Kentucky fried chicken

Strategic marketing

Presented by-

Robert PollandPunit Kapoor

Rohan KhadabadiShashank Shetty

Swagata KarmalkarVenkat Narayanan

Ankur JhaveriSwapnil Lal

• KFC is a chain of fast food restaurants based in Louisville.

• The company was founded by Colonel Harland Sanders in 1952.

• Born and raised in Henryville, Indiana, Sanders first served his fried chicken in 1930 in the midst of the Great Depression at a gas station he owned in North Corbin, Kentucky.

• KFC has approx everyday eight million customers all across the world.

• As of year end 2007, KFC was the leader in the U.S. chicken QSR segment among companies featuring chicken-on-the-bone as their primary product offering, with a 45 percent market share.

• KFC operates in 105 countries and territories throughout the world. As of year end 2007, KFC had 5,358 units in the U.S. and 9,534 units outside the U.S., including 2,140 units in mainland China.

Introduction

Worlds largest Fast Food Company in 2004

KFC & Pizza Hut were 2 of the world’s recognizable brands

Strategic move towards multibranding

Joint venture with local franchisees worldwide

Brand Value(KFC,Pizza Hut & Taco Bell)

Internal Environment (S/W) Analysis

STRENGTHS

Internal Environment (S/W) Analysis

weaknesses

•Model for analyzing international business risk was rather weak

•Wider focus on core business activities

External Environment (O/T) Analysis

value of traditional brands will weaken

Political Issues

Perception that high consumption of fast food diets poses a health risk

Need to adopt to local market conditions

THREATS

Problem Statement

KFC’s low or negative sales growth rate in India when compared to next best competitors – Non Acceptance

competition

• Mcdonald’s

• Bembo’s

• Subway

•Pizza Hut

•Burger King

•Local Outlets such as Nirula’s

•Unorganized vendors

Keys to Success

Price reductions and discounting

Heavy promotional plans.

Expansion of new restaurants.

Product and service modification based on the customer need analysis

Alternative Solutions

Implementation Plan

• Identification of proper geographical segments – Indian Market

• Areas for ethnic foods• Areas for dining concept• Areas for lounge concept

• Develop 2 restaurant concept• International Market

– Target growing markets– Independent business units

Favorable Factors

High % of disposable income on food

Social influences (Culture, Family and Friends & Co-workers).

Relaxing habits resulting in more sit-in consumers.

Changing Lifestyle from traditional eating at home to eating out

Large Tourist Market

Product •Old Indian recipes, New names, LOCALIZE the menu

Position •“CHICKEN”, > Full Scale Restaurant, “Free Chicken” with non-veg orders

Price Points •lower them subject to the MENU, Desserts/Side dishes, Display other things that they offer

Target Customer •Urban, Young, SEC A&B, Couples? “Corporate Climbers”

•Lounge

Product

KFC - Unwind

Product

Boneless chicken is better, chicken with bones is messy, children + Adults feel the same

Push the focus away from CHICKEN, onto the FOOD and QUALITY/EXPERIENCE/AMBIENCE

Kentucky Fried Chicken -> KFC

Mascot -> Uncle SAM

BTL marketing – coupons – tie up with credit card companies

Promotions – Drive Thru – Home Delivery

Young Office goers, Adults, problems perception of parents, drinking age limit

Product

Where does the KFC source its chicken from?

Captive Poultry Farming?

People want to know where the chicken come from?

Indian Population Veg. so no heads on competition

Concentrate on Non Veg

Boneless variety, kebabs, Halal certification

Regional Meal Plan, with a local speciality and free chicken scrap.

Beer Brands, Fruit Beer, 10 Brands

Price

Same prices

People should perceive quality and not a low cost place

Place

Increase the number of family restaurants

People should perceive quality and not a low cost place

Better Ambience

Kiosks at multiplexes selling Flagship products + Beer

Stand alone lounges in select locations

Promotion Buzz Marketing, Social Networking Sites, Radio + Television Commercials, Product Placements/In film ads

Home Delivery from family restaurants

In store promotions: Credit Card preferences, Happy Hours (Food Cost = Free Beer)

Event Screenings

VODAFONE Tuesdays

Newspaper coupons

Corporate Discounts

Process

IMC

“KFC Unwind…!!”

Above the line:

Radio: fever 104 fm – weekdays (5 p.m. to 9 p.m.)

Weekends – throughout the day in hourly intervals.

Teaser ads through newspaper media for a week (Sunday-Saturday..Saturday the brand is unveiled).

OOH- After the brand is unveiled

BELOW the line:

In store promotions: Credit Card preferences, Happy Hours (Food Cost = Free Beer)

Event Screenings

VODAFONE Tuesdays

Newspaper coupons

Corporate Discounts

P&L Account

Thank You