Marketing Plan KFC Final

7/30/2019 Marketing Plan KFC Final

1/22

Marketing plan PG (B)

1 | P a g e

Marketing Plan

Submitted by:

Shambhavi Doddawad (70)

Meena Iyer (73)

Charu Shrama (103)

Ruchi Aggarwal (96)

7/30/2019 Marketing Plan KFC Final

2/22

Marketing plan PG (B)

2 | P a g e

INDEX

Sr.no Particulars Page

no.

1. Introduction 3

2. Marketing Mix 5

3. STP 7

4. Models

a. PESTEL 9

b. BCG Matrix 10

c. Porters 5 forces 12

d. Ansoff Matrix 13

e. Financials 16

5 Promotion campaign 18

6 Budget 22

7/30/2019 Marketing Plan KFC Final

3/22

Marketing plan PG (B)

3 | P a g e

Introduction

Vision:

To be the No. ONE Restaurant Company in every category we operate

Mission:

Growth with a Big Heart

Promise:

We guarantee greatTaste

KFC (Kentucky Fried Chicken) is a fast food restaurant chain headquartered

in Louisville, Kentucky, United States, which specializes in fried chicken.KFC

primarily sells fried chicken pieces and variations such as chicken

sandwiches and wraps, salads and side dishes such as French fries and

coleslaw, desserts and soft drinks, often supplied by PepsiCo. Its most

famous product is pressure fried chicken pieces, seasoned with Sanders'

"Original Recipe" of 11 herbs and spices. The exact nature of these

ingredients is unknown, and represents a notable trade secret. Large

portions of fried chicken are served in a cardboard "bucket", which has

become a signature of the chain since being introduced by franchisee Pete

Harman. KFC is famous for the slogan "finger lickin' good", which has since

been replaced by "Nobody does chicken like KFC" and "So good".

7/30/2019 Marketing Plan KFC Final

4/22

Marketing plan PG (B)

4 | P a g e

KFC In India

The first Indian KFC opened in the city of Bangalore in June 1995. Protests

ensued from left wing, anti-globalisation and environmental campaigners, aswell as local farmers, who objected to the chain bypassing local producers.

Many Indians were concerned about the onslaught of consumerism, the loss

of national self-sufficiency, and the disruption of indigenous traditions. The

protests came to a head in August 1995, when the Bangalore outlet was

repeatedly ransacked. KFC Bangalore demanded, and received, a police van

permanently parked outside for a year. Rural activist M. D. Nanjundaswamy

subsequently claimed KFC would adversely affect the health of the

impoverished, by diverting grain from poor people to make the more

profitable animal feed. Former environment minister Maneka Gandhi joinedthe anti-KFC movement. KFC was also accused of using illegally high

amounts of monosodium glutamate (MSG) and frying its food in pork fat. A

store in Delhi was closed by the authorities, purportedly for health reasons,

but more likely to avoid a repetition of the Bangalore incident. KFC

eventually abandoned the Indian market, not returning until 1999, with a

new Bangalore outlet. This was the sole KFC in India until 2004, when the

chain began to expand. As of December 2012, there were 280 KFCs in the

Indian market. As well as the standard KFC offerings, the chain sells a

chickpea burger and hot wings with chilli lemon sprinkles.

Marketing Plan:

The process of analysing one or more potentially interesting marketplaces in

order to determine how a business can optimally compete in them. The

market planning process typically results in a marketing strategy that can be

used to enhance sales for the business producing it.

7/30/2019 Marketing Plan KFC Final

5/22

Marketing plan PG (B)

5 | P a g e

Marketing MixProduct:

Offers All Kfc Products Introduced So Far. The Menu List Also Mentions The

Energy Nutrients Consumed With Each Kfc Dish.

PRICE:

It is a little moderately priced. But the latest 25rs menu is doing wonders in

pulling college crowd especially two ice creams in just 25Rs.

Place:

Plot No. 5, Sector No. 1, Patil Road, Nerul, Navi Mumbai

Landmark: Opposite D Y Patil College.Vey strategically located, KFC successfully attracts the student bunch around

and the professionals who look for afternoon snacks. The outlet is an

considerable option to have Corporate meeting as it is decently spacious and

also extends wi-fi connection.

7/30/2019 Marketing Plan KFC Final

6/22

Marketing plan PG (B)

6 | P a g e

Promotion:

It does a basic promotion of distributing pamphlets outside SIES and D.Y

Patil. But the outlets prime location itself does the major part of self

promotion as its presence cannot bemissed.

The KITCHEN TOUR an innovative approach to build customer trust is a

top-drawer in not only building faith, but also developing valuable bond with

the PEOPLE because of their most hospitable manner in explaining the

PROCESS.

People:

KFC staff has a standard uniform. It focuses on fast and friendly services to

its customers from their employee.

Process:

The food manufacturing process at KFC is transparent i.e the process can be

seen by the customers. It allows its customers to view and judge the

7/30/2019 Marketing Plan KFC Final

7/22

Marketing plan PG (B)

7 | P a g e

hygienic standards of their kitchen by allowing them to enter the area where

the process takes place. It focuses on neat and clean environment.

Physical evidence:

It has a logo of the founder with his signature string ties with a red apron. It

has bright and bold graphics on the restaurant exterior and interior. Warm

and contemporary interior design with spacious and innovative seating with

wi-fi connectivity helps the customer feel comfortable and welcome.

STP

Segmentation:

Following are the ways in which segmentation can be done.

a. Geographic:To appeal to the student crowd and developing corporate offices in and

around Nerul, the outlet is settled in an apt location. Having to B-schools

around, it also becomes a very significant option for hostel students to order

take-aways.

b. Demographic:Divides the market on demographic basis in this way:

Age is between 6-65.

Gender is both males and females.

Family size is 1-2, 3-4, 5+

Generally they target whole families rather than single persons. This being

the reason for their Family Meals which are basically bundled items served at

a nominally cheaper rate.

Income is Rs 10,000 and above.

Family lifestyle is almost all.

c. Psychographic:KFC divides market on the basis of psychographic variables like

Social class- Upper and Middle class.

Lifestyle is not specific.

7/30/2019 Marketing Plan KFC Final

8/22

Marketing plan PG (B)

8 | P a g e

Personality outgoing and ambitious

d. Economic Factors:Income

In the early rise of KFC they focused on the upper class but slowly areintroducing economy meals that attract the lower to middle classes.

Consumption behavior

Liking and disliking towards the pricing of the products.

e. Behavior Factorstaste conscious

quality conscious

class

combination of product and quality

Target Market:

Having two prime colleges just opposite the obvious target are the students.

They are targeting the Hectic lifestyle Due to the hectic lifestyle of office

goings individuals and the out station students in the locality the fast food

concept saves time of preparing food and gives the customer a full meal

quickly.

Economically convenient The pricing appeals to the many classes of a

society.

Positioning:

KFC has a very interesting kind of feedback form. Feedback is taken from

the customer in order to know the customer demands and then

improvements are made in products. KFC focuses on pure and fresh food in

order to create a distinct and clear position in the minds of customers KFC

has a strong brand name and they are leading the market in fried chicken.

7/30/2019 Marketing Plan KFC Final

9/22

Marketing plan PG (B)

9 | P a g e

Models

PESTEL Analysis

Political

No suchpoliticalhinderance inthe locality

POSITIVE

Economic

GrowingMiddle andUpper Middle-class

population isincreasing thePPP

POSITIVE

Social

Increase inworkingwomen andout-station

students -imporved theprospects

Considerablenumber ofvegetarians inthe localitycalls forincrease in theveg dishes

POSITIVE

Technological

Enoughenablingtechnologiesavailable

POSITIVE

Legal

Franchisingmodels andEquity brandsworking quitesuccessfully inIndia

POSITIVE

Environmental

After PETAcontroversyKFC has nothad any majorenvironmentalissue.

The KITCHENTOUR is agreat initiave

to win backconfidence

WATCH OUT

7/30/2019 Marketing Plan KFC Final

10/22

Marketing plan PG (B)

10 | P a g e

BCG Matrix

Question Mark:

KFC has the advantage of being the one of the most preferred choices for

Chicken dishes. Hence try to optimize its Chicken meal (Twister etc) by try

trying to make it more lucrative (like Mcd does with Happy Meal gifts).

WOW 25 is a great introduction and has the potential of becoming a STAR

for the outlet.

Krusher is also a very innovative and tasteful offering and slowly becoming a

STAR.

Market

Growth

20

10

1

Relative Mkt Share

0 0.1

Krushers

WOW 25

Bucket

Twister Meal

Chicken Popcorn

Bucket

Snacker

Zinger

Veg. Strips

Rizo

Combo Meal

Hot & Crispy Bucket

7/30/2019 Marketing Plan KFC Final

11/22

Marketing plan PG (B)

11 | P a g e

Star

Combo meal and Hot & Crispy Bucket are the fresh STARs for the outlet.

Cashcow

Chicken Popcorn and Bucket are the most famous dishes of KFC this outlet

is no different in this regard. They have a regular porpcorn at 59Rs., and a

combo meal with Pepsi at 69rs, which is doing wonders.

Dog

Veg. Strips has never been able to pick up demand. It is time for it to start

considering chopping it off from the menu or revamp to make it taste better.

Same is the case with Rizo. Apart from a negligible demand here and there,

RIZO creates no sales.

7/30/2019 Marketing Plan KFC Final

12/22

Marketing plan PG (B)

12 | P a g e

5 Force Model

Threat of new entrant:

Market is full with players likeMcDonalds, Wendys, Subway

and many other local players.

local players are also looking toenter into the market to earn

profit.

Market is reasonably attractive.

Rivalry among existing forms:

McDonalds, Pizza hut,Subway all are heading to

make profits and expand

their market share.

Threat of substitute products:

local restaurant outlets canmake a dent to their market

share.

Local restaurants serve foodand entertainment with more

variety of Indian food which

is more economical like the

thali system.

Determinants of buying

power:

bargaining power ofcustomer is very

strong as a result

many big and local

players are working

on the perceived

value based pricing

therefore the price

level isreasonablyadequate.

Determinants of supplying

power:

Major suppliers are-regional suppliers of

chicken, vegetables.

Power of suppliers isrelatively small,

unless the main

ingredient of the

product is not readily

available.

7/30/2019 Marketing Plan KFC Final

13/22

Marketing plan PG (B)

13 | P a g e

Ansoff Matrix

The Ansoff Growth matrix is another marketing planning tool that helps a

business determine its product and market growth strategy.

Ansoffs product/market growth matrix suggests that a business attempts to

grow depend on whether it markets new or existing products in new or

existing markets.

The output from the Ansoff product/market matrix is a series of suggested

growth strategies which set the direction for the business strategy. These

are described below:

7/30/2019 Marketing Plan KFC Final

14/22

Marketing plan PG (B)

14 | P a g e

Market penetration for KFC (Nerul)

To increase market share and compete with well established competitors

they can have following strategies in place :-

Special discount on college ID cards as it is surrounded by 2 colleges. Loyalty card system for frequent visitors.

Already they have introduced wow 25 they continue to keep this buton different menus like today Rs 25 for veg snacker and tomorrow

chicken shots for Rs 25.

They a very good promotional activity in place wherein customer canvisit their kitchen and can review each and every thing which makes

consumers feel that they are important to them

The most important thing is they have kept veg section totallydifferent which makes veg consumers feel good and which helps them

in increasing their sales.

As this equity outlet is just 4 months old they must promoteaggressively among students crowd by sponsoring the college eventsso that footfall would increase in return increases sales.

Market development for KFC (Nerul)

Most eligible market for KFC to expand is VEG market as they havevery limited menu in VEG where as MC Donalds has extensive range of

menu for vegetarian customers.

KFC should make an effort to create different packages for vegetariancustomers.

7/30/2019 Marketing Plan KFC Final

15/22

Marketing plan PG (B)

15 | P a g e

KFC is not present in all areas of Mumbai as compared to MC donalds ,MC donalds has presence everywhere in Mumbai u name the place in

Mumbai u have MC donalds present there. But KFC has yet to do

that. KFC has to concentrate on this part.

Product development for KFC (Nerul)

KFC can do product development in the following ways:-

Can introduce products which have Indian spices and tastes. They can experiment on new flavors of chicken like Barbeque,

grilled, Indian flavors.

Their strategy should mainly focus on their varied recipes.

Diversification for KFC

Diversification strategy for KFC would entail the following.

Selling raw chicken to existing customer. New menu consisting lamb and fish which would increase their

customer base.

Diversifying themselves to other saviors like Pizza and Frankies.

7/30/2019 Marketing Plan KFC Final

16/22

Marketing plan PG (B)

16 | P a g e

Financials

Initial Investment of the store is very high as KFC is international brand . To

reach BEP they need to curtail the cost and put in efforts to improve both

top and bottom line

Store Location: Nerul. Opposite to D.Y Patil

Outlet Launched: 23rd November 2012

Warehouse For vegetables Lonavala

For Chicken - Taloja

Financial Data

Particluars Amount

Initial Investment Rs.200,00,000

Franchisee Fees Rs. 12,00,000

Monthly Sale Rs 40,00,000

Transactions 15000 per monthFixed Assets Rs 70,00,000

Promotion CostRs2,50,000 permonth

RentRs 4,00,000 Permonth

ElectricityRs 5,00,000 Permonth

Transportation CostRs 4,00,000 Permonth

No of Employees

25 ( Manager 5 ,

worker 20)

Salary :for workers is (as per minimum wages act) 8,500 pm

7/30/2019 Marketing Plan KFC Final

17/22

Marketing plan PG (B)

17 | P a g e

Estimated Break Even Point

Break Even in Units = Fixed Costs

WA Selling Price - WA Variable Costs

= 2,82,00,000

272-150

= 2,31,147.5 Units

Store will reach its breakeven point in less than 1 year time.

Inventory Management

Inventory is replenished on timely basis from warehouse. They maintain a

very sound projection chart for raw material consumption

Quality is of utmost importance at KFC . To preserve quality of chicken they

maintain optimum temperature of 68 79 degree

7/30/2019 Marketing Plan KFC Final

18/22

Marketing plan PG (B)

18 | P a g e

7/30/2019 Marketing Plan KFC Final

19/22

Marketing plan PG (B)

19 | P a g e

KFC

Barnyard Kollege Carnival

Carnival timing 11a.m 11p.mVenue D. Y. Patil Camous Ground

Date July 6th 7th 2013.Theme Barnyard

Target College Students and KidsLive Concert on the final day by AGNEE

MENU Colonels Latest Combo Meals Individual and Family

Meals Chicky Meal Snacks & Burgers Late Night Combo KFC 24 Hours Side Orders Thirst Quenchers Desserts Nutritional Values

TEEN Hot Box Twister, Regular, Delux Snack Box Fries, Rolls, Nuggets, Meatball +Add ons Krushers Wraps Chipotle Pokkits

7/30/2019 Marketing Plan KFC Final

20/22

Marketing plan PG (B)

20 | P a g e

GAMES

7/30/2019 Marketing Plan KFC Final

21/22

Marketing plan PG (B)

21 | P a g e

7/30/2019 Marketing Plan KFC Final

22/22

Marketing plan PG (B)

22 | P a g e

BUDGET

Expected Customers 50,000 70,000

Sponsorship from Samsung Rs7,00,000

Entry Fees

For DY Patil StudentsFor OthersFor Students Below 12

No FeeRs 100 per personRs 50 Per person

Rent & Lighting RS 1,50,000

Promotion:PamphletsOnline Marketing

75,00025,000

Set up Cost(Theme and decorations)

2,25,0001,00,000

Rock Band (Agnee) 2,00,000

Gifts :

First Prize ( Galaxy Grand )Second Prize (Samsung Tab)KFC HampersVouchers and Coupons

Rs 1,00,000