Chapter 1

Introduction
KFC was introduced in Pakistan in 1999. After its introduction in Pakistan it gained rapid popularity in Pakistan. It surpassed McDonalds because of its foods products appealed to taste of local population. Due to its rapid popularity ore people started to i itate t!e products of KFC and local fast food c!ains started to e erge in Pakistan. Popping up of t!ese c!ains led to erosion of KFC"s brand i age. #ew local c!ains were offering custo ers fast food at low prices wit! acceptable $uality of food and in so e case t!e food $uality was co parable to KFC"s food products. Ma%or co petitor McDonalds initially was losing its s!are in Pakistani arket. &ut it c!anged its food product line according to taste of Pakistani custo ers and pro'ided better ser'ice t!an KFC. (!e focus of pro%ect is to identify weaknesses in t!e KFC"s ser'ices and de'ise strategies to o'erco e t!ese weaknesses.

Target Market
Alt!oug! KFC and McDonalds target sa e type of custo ers t!e elite and upper iddle class and upper iddle class. )n t!e ot!er !and* elite and upper iddle

class. (!e types of custo ers w!o are co ing to KFC to consu e eatables in KFC are iddle class are going to McDonalds. &ecause* people in elite class and upper iddle class prefer t!at if anner.

t!ey !a'e to consu e sa e type of product so w!y not en%oy t!eir food in friendly en'iron ent and space in w!ic! t!ey can consu e eatables in a rela+ed

Chapter 2
Strengths and Weaknesses of customer experience at KFC
Strengths KFC"s food products are 'ery well suited to taste of Pakistani. Consu ers like t!e food of KFC. (!e slig!t taste of spiciness and t!e crispiness is liked by Pakistani people. (!e food products of KFC are suited to not only t!e Pakistan but are also popular in Middle ,ast and India. &ecause of KFC"s popularity in Pakistan* different entrepreneurs tried to copy t!e KFC" food products. (!is i itation of KFC"s food products caused t!e KFC"s i age to dilute rapidly. Weaknesses: (!e ain weaknesses of t!e KFC"s are due to its ser'ice escape. KFC"s ser'ice escape !as 'ery li ited space. -sually KFC ser'ice escape is Marlas 1Marla 12.31 s$. cra eters44 or 1 Kanal 1/5.2 s$ ade in Plot si.es of /and10 eters4. (!ese plot si.es fail to

pro'ide a friendly en'iron ent for consu ers. It looks like t!at e'eryt!ing in KFC is ed. ,'eryt!ing is 'ery closely spaced t!at so eti es custo ers find !ard to stand a%or co petitors of KFC !as its ser'ice design in $ueues. It beco es difficult for custo er to sit in t!e seating area. 6owe'er* McDonalds w!ic! is one of t!e conduci'e for fa ilies to consu e food in friendly en'iron ent. It usually !as !uge space for custo er seating* dri'e7t!ru* c!ildren"s play and a in so e cases a park w!ere people can en%oy $uality ti e wit! t!eir fa ilies w!ile eating t!eir food. )t!er weaknesses were 1. )nly 2 counters 2. 8ess $ueue area 9. : all kitc!en ;. 8ayout of seating area /. Closely spaced seats 5. : all Kids play area <. : all was!roo 3. #o specific parking space

Chapter 3
Ser ice !"ueprint Marketing Mix for Ser ices
#roduct KFC"s products are uc! better in $uality and taste as co pared to ot!ers fast food eals.

restaurants. Products of KFC !a'e !uge potential because KFC food products are suited to taste of Pakistani consu ers w!o like to !a'e spicy and crunc!y c!icken

#rice KFC"s products are priced !ig! as co pared to local fast food c!ains but its prices are co parable to ot!er a%or co petitors.

#"acement KFC is usually located in t!e pri e locations so as to increase custo er"s con'enience. #romotion It !as been

any years since KFC !as gi'en any significant a ount of ads in Pakistan. arket s!are in Pakistan.

(!is is also one of t!e reasons t!at KFC is losing

#eop"e KFC e ployees are well trained and follow t!e standards establis!ed by t!e KFC. 6owe'er* t!ey need to well infor ed so t!at t!ey can ser'e custo ers in better way #rocess KFC !as designed its cooking processes to pro'ide $uick deli'ery of orders. &ut still e ployees fail to deli'er it in s!ortest ti e possible. #h$sica" % idence KFC"s :er'ice escape is poorly designed and needs a lot of i pro'e ent to attract custo ers.

Chapter & 'aps Mode"

'ap 1 ()istening or Kno*"edge 'ap+ (!is gap !as aroused in KFC because of its franc!ises are taking !ands and t!e top eeting e+pectation of custo ers. )t!er botto 1franc!ise4 to top 1top atter into t!eir own

anage ent is not reali.ing t!at t!eir ser'ice7escape design is not a%or co petitors !a'e raised t!e e+pectations unicated fro

of custo ers. (!ese increased custo er e+pectations are not being co anage ent4.

'ap 2 (,ot se"ecting the right ser ice design and standards+ (!is can be seen in KFC in t!e for of poor design of p!ysical e'idence. )nce* p!ysical e'idence !as ade a bad i age in t!e ind of consu ers it affects t!e oods of t!e custo ers and affects t!e consu er"s ser'ice e+perience. 'ap 3 (Ser ice #erformance 'ap+ (!ere was slig!t delay in t!e deli'ery of t!e food products. KFC"s standards are keeping t!eir e ployees on t!eir toes so t!at t!ey work !ard and try to deli'er t!e products $uickly. :o* t!ere is s all gap between ser'ice custo er dri'en standards and ser'ice deli'ery. 'ap & (Communication 'ap+ KFC !as not ad'ertised for a long ti e and consu er w!o usually forget t!ose products w!o are not co unicated to t!e fre$uently. :o* t!is co unication gap !as increased due to no fre$uent ad'ertising to consu ers. Also t!e ser'ice =escape pro'ides so e tangible cues to consu ers and affects t!eir failed to eet t!e de ands of consu ers. ood. In t!is case t!e ser'ice7escape !as

Chapter Customer .ecision Making #rocess

#eed recognition> -sually* people decide to go to Fast food c!ains w!en t!ey feel !ungry or want to consu e $uality fast food products. Infor ation :earc!> Ads &illboard signs Me ory of custo ers Friend"s opinion 1peer pressure4 &roc!ures ,'aluation of Alternati'es> KFC McDonalds 6ardees Pi..a 6ut )t!er local Fast Food c!ains ?FC 1?oyal Fried C!icks4 AFC 1Al7#a%a Fried C!icks4

Purc!ase :electing t!e KFC Consu er ,+perience :atisfactory or not good Post Consu er ,'aluation -sually* t!e post e+perience e'aluation is done w!en ne+t ti e a consu er decides to consu e fast food. In case of KFC* after consu er !as consu ed eatables of KFC and 'isits ot!er fast food c!ain. Consu er"s opinion after 'isiting McDonalds. ig!t get worse about KFC* especially

/esearch KFC can i pro'e its ser'ice and recapture its researc! progra . (!is researc! progra fro researc! progra franc!ises* focus groups of franc!ise

arket s!are if KFC i ple ents a proper anagers* etc. Carrying out an effecti'e inds of

s!ould include inter'iews* sur'eys* feed back

will !elp KFC to i pro'e its ser'ice* reposition itself in t!e

consu ers and strengt!en relations!ip between KFC and its custo ers.

Chapter 0
Ser ice 1ua"it$ .imensions
?eliability KFC usually pro'ides standardi.ed products and t!ere is less c!ance of products w!ic! !a'e defects. 6owe'er* w!en it co es to ti ely deli'ery of products KFC lacks to deli'er it e+actly on ti e. Assurance (!e Knowledge of e ployees about t!eir products was low on t!e P!one so t!ey need to i pro'e t!eir knowledge about a'ailable food products. 6owe'er* e ployees of KFC were courteous. (!ey greeted by saying Asla 7o Aliaku ade a p!one in$uiry. , pat!y KFC e ployees ga'e indi'iduali.ed attention to its custo er. ?esponsi'eness , ployees of KFC were responsi'e to re$uests and de ands of t!eir custo ers. For instance* during 'isit of KFC we asked tissues fro tissues. (angibles KFC seriously lacks in ser'ice7escape. 6ow e'er t!e e ployees are well dressed in unifor s. !elper. 6e i ediately pro'ided w!en we 'isited KFC and

Ser ice /eco er$ If KFC fails to eet t!e need of its custo ers* custo ers usually do not co plain in case of fast food restaurants. &ecause w!en t!ey decide ne+t ti e to purc!ase fast food* at t!at ti e t!ey e'aluate t!e o'erall ser'ice of fast food c!ain. (!e reasons be!ind switc!ing fro KFC to ot!er brands are !ig! prices* a co petitor offering better ser'ice 1better ser'ice in better en'iron ent4* ser'ice encounter failures 1knowledge of e ployees4 and delays in ser'ice deli'ery.

Chapter 2 Ser ice %scape /o"e of Ser ice3%scape

#ackage :er'ice escape as a w!ole affects t!e oods and e otions of custo er and influences t!e

perception of t!e consu ers about t!e fir . Faci"itator :er'ice7escape allows t!e flow of acti'ities s oot!ly and pro'ision of ser'ice $uite easy. Socia"i4e :er'ice7escape allows t!e custo er to sociali.e wit! ot!er custo ers in a better way. .ifferentiator :er'ice7escape can differentiate one ser'ice pro'ider fro

anot!er.

Chapter 5 Ser ice3escape

@!ile in'estigating t!e ser'ice escape of KFC we kept in in t!e article of Mary Ao &itner. %n ironmenta" .imensions Ambient Conditions (!e te perature* air $uality and odor were better. Instead of news on t!e (B were capturing our attention. Space @e took t!e pictures of ser'ice7escape including t!e $ueue area* seating area* play area* parking area* was!roo and stairs area. (!ere was no space specially allocated for KFC before sitting. @as!roo was like a closet custo ers. (!ere were only 2 $ueue counters. (!e c!airs in t!e seating area were so closely spaced t!at we !ad to ad%ust t!e w!ic! was con'erted into was!roo . @e also noticed t!e kitc!en area w!ic! was 'ery s all. (!e building was di'ided in se'eral stories to acco t!eir cooking operations. odate t!e custo ers and usic and loud noise t!e ind t!e di ensions described

Signs & Symbols @e took pictures of Menu* o'en and t!e o'erall dCcor of t!e lounge and KFC"s outer appearance. Perceived Service-escape (!e o'erall i pression about KFC in our t!e KFC is cra

ind was t!at layout KFC"s ser'ice7escape of

ed and not friendly en'iron ent.

Response Moderators @!en custo ers ca e to KFC t!ey e+pected a $uick deli'ery of food products 1i patient custo ers4. @!en we 'isited KFC we were in !urry to rus! back to our !o es and do our work. In t!is case* KFC personnel forced us and ot!er custo er to wait for / get our desired products. inutes to

Customer Response (!e resulting response of custo er was asking about !ow t!ey !a'e to wait for t!e food to be deli'ered. Employee Response In response to custo er"s in$uiry about !ow $uickly deli'er t!e products.

uc!

ore a ount of ti e

uc! t!ey !a'e to wait. (!e e ployee w!o

was pro'iding t!e ser'ice at t!e counter was worrying and yelled at supply people to

Employee Approach , ployee and !is supply people worked !ard to deli'er t!e products to consu ers. Customer Approach Custo er w!o !ad spent t!eir be deli'ered and consu e t!e

oney for buying t!e products !ad to wait for products to in cra ed layout of seating area.

Social Interaction between Employee and Customer (!e interaction between e ployee and custo er was good. (!e e ployee at t!e counter greeted us wit! Asla 7o7Alaiku and asked us w!at we needed. @!en t!e !e deli'ered t!e products !e for ally t!anked us for consu ing t!eir products and ser'ice.

Chapter 16 7sefu"ness of M$ster$ Shopping

Mystery s!opping is organi.ation. (!e uc! ore i portant tool to e'aluate t!e ser'ices of any ain ad'antage of t!is researc! is t!at you don"t need to conduct of anagers about

lengt!y sur'eys in w!ic! t!ere is c!ance of non7responsi'e custo ers* biased opinions of custo ers and conduct your researc! wit!out per ission and criticis defects in $uestionnaire. Mystery s!opping also allows you to engage in a ser'ice deli'ery process and find out w!at are gaps in ser'ice pro'ision and w!ere t!ese lags are occurring.

/ecommendations
1. KFC needs to i pro'e its e ployee"s knowledge about its products a'ailability. :i ply pro'ide t!e respondent wit! copy of broc!ure on w!ic! ite s w!ic! are not a'ailable are crossed. 2. KFC needs to i pro'e co global !ead$uarters. 9. KFC needs to i pro'e seating area and layout of seating plan ;. I pro'e parking area /. I pro'e kids play area 5. 8ocate KFC franc!ises near public parks. Fro 9rd reco endation onwards* re$uires KFC to redesign its franc!ise p!ysical ay eit!er suggest to t!eir franc!ise owner to unication between franc!ises and regional and

en'iron ent layout. For t!is purpose* t!ey new opening franc!ises.

rebuild t!eir ser'ice pro'iding facilities or induct new design of p!ysical en'iron ent in

/eference to 8rtic"es
(!e article D,'aluating :er'ice7,scape> t!e effect of cognition and e otionE by Ingrid F. 8in. In t!is article !e !as ention about t!e Gestalt study 1page 15;* ,'aluating :er'ice7 ,scape by Ingrid F. 8in4 in w!ic! researc!ers !a'e found t!at ser'ice7escape affects t!e ood and e otions of custo ers and t!eir o'erall e'aluation of ser'ice7escape.

Custo ers e'aluate t!e ser'ice escape and for

t!eir %udg ent about t!e ser'ice7escape.

8ater in t!is study* !e discusses about space of ser'ice7escape 1page 153* ,'aluating :er'ice7,scape by Ingrid F. 8in4. 6e refers to study of 1C!ing 19954* in w!ic! !e describes t!at !ig! ceiling is associated to spaciousness w!ile t!e low ceiling is associated wit! co.iness. (!is article pro'ides argu ent t!at low ceiling associated wit! co.iness. In Pakistan w!ere people like spaciousness in t!eir ser'ice7escape* KFC"s ser'ice7escape is s all. First of all custo er face t!e proble of parking t!eir 'e!icles w!ic! is like a first barrier to entry custo ers face for going to KFC. (!e article na ed as role of ser'ice7escape in ser'ice arketing by Meenaks!i G!ang!as

describes t!at layout of t!e ser'ice7escape can differentiate t!e type of custo ers w!o will be co ing to t!at ser'ice7escape. Furt!er* s!e says t!at a ser'ice7escape s!ould facilitate t!e custo er in ser'ice consu ption in con'enient and co fortable ser'ices and capture new arket seg ents. anner. Moreo'er in t!is article s!e says t!at fir s adapt t!eir ser'ice7escape to reposition t!eir

/eferences
1. .2012. . [ONLINE] Available at:!ttp>HHwww.ida.liu.seHIste!oHundH!tdd01H920391055<.pdf. [Accessed 10 December 2012]. 2. . 2012. . [ONLINE] Available at: !ttp>HHwww.ba.aegean.grH .sigalaHpaper7 ser'icescape.pdf. [Accessed 10 December 2012]. 9. Role of ServiceScape In Marketing of Services - By Meenakshi Ghanghas, Lecturer. 2012. Role of ServiceScape In Marketing of Services - By Meenakshi Ghanghas, Lecturer. [ONLINE] Available at:!ttp>HHwww.129oye.co H%ob7articlesHad'ertising7sales7 anage entHser'icescape.!t . [Accessed 10 December 2012].

8ppendices