each year. WEAKNESSES KFC was losing market share as other Chicken chain increased sales at a faster rate. KFC share of Chicken Segment sales fell from 71 percent 1999 , to less than 56 percent in 2009 , a 10 -years drop of 15 percent. Huge competition in this segment.

India is still mostly a vegetarian dominated cultured society. South India is especially very much so. This may reduce the market share of the company. KFC has not yet invested much on R&D, and innovating new products for Indian Markets. This may lead to failure of their products as they are not in line with the Indian mind set, people preferences and their likes and dislikes. This may prove fatal for the company.

OPPURTUNITIES New Markets: Globalisation has opened doors for new markets for the company. As the developed markets are mostly saturated, the developing countries like India and China promises a good market and generation of demand in the future. With more than 70% of the markets in India being unexplored and un organised, KFC has a good scope of expanding its operations in the country. Cross Culture: Generally there is a good acceptance of American culture of fast food in India. People are opening up to fast foods more regularly in their daily lives and not just keeping it a once in a month affair. Thus Indian mindset is fast changing. Large Youth population: India has a very large

share of youth population as compared to other countries. More than 60% of the population is under the age of 30yrs. As the young generation are more open to fast foods and demand it more, this is good news for the company. New variety: Company can also come up with new variety in the menu like Pizzas, garlic breads to attract more customers.

THREATS Competition: Competitor companies like McDonalds are fast catching up with the market. McDonalds with sales of more than 19 billion in 1999, accounted for 15 percent of the sales of the nations top 100 restaurant chains. Organisations like PETA People for Ethnic Treatment for Animals have given a bad name to the company which may prove disastrous to the image of the firm. Currently, KFC is under massive attacks from animal organisations, questioning the way KFCs suppliers are threatening the chicken, before they got slaughtered. Anti-KFC campaigns, such as the one from PETA are affecting KFCs brand image in a negative way and result in direct dollar losses, as less people are consuming KFC chicken Saturated US Market: Now KFC cannot rely on just its home market to generate sales. As the US markets are already saturated and leave no or

little scope for growth, company necessarily needs to look at offshore foreign markets to generate sales and keep up the profits.

MARKETING STRATEGIES OF KFC

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

MARKETING
Since 1982, KFCs All-American salute to Mothers national card contest has been KFCs way of honouring moms and their families for making mothers Day KFCs biggest sale day of the year. The contest encourages children to creatively express their feelings for their moms by making a homemade card and give them chance to compete for more than $10,000 in cash and prizes. Educational packets, including language,history andart exercises highlighting Mothers Day, were sent to thousands of schools nationwide. There are Marketing: 4 Ps of

1. PRODUCTION 2. PRICING 3. PROMOTION 4. PLACEMENT

1. Production: Basically the product is anything that be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. KFC is specially dealing in the chicken products; Basically, KFC has the special raspy for chicken products that is why, KFC known as a chicken specialist all over the globe. KFC target the Asia and east side because they observe that they people are like the chicken products, so they enter in the market due to the demand of their chicken products. KFC product variety of product in the chicken, those products are:

Original recipe chicken Extra Tasty CrispyTM chicken Hot WingsTM pieces

Tender Roast chicken Chunky Chicken pot pie Kentucky Nuggets Colonels Crispy Strips Honey BBQ sandwich Original Recipe Sandwich Tender

Roast Sandwich Triple Crunch Sandwich Triple Crunch Zinger Sandwich

2.Pricing: KFC during pricing their products keep the different points in the mind like they adopt the cost base price strategy. Pricing of the product includes the Government taxes and excise duties and then they come at 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 also compatible to the standard of their products. Calculation of the price under Cost Based Pricing Strategy: Total Pounds of Chicken Served in KFC Restaurant Annually = 1.914 Billion Total KFC Chicken Pieces Annually = 5.89 Billion Sold

Total Retail Sales = $8.9 Billion Sales Price of per Chicken Piece Retail Sales / Chicken Pieces sold

Total

= $8.9 Billion / $5.89 Billion =$1. 51 We assume that Fixed Cost is = $6000000000 Variable Cost = $675000000 Profit Margin is 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 = $1.135 Now 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

3. Promotion:

Promotion is one of the necessary plates in any form of business or in other words you can say that promotion is the key of success. If you promote your product at the right time. KFC also known the importance and significance of promotion so they uses the bill boards the 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 about their 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, plazas and institutions (as per the plan) Visit offices and business places. 4.Placement: In the case of the KFC the placement of the product is not important but the placement of the restaurant is important. The products of the KFC is cooked at the sport and then served after that. KFC Cavalry branch opened

in June 1998, in the main commercial zone of Cavalry Grounds near the Jinnah Flyover. The restaurant is a three-story building including the basement (where the chicky play area is located). It is ideally located in the center of a main commercial and residential area of Lahore. The area that KFC Cavalry caters for is the residential and office area of Cavalry Grounds and Cantt, as the main target market. Another branch the KFC opened in the Lahore is in Garden Town (opposite to Barkat Market). KFCalso target the Faisalabad and open its branch in D ground. Now we can easily judge that the KFC target the place for their restaurant, which is well known and 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 is high 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 to international 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.

QualityControlOverIngredients
EveryChickenTested K & Ns 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. EveryChickenCertified HACCP K & Ns ensures food safety by implementing the international HACP (Food Safety System) and enjoy the unique privilege of being the first and only HACCP certified company is India producing chicken and chicken products. Free from diseases and bacteria, drug residues and other contaminants.

QualityAssuranceCertificate Director General ( Research ) has issued quality assurance certificate for the chicken used by KFC.

Packaging We are asked as many questions on our packaging as our products by our customers. The packaging for KFC products is chosen according to performance against key criteria: Heat Retention Moisture removal Grease absorption The packaging material and carton design are all adapted to maximise performance against these three criteria. Recycled Paper All our clamshells and chicken boxes contain as much recycled material as it is legally allowed. By law we are required to have virgin fibre board in any part of the packaging that is in contact with food. Any virgin fibre comes from board suppliers who use pulp bought from managed forest in Scandinavia. This ensures that any wood cut for paper production is replaced with new plantings. Environmental concerns Over and above ensuring our packaging is supplied via recycled or renewable resources; KFC are enthusiastically complying with the new environmental directives on recovery and recycling

of packaging waste. Litter We at KFC UKI are aware of our responsibilities to the Management of Litter and all our packaging carries the Keep your Country Tidy signs Branding This research measured and compared the brand identity of Kentucky Fried Chicken (KFC) in India. Brand identity was defined as the customer impressions of four different KFC identity elements - properties, products, presentations, and publications. A survey of young consumers in the countries (n = 795), showed that the respondents were more apt to eat within KFC restaurants, and spend more time doing so, than the Americans. The Chinese also had much more positive impressions of KFC. Brand identity impressions were correlated with overall customer satisfaction and with future patronage intentions for both groups. These findings support a model where differences in cultural frames of reference lead consumers to actively localize the brand identity of this nominally globalized product.

Advertisment
The advert titled Pool was done by OGILVY & MATHER, New Delhi advertising agency for KFC ZINGER BURGER (KFC company) in INDIA. It was released in the June 2009. Business sector is Fast food outlets & restaurants.

One of KFC's latest advertisements is a commercial advertising its "wicked crunch box meal". The commercial features a fictional black metal band called "Hellvetica" performing live, the lead singer then swallows fire. The commercial then shows the lead singer at a KFC eating the "wicked crunch box meal" and saying "Oh man that is hot". In 2007, the original, non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and food packaging, as well as some restaurant signage.

Data Analysis
The data we received is as follows:-

We also asked questions on whether they would like KFC to start homedelivery services.

We also inquired How close is the nearest KFC outlet from your house?

Would you like to order at home or Dine in?

CONCLUSION

DATAINTERPRETATION
It is clear from the above report that a high number of people actually like to order from their home or workplace rather than coming. This may be due to more convienence, time shortage or just not willing to come and dine. Certainly the home delivery market is huge and KFC can take well advantage of the situation. Thus it would be in the best interest of the company to start the service as soon as possible and capitalise on the opportunity. KFC expects a rise in the orders by at least 20% by starting this service. Therefore, to conclude we would say that KFC should definitely have a home delivery service.