NEW PRODUCT DEVELOPMENT AT KFC

EXECUTIVE SUMMARY

Restaurant business is one of the oldest known to man and to a large scope is still
an art and will remain so in future. System and practices make the job of managing
a hotel or restaurant much similar, but the human element is difficult to systemize.
It draws up economics, psychology, management, food technology, architecture and
marketing clustered together. It is a business of hospitality.
Multan is one of the oldest cities of Pakistan and is expanding everyday. The trend
of the people of Multan is itinerant broadly towards modern means of socializing
and relaxation. People are getting more involved in fast food. Therefore, we have
worked on the marketing management of KFC to see how its affecting the lifestyle
of people in this locality.
KFC, the name requires no explanation. It is a chain of restaurants operating in more
than 80 countries with over 1000 outlets around the world. It is part of the Tricon
restaurants internationals which is one of the most leading multinational
organizations in the world.
In this report, we have discussed the history of KFC; Its evolution and expansion in
Pakistan, KFCs sales and promotion techniques, operational activities and unique
style. This organizations internal and external analysis, its strengths, weaknesses,
opportunities and threats are discussed in this report.

We have proposed a new product, Chocolate Brownies, which satisfies the KFC
customers who seek dessert in the restaurant but find none. We have discussed its
marketing strategies and pricing policy. If this product is actually introduced, more
customers and more value will be attracted towards KFC.

KENTUCKY FRIED CHICKEN

Food, fun & Festivity, this is what KFC is all leading the market since its inception;
KFC provides the ultimate chicken meals for a chicken loving nation. Be it colonel
sanders secret original recipe chicken or the hot & spicy version, every bite brings a
yum on our face. At KFC we can proudly say, We do chicken right.

Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has come a long
way. With over 10,000 outlets in the world, KFC has maintained its title, for the last
60 years, of being the chicken Experts. Opening the first KFC outlet in Gulshan-eIqbal in 1997. KFC wore the title of being the market leader in its industry. Serving
delicious and hygienic food in a relaxing environment made KFC everyones
favorite. Since then, KFC has been constantly introducing new products and opening
new restaurants for its customers. Presently KFC is branched out in nine major cities
of Pakistan (Karachi, Lahore, Gujranwala, Sukkur & Muree) with more than 45
outlets nation-wide.
KFC MILESTONES IN CORPORATE HISTORY
1964 John Y, Brown and Jack Massey purchased Kentucky Fried Chicken for US $ 2
million.
1969, Corporation listed on the New York Stock Exchange, Colonel buys the first
100 shares.
1986 Kentucky Fried Chicken purchased by Pepsi Co.
1991 New logo is introduced, replacing Kentucky Fried Chicken with KFC.
1992, In Japan, KFC opens its 1000 restaurant.
1994 KFC opens its 9000 restaurant in the world in Shanghai China.
1997, Tricon Global restaurant and Tricon Restaurants International (TRI) founded
on October 7th.
KFC TODAY
Today, KFC is the worlds largest and most well known chicken restaurant chain,
with more than 10,000 locations worldwide, in 78 countries. KFC and its franchisees
employ more than 200,000 people worldwide.
KFC serves more than 4.5 billion pieces of chicken annually, to approximately 7
million customers a day, worldwide.
MISSION STATEMENT

To establish in Pakistan our position as the leading WQSR (Western Quick Service
Restaurant) chain, serving good value, innovative chicken-based products.
Consistently providing a pleasant dining experience, with fast friendly service, in a
clean and convenient location. At all times, we must be dedicated to providing
excellent service and delighting customers.
THE CHAMPS PROGRAM

Champs stands for the belief that the most important thing each of us can do is to
focus on the customer. It stands for KFCs commitment to provide the best food and
best experience for the best value.
Champs stands for the six universal areas of customer expectation common to all
cultures and all restaurant concepts. They are:

Cleanliness

Hospitality

Accuracy

Maintenance of Facilities

Product Quality

Speed of Service

Champs is a philosophy to ensure that the customer has a consistent quality

experience in every restaurant, every day, on every occasion and you will be
playing a key role in delivering Champs to our customers.
KFC IN PAKISTAN

Apart from fulfilling our commitment of serving delicious, fresh and hygienic food
and at the same time providing our customer with the ultimate entertainment; KFC
also plays in the economics development of our country.
Presently KFC has provided to over 1200 Pakistanis, which adds up to 6000
individuals directly dependent in KFC Pakistan.
The Government of Pakistan receives over Rs.10 million per month from KFC
Pakistan as direct taxes.

95% of all food and packing material used in KFC Pakistan is procured locally, which
sums up to a purchase of over Rs.35 million per month.
Each new outlet developed by KFC Pakistan costs approximately Rs.40 million,
which is a huge amount for our construction industry.

MARKETING
TARGET MARKET OF KFC in PAKISTAN

Kentucky Fried Chicken has been franchising all over the world for years. They have
about 30,000 franchises all over the world. Ever since Pepsi co. has bought into the
restaurants chain the have started an expansion program, which has focused not on
the increasing number of the outlets but on the increasing number of branches all
over the world operating in full order. KFC has been in Asia for considerable amount
of while and as it has the policy of novelty and pioneering in branching into foreign
markets it opened its first branch in Lahore on June 20, 1997. It was opened in the
most interactive area of Lahore, Barkat Market. Before opening here the KFC people
conducted a research which was known as the Barkat Market Analysis. The chain
has been in the expansion mode for a few years and they branched into Pakistan
after researching the market of Pakistan especially Lahore.

The reason behind targeting the Lahore market is that they have a very mobile food
culture. The Lahore culture is a ready market for any new fast food franchises as the
success of KFC proved, and was followed by the opening of McDonaldss Pizza Hut in
the foreign market and many other local successful fast food outlets.

Pakistan supports a very well versed and varied palate and a colored culture that
strongly supports the system. They have targeted the market armed with spicy
variations of chicken i.e., hot & crispy, and hot wings that are not there in the
international market, but are specially designed for the pakistan palate. Its branch
in lahore is one of the best in asia. In lahore they targeted the most mobile culture
first; students of lahore. They focused all the areas well surrounded by educational
institutes, as where their first branch is the center of all student activity. Not only is
it near institutes like pu and ilm but also near a lot of the business complexes, thus
catering to companies as well. So kfc targeted its market very well in pakistan and
has been spreading with quite a speed since then. It has continued its aim in
pioneering most of the affluent cities of the country.

place

Some important strengths of KFCs marketing strategy include a number of changes

they have implemented in the past few years to increase customer access. KFC has
answered the fast-food consumers demand for availability in non-traditional
locations by opening restaurants in shopping malls, airports, stadiums, amusement
parks, office buildings, and mobile units (Krug, 1996).

As an additional outreach to their customers, KFC has initiated a home delivery

service in 14 states (KFC 1997). As of February 27, 1997, KFC has more than 9,800
outlets located in 77 countries (KFC 1997).

IN MULTAN

The area selected for the building is the most affluent and trafficked area of Multan
city, Cantt. It was selected due to its visibility and easy accessibility. The Cantt area
is amongst the largest shopping area of the city and the affluent shoppers frequent
this area. Its centralized location has added to the success of the restaurant.

The restaurant building of Multan is the largest outlet in Pakistan. This outlet is
catering to the city as well as the surrounding area that includes Khanewal,
Muzaffargarh and the similar small localities.

Chicky Fun Area

Railway Services Club,

Bahawalpur Road
Opp. Multan High Court,
Multan.
Ph: 111-532-532

TARGETED CUSTOMERs

In Multan the most affluent class that frequent KFC is the business and landlord
class. In the general customers as before the people of KFC have targeted the
families and the students who are on the outlook for a quick bit. Another factor is
that following in the foot steps of the trend setters, Lahore and Karachi food trends
are diverting more and more towards fast food every day. So most of the young
generation here was craving for a quality fast food outlet. Now that KFC has
pioneered the fast food culture development Pizza Hut and McDonalds will follow.
Most of the people here are businessmen and their affluent families are vigilant
trend followers as they are the most influential people so previously they spent their
fortune in fast foods outside the city and now they can do it in Multan KFC. Since
the progress in the job sector the number of the working women is steadily
increasing in the city and so is the trend to frequent the fast foods.

Focusing on the family outing culture in Multan KFC has specially developed a kids
playing pen that allows the families to have a quality time in the restaurant. The
atmosphere here is exactly what families are looking for, so they have been more
successful in attracting their target market then their predecessors. Another
weakness of the Multanis that they have targeted is the tendency towards the
chicken consumption. Since the people here are less vege-oriented they have an
edge to their product. They have successfully attained their target market by only
introducing HOT & CRISPY that in keeping with the peoples tastes here that are
inclined towards spicy foods.

They have also introduced a special combo 4 to cater the masses in the city.

They population here is very price sensitive which has been dealt with KFC by
maintaining a regular price range all over Pakistan. They have successfully targeted
the opinion leaders, the business in the city that set the trends followed by most of
the people here.
PRODUCTS

In 1992, KFC expand their menu to include a greater variety of foods that are lower
in fat than fried chicken, such as Oriental Wings, Popcorn Chicken, and Honey BBQ
Chicken. They also introduced a dessert menu, which provided a selection of pies

and cookies. By the end of 1992, KFC held 49 percent of the $7.0 billion US chicken
segment of the market (Krug, 1996).

In 1993, KFC offered a new rotisserie Chicken menu item. They also offered a lunch
a dinner buffet in at least 27 states (Krug, 1996). In 1995, two new products were
introduced: Chunky Chicken Pot Pie and the Colonels Crispy Strips. In 1996, KFC
introduced their Tender Roast Chicken, with projected sales of $500 million during
the first 12 months (Like1997).

KFC uses traditional taste testing methods implemented by the Colonel

approximately 40 years ago. To ensure only the highest quality and best tasting
products for KFC, a team of six franchisees and operators and two chefs comprise
the KFC Chefs Council who develop, taste, rate and evaluate new product ideas
(like 1997). The Chefs Council members are from various parts of the country,
representing regional taste preferences of their customers. Once a new product has
passed inspection by the Chefs Council, KFCs market research department
conducts additional tests. Each week 100 people, who represent customers, taste
the newest products. If the products receive a good taste rating, they are then
tested in three or four cities. The Colonels quote still stands for KFC If it doesnt
taste good, dont serve it to the customer. (Like, 1997).

Products that KFC offer are almost same throughout Pakistan, but slightly differ from
other countries but not too much.

The secret of KFC's world-wide success is due mainly to three key benefits - quality,
taste and convenience.

KFC now offers a diverse and interesting menu which includes:

Arabian rice

Cheese

Col. Chicken burger

 Col. Fillet burger

Corn on the cob

Dinner rolls

Fries

Hot and crispy soup

Hot wings

Machos burger

Nuggets
Cappuccino

Espresso

Frothe

Hot shots

Machos

 Milo

Mineral water

Moccacino

Soft Drink

Zinger burger
A typical KFC meal consists of chicken, coleslaw and potato & gravy. All of the
ingredients are of the highest quality and freshness. To ensure this, the company
sets rigorous standards for product uniformity and quality, which must be met by all
suppliers.
BCG Matrix of KFC

INTRODUCING chocolate BROWNIES

Right now there is no dessert in KFCs menu. Therefore we plan to introduce

Chocolate Brownies for chocolate lovers. We expect to catch the interest of a
regular loyal customer base with its vast selection of brownies, including not-sotraditional flavors.

We will focus on

 Providing the highest quality product.

Competitive pricing.

New ideas and flavors.

Local markets, with a special focus on coffee shop and bakery customers.

We will sell chocolate brownies coupled with exceptional customer service in a warm
atmosphere. Customers can dine-in and enjoy a warm or cold beverage to
complement their brownie. Toppings will also be available when customers dine in
for children, as well as the young at heart. We will also offer carry-out so customers
can enjoy the treats at their own convenience.

Market Segmentation

Our market is divided into four different psychographics: Comfort Creatures,

Celebrators and Soccer Moms. They represent groups of people sharing similar
behavior patterns and reasons for frequenting KFC to get the brownies delight.

Comfort Creatures are mainly the more successful of workers who are driven by
status and prestige yet miss homemade comfort foods of their childhood. They may
stop in on their own or bring clients in for a brownie experience.

Celebrators fit into the vast category of people celebrating special occasions.
Birthday, anniversary, graduation, valentine's day, etc., families and loved ones will
gather at KFC and will enjoy our chocolate brownies for a fun, tasty, and festive
atmosphere.

Soccer Moms is the title given to the moms who remain busy in usual home work
and find little time for fun. KFC is a gathering place where families are welcome and
feel comfortable. "Moms" can come in for after school treats with their children and.
Or they can meet up with friends for a fun day out - a little civilized time stolen in
the midst of a busy day.

Target Market Segment Strategy

We have specifically targeted segments of people with an appreciation for delicious

desserts and a need for comfort and relaxation. KFC is a haven for the busy &
successful who want to treat themselves to something soothing and a little sinful! It
doesn't take a lot of time, yet is so rewarding.

These people will value the high quality product presented. Our customers will also
appreciate the fun and fast service - whether celebrating a birthday or stopping in
for a break between shopping.

Competition and Buying Patterns

Although we are opening up a new product, there is no doubt that we are competing
with a variety of similar businesses. We need to compete against the ideas that
dessert is something that only follows a special dinner and needn't be any better
than a frozen cake. We want every day to be a reason to celebrate. And being able
to have a vast array of options for your favorite chocolaty treat is an idea that
appeals to everyone.

The comfort factor plays an important role in consumer decisions about sweets.
Both the atmosphere and staff of KFC excels at warm & friendly. At the same time,
the menu will reflect familiar favorites such as chocolate chunk or turtles, while
there will be flavors for the more adventurous as well, such as pistachio brownies.
We will use the highest quality product; sometimes paring the ordinary with the

exotic, but we will always present our brownies in a stylish and aesthically pleasing,
but still unintimidating manner.

Marketing Strategy

Our marketing strategy will be education of the consumer and subsequent word of
mouth. Customers will be reached through neighborhood advertising, special
promotions, and most importantly, word of mouth.

We will target progressive and generally well-educated and affluent consumers who
are interested in high quality brownies experience and are dissatisfied with the
limited selection and lack of personal service found in grocery store bakeries and
neighborhood cafes and coffee shops.

PRICING OF OUR BROWNIES

Manufacturing Cost
Rs. 75

5% Marketing Cost
Rs. 4

Total Cost
Rs. 79

15% G.S.T +15% RETAIL MARGIN

Rs. 20

Total retail Price

Rs. 99

We are sure that our delicious chocolate brownies will attract the ultimate chocolate
lovers and fulfill their choco-delight. Our affordable price makes it possible for
children and youngsters to enjoy aesthically pleasing brownies with high satisfaction
and fun.

PROMOTION

In 1991, the Kentucky Fried Chicken logo was changed to KFC in an effort to
decrease emphasis on the Fried element of their chicken (Krug, 1996).

In 1993, KFC implemented new Neighborhood Program targeting company owned

restaurants in designated areas to offer ethnic menu items relative to the
demographics of those specific areas. Houston, Dallas, Los Angeles, St. Louis, New
York, Chicago, Philadephia, and Washington, D.C., offered side dishes to appeal
exclusively to the black communities in this promotional effort. They also promoted
the Neighborhood Program at these locations by wearing African inspired uniforms
(Krug, 1996). In Miami, KFC tested 13 Hispanic-oriented restaurants by offering side
dishes consisting of Mexican food items. These promotional efforts increased sales
from 5-30 percent in the testing areas (Krug, 1996).

In June 1996, KFC decided to bring back the Bucket. The bucket had been
removed from their outlets in efforts to reduce costs. The cost of bringing back the
bucket is approximately $2 million.

However, the projected sales are approximately 30 million buckets through June
1997. A 1988 study by Arizona State University revealed the following the
Colonels mug (or face) and the KFC bucket were two of the three most-recognized
symbols in the United States (Birth 1997).

In December 1996, KFC promoted their KFC Mix & Match bucket using the dog
Moose from the Frazier television show. This particular advertisement was aimed
at football fans during the bowl season, and continued to air through Super Bowl
Sunday.

KFCs latest promotional efforts are centered on their honey BBQ Tender Roast
Chicken. Celebrities included in their efforts were based on a survey of 1,815
randomly selected people, age 18 and over (KFC 1997).
ADVERTISEMENT STRATEGY

Floating Trucks:

KFC Pakistan adopts a very interesting way of advertisement as for as their business
as concerned that is Floating Truck. When KFC Pakistans Restaurant Support Center
introduces a new product in Pakistan they adopt this way and there Floating Trucks
travel through out the city at where they have KFC stores. Generally it is a very
effective way of advertisement through which maximum of their customers are able
to know about their new products that they introduced.

In House Publicity:

KFC Pakistan has another way to advertise their business is in house publicity in
which they use banners, electronic boards, broachers, etc to tell their customers

about packages, prices, products detail, new products and all other information
that customers want.

By Phone:

KFC Pakistan stays in Touch with their potential customers by using their database.
They informed their potential customers about the new products and packages by
phone because they have their phone numbers in there database.

Print & Electronic Media:

Internationally KFC advertise their products through electronic media also they use
worlds famous T.V channels, news papers, magazines, etc.

Internet:

All most all the KFCs well developed franchises have their own websites through
which they advertise their business very well, but they also use other websites for
advertising purposes like hotmail, yahoo, google, etc.

E-mail marketing techniques are used by KFC to promote their business. They use
their own database to send e-mails to their value added customers to informed
them about new products, packages, discounts, etc and uses third parties to
promote their business through e-mail marketing.

Media Coverage:

KFC Pakistan also uses common ways for advertising like news papers, cable TV
networks, a big road side boards, etc.

In focus:

In focus is a single page monthly news paper published by KFC Pakistan which has
one side in English and other in Urdu and available in KFC lobbies. It is for
advertising and information purposes.

Price:

Prices of KFC products all over the world are almost same but slight difference in
currency exchange rates, manager Sameer Gohar said. In Pakistan although
average people are not afford KFC prices, the potential customers of KFC gave a
satisfied sale at all KFC stores.

COMPETITORS

Worldwide KFCs major competitors McDonalds, but there are no direct competitors
of KFC in Multan but there are some indirect competitors like Lasani Fried Chicken
(LFC).

K&Ns VALUE CHICKEN PLANT

The main suppliers company is K&Ns. Their slogan is The Chicken praised at KFC is
raised at K&Ns.

When the chicken business for the KFC people became overloaded and they wanted
to maintain the quality of their chicken so the Artal group set up a plant producing
quality chicken called. K & N value chicken in Raiwand by the name of Artal
International plant. Since they have been producing good chicken catering to the
demands of all the best quality restaurants in Pakistan.

FOOD SAFETY

KFC French fries Composition

Potatoes, Trans fat free oil dextrose.

Seasonings
Original Recipe:

Salt, herbs and spices, garlic powder.

Milk and Egg:

Non fat milk, dried whey and dried egg whites.

Hot and Spicy:

COM starch, sodium bicarbonate, sodium, aluminum phosphate, Dextrose, modified

cornstarch, extractives of turmeric.
SHORTENING:

Pure vegetable oil (soybean).

CHICKEN AND ITS PRODUCTS

Locally produced and processed chicken, Supplied in frozen form.

100% Halal.

KFC NUTRITIONAL INFORMATION

Serving size
Calories
Total fat
Cholesteerol
CHO
Protein

Origional Recipe-Wing
47(g)
145(g)
9(g)
60(mg)
5(g)
11(g)

Origional Recipe-Breast
161(g)
370(g
19(g)
145(mg)
11(g)
40(g)

Original Recipe-Drumstick
59(g)
140(g)
8(g)
75(mg)
4(g)
14(g)

Original Recipe-Thigh
126(g)
360(g)
25(g)
165(g)
12(g)
22(g)

Hot & Spicy-Wing

53(g)
180(g)
11(g)
60(g)
9(g)
11(g)

Hot & Spicy-Breast

179(g)
450(g)
27(g)
130(mg)
20(g)
33(g)

Hot & Spicy-Drumstick

60(g)
140(g)
9(g)
65(mg)
4(g)
13(g)

Hot & Spicy-Thigh

128(g)
390(g)
28(g)
125(mg)
14(g)
22(g)

Original Recipe-Fillet
206(g)
450(g)

27(g)
60(mg)
22(g)
29(g)

Zinger Burger
246(g)
640(g)
40(g)
405(mg)
38(g)
32(g)

Hot Wings
144(g)
460(g)
30(g)
125(mg)
22(g)
25(g)

Corn on the Cob 3"

82(g)
90(g)
0.5(g)
0(mg)

19(g)
2(g)

French Fries
100(g)
136(g)
3.7(g)
1(mg)
23.3(g)
2.3(g)

DELIVERY METHODS

Self Service

KFC stores offer self service to sell their products means customers go at counter
and purchase products pay for it, no involvement of waiters and if customers want
to eat at KFC store they sit at lobbies one for common people other for only families
otherwise.

Home delivery

It is a way of buying KFC products without going at KFC stores. All KFC stores in
Pakistan offer Free Home Delivery service within just 30 minutes. Orders are
received at KFC stores only through telephone. They want only address at which
their team members supply that order and he received a payment for that product.

Take away

Take away process means customer buy KFC products from counter pay for it and
go away, it means he didnt want to sit in KFC lobby to eat. It is possible that
customers who use Take Away method of buying KFC products are enjoying KFC
products at other places like home or picnic spots.

At store

Most of the KFC buyers want to eat KFC products in lobbies of KFC stores because a
very entertaining atmosphere is provided by the KFC management in lobbies
especially for children.

Drive Thru

Drive Thru is the method of buying products used at almost all KFC stores in
Pakistan. In it when customer is in vehicle like cars, jeep, bike, etc go at KFC store
and purchase without coming out of his vehicle, he drive up to drive thru counter
pay for product and at next counter collect his product and go away. It is the facility
in which customer is able to buy product without spending too much time at store.

Catering

Catering is a process in which KFC team cook and serve their products at a place
where u want like at house, office, etc. for example some people wants to give to
eat to their guest a KFC products at his marriage or birthday function he can do this
very well by using a special facility offered by all KFC stores in Pakistan.

PAYMENT METHODS

Cash

It is the most popular and widely used method of payment when we are going to
sell or buy something, Irrespective of its some drawbacks such as security risks, its
bulky volume, and time consuming counting process.

At all KFC stores in Pakistan Cash is the main and normally used method of payment
when customers buying products at KFC stores.

Credit Cards

Almost all the stores of KFC Pakistan accept almost all types of credit cards such as
Master, Visa, etc. as for as KFC Multan as concerned they start accepting Credit
Cards within 2 or 3 weeks, Restaurant Manager said.

Debit cards

All the stores of KFC Pakistan accept debit cards and they made quick transaction
by their access machine which is directly linked with respective banks such as
Muslim Commercial Bank, United Bank Limited, Habib Bank Limited, Meezan Bank,
ABN AMRO Bank, etc.

Customer Interaction

All the KFC stores have very good customer interaction with their customers
because they know the worldwide accepted rule of B2C type of business that is

Customer is the King

So thats why they regularly get a feedback from the customer and remain be in
touch with their potential customers also.

All KFC stores are very efficient in sense of getting feedback from the customers
they use Comment Cards to get feedback about their product and services and also
an information about the customers that they use later to be in touch with their
potential customers. By using Comment Cards all the KFC stores collect information
about the customers and maintain a database using all the information. They
compile that Comment Cards very carefully and collect the information about the
good and bad sides of their stores, point out them and send that information to
Head Office Karachi and higher management take decisions on the behalf of that
information collected by using Comment Cards for the betterment of KFC Pakistan.

PEST ANALYSIS

Political Factors

Due to political stability in Pakistan, these days all businesses are flourishing and
same is the case with KFC.
As there are huger chances of investment these days, so KFC is following GROWTH
STRATEGY all over the country and targeting 50 outlets in Pakistan, also searching
place for another KFC outlet in Multan.
But some areas like Peshawar has political unrest due to MMA and their policies are
affecting KFC being an American organization.

Economical Factors

Socio-economic trends are mostly encouraging with increases in disposable income,

more working women, increase in hoteling and increases in tourism all positive
signs for the catering market.
There are also catering sectors, such as restaurants and takeaway food, which are
now a part of the regular eating habits of a majority of adults.
The increasing purchasing power of people is affecting KFC sales positively.
Taxes are regularly paid
In summer KFC has more sales than in other season because KFC provides a good
chilled environment and Zenzibar like restaurants charge for air conditioners.

Social Factors

In Pakistan KFC is playing a very active role for education sector. It has invested
much for inauguration of schools in different areas of Pakistan e.g in Karachi it as
made a school for disabled children.
Also throughout Pakistan it is funding for libraries.
Donating much to NGOs for less fortunate people.
At the start of KFC in Multan a mega function with meal was given to SOS kids.
Chicky Fund Raising i.e getting second handed books etc. from different schools and
distributing them among less fortunate students is also done through different
campaigns.
For the most recent incident of Tsunami KFC arranged concerts in Karachi in which
singers like Ali Zafar, Hadiqa, Haroon etc. were invited and all the amount collected
from such type of concerts was donated to Tsunami victims.
Major events are special focus of KFC e.g Mothers day, Fathers day,Valentiness
day, Eid days etc. and they offer different packages too.
Self Service:

Cupola Cares Foundation

Cupola Cares Foundation is a non-profit, registered organization and a charitable

wing of Cupola. We aim to help the underprivileged children by giving them quality
education thereby making an attempt to raise the literacy rate of Pakistan which is
externally low by world standards characterized by low enrolment in primary and
secondary school, high drop out rates and an over all poor quality of education.
Cupola realizes the need for education and intends to build this need at the grass
root level. Our vision is supported by prominent personality of the country who are
also amongst the board of directors of the foundation:

Prof. Danishmand, Dean & Director IBA

Mr. Saifuddin Zoomkawala, Chairman EFU

Mr. Tariq Kirmani, Chairman PIA

 Syed Salahuddin Hyder, C.E.O. Century 21

Mr. Waqar H Siddique, Executive Director Abraaj capital

Mr. Rafiq Rangoonwala, C.E.O. Cupola Pakistan

These are individuals belonging to different corporate sectors and are already
engaged in various forms of community support services and welfare activities.

Technological Factors

KFC is going to adopt the delivery system of Pizza Hut.

Buying new equipments.
The latest tech acquired is always get approved by government.
KFC new UAN no. is 111-532-532
Each and every equipment is licensed.
KFC Tri-state Management uses Linux.
KFC Pakistan plan to become online, because the usage of internet and credit cards
increases. So people using internet can buy KFC products online, because it is a
very cheap and effective way of buy products Department of information
technology of KFC Pakistan is working on it and in future hopefully KFC stores
become online.

Internal Communication

Internally all the KFC Pakistan stores communicate regularly for the betterment of
organization. KFC Pakistan has a Paper Less environment in the organization. They
use Telephone and E-mail facilities to remain in contact with their Head Office

Karachi to plan strategies, share ideas and get instruction to maintain and improve
the business because these two ways of communication are very fast an very cheap
as for as e-mail as concerned, they have no traditional way to communicate like
time consuming traditional mail system.

PoS system:

POS (point of sale) is the physical location at which goods are sold to customers. A
point-of-sale (POS) software terminal is a computer replacement for a cash register.
More sophisticated than traditional cash registers, a POS (point of sale) software
system includes the ability to track customer orders, process credit cards, and
manage inventory.

At all KFC stores in Pakistan PAR Technology Corporations Point of Sale system is
used including both software and hardware.

PAR provide the tools that KFC Pakistan need to increase order accuracy, improve
speed-of-service and raise customer satisfaction levels with software solutions that
can span the entire enterprise - from the front counter to the back office and
beyond to integrate the total organization.

PAR uses reliable Dell hardware to run its Back Office Computer to unleash the
power of business.

Transaction Record

KFC Pakistan uses a complete package of Point of Sale system to keep record of
every transaction occur. All KFC Pakistan stores nationwide use PoS and at the
closing time of the store they send a complete transactional record of that day by
using PoS through internet. Because of this head office maintain their accounts very
well and take quick decision on the behalf of these records.

SWOT ANALYSIS

STRENGHTS

Quality of products.

Leader in almost every market.

Finger licking taste as the other international fast food restaurants in Pakistan
doesnt have that kind of speciality in Fried Chickens.

WEAKNESSES

There is some weakness in the field of KFC menu as it serves only chicken related
products but its competitors like pizza hut and Mc Donalds offer vegetable and cow
meat based food also.

Due to huge expansion by growth strategy there is much pressure on management

department in terms of HRM etc.

OPPORTUNITIES

 KFC plays an important role in increasing employment rate of a country as it hires

persons from local place to fill its staff. So this gains public attention and generates
good will of the organization.

Financially KFC is going very stable and sound organization so still it has much
opportunity of opening new outlets in different areas of Pakistan and the rest of the
world by reinvesting its profits.

THREATS

Prosperity of KFC with in a given region depends upon its economic condition of
the country so if some thing bad happens to it, it can be troublesome for KFC.

KFC recipe is still a secret, and if some one gets this secret then this can play
havoc with this organization.

American invasion into tribal areas of Pakistan is also a threat for KFC, due to
arousal of anti-American sentiments it can lead towards rejection of KFC.

CONCLUSION

On the whole KFC is the name of trust for the customers because there is no
compromise on the quality of the food. KFC fully concentrate on the quality of food
thats why it is the hall mark of excellence among the customers. The supplier of
KFC is K&Ns Foods (Pvt) Ltd. They have good and fully furnished places for Chicks
to grow and finally to provide there valued customers.

By following such practices, KFC is providing a just and equitable environment for
work and through its diversity programs, giving back to the community at various
levels. Doing business internationally means taking stock of the local population and
molding your menus and work practices to suit local tastes, laws and regulations.

The best maxim here is:

Think Globally, Act Locally.

RECOMMENDATIONS

The HR department of KFC is definitely doing its job well as according to Kufahl &
Agoglia (2003), the company has the lowest turnover rate in the fast food industry.
However, when a company reaches the pinnacle of success with regards to any
aspect, it has to try even harder to stay there and maintain its position. Hence, KFC
should try to keep up the good work and maintain the level of commendable
workforce development practices.

KFC is American firm so it can face sensitivity in this case. Because of rude
American attitude towards Muslims countries, people can reject them.

They should start some activities that help them in turning their anti-Islamic image
in the minds of their target customers.

The website of KFC is not well developed so sophisticated information and well
designed data is not available on the net, as mentioned above the I.T. department
of KFC Pakistan has a close look on this area so it is good sign for the internet users
to buy online and get information they need.

Music selection is good but usually they keep music volume so high that it starts
interrupting entertainment. They also do not change music on customer choice.

 Counter service system is acceptable in USA but not in Europe and Asia. In Multan,
KFC stand as trend setter (due to no competition) so this factor does not do any
harm to their profit but it is disliked by 5% people.

Their pricing strategy is out of vision. They charge Rs.105, Rs.135 etc figures. It is
a blunder from the side of marketer that if customer is willing to pay or can pay
more and marketer is charging them less. So they are blowing high % of revenue in
air just because of fake pricing strategy.

As KFC stands in STAR position in portfolio matrix so they should adopt stability
strategy at least for some period of time but still they are adopting further growth
strategy and increasing their level of operations so the same case can happen with
KFC which happened to MC Donalds.

REFERENCES

Shirley Levers - Customer Relationship Executive, KFC, Multan

Web Links:

www.kfc.com

www.kfcpakistan.com

www.yum.com

 www.marketingmaniacs.com

www.google.com

www.yahoo.com

www.pepsiworld.com

www.enquirer.com/editions/2002/08/21/tem_kfc_great_american.html

findarticles.com/p/articles/mi_m3190/is_n8_v25/ai_10403447

www.buzzle.com/editorials/4-30-2005-69337.asp

vmsd.com/content/kentucky-fried-chicken-0

www.roadsideamerica.com/story/7021

www.kfc.co.uk/our-menu/toasted-twister/toasted-salsa-twister/

www.webmd.com/diet/news/20061030/kfc-to-fry-chicken-without-trans-fats

web.archive.org/web/20061224114447/http://www.kfc.com/about/pressreleases/111
406.asp

www.foxnews.com/story/0,2933,229308,00.html

 www.kfc.co.uk/about-kfc

news.bbc.co.uk/mobile/bbc_news/england/nwyl/north/north_yorkshire/664/66418/sto
ry6641819.shtml?l

www.cnn.com/2003/BUSINESS/10/17/anderson.kfc/index.html

www.kentuckyfriedcruelty.com/u-undercover.asp

www.guardian.co.uk/news/2005/oct/28/food.lifeandhealth
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1 comment:

Anonymous10 March 2014 23:22

wow i am impressed
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