Project Report Marketing Management

OF

on

KFC
Submit to: Mr. Jawed Ahmed Qureshi Submitted by: Mr. Syed Faisal Hussain Mr. Sher Muhammad MBA 08E (Evening)
INDUS INSTITUTE OF HIGHER EDUCATION

Acknowledgements
My all acknowledgments and regards to MERCIFUL ALLAH, Who blesses us with courage and enhances our skills in formation of the report also in all works of life We are grateful to MR. Ali Usmaani branch manager of KFC, who provided us information in key aspects of this report and spared their precious time and knowledge for the completion of the report.
In last but of course not the least we show homage and all gratitude to our honorable teacher Mr. Jawed Ahmed Qureshi, who supported and shared his great professional experience and knowledge with us.

TABLE OF CONTENTS
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PARTICULARS

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EXECUTIVE SUMMARY COMPANY INTRODUCTION AND HISTORY PRODUCT LINE SOCIETAL MARKETING BCG MATRIX SEGMENTING, POSITIONING AND TARGETING MARKETING MIX SWOT ANALYSIS CONCLUSION RECOMMENDATION APPENDICES

04 05 07 08 09 10 11 12 13

7 8 9 10 11

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Executive Summary
The fast food industry of Pakistan is growing rapidly with the influx of many foreign food franchises. This growth is

attributed to the fact that eating out has become the major form of entertainment. Kentucky fried chicken the world s largest franchise operating several outlets in Pakistan, the chicken lover s nation, are conducting several marketing activities to promote it sales and brand name since 1997. Through out analysis showed that although KFC is practicing strong marketing activities and having strong brand name world wide yet considered as an alien product and did not achieved such a high market share as Pizza Hut and Mc Donald.

Introduction and History

KFC Corporation, based in Louisville, Kentucky, is the world's most popular chicken restaurant chain, specializing in Original Recipe, Extra Crispy, Twister and Colonel's Crispy Strips chicken with home style sides. Every day, nearly eight million customers are served around the world. KFC's menu 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 products -- from a Chunky Chicken Pot Pie in the United States to a salmon sandwich in Japan. KFC has more than 11,000 restaurants in more than 80 countries and territories around the world. And in quite a few U.S. cities, KFC is teaming up with sister restaurants, A&W, All-American Food, Long John Silver's, Taco Bell and Pizza Hut, selling products from the popular chains in one convenient location. Over fifty years ago, Colonel Sanders invented what is now called "home meal replacement" -- selling complete meals to busy, time-strapped families. He called it, "Sunday Dinner, Seven Days a Week." Today, the Colonel's spirit and heritage are reflected in KFC's brand identity -- the logo features Colonel Harland Sanders, one of the mostrecognized icons in the world. KFC is part of Yum! Brands, Inc., which is the world's largest restaurant system with over 32,500 KFC, A&W All-American Food , Taco Bell, Long John Silver's and Pizza Hut restaurants in more than 100 countries and territories.

KFC PAKISTAN
Opening the first KFC outlet in Gulshan-e-Iqbal, Karachi in 1996, KFC wore the title of being the market leader in its industry. Presently KFC is branched out in nine major cities of Pakistan (Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad, Islamabad) with 29 outlets nation wide.

Economic Facts
Apart for fulfilling commitment of serving delicious, fresh and hygienic food and at the same time providing customers with the ultimate entertainment, KFC also plays part in the economic environment of the nation. Presently KFC has provided employment to over 1200 Pakistanis, which adds up to 6000 individuals directly dependent on KFC Pakistan. The government of Pakistan receives over Rs.10 million per month from KFC Pakistan as direct taxes. 95% of all food and packaging material used in KFC Pakistan is procured locally, which sums up to a purchase of over Rs.35 million per month.

Cupola Pakistan (KFC franchise owners in Pakistan)

Cupola is a Dubai based multinational company involved in several business including oil, gas exploration, plastic cards, retail markets and food franchising. Cupola holds the master franchise rights to operate KFC in Pakistan.

Company Vision
We aspire to redefine your experience by achieving ever-higher standards in quality and customer care.

Mission Statement
To be the world most famous best fast food franchise Brand.

Product line
Current product
Zinger Burger Chicky Meals Chicken Meals Family Meals Desserts

New product
Rice N Spice Macho Burger

Upcoming
Sub 60. Fish burger

Societal Marketing & KFC

School Partnership Program
Key Aspects, Learning Competitions

KFCs motto is Learn with Fun. Time and again KFC float competitions, which enhance the many types of talents among kids and give them a specific direction to grow. The regular competitions feature the following: Talent Awards

It is a mega event emphasizing on the following talents: Art Extraordinary achievements in academics. Sports Writing Debates/Dramatics Kids portraying extraordinary talents are given recognition by KFC. Mothers Special

Every year children pay tribute to their mothers by making exclusive beautiful cards for them and KFC displays them at their 9

outlets. The best of them get a prize at exclusive colorful ceremony arranged by KFC. Eid Celebrity

Chicky Fund Raising

The objective of Chicky Fund Raising is to help needy children throughout Pakistan. To play an active role in the development of nations most valuable resource-children; to unite all members of local communities in a common cause in the month of Ramadan each year during the annual collection and distribution campaign; to contribute to better communities in the future.

KFC Pakistan has been involved in community activities since last many years. The main focus of company in these activities has been educating the society. Faryad

Is the environment campaign by KFC Pakistan. The main projects of faryad are tree plantation, creating awareness and cleaning the environment and traffic rules and regulation. Jail Visits

KFCs existing penal system has thousands of children who were born in prison and know no existence outside of these prisons. KFC-Pakistan periodically visits these under privileged children along with Chicky (childrens mascot) to entertain them. Free food and gifts are provided. 10

BCG MATRIX
Zinger Burger /Family Meal N Macho Burger/Rice Spice

Star:
Zinger Burger, Chicken Meals and Family Meals are star products of KFC and high promotional activities conducted to promote them.

Cash Cow
There is no product of KFC is cash cow.

Question Mark:
Macho Burger and recently launched Rice N Spice are question mark products. High promotional activities are practicing to make them stars.

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Also these products are in testing period of three months as per company policy.

Market Segmentation and Positioning

KFC in Pakistan practices multiple-segment strategy so that good number of consumer attracted towards their product and avoiding the risk of having all eggs in one bucket. Segments are

Geographic
Urban Areas More educated people and weather and civic conditions are good mode of life style is fast and trend of dining out is present.

Demographics
Social Class A and B Age Groups Singles Married with no Children. Married with young children.

Psychographics
Life Style Health Conscious people

Target Market Of KFC

In Pakistan KFC target market is Kids. Teenagers. Single between 20 to 26. Married with Young Children. 12

Social Class A and B. People love to travel and taking meal out of homes.

Positioning
Country like Pakistan where various ethnics and social groups exists, KFC positioned its product in the mind of the customers As We Serve Halal. All about chicken. The Chicken experts. Finger- lickin good. Hum tum sab. Can you take the Heat? You have come to the right taste.

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KFC & Marketing Mix

Product
KFC calls them Chicken experts and chicken is their specialty and most of the people know KFC for their chicken. The product line has been given earlier. The actual product of KFC is KFC name itself. After launching the product KFC tests the product for 3 months. If the product does not achieve the desired target they stop producing it.

Branding / Packaging & KFC

Gray Haired, wearing spectacles French Beard with proud smile hanging on hoarding recalls one name KFC. KFC has thus far managed to establish a powerful brand name that has been widely recognized as a key to its success. KFC adopts corporate branding strategy. Zinger Macho Rice and spice Chicky meals Chicken meals Fish burger

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Packaging
KFC packaging is the main source of their promotional activities. Large expenditure occurs only on packaging so that recall ability brand increases. It is the way they communicate with their customer who eat, drink or visit their place, while having meals package attracts the customers. Attributes KFC packaging contains, Colonels picture printed even on tissue papers. Clean and Tidy uniforms of restaurant staff. Restaurants Building built on modern style and in most urbanized manner. Chicky picture printed on every Chicky meal attracting kids. 100 % recyclable packaging.

Serving trays covered with different deals posters.

Place/(Distribution)
KFC opened its first outlet in Pakistan at Karachi; Gulshan-e-iqbal in 1997 since then 29 outlets has been opened so far. To access maximum target customers, the outlets are designed on modern and most urbanized manner and most outlets are located in commercial areas of the cities.

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KFC also offers free delivery service so that customers can be effectively reached so that KFC products at their desired place, could entertain them.

Distribution strategy
KFC follows selective distribution strategy, as their products are only available at their restaurants or by free delivery service.

Promotion
Although KFC has worldwide acceptance but they are using print and electronic media for their promotion and publicity. Most of the promotion is done through their outlets.

Advertisements
KFC uses hoardings, leaflets, banners, press s and magazine adds. for their product advertisement now KFCs first TV advertise going to on air .

Sales promotion
For promoting their sales, KFC keep changing their strategies. They conduct

Event management

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KFC is effectively celebrates events for their advertisement and promotions like Eid festivals Independence day Mothers day Campaigns like cricket world cup 1999.

Pricing
KFC is all about the chicken, Pakistanis are chicken lover and price of chicken fluctuates in various occasions like Eid festivals Winter season Summer season Marriage festivals after eid and bakra eid As a well-known brand, KFC have to maintain their product prices in these seasons so that their customer is satisfied in all ways. Like in the case of Bird flu, the prices of KFC remained same.

Pricing Strategy
As an international brand KFC does not follows any fixed pricing strategy Market Penetrating price for new products, Rice N Spice Rs.100 with 1 regular drinks at starting and refill in just Rs.10 Macho Burger at Rs.100 Mostly KFC practice 18

Segmented pricing strategy by giving teachers discount, Product Bundle Pricing e.g. Chicken Meals , Your Favorites 1 Pepsi 1 zinger 1 chicken piece All in

Rs.220 Quantity discounts on Chicken Pieces 1 piece Rs. 65, 2 in RS. 110 and maximum 20 in Rs.880/ KFC also offers discount cards of certain amounts at which discounts are provided to customers. Maintaining the perception of their products is an important aspect for the pricing strategy of KFC so that the image of the product remains high in the mind of the customers. But only A class can afford regular visits to KFC for dining out as the rates are quite high as compared to the local restaurants that offered at low rates.

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KFC SWOT Analysis

STRENGTHS
KFC the most recognizable brand in chicken. It was one of the first fast food chains to go international. Original recipe is its core competency. Large food supplies chain. It has growing customer base and customer loyalty. It is well positioned in attractive market. Best Team.

WEAKNESSES
KFCs only a chicken store. Losing business because they lack the variety the other stores offer. They are slow adopter in technology. No advertisements on TV. Higher prices low quantity. No parking facilities available in premises.

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OPPORTUINTIES
Dining out trend is increasing. Population is chicken lover. People are becoming health conscious. Labor is cheep. Increasing population.

THREATS
Government Policies. Chicken Diseases. Some burger places have added chicken to their menus. Other chicken chains are adding other types of food to their product lines. Anti US activities victim. Food Technology advancement.

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Conclusions
We reached at following conclusion after analysis, Segment of KFC is not too large as in other countries. Most of the Pakistani population does not lie in the category of Social Class-A and still are not health conscious. KFC has positioned itself as Chicken Expert, which provides Halal, and hygienic quality products in Pakistan. KFC emphasis on hoardings, leaflets, banners, press and magazine adds for their product advertisement. Conduct event management for promotion of sales and product. KFC is playing effective role in societal marketing. KFC also promotes its brand by their attractive packaging and modern designed outlets. The star products of KFC are zinger and family meals every month the sale of these products in units is increasing. The product prices are higher than other local restaurants. KFC is conducting selective distribution strategy and not their products are offered at all outlets.

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Recommendations
Following are our recommendations

They should advertise their product through local media and advertise their products by TV ads. Promote Rice N Spice to position it as a star product. Proper parking place should develop with outlets. KFC should introduce hot line number. They should try to reduce the price with the same quality & quantity.

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Appendices
www.kfcpakistan.com. www.kfc.com. KFC outlets. Marketing reports in library.

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