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’s From $105 to 9.7 Billion $ in 58 years  1952, Col. Sanders started franchising his recipe door to door

financed by $105.00  1964, Col Sanders had more than 600 franchised outlets in the US

and Canada.  1964, Sold his interest to Massey & Brown for $2 million.  1966, KFC went public  1969, Listed on the NYSE  1971, KFC was acquired by Heublein Inc. for $285 million.  1982, Heublein & KFC Inc. was acquired by RJ Reynolds

 1986, RJ Reynolds & KFC, was acquired by PepsiCo, Inc. $840

million.  1997, PepsiCo, Inc. spined-off it to Tricon Global Restaurants.  2002, Tricon changed it's corporation name to Yum! Brands, Inc.

CONTENTS :  INTRODUCTION  HISTORY  MISSION & VISION  PHILOSOPHY OF KFC  COMPETITORS & ANALYSIS  COMPANY STRATEGY  SEGMENTATION  SWOT ANALYSIS  4P’s  PESTLE ANALYSIS  RECOMMENDATIONS & FINDINGS

INTRODUCTION :  KFC is the world’s largest and most well known

chicken restaurant with chains in more than 10,000 locations and worldwide in 80 countries.  KFC is part of YUM Brands Inc.  In 1997, KFC franchised with Gray Mecanza

International.

HISTORY :  At the age of 40 as an operator of a service

station in Corbin, Kentucky Colonel returned to his love of cooking and began to cook and serve food to hungry travelers from his own living quarters.  Since 1950 KFC has grown at a remarkable pace

from one roadside restaurant into an internationally renowned restaurant chain and one of the largest chain of chicken restaurants in the world.

HISTORY :  The company was founded as Kentucky Fried

Chicken by Colonel Harland Sanders in 1952.  The company adopted the abbreviated form of its

name in 1991.  Business grew larger than Colonel could

handle,so he sold it to a group of people who formed the Kentucky Fried Chicken Corporation.  KFC Corporation is a chain of fast food

restaurants based in Louisville, Kentucky in the United States.

MISSION :  To be the leader in western style quick service

restaurants through friendly service, good quality food and clean atmosphere.

VISION :  Food, Fun and Festival ,this is what KFC is all

about.  KFC provides the ultimate chicken meals for a

Chicken Loving Nation.  Be it Colonel Sanders secret original Recipie

Chicken or the Hot & Spicy Version, every bite brings a yum on our face.

KFC PHILOSOPHY:  Philosophy of KFC stands on the Champs

Program.

CHAMPS PROGRAM :  CHAMPS stands for the six universal areas of

customer expectation common to all cultures and all restaurants concepts.  These are :  Cleanliness  Hospitality  Accuracy  Maintenance of Facilities  Product quality  Speed of Service

COMPETITORS :

COMPETITIVE ANALYSIS :  KFC adopted such a strategy that there is no

competitor for its Spicy Chicken.  KFC beats its competitors through the revising

marketing strategy.

COMPANY STRATEGY :  Primary advantage is to take advantage of the

potential growth in other countries, to establish a strong position and to develop their image.  Key success factors are ever continuing cost

saving through R&D, innovation and use of new technology to work efficiently.  These success techniques will lower the cost and

increase the profit in the industry.

SEGMENTATION :  They have made segments of the market on

the following bases :  Demographical  Behavioral  Geographical.

DEMOGRAPHICS :  In demographics their first segment is considered

of the income factor :  High income  Average income  Low income

BEHAVIOURIAL:  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.

GEOGRAPHIC :  Market is divided into two segmaents :  Urban areas  Sub urban areas

SWOT ANALYSIS : • STRENGTHS :

 KFC secret recipe of 11 herbs and spices.  Strong Franchises all over the world.

 Interactive relationship marketing.  Chains for its convenience and menu

variety.

SWOT ANALYSIS :  WEAKNESS :

 Lack of focus on Research & Development  Lack of knowledge about their customers.

 They only focus on higher income

level people.  KFC’s desserts are not as good as it should be.

SWOT ANALYSIS :  OPPORTUNITIES :

 They have the opportunity to expand their

deserts menu.  They can open temporary outlets in peak season in the hill stations.  They can capture more customers by decreasing the prices of their products.  Updating the restaurants and balancing the menu.  Changing customer lifestyle and taste.

SWOT ANALYSIS :  THREATS :

Diseases like birdflu is a big threat for KFC.  Change of customer demands  Existing and new competitors.  Frozen food is not good for health and despite the standard they maintain. 

4 P’s of MARKETING:  PRODUCT  PRICE  PLACE  PROMOTION

PRODUCT :  Their all products are different and the

packaging and other product features are different from other products.  They change their products by introducing new

products but their main product the Kentucky fried chicken is the same.

PRICE :  The price is not affordable by all the persons

round the globe.  Due to its large setup the price selecting is very

challenging for the new product of KFC.

PLACE:  They provide free home deliveries for some

specific areas.  They open their outlets in those places in the

cities where people can buy products easily and without difficulties.  They also introduce mobile units for delivery of

their products.

PROMOTION :  They promote their products through billboards ,

pamplets and through other promotion strategies.  Also they have introduced goods like watches, keychains, coffee cups, T-shirts, toys, etc to the customers (part of sales promotion).  Promotion is also done via press advertising, hoardings, commercials, etc.

PESTLE ANALYSIS

FINDINGS  KFC was trying to increase market share in other regions of

South America beside Mexico & Caribbean. But financial constraints restricted KFC from doing so.  KFC focus on strengthening its position in Mexico &

Caribbean Only.  New Competitors like Habib’s and Wendy’s were

establishing new restaurants in Mexico.  KFC had largest market share of fast food chains in Mexico.  Devaluation of Pesos did not effected KFC, because their

production plants in Mexico were utilizing local resources.

RECOMMENDATIONS 

If KFC could increase company own restaurants, which enables it to control quality, services and restaurant cleanliness. Therefore more capital is needed.



On the other hand if company operated franchise based restaurants throughout Latin America, its brand image could be build and its competitors will be loosing first more advantage.



Latin American markets is developing markets, so its growth is high and entry barriers are low.

RECOMMENDATIONS 

KFC could make strategic alliances with key suppliers to gain advantage over competitors in the market.



An a peeling business model and good strategy has golden opportunity to shape the rules and establish itself as the recognize market leader.

CONCLUSION FOCUS OF THEIR STRATEGY SHOULD BE ON THE COUNTRIES LIKE CHINA, AND INDIA ETC BECAUSE THEY PROVIDE MARKETS WHICH HAVE HIGH GROWTH RATE

THANK YOU… Sources: Wikipedia KFC