A CASE STUDY ONA CASE STUDY ON

Presented By :-Manish Ranjan Singh

BVDU, IMED, PuneMBA (General)

CONTENTSCONTENTS

• Key Facts about KFC• KFC Product Diversification• Entry into Indian Market• SWOT Analysis

– Strength– Weakness– Opportunities– Threat

• Question & Answers

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KENTUCKY FRIED CHICKENKENTUCKY FRIED CHICKEN

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Key Facts about “Kentucky Fried Key Facts about “Kentucky Fried Chicken”Chicken”

• It is a chain of fast food restaurant based in Louisville, Kentucky, United States.

• First outlet was started in 1952 by Colonel Harland Sanders

• KFC is the largest brand of Yum Restaurants, which also owns other leading brands like– Pizza Hut– Taco Bell– A & W– Long John Silver

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KENTUCKY FRIED CHICKENKENTUCKY FRIED CHICKEN

• KFC primarily sells chicken pieces, wraps, salads & sandwiches

• Main product of KFC is ‘Fried Chicken’ but it also offers a line of grilled and roasted chicken products, side dishes and desserts

• Outside USA, KFC offers beef based products such as hamburgers or kebabs, poutine & pork based products

• It also serves fish recipes in Southeast Asian Market

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KFC PRODUCT DIVERSIFICATIONKFC PRODUCT DIVERSIFICATION

KFC offers these products according to the Market segmentation

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Entry Into Indian MarketEntry Into Indian Market• KFC has been introduced in Indian Market in 1995• Currently it has outlets in 21 cities with close total

to 107 restaurants• KFC targets to have 500 outlets in India, by 2015

irrespective of growing competition and slowing economy

• KFC in India is trying to explore new market by introducing Vegetarian products

• KFC came out with ‘Veg Zinger’ and ‘Veggie Snacker’

• KFC sold about 10,000 units of Veg Zinger within 10 days of its launch which explains KFC detailed research and marketing strategy

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SWOT ANALYSISSWOT ANALYSIS

Strength : • Brand Power• Quality Products• Detailed research• Hygiene condition• Value and cleanliness of Products• Diversification of products according to

market segmentation

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SWOT ANALYSISSWOT ANALYSIS

Weakness :• Pricing policy high• Target customer is mainly middle & high

classes• It’s outlets are mostly in posh areas

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SWOT ANALYSISSWOT ANALYSIS

Opportunities :• Most of markets are still un-explored• KFC is among the first to introduce fast food

restaurants in these section• KFC positioning is very strong in market • Metropolitan Rapid Development

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SWOT ANALYSISSWOT ANALYSIS

Threats: • Market competition from other fast food

restaurants like McDonald’s, Domino’s, Subway etc.• Struggling to capture new market i.e-

Vegetarians which comprise one-third of the population

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QUESTIONS & ANSWERSQUESTIONS & ANSWERS

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Suggest the criteria for Suggest the criteria for segmentation of KFC in India segmentation of KFC in India

MarketMarket• Geographic segmentation

KFC has outlets internationally and sells its products according to geographic needs of the customer. In India KFC focuses how geographically its customers demand different products. In north India Chicken is the main selling product, while in the south the Veg. items sell more than the chicken.

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• Demographic SegmentationIn demographic segmentation, the market is divided into groups based on an age, gender, family size, income, occupation, religion, race and nationality.

• Age is between 6-65. • Gender is both males and females. • Family size is 1-2, 3-4, 5+ • Income is Rs 10,000 n above. • Family lifestyle is almost all.

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• Psychographic segmentationDividing a market into different groups based on social class, lifestyle, or personality characteristics is called psychographic segmentation.

KFC divides market on the basis of psychographic variables like:

• Social class- Upper and Middle class. • Lifestyle is not specific. • Personality is ambitious and authoritarian

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Suggest Innovated Product as they Suggest Innovated Product as they can add to their menu for Indian can add to their menu for Indian

ConsumersConsumers• Chicken Tikka/Kabab• Filafil Burger• All In one Veggie• Fried Potato Wings• Veggie Burger with Cheese•

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Design the positioning strategies Design the positioning strategies for KFC in Indiafor KFC in India

KFC should focus on the following for better positioning in Indian market:

– feedback should be taken from the customer in order to know the customer demands and then improvements are made in products

– India consist of large no. of middle and lower class people, hence pricing should be done accordingly

– Pre-mindset of the people about KFC in India should be changed with promotions and advertisements

– “Free home delivery” strategy would help in strong positioning in India

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