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Documente Cultură
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Topics
Introduction : Industry Profile
Food Industry Structure
Characteristics of Unorganized Sector
Food Industry in India
Problems of Industry
Introduction to KFC
KFC History
Philosophy of KFC
Product Issues
Substitutes and Complements
Market Coverage Strategy
Micro Environment
Marketing Strategies of KFC
The 4 Ps of Marketing
Research Methodology
Finding and Analysis
Conclusion and Suggestion
Outcome/Contribution
Bibliography
Annexure
Acknowledgement
INTRODUCTION
1.1 INDUSTRY PROFILE
1.1.1 Background
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One of the most critical phenomenon that characterize the food industry today is the exponential
development of its complexity, Competitive pressure has radically changed the sector structure which has
shifted in a relatively short period of time from fragmented to a highly concentrated landscape.
Business houses are continuously looking for new ways for attracting the customers to them and
increasing purchases after their entrance. This goal is particularly difficult to achieve because of the
parallel evolution of customers demands and the variety of options available to him.
Two of the elements of the marketing mix i.e. physical evidence and promotions play a major role in
accomplishing this goal. Promotion is constantly essential for a restaurant or a club, because it stimulates
consumer behavior. To bring customers to the outlet for the first time and ensure their repeat visits
require professionally prepared and correctly drafted strategy of Brand Communication and promotion.
A strategy which is in sync with the positioning of the restaurant appeals to its target audience. Gone are
those days in which companies used to attract the customers towards them by merely providing them
petty discounts. The consumer today has a large number of choices at his disposal, thus a brand needs to
differentiate itself from its competitors to make it standout from the crowd and get noticed by its target
audience.
Thus taking all factors into consideration this project will aim towards designing and implementing the
most appropriate kind of Brand Communication strategies for the restaurant which are in sync with its
positioning.
1.1.3 History
The concept of Ready cooked food for sale is closely connected with urban development. In ancient
Rome cities had street stands that sold bread and wine. A fixture of East Asian cities is the noodle shop.
Flat bread and Falafel are today ubiquitous in the Middle East. Popular Indian Fast food dishes include
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Vadapav, Panipuri and dahivada.In the French speaking nations of West Africa , road side stands in and
around the larger cities continue to sell as they have done for generations - a range of ready to eat ,
char grilled meat sticks known locally as Brochettes.
On The Go
Fast food outlets are take-away or take-out providers, often with a "drive-through" service which allows
customers to order and pick up food from their cars, but most also have indoor and/or outdoor seating
areas in which the customers can eat the food on-site.
Nearly from its inception, fast food has been designed to be eaten "on the go", often does not require
traditional cutlery, and is eaten as a finger food. Common menu items at fast food outlets include fish and
chips, sandwiches, hamburgers, fried chicken, french fries, onion rings, chicken nuggets, tacos, pizza, hot
dogs, and ice cream, though many fast food restaurants offer "slower" foods like chili, mashed potatoes,
and salads.
Variants
Although fast food often brings to mindtraditional American fast food such as hamburgers and fries, there
are many other forms of fast food that enjoy widespread popularity in the West.
Chinese takeaways/takeout restaurants are particularly popular. They normally offer a wide variety
of Asian food (not always Chinese), which has normally been fried. Most options are some form of
noodles, rice, or meat. In some cases, the food is presented as a smorgasbord, sometimes self service. The
customer chooses the size of the container they wish to buy, and then is free to fill it with their choice of
food. It is common to combine several options in one container, and some outlets charge by weight rather
than by item. Many of these restaurants offer free delivery for purchases over a minimum amount.
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Pizza is a common fast food category in the United States, with chains such as Papa John's, Domino's
Pizza, Sbarro and Pizza Hut. Menus are more limited and standardized than in traditional pizzerias,
and pizza delivery is offered.
Kebab houses are a form of fast food restaurant from the Middle East, especially Turkey and Lebanon.
Meat is shaven from a rotisserie, and is served on a warmed flatbread with salad and a choice of sauce
and dressing. Fish and chip shops are a form of fast food popular in the United Kingdom, Australia and
New Zealand. Fish is battered and then deep fried.
The Dutch have their own types of fast food. A Dutch fast food meal often consists of a portion of french
fries (called friet or patat) with a sauce and a meat product. The most common sauce to accompany
french fries is fritessaus. It is a sweet, vinegary and low fat mayonnaise substitute, that the Dutch
nevertheless still call "mayonnaise". When ordering it is very often abbreviated to met (literally "with").
Other popular sauces are ketchup or spiced ketchup ("curry"), Indonesian style peanut sauce ("satsaus"
or "pindasaus") or piccalilli.
Sometimes the fries are served with combinations of sauces, most famously speciaal (special):
mayonnaise, with (spiced) ketchup and chopped onions; and oorlog (literally "war"): mayonnaise and
peanut sauce (sometimes also with ketchup and chopped onions). The meat product is usually a deep
fried snack; this includes the frikandel (a deep fried skinless minced meat sausage), and the kroket (deep
fried meat ragout covered in breadcrumbs).
In Portugal, there are some varieties of local fast-food and restaurants specialized in this type of local
cuisine. Some of the most popular foods includefrangoassado (Piri-piri grilled chicken previously
marinated), francesinha, francesinhapoveira, espetada (turkey
or
pork
meat
on
two
sticks)
and bifanas(pork cutlets in a specific sauce served as a sandwich). This type of food is also often served
with french fries (called batatasfritas), some international chains started appearing specialized in some of
the typical Portuguese fast food such as Nando's.
A fixture of East Asian cities is the noodle shop. Flatbread and falafel are today ubiquitous in the Middle
East. Popular Indian fast food dishes includevadapav, panipuri and dahivada. In the French-speaking
nations of West Africa, roadside stands in and around the larger cities continue to sellas they have done
for generationsa range of ready-to-eat, char-grilled meat sticks known locally as brochettes (not to be
confused with the bread snackof the same name found in Europe).
Business
In the United States, consumers spent about US$110 billion on fast food in 2000 (which increased from
US$6 billion in 1970). The National Restaurant Association forecasted that fast food restaurants in the
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U.S. would reach US$142 billion in sales in 2006, a 5% increase over 2005. In comparison, the fullservice restaurant segment of the food industry is expected to generate $173 billion in sales. Fast food
has been losing market share to fast casual dining restaurants, which offer more robust and
expensive cuisines.
Globalization
In 2006, the global Food market grew by 4.8% and reached a value of 102.4 billion and a volume of
80.3 billion transactions.InIndia alone the Food industry is growing by 41% a year.
McDonald's is located in 126 countries on 6 continents and operates over 31,000 restaurants
worldwide.On January 31, 1990 McDonalds opened a restaurant in Moscow, and broke opening day
records for customers served. The Moscow restaurant is the busiest in the world. The largest McDonalds
in the world, with 25,000 feet of play tubes, an arcade and play center, is located in Orlando,
Florida, USA.
There are numerous other fast food restaurants located all over the world. Burger King has more than
11,100 restaurants in more than 65 countries.KFC is located in 25 countries. Subway is one of the fastest
growing franchises in the world with approximately 39,129 restaurants in 90 countries as of May
2009,the first non-US location opening in December 1984 in Bahrain.Pizza Hut is located in 97
countries, with 100 locations in China. Taco Bell has 278 restaurants located in 14 countries besides the
United States.
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Unorganized
Formats
Organized
Formats
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Dhabas
Roadside
Eateries
Dining
- Fine Dining
- Casual Dining
Bars and Lounges
Quick Service Restaurants
(QSRs)
Food Courts
Cafes
Kiosks
Unorganized segment
The unorganized segment dominates the Indian food service industry. It lacks technical and accounting
standardization. It comprises Dhabas and roadside eateries that have been the most common forms of
restaurants and have traditionally addressed eating out requirements of Indians.
1. Dhabas
2. Roadside Eateries
Street stalls
Hawkers
Trolleys
The average price of the food sold ranges between Rs. 10 and Rs. 100.
2.
3.
4.
Low price.
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Organized segment
The organized segment of the restaurant industry is 16-20% of the total industry, with various forms
such as:
Dining
Fine Dining- A full service restaurant with a specific dedicated meal course. Dcor features high quality
materials with an eye towards the atmosphere desired by the restaurateur. The staff is usually highly
trained. Fine dining restaurant usually targets rich and upper middle class consumer segments and offers
unique ambience and upscale service.
Casual Dining - A restaurant serving moderately priced food in a casual atmosphere oriented towards
affordable family dining. Except for buffet style restaurants, these typically provide table service. This
addresses the price point between fast food establishments and fine dining restaurants.
Mainly serve alcohol and related beverages. Includes night clubs, sports bars, etc.
Example: F-Bar, Xtreme Sports Bar
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They emphasize on speed of service, low cost and convenience. Also known as fast food outlets, for
practical purposes, they are essentially characterized by minimal table service and can have a take away
and/or home delivery format.
McDonalds, Nirulas, Dominos, Haldirams, Subway, Bikanerwalas, Vaango are some of the leading
names in this category.
Food courts
A relatively nascent phenomenon and being popularized by mall developers; also present at other shared
spaces (for example airports, hospitals and office complexes).
Cafes
Comprises of coffee bars and parlours (for example Barista Lavazza, Caf Coffee Day) and chai bars.
These are casual restaurants that emphasize on serving beverages and food is incidental.
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Kiosks
A relatively new format which comprises Chinese food, corn, chat kiosks and those from established
branded players like Caf Coffee Day or Nirulas. Also includes ice cream kiosks.
Regulatory issues
The Indian food and processing industry is governed by multiple legislations and dealing with them is a
challenge. Starting a restaurant requires all permits and licenses from local governing bodies and
adequate insurance coverage. There are upto 10 basic licenses to be procured before setting up a food
supply store. In addition the duration of these licenses vary from 1 to 3 years.
The following regulations of Hotel & Tourism sector and Development of Townships, Housing, Built-up
infrastructure and Construction-development projects apply to the food service sector.
100% FDI is permissible in the sector on the automatic route. The term hotel includes restaurants,
beach resorts, and other tourist complexes providing accommodation and/or catering and food facilities
to tourists.
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Under the Automatic Route, the non-resident investor or the Indian company does not require any
Besides the entry conditions on foreign investment, the investment/investors need to conform to all
notifications of the Government will also have to be complied with. The State Governments/Union
Territories have regulations in relation to the subjects in their legislative domain. These regulations also
have to be met/complied with.
-
As per the recent circular on Foreign Direct Investment issued by the Government of India, foreign
investors are now allowed to bring in fresh money and technology to India irrespective of the impact on
local partners in any existing joint venture.
Dominated by McDonalds having as many as 250 outlets serving more than 6.5 lakh customers
daily in India..
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2. Emphasis on the usage of Bio-degradable products Glasses, silverware, plates and cloth
napkins are never provided with fast food. Instead paper plates and napkins, polyurethane
containers, plastic cups and tableware, drinking cartons or PET (Polyethylene terephthalate)
bottles are used, and these are all disposable. Many of these items are tossed in the garbage
instead of being recycled, or even worse, merely thrown on the ground. This burdens nature
unnecessarily and squanders raw materials. In order to reduce soil and water pollution,
government now emphasis more on the usage of bio degradable products.
3. Retrenchment of employees most of the new industries are capital intensive and may drive
local competitors, which have more workers, out of business.
4. Profit Repatriation Repatriation of profits is another area of concern for Indian economy. As,
when MNCs enters any country, people and government hope that it will increase the
employment rate and result in economic growth. However, with the multinational operation host
country experience these benefits for a short time period. In long run neither employment
increases(because of capital intensive nature of MNCs) nor it increases the GDP or GNP
because whatever MNCs earn they repatriate that profit to their home country.
Studies have shown that a typical fast food has very high density and food with high density causes
2.
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Low calories food: Emphasis is now more on low calorie food. In this line Mcdonald has a plan to
introduce all white meat chicken Mcnugget with less fat and fewer calories.
Marketing to Children - Fast food outlet in India target children as their major customers. They
introduce variety of things that will attract the children attention and by targeting children they
automatically target their parents because children are automatically accompanied by their parents.
2.
Low level Customer commitment Because of the large number of food retail outlets and also
because of the customers to switch from one product to other, this industry faces low customer
commitment.
3.
Value added technology services There is a continuous improvement in the technology as far as
Food market in India is considered. The reason behind that is a perishable item and in order to ensure that
it remain fresh for a longer period of time. Earlier Indian used to prefer eating at home but now with the
change in trend there is also need for improvement and up gradation of technology in food sector.
4.
Attracting different sectors of the market Fast food outlets are introducing varieties of
products in order to cater the each and every segment of the market. They are introducing all categories
of products so that people of all age, sex, class, income group etc can come and become a customer of
their food line.
Major players
According to a National Restaurant Association of India (NRAI) 2010 report, the food industry in India is
currently estimated at ` 6,750 crores to ` 8,000 crores, growing at a CAGR of 35-40 per cent annually. A
major chunk of this market is ruled by global players like McDonalds, Yum! Brand, Dominos, Subway,
Taco Bell, Barista etc.
Reason behind success of multinational chains
1.
2.
3.
4.
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But domestic players like Nirulas, US Pizza, Pizza Corner, Kaati Zone and home-grown Coffee Day
Group or even Haldirams, Bikanervala,Rasnas Devils Workshop are not lagging behind to capture a
fair share of the quick meals bazaar.
Major players in food industry are:
MCDONALDS.
Yum brands- KFC, PIZZA HUT.
CAF COFFEE DAY.
SagarRatna
SaravanaBhavan.
Carnatic caf.
The evolving industry is a significant contributor in terms of tax or VAT to the economy. Currently
it contributes $220 million and has the potential to reach $770 million.
i.
Demand drivers
Demand Side Drivers The Demographic Profile of the Indian Consumer Segment
Favorable demographics and growing working population to augment demand for food
service chains
With a population of 1.2 billion, India represents one of the largest consumer markets in the world.
Additionally, the country enjoys one of the largest and most balanced demographics in terms of age, as
India has more than 50% of its population below the age of 25 and more than 65% is below the age of 35.
Currently, 63.38% of the population is between 15-59 years. The tremendous growth in its population of
young people is likely to bring about a shift in the Indian food service trends, as young population drives
the demand for processed and health foods. This would provide an impetus for the growth of the food
service industry.
Growing affluence and higher spending capacity provides a huge opportunity for the food services sector.
With higher disposable income, consumers do not hesitate to spend more on eating out.
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Not only has the working age population risen but the proportion of women among the employed has
also gone up. With the number of working women on the rise, households are expected to increase the
frequency of eating out as a result of less time available for women for household activities.
Increasing urbanization
The proportion of Indian population living in urban areas has displayed an upward trend for several
years. Expected to grow even further, the urban population will contribute to increasing demand for
eating out.
The middle class has been the largest patron of the food service industry and is expected to grow by 67%
by 2015. This would definitely increase the dining out consumer base.
ii.
There are 10 million street vendors in India, of which 6 million sell ready to eat food.
According to a report by Technopak Analysis, the market size of the food service sector is estimated to be
$8.1 billion by 2013 and $9.6 billion by 2018. It is growing @ 5-6% per annum.
The industry provides direct employment to 5 million individuals, five times the IT industry and 10
According to a report by ASSOCHAM, the consumer spending on processed food has increased at
an average rate of 7.6 per cent annually from 2008 to 2010 and this is expected to rise at an average of
around 8.6 per cent until 2012.
According to research report, Indian Food Market Analysis, the Indian Food Industry is
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Introduction of KFC
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 chickenmade with the same great taste Colonel Harland Sanders created more than a
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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, timestrapped 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
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
KFC History
KFC is an internationally renowned fast food industry in the world. They have the main
ambition to increase & maintain the quality in fast food industry. Their aim is to
is
that
why
they
position
better
in
the
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Chicken, with
even
Companys Overview
Colonel Harland sanders, born September 9, 1890, actively began franchising his chicken business
at the age of 65. Now, the Kentucky fried chicken business he started has grown to be one of the
largest retail food service 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 colonels
finger lickin good chicken dinners are served annually. And not just in America. The colonels
cooking is
When the colonel was six, his father died. His mother was forced to go to work, and
young
Harland had to take care of his three year old brother and baby 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 job working 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 in Greenwood, Ind.
He held a series of jobs over the next few years, first as a 15-year-old streetcar
New Albany, Ind., and then as a 16-yearold private, soldiering for six
conductor
in
months in Cuba.
After that he was a railroad fireman, studied law by correspondence, practiced in ustice of
the peace court, sold insurance, operated an Ohio River steamboat ferry,
for
hungry
ravelers
who
on his own dining table in the living quarters 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 spices and the basic cooking technique that is still used today.
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.
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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.
The CHAMPS
These are:
Cleanliness
Hospitality
Accuracy
Maintenance of Facilities
Product Quality
Speed of Service
CHAMPS is the philosophy to ensure that the customer has the consistent quality experience in
every restaurant, everyday, on every occasions and you will be playing role in delivering CHAMPS
to our customers.
Mission of Statement
To be the leader in western style restaurants through friendly service, good quality food and clean
atmosphere
Goals of KFC
Build an organization dedicated to excellence.
Consistently deliver superior quality and value in our products and services.
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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 Pakistan our position as leading WQSR (Western Quick Service Restaurant)
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.
Product Issues
General description:
Features:
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 three key criteria:
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Heat Retention
Moisture removal
Grease absorption
The packaging material and carton design are all adapted to maximize 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
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
(KFC) in
Pakistan. 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
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
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As mentioned above, there are a few major competitors in the fast-food industry in Pakistan
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 Pakistan 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.
Behavior
In behavioral aspect they segmented the market on the basis of quality, taste and price. Following
are the different possible segments in this regard.
Taste conscious
Quality conscious
Class conscious
Combination of price and quality
Geographical Basis
On the basis of the geographical factor we have divided our market in three main segments.
Urban areas
Sub urban areas
Profile criteria:
1.Gender: KFC is for each gender both male and female.
2.Income: Everyone can use the KFC service upper and middle class .
3.Age: age limitation for using this product above 15
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4.Occupation: By profession also everyone can use this product means businessman student
workers and other peoples.
5. Education: It has no need more education that why the person who know something caneasily
enjoy with this product.
6. Family life cycle: KFC is suitable in every stage of life like single married couple and also those
who have children can use this product.
7. Lifestyle: This product is used in every level of social class like upper, middle class.
8. Attitude : When the customers once buy this product after that they can use the product
continuously.
9. Purchasing decision: Often KFC changes the purchasing decision of customers because of its
good attributes.
10. Geographic region: Geographically KFC is used in every part of the country as well as all over
the world.
Product positioning
Customer perceive this product as a unique product that other are not giving .
Attitudes
The attitudes of the public is very good people like our this new product like others.
Purchasing process:
Many people come from home to eat this , and some make impulse decision as they saw it .
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food in order to keep themselves healthy and that KFC must adjust their range of product and their
company image to appeal to these new
Macro environment
KFC operates in a larger macro environment of forces that creates opportunities, but also threats.
(Kotler et al 2003). A company such as KFC usually cannot influence trends in the macro
environment, as they affect people and organisations on a larger scale.
However, KFC has to carefully examine macro environmental trends and must create competitive
responses to such trends. There are six major macro environmental forces KFC has to take into
account.
Micro environment
The microenvironment consists of all forces that are close to KFC, and on which KFC has an
impact. They directly affect KFCs ability to serve its customers. (Kotler et al 2003). Three major
components influence KFCs micro environment:
Customers
KFCs customer market consists solely of the consumer market (Kotler et al 2003).
KFCs products are bought by individuals (males, females, singles, and families).
Therefore, the product range KFC offer should appeal to as many people within this consumer
market as possible, to ensure that the maximum amount of products can be sold. The
characteristics of these individuals and a segmentation of them are discussed later in this report.
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Strengths and weakness of competitor
Strengths: 38 products, Attractive Outlets, Huge Marketing, Budget, More entertainment for kids
Weaknesses: Same type of Menu, No Home Delivery
How they compete their competitors ?
It is found that KFC compete its competitors by five ways:
o
o
o
o
there competitors KFC has quality products and through these quality products they
compete their competitors.
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 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
KFCs way of honoring moms and their families for making
sales day of the year. The contest encourages
their moms by making a
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homemade card and give them chance to compete for more than
$10,000
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in cash and prizes. Educational packets, including language, history and art
nationwide.
use,
or
chicken
products; Basically, KFC has the special raspy for chicken products that is why, KFC known as a
chicken specialist allover the glob. KFC target the Asia and east
they people are like the chicken products, so they enter
their chicken products. KFC product variety of
Products:
Original recipe chicken
Extra Tasty CrispyTM chicken
Hot WingsTM pieces
Tender Roast chicken
Chunky Chicken pot pie
Kentucky Nuggest
Colonels Crispy Strips
Honey BBQ sandwich
Original Recipe Sandwich
Tender Roast Sandwich
Triple Crunch Sandwich
Triple Crunch Zinger Sandwich
Brand:
There are three brands of the KFC:
1) Taco bell
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2) Pizza Hut
3) Long john silvers
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
stander
of
their
products.
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.
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
KFC Cavalry branch opened in June 1998, in the main commercial zone of
after that.
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). KFC also target the Faisalabad and open its branch in D
ground.
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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.
Advertisement
I do not normally think that advertising stunts are particularly interesting or creative, but I
thought this one by KFC waswellinspired. KFC, the fried chicken franchise , is offering itself
as a corporate sponsor for pothole repair. An actor dress as KFC founder Colonel Sanders and a
road repair group got started this week in the franchises hometown of Louisville, Ky. Filling up
hundreds of holes.
Many of the repairs are decorated with a while stencil saying the spot wasRe-freshed by
KFC A play on KFCs ad campaign stressing the freshness of their chicken . KFC spokesman
Russell Dayer said that crew is using Regular asphalt, not day old biscuits .
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.
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CHAPTER 1
RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
1.1 SCOPE OF THE PROJECT
Seeking opportunities for corporate tie ups & cross promotion tie ups.
Understanding the consumer behavior in response to the factors that have an impact on their
dining experience.
Understanding the footfall trend.
Loyalty project Segregating loyal customers based on recency, frequency and monetary.
ODCs Increasing brand visibility and revenue.
Conclusiveand exploratory research: Both primary and secondary data is being collected.
Primary data: Consumers (Survey questionnaire), Restaurant outlet and office workplace
(Observation)
Secondary data was collected from companys database, published researches and companys
website.
Data Analysis Tools- SPSS, graphical tools such as pie charts and bar graphs
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Different methodologies were used to study different aspects of the project. The details are as
Follows:
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On a similar note, the secondary data was collected by the below mentioned methods.
1) Company website
2) Other web publications
3) Company database
4) Research-related documents
Apart from the exercise mentioned above, some other objectives were also attached to this project. These
are mentioned below as:
Seeking opportunities for corporate tie ups & cross promotion tie ups
Understanding the consumer behavior in response to the factors that have an impact on their
dining experience.
Loyalty project Segregating loyal customers based on recency, frequency and monetary.
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CHAPTER 2
FINDINGS AND
ANALYSIS
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Percent
Valid Percent
Cumulative
Percent
Less than 20
Valid
9.7
9.7
9.7
20-30
23
31.9
31.9
41.7
30-40
25
34.7
34.7
76.4
40-50
12.5
12.5
88.9
50 and above
11.1
11.1
100.0
72
100.0
100.0
Total
Maximum number of consumers base belongs to 20-30 & 30-40 age group.
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Fig.2 Gender
Gender
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
Male
44
61.1
61.1
61.1
Female
28
38.9
38.9
100.0
Total
72
100.0
100.0
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Income
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
0-20000
36
50.0
50.0
50.0
20000-50000
22
30.6
30.6
80.6
50000-80000
5.6
5.6
86.1
80000-100000
9.7
9.7
95.8
4.2
4.2
100.0
72
100.0
100.0
Total
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Rating On Parameters
Ratings\
Parameters
(in %)
Variety
Quality of
Service
Taste
Music
Good
Average
Needs
Improvement
Indifferent
84
14
94
89
59
16
20
Interpretation
These parameters are the most important as they actually gave the clear picture on how people like
the food, quality, service and if any further improvements could be implemented as per the
expectations of the customer. As per the data received, it can be said that:
Quality of service is exceptional with 94% of people find no problems with that and find it the best
thing at Vaango.
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Vaangohas scored well in all the parameters having secured 84% and 89% in Variety and taste as
well which goes to show that Vaango is doing well in all the departments. If I talk about music, the
response was a bit different as in it gave a feeling that people are more or less concerned only about
the food, quality and service. The result floated a new thing that 20 % of the people said that they
were indifferent to music.
Popularity
Brand
name
Popularity
(in %)
Sagar
Ratna
51
SarvanaBhawan Naivedyam
22
15
Vaango
Others
10
Interpretation
In terms of popularity Sagar Ratna is way ahead of all other South Indian restaurants. People said
that the main reason behind that is the presence of Sagar Ratna across India. But Vaango should
take a heart from the fact that 10% of the people said that it is the restaurant that comes to their
mind when asked about the South Indian restaurant keeping in mind that it came into being only in
2011 and if Vaango continues to maintain the consistency, then the figure can rise from 10% to
30% in next two to three years.
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Chi-Square Test
Definition: Chi-square is a statistical test commonly used to compare observed data with data we
would expect to obtain according to a specific hypothesis.
2) - Gender
Missing
Percent
72
consumerperception
100.0%
Total
Percent
0
0.0%
Percent
72
100.0%
Chi-Square Tests
Value
df
Pearson Chi-Square
N of Valid Cases
18.817a
21
.597
72
Null hypothesis Ho- There is no relationship between customer perception and Gender of
customer.
Alternate hypothesis Hi- There is relationship between customer perception and Gender of
customer.
Interpretation
As p value is .059 which is more than alpha value (.05).Hence, Null Hypothesis is accepted;
therefore there is no relationship between customer perception and Gender of customer.
ANOVA:
Definition: A statistical analysis tool that separates the total variability found within a data set into
two components: Random and Systematic factors. It is used to determine the impact of independent
variable have on dependent variable in a regression analysis.
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2) Income
ANOVA
Sig.
Between Groups
Total
.023
71
Null hypothesis Ho- There is no relationship between customer perception and income level of
customer.
Alternate hypothesis Hi- There is relationship between customer perception and income level of
customer.
Interpretation
As p value is .023 which is less than alpha value (.05).Hence, Null Hypothesis is rejected; therefore
there is relationship between customer perception and income level of customer.
3)-AGE
ANOVA
Sig.
Between Groups
Total
.916
71
Null hypothesis Ho- There is no relationship between customer perception and age of the
consumers.
Alternate hypothesis Hi- There is relationship between customer perception and age of the
consumers.
Interpretation
As p value is .916 which is more than alpha value (.05).Hence, Null Hypothesis is accepted;
therefore there is norelationship between customer perception andage of the consumers.
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Paired T Test :
Definition- Given two paired sets Xi and Yi of N measured values, the paired t-test determines
whether they differ from each other in a significant way under the assumptions that the paired
differences are independent and identically normally distributed.
Std. Deviation
Quality
1.60
62
.757
.096
Variety
1.58
62
.560
.071
Correlation
62
Sig.
.097
.451
Mean
Pair 1 Quality
variety
.016
Std.
Std. Error
Deviation
Mean
.896
.114
of the Difference
Lower
-.211
Upper
.244
t
.142
Df
Sig. (2-tailed)
61
.888
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Std. Deviation
2.65
71
.972
.115
visit again
2.72
71
.814
.097
Correlation
71
Sig.
.162
.178
Mean
Pair 1 offers are attractive visit again
-.070
Std.
Std. Error
Deviation
Mean
1.163
.138
of the Difference
Lower
-.346
Sig. (2-
Upper
.205
t
-.510
df
tailed)
70
.611
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3 Reputed Brand and Referral to Friends :
Std. Deviation
reputed brand
2.29
72
.759
.089
2.99
72
1.000
.118
Correlation
72
and family
Sig.
.024
.842
Mean
Pair 1 reputed brand - refer
my friend and family
-.694
Std.
Std. Error
Deviation
Mean
1.241
.146
of the Difference
Lower
-.986
Sig. (2-
Upper
-.403
T
-4.750
df
tailed)
71
.000
Interpretation:
H0:Reference by customers to their friends and familydoes not lead toReputation of Brand.
H1:Reference by customers to their friends and family lead toReputation of Brand.
As the value of alpha is less than 0.05 therefore we will reject the null hypothesis so there is
significance difference between the Reputation of Brand and Reference by customers to their
friends and family. So Reputation of Brand is not affected by the Reference by customers to their
friends and family.
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Factor Analysis:
Definition: any of several methods for reducing co relational data to a smaller number of
dimensions or factors; beginning with a correlation matrix a small number of components or factors
are extracted that are regarded as the basic variables that account for the interrelations observed in
the data.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity
.546
Approx. Chi-Square
217.605
Df
105
Sig.
.000
.356
Taste
.800
Variety
.090
Music
.461
conveniently available
.724
reputed brand
menu is simple n easy
.792
.513
.695
.924
Indian
payment transactions quick n
.777
easy
beverages has unique taste
.900
.692
visit again
.894
.568
.854
Interpretation:
According to the factor analysis the fifteen factors of consumer perception have been combined in
6 factors.
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The data we received is as follows:We did a survey on KFC on people with age group of mostly 20-25yrs. Mostly all were
open to KFCs recipe , and following were the results. As seen below KFC has shown a good
report on all the micro factors that we considered.
We also asked questions on whether they would like KFC to start home delivery services.
We also inquired How close is the nearest KFC outlet from your house?
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CHAPTER 3
CONCLUSION
AND
SUGGESTIONS
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To justify the price we can increase the portion size of meals, especially Idli, curd rice and
upma(by 15-20 grams)
One more order taking counter should be opened to reduce the waiting time in queue.
Most of the respondents are regular customers, some sort of discount card or reward points
card can be distributed to these customers to gain their loyalty.
Support or sponsor a local team, event or good cause it doesnt need to be a significant
investment but a local restaurant will get a lot of goodwill mileage out of a local tie-in
opportunity. Use your parking lot for a drop off point or an area for activity.
Use friends and family discounts by giving loyal customers a handful of discounted offers
that they can share with their friends it spreads your message in an honest way.
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Free Product Drawing - Everyone loves the opportunity to win. An inexpensive and easy
way to encourage increased sales and enhance your mailing list is to conduct a weekly, bi-weekly
or monthly drawing for free product. Encouraging patrons to drop their business card for a
drawing is an easy and effective way to reward customers.
In GIP from 11:00 to 4:00 pm Most of the consumers are of the age group 15 to 22, so
Lovers combo (With Heard shaped Idlis, wada and Dosa with a special gift) should be
introduced to attract them.
Outlet isnear the food court so to attract children Children Combo(With small plates
having mascot photo in it , mini idlis, French fries and mini dosa and a gift) to attract them should
be introduced.
To make the web presence more evident following things could be done:
Cross Promotion tie-up with mobile recharging websites for voucher coupon distribution.
Consumers came to the outlet when they were roaming around in the mall so to attract
more such customers innovative flyering should be done.
Products like Lemon rice,friedidli and dosa,couple combo variety should be introduced
because customers want menu additions.
Outcome/Contribution:
The outcome/contributions of this project report in improving brand visibility, were remarkable and
are summarized as follows:
Increase in average daily sale of Vaango GIP outlet by Rs. 4325
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After the companys SWOT analysis, it was suggested more vigorous flyer distribution by the
Vaango staff, a significant increase in footfall was observed and the sales went up by Rs.4325, later
as suggested by the marketing team of Vaango an inflatable mascot was also used to draw attention
of the crowd. Also, the cross promotion Tie Ups done greatly helped vaango to increase its ADS.
Increased visibility on web world:
On the lines of proposed suggestions after web presence analysis following steps were taken by the
management:
Delhi, Gurgaon, Ghaziabad and Noida Vaango outlets were listed on Google maps.
Slides were added to the homepage featuring launch of new Vaango outlets.
Pictures of their outlets were added to the album on their Facebook page.
BOGO(Buy 1 Get 1) offer was introduced in weak days.
Kitty parties converted by me helped in increasing July-August sale by 7.14%.
Cross promotion tie ups initiated by me helped in attracting around 10 new customers every
day.
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BIBLIOGRAPHY
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BIBLIOGRAPHY:
WEBSITES
http://www.genesyslab.com/system/files/2673_ISG_EMEA_Retail_screen.pdf, pp.7-10.
http://www.businessgroupinc.com/PDFs/Promotion%20ReactanceThe%20Role%20of
%20Effort-Reward%20Congruity.pdf, pp.726-728
http://ag.arizona.edu/arec/wemc/nichemarkets/06marketingandpromotionresources.pdf,
pp.3-4
http://www.richmediahouse.com/RMH/integrated_brand_communications.pdf
http://india.gov.in/allimpfrms/alldocs/16452.pdf
http://www.evolutiononline.net/en/benefits/market_research/markenkommunikation.aspx
http://www.free-press-release.com/news-devyani-international-launches-vaango-
1300107417.html
http://www.wikinvest.com/stock/Yum!_Brands_(YUM)?ref=relatedpages
http://www.slideshare.net/sjhus/brand-communications-presentation
http://www.brandchannel.com/papers_review.asp?sp_id=1322
http://www.da-group.co.uk/index.php?option=com_content&view=article&id=18%3Athecommunication-mix&catid=2%3Amarketing-lectures&Itemid=3
http://www.small-biz-marketing-tips.com/marketing-communication-strategy.html
http://www.zomato.com/ncr/restaurants?q=vaango
http://www.rjcorp.in/
http://dil-rjcorp.com/
www.vaango.in
marketing channel
KivetzRan,Kurtis KR,
Thilmany
Dawn:
Leveraging
existing
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ANNEXURES
ANNEXURE 1
Questionnaire on consumer perception towards the elements of marketing mix
at Vaango
Personal Information:
Name :
Gender Male
Female
Age(Years) :
Less Than
20
20-30
30-40
40-50
50 and above
Salary :
0 - 20000
21000 - 50000
51000 - 80000
81000 - 1000000
100000 above
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S.No.
Particulars
1)
2)
3)
4)
5)
Ambience is excellent
6)
7)
Vaango isconveniently
available
Vaango is a reputed brand
8)
9)
10)
11)
12)
13)
14)
15)
Vaango website is well
54 | P adesigned.(www.vaango.in)
ge
16)
I was well aware of this
brand
17)
I Liked the quality of food
58
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ANNEXURE 2
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Acknowledgement
We would like
to express
my hearty
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Prashanth Kumar
PGDM : 2013 15
Place : New Delhi
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(20130132)