Kfc 6w4b2s
This document was ed by and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this report form. Report r6l17
Overview 4q3b3c
& View Kfc as PDF for free.
More details 26j3b
- Words: 6,599
- Pages: 40
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 it’s 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, KFC’s sales and promotion techniques, operational activities and unique style. This organization’s 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 everyone’s 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 world’s 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 KFC’s 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 McDonalds’s Pizza Hut in the foreign market and many other local successful fast food outlets.
Pakistan s a very well versed and varied palate and a colored culture that strongly s 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 KFC’s 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 consumer’s 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 McDonald’s 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 people’s 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 Colonel’s Crispy Strips. In 1996, KFC introduced their Tender Roast Chicken, with projected sales of $500 million during the first 12 months (“Like”1997).
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 are from various parts of the country, representing regional taste preferences of their customers. Once a new product has ed inspection by the Chefs Council, KFC’s 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 Colonel’s quote still stands for KFC “If it doesn’t taste good, don’t 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: ü Arabian rice
ü Cheese
ü Col. Chicken burger
ü Col. Fillet burger
ü Corn on the cob
ü Dinner rolls
ü Fries
ü Hot and crispy soup
ü Hot wings
ü Macho’s burger
ü Nuggets ü Cappuccino
ü Espresso
ü Frothe
ü Hot shots
ü Machos
ü Milo
ü Mineral water
ü Moccacino
ü Soft Drink
ü 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 KFC’s 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 Colonel’s 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 ment was aimed at football fans during the bowl season, and continued to air through Super Bowl Sunday.
KFC’s 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). MENT STRATEGY
Floating Trucks:
KFC Pakistan adopts a very interesting way of ment as for as their business as concerned that is Floating Truck. When KFC Pakistan’s Restaurant 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 ment 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 their business is in house publicity in which they use banners, electronic boards, broachers, etc to tell their customers
about packages, prices, product’s 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 their products through electronic media also they use world’s famous T.V channels, news papers, magazines, etc.
Internet:
All most all the KFC’s well developed franchises have their own websites through which they 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 KFC’s 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&N’s VALUE CHICKEN PLANT
The main suppliers company is K&N’s. Their slogan is The Chicken praised at KFC is raised at K&N’s.
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, Tran’s 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 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 didn’t 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 that’s why they regularly get a from the customer and remain be in touch with their potential customers also.
All KFC stores are very efficient in sense of getting from the customers they use Comment Cards to get 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 NGO’s 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 Mother’s day, Father’s day,Valentines’s day, Eid days etc. and they offer different packages too. Self Service:
Cupola Cares Foundation
Cupola Cares Foundation is a non-profit, ed 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 ed 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 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 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 . More sophisticated than traditional cash s, 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 Corporation’s 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 s 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 doesn’t 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 Donald’s offer vegetable and cow meat based food also.
· Due to huge expansion by growth strategy there is much pressure on management department in 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 that’s why it is the hall mark of excellence among the customers. The supplier of KFC is K&N’s 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 s 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 Donald’s.
REFERENCES
ü Shirley Levers - Customer Relationship Executive, KFC, Multan
Web Links:
ü www.kfc.com
ü www.kfakistan.com
ü www.yum.com
ü www.marketingmaniacs.com
ü www.google.com
ü www.yahoo.com
ü www.pepsiworld.com
ü www.enquirer.com/editions/2002/08/21/tem_kfc_great_american.html
ü findarticles.com/p/articles/mi_m3190/is_n8_v25/ai_10403447
ü www.buzzle.com/editorials/4-30-2005-69337.asp
ü vmsd.com/content/kentucky-fried-chicken-0
ü www.roadsideamerica.com/story/7021
ü www.kfc.co.uk/our-menu/toasted-twister/toasted-salsa-twister/
ü www.webmd.com/diet/news/20061030/kfc-to-fry-chicken-without-trans-fats
ü web.archive.org/web/20061224114447/http://www.kfc.com/about/pressreleases/111 406.asp
ü www.foxnews.com/story/0,2933,229308,00.html
ü www.kfc.co.uk/about-kfc
ü news.bbc.co.uk/mobile/bbc_news/england/nwyl/north/north_yorkshire/664/66418/sto ry6641819.shtml?l
ü www.cnn.com/2003/BUSINESS/10/17/anderson.kfc/index.html
ü www.kentuckyfriedcruelty.com/u-undercover.asp
ü www.guardian.co.uk/news/2005/oct/28/food.lifeandhealth Email This BlogThis! Share to Twitter Share to Facebook Share to Pinterest
1 comment:
Anonymous10 March 2014 23:22
wow i am impressed Reply Load more...
Newer Post Older Post Home Subscribe to: Post Comments (Atom)
Recently Added Mahmood Textile Mills: Financial Analysis of Year 2011 Allied Bank Limited – Internship Report Zakariya Pharmaceutical Unit First Women Bank NEW PRODUCT DEVELOPMENT AT KFC Labels Agriculture (14) Automobiles Cars Vehicles (13) Bangladesh (1) Banks and Financial Institutions (60) Business Communication (3) Business Mathematics and Statistics (BMS) (1) Business Research Methods BRM (13) Case Studies (1) Chemicals Paint and Coatings Industry (4) Compensation System Development (1) Computer Science and Information Technology (29) Construction and Building Business (1)
Consumer Products (1) Current Affairs and Politics (1) Customer Relation Management (1) Defense and Weapons (1) Economics (27) Education Learning and Training (4) Electrical and Electronics Business (2) Engineering (2) Entrepreneurship (4) Faisalabad (1) Fashion Industry (2) Finance (23) Financial ing (3) Financial Management (12) Food and Drinks Industry (14) Garments and Clothes (1) General Business Topics (2) Healthcare Services and Hospitals (6) Hotels and Recreational Business (4) Human Resource Management HRM (50) Import and Export (2) India (1) Insurance Companies (2) Internship and Apprenticeship (16) Live Stock and Animals Feed (2) Living and Household Products (1)
Management (16) Managerial (1) Managerial ing Management ing (5) Marketing (98) Multan (28) Multinational Corporation and International Companies (29) National Investment (1) Natural Gas and Oil Business Reports (15) Natural Resources (1) Non Profit Not-for-Profit Organizations (2) Operations Management (6) Organizational Behavior (OB) (7) Pakistan (5) Personal Development (1) Plastic Industry (1) Psychology (1) Public Service and NGOs (4) Rankings and Ratings (1) Ratio Analysis Financial Analysis (1) Shipping and Transportation (3) Shoes and Footwear (1) Small Industries (3) Social Services (1) Socio-Economic (13) Telecommunication (8) Textile Industry (33)
Tobacco Industry (2) Total Quality Management TQM (6) USA (2) Video Lectures (2)
Connect with us.
Subscribe To Posts Comments Most Popular Marketing Strategy of Nestlé (Nestlé Pure life) Complete Research Report on Information Technology Total Quality Management Benchmarking at Pepsi Cola HRM Report: Bank Alfalah NEW PRODUCT DEVELOPMENT AT KFC Project Report on Nokia Coca Cola Internship Report HRM Report on Nestlé Comparison of HR Practices at Bank Alfalah and Pepsi Total Visits to This Website 1 3 2 3
0 7 4 Powered by Blogger.
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 it’s 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, KFC’s sales and promotion techniques, operational activities and unique style. This organization’s 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 everyone’s 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 world’s 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 KFC’s 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 McDonalds’s Pizza Hut in the foreign market and many other local successful fast food outlets.
Pakistan s a very well versed and varied palate and a colored culture that strongly s 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 KFC’s 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 consumer’s 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 McDonald’s 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 people’s 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 Colonel’s Crispy Strips. In 1996, KFC introduced their Tender Roast Chicken, with projected sales of $500 million during the first 12 months (“Like”1997).
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 are from various parts of the country, representing regional taste preferences of their customers. Once a new product has ed inspection by the Chefs Council, KFC’s 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 Colonel’s quote still stands for KFC “If it doesn’t taste good, don’t 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: ü Arabian rice
ü Cheese
ü Col. Chicken burger
ü Col. Fillet burger
ü Corn on the cob
ü Dinner rolls
ü Fries
ü Hot and crispy soup
ü Hot wings
ü Macho’s burger
ü Nuggets ü Cappuccino
ü Espresso
ü Frothe
ü Hot shots
ü Machos
ü Milo
ü Mineral water
ü Moccacino
ü Soft Drink
ü 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 KFC’s 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 Colonel’s 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 ment was aimed at football fans during the bowl season, and continued to air through Super Bowl Sunday.
KFC’s 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). MENT STRATEGY
Floating Trucks:
KFC Pakistan adopts a very interesting way of ment as for as their business as concerned that is Floating Truck. When KFC Pakistan’s Restaurant 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 ment 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 their business is in house publicity in which they use banners, electronic boards, broachers, etc to tell their customers
about packages, prices, product’s 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 their products through electronic media also they use world’s famous T.V channels, news papers, magazines, etc.
Internet:
All most all the KFC’s well developed franchises have their own websites through which they 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 KFC’s 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&N’s VALUE CHICKEN PLANT
The main suppliers company is K&N’s. Their slogan is The Chicken praised at KFC is raised at K&N’s.
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, Tran’s 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 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 didn’t 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 that’s why they regularly get a from the customer and remain be in touch with their potential customers also.
All KFC stores are very efficient in sense of getting from the customers they use Comment Cards to get 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 NGO’s 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 Mother’s day, Father’s day,Valentines’s day, Eid days etc. and they offer different packages too. Self Service:
Cupola Cares Foundation
Cupola Cares Foundation is a non-profit, ed 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 ed 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 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 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 . More sophisticated than traditional cash s, 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 Corporation’s 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 s 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 doesn’t 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 Donald’s offer vegetable and cow meat based food also.
· Due to huge expansion by growth strategy there is much pressure on management department in 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 that’s why it is the hall mark of excellence among the customers. The supplier of KFC is K&N’s 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 s 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 Donald’s.
REFERENCES
ü Shirley Levers - Customer Relationship Executive, KFC, Multan
Web Links:
ü www.kfc.com
ü www.kfakistan.com
ü www.yum.com
ü www.marketingmaniacs.com
ü www.google.com
ü www.yahoo.com
ü www.pepsiworld.com
ü www.enquirer.com/editions/2002/08/21/tem_kfc_great_american.html
ü findarticles.com/p/articles/mi_m3190/is_n8_v25/ai_10403447
ü www.buzzle.com/editorials/4-30-2005-69337.asp
ü vmsd.com/content/kentucky-fried-chicken-0
ü www.roadsideamerica.com/story/7021
ü www.kfc.co.uk/our-menu/toasted-twister/toasted-salsa-twister/
ü www.webmd.com/diet/news/20061030/kfc-to-fry-chicken-without-trans-fats
ü web.archive.org/web/20061224114447/http://www.kfc.com/about/pressreleases/111 406.asp
ü www.foxnews.com/story/0,2933,229308,00.html
ü www.kfc.co.uk/about-kfc
ü news.bbc.co.uk/mobile/bbc_news/england/nwyl/north/north_yorkshire/664/66418/sto ry6641819.shtml?l
ü www.cnn.com/2003/BUSINESS/10/17/anderson.kfc/index.html
ü www.kentuckyfriedcruelty.com/u-undercover.asp
ü www.guardian.co.uk/news/2005/oct/28/food.lifeandhealth Email This BlogThis! Share to Twitter Share to Facebook Share to Pinterest
1 comment:
Anonymous10 March 2014 23:22
wow i am impressed Reply Load more...
Newer Post Older Post Home Subscribe to: Post Comments (Atom)
Recently Added Mahmood Textile Mills: Financial Analysis of Year 2011 Allied Bank Limited – Internship Report Zakariya Pharmaceutical Unit First Women Bank NEW PRODUCT DEVELOPMENT AT KFC Labels Agriculture (14) Automobiles Cars Vehicles (13) Bangladesh (1) Banks and Financial Institutions (60) Business Communication (3) Business Mathematics and Statistics (BMS) (1) Business Research Methods BRM (13) Case Studies (1) Chemicals Paint and Coatings Industry (4) Compensation System Development (1) Computer Science and Information Technology (29) Construction and Building Business (1)
Consumer Products (1) Current Affairs and Politics (1) Customer Relation Management (1) Defense and Weapons (1) Economics (27) Education Learning and Training (4) Electrical and Electronics Business (2) Engineering (2) Entrepreneurship (4) Faisalabad (1) Fashion Industry (2) Finance (23) Financial ing (3) Financial Management (12) Food and Drinks Industry (14) Garments and Clothes (1) General Business Topics (2) Healthcare Services and Hospitals (6) Hotels and Recreational Business (4) Human Resource Management HRM (50) Import and Export (2) India (1) Insurance Companies (2) Internship and Apprenticeship (16) Live Stock and Animals Feed (2) Living and Household Products (1)
Management (16) Managerial (1) Managerial ing Management ing (5) Marketing (98) Multan (28) Multinational Corporation and International Companies (29) National Investment (1) Natural Gas and Oil Business Reports (15) Natural Resources (1) Non Profit Not-for-Profit Organizations (2) Operations Management (6) Organizational Behavior (OB) (7) Pakistan (5) Personal Development (1) Plastic Industry (1) Psychology (1) Public Service and NGOs (4) Rankings and Ratings (1) Ratio Analysis Financial Analysis (1) Shipping and Transportation (3) Shoes and Footwear (1) Small Industries (3) Social Services (1) Socio-Economic (13) Telecommunication (8) Textile Industry (33)
Tobacco Industry (2) Total Quality Management TQM (6) USA (2) Video Lectures (2)
Connect with us.
Subscribe To Posts Comments Most Popular Marketing Strategy of Nestlé (Nestlé Pure life) Complete Research Report on Information Technology Total Quality Management Benchmarking at Pepsi Cola HRM Report: Bank Alfalah NEW PRODUCT DEVELOPMENT AT KFC Project Report on Nokia Coca Cola Internship Report HRM Report on Nestlé Comparison of HR Practices at Bank Alfalah and Pepsi Total Visits to This Website 1 3 2 3
0 7 4 Powered by Blogger.
Related Documents 171j1w
Kfc 6w4b2s
December 2019 55
Kfc 6w4b2s
October 2019 80
Kfc 6w4b2s
November 2019 71
Kfc 6w4b2s
November 2021 0
Kfc 6w4b2s
December 2019 60
Kfc 6w4b2s
December 2019 38More Documents from "Bilal Haider Dar" y2a3z
Kfc 6w4b2s
December 2019 60
151959461-drysuit.pdf 645u1l
October 2022 0
Vocabulary For Pet With Answers 5fe41
November 2019 146
2c82t
December 2019 267
Oxford Ib Programme Geography Textbook o6oc
November 2019 2,987