Principle of Marketing Introduction Kentucky Fried Chicken (KFC)- one of the most known fast food chains in the world started in the early 1930's by Kernel Sanders in the Southern USA as a small franchise operation. Colonel Sanders has become a well known personality throughout thousands of KFC restaurants World wide. Quality, service and cleanliness (QSC)represents the most critical success factors to KFC's global success. Food, Fun & Festivity, this is what KFC is all about. Leading the market since its inception, KFC provides the ultimate chicken meals for the Chicken Loving Nation. Be it Colonel Sanders secret Original Recipe Chicken or the Hot & Spicy version, every bite brings a YUM on the face. At KFC we proudly say: KFC has more than 11,000 restaurants in more than 80 countries and territories around the World. In 1971, Heublein, Inc. acquired KFC, soon after, conflicts erupted between the Colonel (which was working as a public relations and goodwill Institute of Management & Science 1
This document is about the KFC Marketing Plan For Pakistan.
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Principle of Marketing
Introduction
Kentucky Fried Chicken (KFC)- one of the most known fast food chains in the world
started in the early 1930's by Kernel Sanders in the Southern USA as a small franchise
operation. Colonel Sanders has become a well known personality throughout thousands of
KFC restaurants World wide. Quality, service and cleanliness (QSC)represents the most
critical success factors to KFC's global success.
Food, Fun & Festivity, this is what KFC is all about. Leading the market since its
inception, KFC provides the ultimate chicken meals for the Chicken Loving Nation. Be it
Colonel Sanders secret Original Recipe Chicken or the Hot & Spicy version, every bite
brings a YUM on the face. At KFC we proudly say:
KFC has more than 11,000 restaurants in more than 80 countries and territories
around the World. In 1971, Heublein, Inc. acquired KFC, soon after, conflicts erupted
between the Colonel (which was working as a public relations and goodwill ambassador) and
Heublein management over quality control issues and restaurant
KFC is part of Yum! Brands, Inc., however in the case of Pakistan KFC build the
relation of Quality Service and clealiness for Customer
KFC was acquired by PepsiCo in 1986, it had grown to approximately 6,600 units in
55 countries and territories. Due to strategic reasons, in 1997 PepsiCo spun off its restaurant
businesses (Pizza Hut, Taco Bell and KFC)
Institute of Management & Science 1
Principle of Marketing
“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”.
Kentucky Fried Chicken has become KFC. Does anybody know why? We thought the real reason was because of the "FRIED" food issue. It's not. The reason why they call it KFC is because they can not use the word chicken anymore. Why? KFC does not use real chickens. They actually use genetically manipulated organisms.
These so called "chickens" are kept alive by tubes inserted into their bodies to pump blood and nutrients throughout their structure. They have no beaks, no feathers, and no feet.
Institute of Management & Science 2
Principle of Marketing Their bone structure is dramatically shrunk to get more meat out of them. This is great for KFC because they do not have to pay so much for their production costs. There is no more plucking of the feathers or the removal of the beaks and feet.
Presently KFC is branched out in nine major cities of Pakistan (Karachi, Lahore,
Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad, and Islamabad) with 45
outlets nation-wide. Opening the first KFC outlet in Gulshan-e-Iqbal, Karachi in 1997, and
KFC wore the title of being the market leader in its industry. Serving delicious and hygienic
food in a relaxing environment made KFC everyone’s favorite. Since then, KFC has been
constantly introducing new products and opening new restaurants for its customers.
In Pakistan totally Chicken buy from Pakistani Poultry Forms,and also this Chicken
is 100% Halal.
Cupola is a Dubai based multinational company involved in several business
including, oil gas exploration, plastic cards, retail markets and food franchising.
Institute of Management & Science 3
Principle of Marketing
Cupola holds the master franchise rights to operate KFC in Pakistan
since 1999. That was a major difference that when Cupola takes complete Operate in
Pakistan that was only 05 Outlets in allover Pakistan, and then Now the major difference
that Cupola takes 45 Outlets in Pakistan
Apart from fulfilling the commitment of serving delicious, fresh and hygienic food and at
the same time providing the customers with the ultimate entertainment; KFC also plays part
in the economic development of our country.
Presently KFC has provided employment to over 1200 Pakistanis, which adds up to
6000 individuals directly dependent on KFC Pakistan.
The Government of Pakistan receives over Rs.10 to 11 million per month from KFC
Pakistan as direct taxes.
Institute of Management & Science 4
Principle of Marketing 95% of all food and packaging material used in KFC Pakistan is
procured locally, which sums up to a purchase of over Rs.35 million
per month.
Each new outlet developed by KFC Pakistan costs approximately Rs.40 million,
which is a huge amount for our construction industry.
Annual turn over in Pakistan 2.5 billion.
KFC doesn’t buy its supplies from Pakistan
“KFC and Pakistan…Growing Together”
1) Demographical Factors: Following factors included in the demographical factors of the pest analysis of KFC:-
Institute of Management & Science 5
Principle of Marketing
a) Age: Generally there is no age limit which is focus by the KFC. They target & focus on each and every age of the society. But for somehow in our opinion they target heavily on the youngster as compared to the middle & old age.
b) Gender: In this case they generally focus on the both Males & Females of the society & similarly target them.
c) Household Size:
Household size plays a vital role in the demographical factor of KFC. Generally they target the whole family not a single family members. That’s why he introduced many family packages meals.
d) Population:
Population also plays a vital role in the demographical factor of KFC. In the light of this population they can make their strategy.
2) Economical Factors:
Following factors are included in the economical factors of the KFC:-
a) Income: Income is an important economical factor of the KFC. This factor decides which class KFC is going to target. In the early time of KFC they focusing on the upper class but they introduce some meal through which we can say that they target the middle & the upper level as well.
b) Consumption Behavior:
Institute of Management & Science 6
Principle of Marketing KFC also estimated the consumption behavior of the people, their liking and disliking and make decision accordingly. c) Payment Methods:
Payment method is an important factor in the economical factor of the KFC. They check the behavior of the regarding the payment methods of the people. They check whether the gives money in the form of cash or plastic money.
3) Technological Factors:
Following are the factors included in the technological factor of the KFC:-
a) Pace of Change: Pace of change mean rate of change. KFC has strategy to introduce new technology whenever they think that it is a time to introduce new technology.
b) Research & Development:
Research & Development is also an important factor in the Technological factor. KFC always support the work of research & development in order to introduce the new technology.
c) Capital Formation:
Capital formation means stock of machinery. KFC has a stock of machinery in order to run its business activities. In other words KFC has a good amount of Capital Formation.
4) Political Factors:
Following are the factor involve in the political factors of the KFC:-
a) Government Policies:
Although KFC is a foreign company, but they have to obey the policies of the Government where he run its business activities. KFC has handle this situation
Institute of Management & Science 7
Principle of Marketingvery tactfully and obey the policies of the Government as prescribe by the government in order to run this kind of business.
b) Price Policies:
Price policies is also an important factor. KFC maintain & design its price policies keeping in view the income & income distribution of the people living in the country. That’s why all the classes are the target market of KFC.
c) Political Stability:
Political stability is very important if KFC want to become the leader in fast food business in Pakistan. So this is also an important political factor.
5) Ethical/Legal Factors:
Following are the important factors which is included in the ethical/legal factor of the KFC:-
a) Business Law: Just like the Government Policies the business units which is working in Pakistan also regulate the law regarding the nature of business. KFC also fulfills this factor.
b) Social Responsibilities & Ethics:
Social Responsibilities & Ethics are the important factor. KFC tries his level best to this factor.
6) Social/Cultural Factors:
Social/Cultural Factors includes the following things:-
a) Social Class:
As we discuss earlier that KFC target all the class including the upper class, upper middle and lower middle class etc.
Institute of Management & Science 8
Principle of Marketing
b) Culture:
Though the culture of KFC from where they come is different but they adopt the Pakistani culture also.
c) Religion:
KFC not only adopt the Pakistani culture but also the Religion as well. They offer Halal foods to the customers, which is the symbol that they adopted the Muslim religion.
KFC targets the young generation, as here in this country the young generation is
more towards eating out and is more energetic. It targets the early single segment that is the
upper class.
KFC does not need aggressive marketing or advertising because Brand is strong
enough.
Previously they were focusing on single segment that was through Niche Marketing
by offering “Combo Deals”. Now they are focusing more on other classes as well. They are
dealing in masses by introducing value deals; most recently introduced “Zinger Junior”.
Institute of Management & Science 9
Principle of Marketing
Colonel’s value combo meals introduced previously were expensive
and so there were less sales but through their recent offers, they have increased the sales by
offering low prices.
Inflation highly affects the purchasing power of the customers. And here the
purchasing power of many customers is low. To cover this major segment, they have
introduced affordable meals, so that it is in reach of the masses.
The people here need a friendly and family restaurant, which must be affordable for
them.
Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad and
Islamabad
Institute of Management & Science 10
Principle of MarketingLahore:
Gulberg:
The main Gulberg branch is situated on M.M Alam
Road, which covers a wide area and serves a large number of
customers. This restaurant faces competition with many top Fast Food
restaurants located on the same road.
Defence:
Their Defence Branch in H-Block focuses the potential customers of
Defence.
Barket Market:
This branch covers the area of Model Town, Johar Town, Muslim
Town, Garden Town and Faisal Town. It is situated among many
offices and banks.
Cavalry Ground:
This branch is located in the main commercial zone of Cavalry ground
and mainly serves a large number of customers of cavalry ground and
Cantt.
Shadman:
The Shadman branch is located on Jail Road and serves potential
customers.
Thokar Niaz Baig:
This restaurant branch serves latent customers.
Mall Road:
It serves a large commercial and business area of Mall Road.
Institute of Management & Science 11
Principle of Marketing
Age:
There is no age limit. It focuses on people lying under every age
group.
Gender:
Focuses both genders.
Family life cycle:
It focuses on the whole family.
Social Class:
Upper class, upper middle and lower middle classes are focused.
Personality:
Ambitious, self-confident and extrovert.
Benefits Desired:
Taste and value for money.
(Satisfaction > Expectation)
Institute of Management & Science 12
Principle of Marketing
All restaurant branches are located in accordance with customer’s