EMERGING ENTERPRENEUR STRATEGIES OF KFC

There are different strategies adopted by KFC for different events.

They market their products on different events and in different
activities as they are helping SOS village.
According to KFC, kids become the future permanents customers
and we know very well that without any marketing strategy no
marketing program and no product is successful because we depend
upon customers, customer not depend on us.
KFC is following Niche Marketing and Societal Marketing techniques.
KFC possess a western culture because some of the Indian people
are also
following that culture.
KFC are moving from Divisional Level to the District level by opening
branches.
KFC also offer free home delivery.
KFC open their outlets on reachable places.
KFC menu consists of more than 30 products.
KFC gives more priority to Family.

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

There are 4 Ps of Marketing:

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

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

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:
Taco bell
Pizza Hut
Long john silvers
2. Pricing:
KFC during pricing their products keep the different points in the mind
like they adopt the cost base price strategy. Pricing of the product
includes the Government taxes and excise duties and then they come
at final stage of determine the price of their products. KFC prices of
products are a bit high according to the market segment and it is also
compatible to the stander of their products.
Calculation of the price under Cost Based Pricing Strategy:
Total Pounds of Chicken Served in KFC Restaurant Annually = 1.914
Billion
Total KFC Chicken Pieces Sold Annually = 5.89 Billion
Total Retail Sales = $8.9 Billion
Sales Price of per Chicken Piece = Total Retail Sales / Chicken
Pieces sold
= $8.9 Billion / $5.89 Billion
=$1.51
We assume that Fixed Cost is = $6000000000

Variable Cost = $675000000

Profit Margin is Or Mark Up = $225000000(25% of Sales)
Per Unit Variable Cost = $675000000 / 5890000000
= $ 0.115
Unit Cost = Variable Cost + Fixed Cost / Chicken pieces Sold
= 0.115+ 6000000000 / 5890000000
= 0.115 + 1.02
= $1.135
Now suppose manufacturer wants to earn 2525% mark up on sale.
The manufacturer
mark up price is calculated:
Mark Up Price = Unit Cost / (1 Desired Return on Sales)
=1.135 / (1-.25)
= 1.135 / 0.75
= $1.51

3. Promotion:
Promotion is one of the necessary plates in any form of business or in
other words you can say that promotion is the key of success. If you
promote your product at the right time . KFC also known the
importance and significance of promotion so they uses the bill boards
the major source of advertisement A survey of young consumers in
the countries (n = 795), showed that the respondents were more apt
to eat within KFC restaurants, and spend more time doing so, than
the Americans. The Chinese also had much more positive
impressions of KFC. Brand identity impressions were correlated with
overall customer satisfaction and with future patronage intentions for
both groups. These findings support a model where differences in
cultural frames of reference lead consumers to actively localize the
brand identity of this nominally globalized product.
4. Placement:

In the case of the KFC the placement of the product is not important
but the
placement of the restaurant is important. The products of the KFC is
cooked at the sport and then served after that. KFC Cavalry branch
opened in June 1998, in the main commercial zone of Cavalry
Grounds near the Jinnah Flyover. The restaurant is a three-story
building including the basement (where the chicky play area is
located). It is ideally located in the center of a main commercial and
residential area of Lahore. The area that KFC Cavalry caters for is
the residential and office area of Cavalry Grounds and Cantt, as the
main target market. Another branch the KFC opened in the Lahore is
in Garden Town (opposite to Barkat Market). KFC also target the
Faisalabad and open its branch in D ground. Now we can easily
judge that the KFC target the place for their restaurant, which is well
known and is in the Porsche area where the income level of the
people is high then the middle
class level. Because the prices of the KFC products is high with
comparison to the local products manufacturer who are dealing in the
same kind of product in which KFC is dealing but the prices of the
KFC is high due to special taste, high quality, and due to international
brand, it is the world recognized fast food restaurant all around the
world. So, for the placing strategy, KFC chose the well income class
area for their restaurants.
Purchasing process:
Many people come from home to eat this, and some make impulse
decision as theysaw it .
Market mix Strategy
KFC will be using differentiated market coverage strategy. It means
that different marketing mix will be used for different age groups.
TARGET MARKET FOR FAST FOOD
After evaluation of various segments, KFC has decided to target the
market of Urban and Sub-urban Areas of india.
Product usage
People are educated and they want variety in their diet. Normally
people of rural areas dont take fast food. On the other hand people

of urban areas take fast food. Income of the people of urban areas is
normally high and they can afford to purchase such products, which
are slightly higher in price as compared to prevailing prices of local
food in the market. People of Urban Areas are more quality conscious
than the people of Rural Areas.
In Urban Area there lived people from every walk of life and profit
generation is easier than in Rural Areas.
Population density is higher in Urban Areas as compared to Rural
Areas, so the numbers of customers are more in Urban Areas.
Current target market
Segmentation
KFC has divided the market of India into distinct groups of customers
with
different demands, tastes and behavior who require separate
products or marketing mix.
In India the niche marketing is being used for particular classes of
people.
They have made segments of the market on the following bases.
Demographical
Behavior
Geographical
By using these three bases they segmented the market as under.
DEMOGRAPHICAL BASIS
In demographics their first segment is consisted of the income factor
i.e. high income, average income and low income.
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

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

vegetarian dominated cultured society. South India is especially very

much so. This may reduce the market share of the company. KFC
has not yet invested much on R&D, and innovating new products for
Indian Markets. This may lead to failure of their products as they are
not in line with the Indian mind set, peoples taste and preferences
and their likes and dislikes. This may prove fatal for the company.
OPPURTUNITIES
New Markets: Globalisation has opened doors for new markets for
the company. As the developed markets are mostly saturated, the
developing countries like India and China promises a good market
and generation of demand in the future. With more than 70% of the
markets in india being unexplored and un organised, KFC has a good
scope of expanding its operations in the country. Cross Culture:
Generally there is a good acceptance of American culture of fast food
in India. People are opening up to fast foods more regularly in their
daily lives and not just keeping it a once in a month affair. Thus Indian
mindset is fast changing. Large Youth population: India has a very
large share of youth population a compared to other countries. More
than 60% of the population is under the age of 30yrs. As the young
generation are more open to fast foods and demand it more, this is a
good news for the company. New variety: Company can also come
up with new variety in the menu like Pizzas, garlic breads to attract
more customers.
THREATS
Competition: Competitor companies like McDonalds are fast catching
up with the market. McDonalds with sales of more than 19 billion in
1999, accounted for 15 percent of the sales of the nations top 100
restaurant chains. Organizations like PETA People for Ethnic
Treatment for Animals have given a bad name to the company which
may prove disastrous to the image of the firm. Currently, KFC is
under massive attacks from animal organisations, questioning the
way KFCs suppliers are threatening the chicken, before they got
slaughtered. Anti-KFC campaigns, such as the one from PETA are
affecting KFCs brand image in a negative way and result in direct
dollar losses, as less people are consuming KFC chicken.

Saturated US Market: Now KFC cannot rely on just its home market
to generate sales. As the US markets are already saturated and leave
no or little scope for growth, company necessarily needs to look at
offshore foreign markets to generate sales and keep up the profits.

Promotions
In India KFC not advertise their products too much because people
KFC due to itsreputation in other countries. They promote their
products through special packages. They promote their products
through billboard, pamphlets and through other promotion strategies

Sales promotion
For the sales promotion KFC introduced their goods like watches ,
keychain, etc to the customers.

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

One of KFC's latest advertisements is a commercial advertising its

"wicked crunch box meal". The commercial features a fictional black

metal band called "Helvetica" 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.