1. Kentucky Fried Chicken in BrazilAnna Brewer, Gabe Hyde, Emily Mallory

2. KFC Company information Based in Louisville, KY Parent company: YUM! Brands Ranked #239 on Fortune 500 List Each day, 12 million customers are served 36,000 locations worldwide Worlds most popular chicken restaurant chain World famous for Original Recipe fried chicken 3. KFC Internationally 4. KFC Internationally In 109 countries 5,200 in the U.S. 15,000 globally Globally there are 300 products served Grilled chicken in the U.S. to salmon sandwich in Japan 5. Financial History Own 39% market share of the chicken-on-the-bone segment as of 2011 Video: http://bcove.me/oih2ju8r 6. Financials 7. Target Market: Brazil Languages: Portuguese (official) less common: Spanish, German, Italian, Japanese, English, and a large number of minor Amerindian languages 87% urban population 55% of Latin American economy Over 50% of population is under the age of 30 Hits the key demographic for KFC 8. The Target Market Large gap between the rich and poor 26% population live below the poverty line (CIA World Fact Book) Literacy Rate: 88% male and female Obesity Rate: 11% 52nd out of 70 ranked nations in the world Generally a healthy nation Consumer expenditure on food in millions 2011: $ 190,598.8 Expected for 2012: $ 199,582.2 9. The Target Market Consumer behavior Brazilians have good culinary sense Strong food and drink traditions Crucial for KFC to align with natives (BFFC) Growth in Brazilian economy emergence of a larger middle class with higherincome per person consumers to spend more on indulging themselves,rather than restricting their spends to basicnecessities Brazilians are spending more on eating out Seeking convenience 10. Industry Analysis 11. Industry Analysis 4 segments of market Quick service Take-aways Mobile and street vendors Leisure locations 12. Foreign Market Entry Method 100% franchised in Brazil Aligned with BFFC (Brazil Fast Food Corporation) Strategy Joined a strong franchise within the market They already know the Brazilian culture and marketplace BFFC knows the tastes and culture of the food industry Entered in the first quarter of 2007 with 4 restaurantsin Rio De Janeiro Currently there are 18 locations 5 in Sao Paulo 13 in Rio De Janeiro 13. Wagner Rodrigues Executive Officer of YUM! Restaurants International in Brazil With Brazil Fast Foods extensive knowledge of the Brazilian fast food market, we believe that it is the perfect company to entrust with the continued growth, development, and consolidation of the KFC brand in Brazil. -QSR 14. Competitive Analysis Within Brazil McDonalds Burger King Subway Local Chain Competitors Bobs Giraffas Habibs Potential: Any fast food company could come into Brazil in the future and become a direct competitor Wendys Dairy Queen Krystals 15. SWOT analysis: internal aspects Strengths BFFC alliance Brand Equity is #2 in the world Strong markets internationally already in place The top international country-style chicken fast food company in the world Weaknesses Fairly new in the marketplace (2007) The risk that comes with franchising (i.e. loss of control, consistency and quality) Do not have a lot of healthy food options 16. SWOT analysis: external aspects Opportunities 18 KFC locations Absolute room for expansion long-term Blue Chip for growth opportunity behind China, India andAfrican nations 5th largest country with over 170,000,000 people Growing fast food market Media availability in Brazil is the largest in South America Threats Future competitors entering the market McDonalds is the market share leader CPI is 3.8 17. The Marketing MixProductPromotionPricePlace 18. Product Strategy Description Global leader in chicken fast food Quality: focus on improvements Health aspects KFC has re-launched its grilled chicken menu in the US, which is aimed at satisfying consumers needs for health and convenience. In doing so, it is addressing consumer trends and countering concerns regarding fatty offerings in the fast food sector. Brand Name: Internationally known Kentucky Fried Chicken Branding Colors: red and white Coronel Sanders Image: Adaption verses Standardization Doesnt want to lose brand image, but mix balance aggregation withadaptation Standardizing of some products, but also tailoring to customers needs 19. KFC Products: menu in Brazil Core products same as the U.S. (original, extracrispy) Unique dipping sauces to adapt to local taste Culturally unique products Farofa, black beans, parmiggano sandwich, I-Twist 20. Price Strategy Standard of living Optimism: Majority of citizens believe it is improving Exchange rate: 0.52 Real = $1.00 Competitive pricing Value pricing strategy: provide the best value percompetition Par Value Pricing: pricing is based on thecompetition U.S. pricing vs. Brazil pricing Brazil: 20 Reals, For 6 pieces of chicken 2 sides U.S. $12.99, For 6 pieces of chicken, 1 large side, 3biscuits 20 Brazilian reals = $10.4058 US dollars 21. Place/Distribution Distribution Goods direct to consumer In store Drive through Delivery Franchisees place food orders through BFFCs procurement department Suppliers Pilgrims Pride, Perdue Farms, Tyson Foods Prefer to supply from within the country but use contingency plans to ensure quality Currently, 18 locations in Brazil 22. Promotion Media availability Largest and most developed of South America Of 170 million people, only 2.3 million have cableand 1.3 have satellite 71 million listen to the radio 75 million have computers but ONLY 5 million havethe internet Media power: radio and television Freedom of speech in the press 23. Promotion Advertising Strategy Brazil advertising isknown for creativity andinnovativeness (AEF) Brazilians desireentertaining advertising Most desiredadvertising is duringsoccer games Emphasize physicalbeauty Billboards, signs in thestreets also utilized Emphasize price andconvenience Combining meals anddiscounts 24. Promotion Corporate social responsibility initiatives Coronels Scholars Social Diversity Supplier Code of Conduct Packaging and the Environment Animal Welfare Program 25. Animal Welfare Program YUM! Brands does not own, raise, or transportanimals Influence the way the supplied animals aretreated Monitor suppliers Council with highly respected experts in theanimal welfare field to advise KFC Develops guidelines and audit programs forsuppliers in the broiler industry Industry leading in poultry care and handling auditprogram