Kentucky Fried Chicken

Kentucky Fried Chicken

Kentucky Fried Chicken, better known as KFC, is the largest chicken

restaurant chain worldwide with almost 1000, outlets located in well

over 70 countries. CEO, David Rodgers, heads it, it is part of the

tricon restaurants internationals which is one of the most leading

multinational organizations in the world. Said to be the second most

famous and largest fast food franchise in the World, No. 1 brand in

Asia with the market leader ship in Japan, China, Malaysia,

Indonesia, and Korea.

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INTRODUCTION OF KFC:


1939

Colonel Harland D. Sanders perfects secret blend of 11 herbs and

spices in Corbin, Ky., and restaurant.

1952

Pete Harman insalt Lake City becomes the first Kentucky Fried

Chicken franchises.

1956

colonel Sanders sells Corbin, Ky., restaurant and goes on the road to

enlist new franchisees. The Colonel signs his first international

franchisee in Canada.

1964

Kentucky Fried Chicken sold to the group of investors including

John Y. Brown Jr., and Jack Massy for $2 million.

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History of KFC:


1969

Kentucky Fried Chicken listed on New York Stock Exchange. Colonel

Sanders buys first 100 shares.

1971

Kentucky Fried Chicken acquired by the Hwublien Inc.

1980

colonel Sanders dies and is buried in Louisville’s Cave Hill cemetery.

1982

Kentucky Fried Chicken has becomes a of R.J.Reynolds industries

when Heublein Inc. is acquired by RJR (now RJR Nabisco, Inc.).

1986

Kentucky Fried Chicken becomes a subsidiary of PepsiCo, Inc. for

$840 million. Grand opening of Colonel Sanders Technical Center in

the Louisville, KY.

1987

Kentucky Fried Chicken opens first Western style quick service

restaurant in China.

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1991

a new logo is introduced to emphasize chicken variety – replacing

“Kentucky Fried Chicken”with “ KFC”.

1993

KFC adds non-fried chicken to menus in the U.S. and Australia.

1994

KFC officially opens its 9,000th restaurants in the world – in

Shanghai, China – and announces a $200 million investment over the

next four years for the 200 restaurants in 48 Chinese cities.

1995

KFC introduce Colonel’s Cristy Strips® and smashes Guinness

record with “ World Largest Pot Pie” in New York city to introduce

Chinky Chicken Pot Pie. Opens first restaurant in Moscow.

1996

KFC introduces Tender Roast® chicken pieces and brings back one

of the world most recognized packages -- the bucket.

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1997

Kentucky Fried Chicken introduce Honey BBQ- flavored Tender

Roast® Spicy Buffalo Crispy Strips TM and chicken TwisterTM –

chicken and veggies “ like a meal all wrapped up and ready to go”.

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1n 1997, Kentucky Fried Chicken entered the market under the

banner of Artal, a European food conglomerate which has invested

heavily in the food sector in the Pakistan. It goes credit to KFC that it

was the first franchise to begin its operations from the densely

populated area of Gulshan-e- Iqbal. This unique step was taken out

of the special concern for the middle and lower middle class incomes

groups who has so for being neglected by brand name franchises in

their areas. The first KFC restaurant opened its door in January 1997,

drawing thousand of the eager customers to enjoy quality food and

friendly service in clean surrounding.

Boosted by the huge success of the first restaurant, new

outlets mushroomed at prime location in both Karachi and Lahore

that continue to attract a record number of quality food lovers.

Entrance of Kentucky Fried Chicken in the food industry has resulted

in numerous positive developments in various areas. One of the

major ones beings its contribution to the Pakistan economy by

generating revenue and creating employment. Each Kentucky Fried

Chicken restaurant employ roughly 50 local people which would total

to near about one thousand direct employs in all- taking in all 18

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KFC in Pakistan:


restaurants in Pakistan. Other than these there are number of indirect

employs, for example, construction workers who build the restaurant

and suppliers. All direct employs have to undergo mandatory training

through extensive programs and a series of workshops in order to

ensure efficient management and services.

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To maintain and enhance our position as the leading WQSR chain

serving good value, innovative chicken based products through

consistently providing a pleasant dinning experience with fast, friendly

service at clean and convenient locations. At all times, we must be

dedicating to providing excellent service and delighting customers.

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MISSION STATEMENT:


There are five departments in the company.

Marketing Department

Finance Department

Operation Department

HRM Department

Quality Control Department

Marketing department:

Marketing is the delivery of the right product to the

right customer, at the right place, at the right time and at the right

price through right communication and promotion. Marketing is often

dynamic, challenging, and rewarding it can also be frustrating and

even disappointing. But it is never dull.

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DEPARTMENTS:

FUNCTIONS OF DEPARTMENTS:


In KFC all the Marketing efforts (Product Planning, Pricing,

Distribution and Promotion) are designed and combined in a coherent

and consistent way. They have the updated knowledge of market

situation. They keep eye on actions of the competitors. They

consider that all employees are potentially good, responsible, helpful

and trustworthy and they have given them opportunity for growth,

self-control and personal responsibility. They know that teamwork

and collaboration generate a greater volume of production than does

destructive interpersonal competition. Now Kentucky Fried Chicken

captures a maximum market share. This is only due to excellent

marketing strategies adopted by the organization. Marketing department is the main and most active department of the

Kentucky Fried Chicken it perform all the key activities of the

business. The basic purpose of the marketing department is to

advertise its products in the market and keep eye on the competitors

that what they are doing. The department introduces the new policies

and satisfying the customers.

The body of the department is comprised of Marketing Manager,

Assistant Marketing Manager and Planning Manager.

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FINANCE DEPARTMENT:

The finance department provides close support the

business manager on the financial implication of business strategies

that are formulated. Regular feedback is also given to Departmental

Heads to facilitate monitoring of cost at the department level.

The finance department prepares statutory accounts and

management accounts of the business.

The statutory accounts comprise of all the final accounts of business

transactions, Profit and Loss accounts, COGS (cost of good sold),

Balance Sheet and Cash Flow Statement etc. which, by law, the

business has to prepare. The Finance Department analysis the

business results and prepare the monthly and quartly review of

business operations. The Cashier handles routine day to day cash

transactions.

This Department is also responsible for maintaining fixed assets

listening and arranging insurance cover on the assets of the business

the tax related issues of the Business and all the transactions

processing’s, e.g. recording of sales and payments etc, are also

handle by the Finance Department. Finally the Finance Department

liaises with internal and external auditors, product margins, variable

cost and fixed assets within the business as well.

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OPERATION DEPARTMENT: It is very important department in the Kentucky Fried

Chicken. The incharge of the operation department is operation

manager. This operation manager is responsible for the following

operations and functions.

Cooking

Cleanliness

Administration of restaurant.

Complaint handling of the customers

Daily order to procurement Department

Day to day demand forecasting

Daily lectures to crew people

Trained the employees

HRM DEPARTMENT:

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According to the marketing manager of KFC that

HRM Department play a very important role in the organization.

The aim of this department to provide a highly qualified and

competent employees to the organization. The HRM Department

performs the following functions:

Reviewing application form

Interviewing applicants

Inducting new employees

Appraising employees performance

Make a decision about the employees training

Provide a career advice to subordinates

QUALITY QONTROL DEPARTMENT:

Quality control means monitoring the quality weight,

strength, consistency, color, taste, reliability, finish, or any one of

myriad of characteristics to ensure that the products meet the

international standard.

For this purpose there is separate department in Kentucky Fried

Chicken which is responsible for the quality control. This department

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satisfying the customers needs for the quality, and differentiate the

organization from the competitors and attract the large number of

customers.

The duty of this department is check the raw material that whether it

is according to the standard or not. Department check the quality

each and every step till the final product. Because according to the

Marketing Manager of KFC the early detection of defective part of

process can save the cost of further work on the product.

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Marketing department of Kentucky Fried Chicken play a very

important role in the organization.

The first and basic function of this department is to promote its

products in the market in different ways. According to the

marketing manager of KFC we advertise our products on

international television channels, print media, banners, etc.

This department creates the awareness among the people

about the packages, which are given on the special events like

Eid, Basant, etc.

Marketing Manager of KFC says that it is the world of

competition, therefore to survive in the market we work for the

future. So the third function of marketing department of KFC is to

make plans to achieve the objective of organization in future.

Marketing department of KFC also analyses to increase or

decrease the sale.

When the sale of KFC is going to decrease, the marketing

department of KFC conducts a proper marketing research to find

out the problems, basic reason behind the problem and try to

solve it and to save the organization from this type of faults in

future.

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ROLE OF MARKETING DEPARTMENT IN KFC:


According to the marketing manager of KFC that marketing

department have two objectives.

The first department of KFC is to create the awareness and

provide the following information to the higher authorities of KFC.

This department shows the marketing position of the organization.

This department shows the market share of KFC.

This department gives the suggestion to the higher authorities for

the future improvement.

This department provides the information about their competitors

to the higher authorities of KFC.

The second basic objective of Marketing Department is that it

meets the budget in the required time span. The marketing

department of KFC is to promote its products and make the future

plan to live in the budget.

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OBJECTIVE OF MARKETING DEPARTMENT IN KFC:


Target market is the group of people to whom an organization wants

to communicate its message and to generate some positive attitude,

behavior and action toward the organization offerings. So while

preparing or developing the promotional strategy, the organization

need to clearly define their target market.

According to the marketing manager of KFC the target market is

Upper upper class

Upper middle class

Lower upper class

Highly paid professionals

Youngsters

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TARGET MARKET


Competitors are the elements of paramount important in the

business world. The analysis of the competitors activity is and

important to do as to know the need and wants of the customers. The

competitors are the force, which shape the activities of any

organization.

The statement of marketing manager of KFC is that at this time we

have two strong competitors:

Macdonald’s

Subway

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COMPETITORS


FRENCH FRIES

ZINGER BURGER

COLONEL’S CHICKEN BURGER

NUGGETS

TWISTER

HOT WINGS

ARABIC RICE

CORN OF THE COB

DINNER ROLL

FRUIT SALAD

CHOCOLATE MOUSSE

CHICKEN PCs.-ORIGINIONAL RECIPE/ HOT & CRISPY

COLD DRINKS

MINERAL WATER

COLONEL’S SUNDAE

COLONEL’S PREMIUM CONE

RASS BHARA

TEA

COFFEE

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PRODUCTS OFFERED BY THE KFC


KFC will position itself in local market as a

bright, pleasant, air conditioned restaurants and “casual atmosphere”

and will target families and young consumers which can be termed as

“three generation from middle and upper middle income segments”.

KFC stands for high quality products, hygienic and affordable fast

food in an array of complete meals. The chicken is prepared with

unique secrets recipes in variety of ways to suit different taste and

eating occasions. The meals are made more appetizing by

supplementing with fresh, tasty side dishes and rich home style

dessert.

Another aspect of KFC franchise is its demand for

distinguished standards in quality, efficiency, hygienic, and sanitation.

Hence the level of efficiency has subsequently risen amongst its

competitors, which has resulted in an improvement in the overall food

market.

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As we know that the marketing mix is the combination of four things.

KFC blends all these four P’s of marketing mix in a very organized

manners, which helps the organization in satisfying the customers

demand as well as achieving the mission of the organization.

Combinations of that marketing mix are:

Product.

Pricing Structure.

Place / Distribution system.

Promotional activities.

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MARKETING MIX


We select the product (Chicken PCs.) for the explanation. As we

know that this product match the taste level of Pakistani people. KFC

introduced this product first time in Pakistan in 1997, when they

opened first restaurant in Karachi. This product breaks all the record

of sale.

According to the marketing manager of KFC that we prepare chicken

PCs. And mostly all the other products on the automatic plants and

we deliver the product (Chicken PCs.) after the proper examination

by the quality control department.

Raw material used in this product like meat, etc. is purchased from

the big Supplier Company, which supply the meat at a same time to

all the stores.

PRICE:

Prices of Chicken PCs. and all the other products of KFC are

set by the Head Office by adopting the proper method. According to

Marketing Manager price of any product is equal to the cost plus

desirable profit. According to the marketing manager of KFC that the

pricing strategies of organization are different in the different

countries due to different exchange rate, inflation, and different tax

polices in the different countries.

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SELECTED PRODUCT


But in Pakistan KFC main concern is to sell in volume and maintain it

on long term basis. They are charging a price which they think fair to

customers.

The policy of KFC is that they do not set the prices on the basis of

competitors. The aim of KFC is to satisfy the customers in low prices.

In economics we can say that when the prices are constant, the

demand of product increase, volume of sale is increase, and revenue

is also increase, as a result of this circle the profit of the organization

is increase but the prices remains constant. So selling on low prices

has a valid justification.

PLACEMENT:

The Chicken PCs. and all the other products of KFC are available at

all the 18 restaurants in Pakistan.

DISTRIBUTION OF RESTAURANTS:

The first restaurant of KFC was opened in Karachi. After this KFC

opened its restaurants in Lahore at Defense, Cavalry Ground, and

Barket Market. At this time there are 18 restaurants in all the

Pakistan. But the question is that why the KFC chose Defence area

for opening the restaurant. The Marketing Manger of KFC gives us

answer that before opening a new restaurant in any where our

organization conduct a research to evaluate customers need, people

buying power and customer expectations from KFC and to find out

what current and potential competitors are doing in that area.

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You can say that Defence is the area of the upper upper and upper

middle class. In this area there are many up standard private

universities like LUMS, ILM, etc. and collages, offices, posh shopping

centers and the population itself is a good market for the fast food.

Therefore KFC Defence attracts the students, children, families and

visitors of that area.

On the other hand KFC in Karachi too has strong reason and

argument about slecting the site of Nipa, Churungi, Gulshan Karachi.

It is a strong education and family oriented middle class area. Most of

families living are joint family system. Therefor this restaurant attracts

the large number of the customers. The area is inhibited by the

several million peaceful people who want to take their children out but

there are not place this purpose. KFC provide this facility in that area

and people are pleasure with us.

PROMOTION:

The element in an organization’s marketing mix that

serves to inform, persuade and remind the market of a product and/or

the organization selling it in the hope of influencing the recipients

feelings, beliefs, or behavior. The policy of KFC is that to adopt the

same methods to promote all its products including the Chicken PCs.

According the marketing manager of KFC that they use the following

promotional methods:

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ADVERTISING: Advertising is non-personal communication of information usually

for a persuasive in nature about product services or ideas through the

identified sponsors through the various media.

Advertising perform the communication, education and marketing

function it tells people about the benefits of products or services and

educate them how they can make their life and time better off.

In KFC advertising are performed by the marketing department.

The advertising are used by the management of KFC and rational

behind it is that the organization consider that it has a market

segment. So advertisement will have a great waste reach and their

advertising cost per consumer or the customer will high enough. So

advertising is not very appropriate tool of promotion mix for them.

However regardless of heavy or low use of the advertisement, the

advertisement of the organization serves for the two purposes and

various with respect to advertisement conducted by the central body

and that advertisement activities are:

About the multinational chain of KFC.

The local body conduct advertisement about some packages

which serves the functions of educating the people how they can

make their time more pleasurable.

TELEVISION ADVERTISEMENT:

Television combine sound, motion and design

special visual effect. But KFC advertises himself on TV in other

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countries. In Pakistan it gives ads on TV very rarely. In 1997, when it

opened its first branch in Karachi at that time it advertised itself on TV

properly. The purpose of this advertisement is just to create the

awernance among the people about their products and packages.

PRINT MEDIA: They give the desirable information in the print ads to the target

market in order to inform the customers about the benefit of their

products.

Whenever they introduced new products they give ads on print media

at regular intervals. So that the customer is informed about the new

product. For their matured products they give ads with different gaps

in the newspapers. The newspapers they use are:

The news

Dawn

Jung

OUT DOOR ADVERTISEMENTIn order to remain in the mind of customer KFC used out door

advertisement i.e.

Billboards

Banners

Posters

PERSONAL SELLILNG: Personal selling is the special form of the interpersonal

communication. Their goal is to bring its prospects attention that will

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satisfy a need and that will elicit a response, hopefully in the form of

purchase.

Personal selling is highly effective when target market is narrow one

and you need to convince the prospect in order to induce an action

from him. But this technique demands higher degree of considerbility.

The sales force of KFC needs to know about their products and that

of competitors, must allocate the customers with potential, discover

their needs, developing the sales presentation directly striking at the

needs of the customers, and after close the salesmen the must go for

follow up.

KFC Marketing Management considers it as one of its

most important tool. The management says that it is the tool, which

helped them to develop and persuade their customers at the

beginning of their operation. The Marketing Manager of KFC says

that it’s a very powerful way to promote the products.

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PUBLIC RELATION:

It is communication efforts that are designed to

favorably influence attitudes toward an organization, its products and

policies. KFC is not just a quality food restaurant, but also a socially

conscious corporate citizen. It has been equally involved in promoting

and funding several community welfare projects through aggregate

KFC revenue. TCF (The Citizen Foundation) is a professionally

managed, non-profit organization with the aim to provide

underprivileged children with basic and formal education and to

contribute toward increasing the literacy rate in Pakistan. KFC has

collaboration with the TCF to further the main objectives with

dedication and professionalism by opening school in Pakistan.

Another social venture is the Children’s Hospitals. KFC strongly

believes in humanitarian issues and is devoted to the cause of

helping impoverished children. It has using its increasingly popular

mascot Chichy to provide the children of NICH (National Institute Of

Child Health) and SOS villages of Pakistan with lively entertainment

and toys and contributing toward their development. KFC also helped

the different NGO’s (Non Governmental Organization). According to

the marketing manager of KFC that organization do all this to fulfill

the social responsibility and create a good image in the market.

KFC ensures steady international standards of quality base on the

basic ingredient of perfection in technology, financial acumen, and

trained management – all aimed at making its customers satisfied

and satisfied to the highest degree.

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Kentucky Fried Chicken

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