KFC Four Ps

KFC’s marketing mix
Executive summary
KFC is one of the most known fast food chains in the

world started in the early 1930’s by kernel sanders.
• Food, fun and festivity, this is what KFC is all
about.
• KFC has more then 11,000 restaurants in more
than 80 countries and territories around the world.
• KFC first time came to Pakistan in 1997 and were
the title of being the market leader in its industry.
• The marketing mix of KFC consists of 4Ps. It
contains every thing KFC do it to influence the demand
for their products.
• KFC was launched here as an innovative product.
• KFC has a head-on competition with
McDonalds
• The brand of KFC is so strong that it is the
attribute itself.
• KFC introduced itself, has grown and now it
is at maturity stage for the last ten years in
Pakistan.
• Their products have high price and targeted
only upper class.
• Total KFC Chicken Pieces Sold Annually =
5.89 Billion
• Profit Margin is Or Mark Up = $225000000
• KFC has only one channel of distribution
(direct)
• KFC by its advertisements derives the desire
in the customer to come and enjoy
healthy food in their favorite restaurant.
CECOS university (IMIS)

• They spend 2% of its profits on

advertisement.
• KFC has a good product as far as chicken
items are concerned.
Kentucky fried chicken (KFC) - one of the most known fast

food chains in the world started in the early 1930’s by
kernel sanders in the southern USA as a small franchise
operation. Colonel sanders have become a well-known
personality through out thousands of KFC restaurants
worldwide. Quality, service and cleanliness (QSC)
represent the most critical success factors to KFC’s global
success.
Food, fun and festivity, this is what KFC is all about.

Leading the market since its inception, KFC provides the
ultimate chicken meal for the chicken loving nation. Be it
colonel sanders secret original recipe chicken or the hot
and spicy version, every bite bring a YUM on the face. At
KFC we proudly say that:
KFC has more then 11,000 restaurants in more than 80

countries and territories around the world. In 1971
Heublein Inc, acquired KFC, soon after, conflicts erupted
between the colonel and Heublein management over
quality control issues and restaurant.

Procurement Issues
All the raw materials like chicken are bought from

value chicken, vegetables from Monsalwa and they
use caned fruit for salads. The machinery is all
automated and is in conformance to international
standards. KFC officials often visit the outlets
without giving prior notice in order to check the
conformance to quality standards and procedures
Moreover, Food Inspection Teams from Health
Ministry visits twice a year to ensure Hygienic
Conditions at the Kitchen.
KFC primarily sells chicken in form of pieces, wraps,

salads and sandwiches. While its primary focus is fried
chicken, KFC also offers a line of roasted chicken
products, side dishes and desserts. Outside North
America, KFC offers beef based products such as
hamburgers or kebabs, pork based products such as ribs
and other regional fare.
KFC in Pakistan
KFC first time came to Pakistan in 1997 and were the title
of being the market leader in its industry. Opening the first
KFC outlet in Karachi Gulshan-e- Iqbal Serving delicious
and hygienic food in a relaxing environment made KFC
everyone’s favorite. Since then, KFC has been constantly
introducing new products and opening new restaurants for
its customers.
Presently KFC is branched out in eighteen major cities of
Pakistan (Karachi, Lahore, Gujranwala, Sukkur, Sialkot,

Hyderabad, Islam Abad, Peshawar, Multan, Rawalpinde,

& Muree) with more than 60 outlets nation-wide.
Presently KFC has provided jobs to over 1200 Pakistanis,

which adds up to 6000 individuals directly dependent in
KFC Pakistan. The Government of Pakistan receives over
Rs.10 million per month from KFC Pakistan as direct
taxes. 95% of all food and packing material used in KFC
Pakistan is procured locally, which sums up to a purchase
of over Rs.35 million per month. Each new outlet
developed by KFC Pakistan costs approximately Rs.40
million, which is a huge amount for our construction
industry.
Now lets look to the marketing mix of KFC that how they
implement the four Ps of marketing mix.
Marketing mix
The marketing mix is generally accepted as the use and
specification of the ‘four Ps’ describing the strategic
position of a product in the market place.
• Product (goods and service)

• Price (value of the product)
• Promotion (aware the people for product)
• Place (distribution of product)
Marketing mix at KFC

The marketing mix of KFC consists of 4Ps. It contains
every thing KFC do it to influence the demand for their
products.

a product is anything that can be offered to a market that

might satisfy a want or need.
KFC product planing

 KFC product is classified as consumer product as it
has no intermediates.
 KFC offers specialty goods.
 The stock turn over of KFC is high.
 Price and quality of the product is always compared.
 KFC’s product includes
 Goods (Burgers, Chicken Meals etc)
 Services (cleanliness, quick service, parties)

Product strategy of KFC
KFC was launched here as an innovative product. KFC

has got one product line but later they introduced products
in the same line to protect their market share. New
product ideas are generated from:
• Customer services (comments cards)
• Gallops survey (mystery shoppers)
KFC have a Quality Assurance department that decides

the new product innovation. Q.A. department prepares
screening of new ideas and product’s feasibility report.
This department does the technical evaluation (whether
it is practical to produce the new product or not).
KFC’s products are tested externally by offering trials to

customers by giving them free samples.
KFC adds a new product in its present assortment based

on
• Their competitors
• Product’s adequate demand
• The satisfaction of key financial criteria
• Its compatibility with environmental standard
KFC product line

6

KFC product line includes all chicken based

products.
Chicken:
o 1 piece
o 2 pieces
o 5 pieces
o 10 pieces
Burgers:
o Zinger Burger
o Colonel’s Chicken Burger
o Colonel’s Fillet Burger
o Zinger Jr.
Combos:
o Chicken Meals
o Sandwich Meals
o Family Meals
Desserts & Beverages:
o Fruit Salad
o Regular & Large Drink
o Regular & Large Mineral Water
o Tea
o Scoop of Walls Ice cream
o Coffee
Snacks & Side Orders:

7

o Arabian Rice
o 5 & 10 Pieces Hot wings
o Dinner Roll
o Regular & Large Fries
o Hot Shots
o Corn on the Cob
o Hot & Crispy Soup
Product mix strategy
The product mix strategies are in relation to:
• Competitors:
KFC has a head-on competition with McDonalds

Wherever they place their products; KFC goes
there as well.
Locally in Pakistan KFC face a close competition
with the local brands like AFC (Al-Baik Fried
Chicken), Fried Chicks, Dixy Chicks etc they are
producing the same product as KFC.
• Attributes:
The brand of KFC is so strong that it is the attribute

itself.
• Place and Quantity:
KFC products are based on high quality and prices.

8

Product mix expansion
• Line Extension:
• Through introducing new meals offers.
• Alteration of existing products:
 Quality Assurance department does it. The

department decides which product should be
sold and when (seasonal products as rice and
soups offered in winters).
 Functional modification:
 It is also decided by the Q.A. department to

introduce new recipes.
 Quality modification:
 KFC has moved to masses rather than the

original recipe.
Contraction
KFC introduced itself, has grown and now it is at

maturity stage for the last ten years in Pakistan.
When the new deals or offers are not sold as
expected, quality assurance department contracts
the previous offers and introduces new offers.
Change in product positioning

9

KFC products were first offered to upper socio-

economic group. Later, introducing discounted and
lower price deals, they are now dealing in masses.
So, KFC has traded down.
In doing so KFC has used the same brand name
and same high quality product.
Product management of KFC at initial

stage
Market entry was not a big problem for KFC as it is

a well-known international brand. In that stage
they did promoted through their own brand. Their
promotion statement was “KFC in Pakistan”.
Management in the rise stage had to make policy
for heavy competition with McDonald’s. they open
new branches improved and extend the product
line by introducing new product items.
Brand of KFC
 Brand Name: KFC
 Color: Red and white
 Symbol: Colonel Harland Sander’s picture and

KFC written with it.
 Master Brand: The brand itself is so

dominant, that it immediately comes in mind.
10

o KFC's brand identity -- the logo features

Colonel Harland Sanders, one of the best-
recognized icons in the world.
o KFC is trade marked registered brand.
o It is distinctive, adaptable to addition to
product line.
o It suggests something about product.
o It is legally protected and registered
o The brand equity is very high as the value
added by brand to the product effects the
product selling.
o KFC is marketing the entire output under
products own brand
Product packaging
KFC makes its own disposable packaging. If they

need promotion Pepsi contributes in improving the
packaging quality. KFC does family packaging.
They use paper material for packaging to avoid
health hazards and environmental pollution.
KFC does brand labeling. Some of its products also
have informational labels such as Halal, Veggi
Burgers and Chicky Meals.
Conclusion
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 KFC has made a separate brand image in

Pakistan.
 KFC Pakistan does not serve the
vegetarians.
 Product line is very vast.
 They study the behaviors of the Pakistani
customers.
 KFC has specific product features.
 Offering delicious and quality product.
 Specialization in fried chicken.
 Charging extra for side dishes.
 Quality, cleanliness, and service.
 Product quality assurance.
Price is the any amount of money that

customers have to pay while purchasing
the product. More broadly, price is the sum
of all the values that consumers exchange
for benefits of having or using the product
or services
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Price strategies of KFC
In introduction stage KFC entered the market using

market-skimming strategy. Their products were
high price and targeted only upper class. Gradually
they trickle down focusing on the middle class to
penetrate the market. Also KFC follows one price
strategy. Price is determined according to the
rates of the raw materials and policies of the Govt.
The political and legal forces often affect the
policies of KFC and eventually results in change of
prices that is due to imposing of taxes.
Price competition
We can compare the price of KFC products with

McDonald, Dominoes and Pizza Hut. If the
competitor provides the same product at a lower
price then the organization usually lowers the price
of its product too. In the case of KFC, Fried Chicken
is its main selling point and controls a monopoly
over the Pakistan fast food market. It-prices its
burgers, French fries and soft drinks.
Product Line Pricing:

KFC has a unique pricing strategy that falls solely on their many
product lines. Their Value Meals fall into the category of
Product Line Pricing. “Where there is a range of product or
services the pricing reflect the benefits of parts of the range.”
13

For example, you can order a Two Cheeseburger Value meal

that comes with a medium drink and fries. You can Super Size
this meal to get a large drink and large fries for a little more
money or you can go with another value meal that might include
different items for different price.
Penetration Pricing:
When KFC first began to break into the coffee market, they ran
a large marketing campaign in order to gain some market share
in the industry. For a limited time frame, you could get a free
small coffee every morning from 4-7am. This was to promote
their new coffee partnership with Green Mountain Coffee and
helped spread the word that KFC was now offering coffee.
Cost Based pricing
 KFC prices their product keeping different

points in view.
 They adopt the cost base price strategy.
 Pricing of the product includes the govt.
tax and excise duty and then comes the final stage
of determine the price of their product.
 The products are bit high priced according
the market segment and it is also comparable to
the standard of their product.
 In the cost based method we include the
variable and fixed cost.
Calculation of the price under Cost Based Pricing

Strategy
14

Total Pounds of Chicken Served in KFC

Restaurant Annually = 1.914 Billion
Total KFC Chicken Pieces Sold Annually =

5.89 Billion
Total Retail Sales = $8.9 Billion
Sales Price of per Chicken Piece = Total Retail

Sales / chicken Pieces sold = $8.9 Billion / $5.89
Billion =$1.51 we assume that Fixed Cost is =
$6000000000
Variable Cost = $675000000
Profit Margin is Or Mark Up = $225000000(25%

of Sales) per unit variable cost = $675000000 /
5890000000 = $0.115
Unit Cost = Variable Cost + Fixed Cost / Chicken

pieces Sold
= 0.115 + 6000000000 / 5890000000
= 0.115 + 1.02
= $1.135
Now suppose manufacturer wants to earn 25%
mark up on sale. The manufacturer mark up price
is calculated:
Mark Up Price = Unit Cost / (1 – Desired Return

on Sales)
=1.135 / (1-.25)
= 1.135 / 0.75
= $1.51
15

Conclusion
 KFC charge high prices.

 Offers different coupons.
 Concept of discount is lacking in KFC
Pakistan.
 KFC has targeted the upper class
people.
 Service charges are also high.
 No clear policy for discount and
coupons.
 The employees are trained not to
suggest the discounts.
 KFC sells their experiences on high
rates.
 High revenue due to best strategies.
this refers to how the product gets to the customer; for example,
point-of-sale placement or retailing. This third P has also
sometimes been called Placement, referring to the channel by
which a product or service is sold (e.g. online vs. retail), which
geographic region or industry, to which segment (young adults,
16

families, business people), etc. also referring to how the

environment in which the product is sold in can affect sales.
KFC distribution
KFC has only one channel of distribution i.e. direct

where the goods are transferred to the consumer
directly. KFC has no middlemen.
Distribution of goods and services
 KFC does distribution of consumer goods

directly to the consumer.
 KFC also does distribution of services to the
consumer like parking, sitting, home delivery, etc.
 KFC gets Wheels! KFC launched its first
mobile unit, which took the streets of Karachi by
storm. The mobile unit has been designed to cater
to the needs of those who are on the go, and have
little time to stop by at a restaurant. It also
provides a unique convenience of enjoying the
delicious KFC offering anytime, anywhere, thus
making fast food truly fast and convenient.
 KFC intends to further develop its mobile
network nationwide through more such units
Target areas
 Free home Delivery” strategy – They

provide free home delivery to offices & homes at
all Pakistan.
17

 Accessibility – Resulting in several outlets

to cater to the needs of people in & around the
city.
 Hectic lifestyle – Due to the hectic lifestyle
of office goings individuals the fast food concept
saves time of preparing food and gives the
customer a full meal quickly.
 Hectic lifestyle of individuals – giving them
more time at work and less stress about waiting for
food.
 Commercialization of urban and sub-urban
markets leading to more mid-sector people that
find high-end eating joints very to expensive.
 Mid-sector people are always looking for
change which KFC provides in their range of fast
food.
 Quality conscious – people in urban areas
are more conscious about the quality of food than
rural areas.
 Urban areas are more populated therefore
they help with attracting higher revenues.
Placement of outlets
Due to KFC placing itself close to schools, colleges,

cinemas and markets which are mostly populated
by the young and those who are in a hurry, KFC
enjoys a large number of footfalls everyday. In
addition, they also have outlets close to non-
vegetarians (mostly Muslim populated areas).
18

CHANNEL PROCESS
KFC works on the flow of good operation

techniques i.e.
“Good Operating Manager→ leads to “Good Team
Selection →Good Services → Good Targets → Good
Revenues through the following internal strategies:
o Training
o Incentive based targets
o Recognition for good work
o Performance based bonus
o Employee benefits to keep them motivated
o Promotion
Vertical marketing system
KFC has corporate vertical marketing system

because it is centrally owned by its subsidiary Yum
Brands. KFC is affected by the geographic
distribution (they have few outlets then its
competitor McDonald’s). The unit value of the
items is comparatively lower then McDonald’s. KFC
has a well-equipped sitting area for the customers
and a Chicky play area for the kids.
Conclusion
 KFC deals in internal market.

 Less number of outlets in over all Pakistan.
19

 Target only city areas.

 Slow delivery system in some areas.
 KFC has well equipped sitting.
 KFC has no intermediaries.
 Well trained staff with expert supervisors.
 Seeking customer’s response for quality.
 KFC has no entertainment in some
franchises.
 Quality conscious people are the main target
of KFC.
Promotion is the method used to inform and

educate the chosen target audience about the
organization and its products. Using all the
resources of promotion
KFC promotion strategy
The logo features Colonel Harland Sanders that is

one of the best logo in the world has created its
name as a standard in the market. The logo of the
smiling Colonel is probably one of the most
recognized faces in the world and instantly brings
the image of fried chicken to one’s mind. Today
the Colonel’s Spirit and heritage are reflected in
KFC’s brand identity.
20

KFC promotion sources
o Advertising
o Sales Promotion
o Public Relations
o Events and Experiences
o Coupons, Discounts and Bundled packages
An organization finds most of its meanings and

survival through promotion.
At KFC, Promotion is the main tool to bring all
chicken lovers attention towards its delicious one-
of-a-kind
Advertising
 KFC by its advertisements derives the desire

in the customer to come and enjoy
healthy food in their favorite restaurant.
 They spend 2% of its profits on
advertisement and use print media and most
recently doing televised marketing to promote it
products.
 Their advertising media involve:
Newspapers, Pamphlets, Billboards and Television.
KFC does both the primary demand advertising
(“Become a Chicken Fanatic”) and the selective
demand advertising (e.g. “Zinger Meal”).
 In its advertising it gives informative
messages like “Faryad: Keep the city Clean”.
21

 KFC does institutional advertising to

stimulate demand. When KFC offers new products
then it does product advertising.
 KFC’s ad’s act as counteracts which means
to drive the customer to KFC i.e. it uses pull
advertising strategy.
 KFC has put big hoardings on the busy areas
of Pakistan and have an effective advertisement
campaign on the media in order to MOTIVATE its
customers.
 The colors used in advertising are Red,
White and blue which itself is recognition for the
brand.
Sponsorship
Sponsorship is another tool to strengthen an

organizations image. KFC sponsor’s many NGO’s
and other social welfare organizations like Regular
sponsorship to SOS village. Sponsorships to
FARYAD a plant and life association FARYAD: Keep
the City Clean”. They also offer different deals
according to the season and occasions. KFC is
currently the sponsor of the Australian Cricket
Team and the colonel logo can be seen on their
uniforms throughout the matches.
Sales Promotion
KFC have joint sale promotions with different

companies like HP, Philips, Value Meals, and Pepsi
Cola. And most recently with ARY Gold digital and
22

World Call Internet services, Also KFC Proud

Partners are Del Monte, Culligan, Shan and Peek
Freans. KFC uses the following tools to further
enhance its sales.
• Premiums
• Exhibits
• Coupons
• Entertainment
PSO had made a scheme in which PSO had given
the coupons of KFC having 10% off. (1 coupon was
given after each purchase of 10 liters of petrol).
Using coupons that one can acquire after spending
a particular amount over a period of fixed time,
customers can enjoy the benefits of free meals
(premiums). Additionally they provide meal
vouchers and exciting offers in their print ads.
KFC promotion in parties
KFC organize some musical shows and other

parties. With the caption “Biggest Birthday
Party” The event took place on Louisville,
Kentucky, USA, on Sept.8, 1979, to celebrate the
89th birthday of Kentucky Fried Chicken founder
Colonel Harland Sanders.
Quality assurance
KFC takes great pride and care to provide the best

food and dinning experience in the quick service
restaurant business. They believe eating sensibly,
combined with appropriate exercise, is the best
23

solution for a healthy lifestyle. Chicken & its Products

are
 Locally produced and processed chicken.

 Supplied in frozen form
 100% Halal
Conclusion
After my research of KFC, I come to conclusion that

KFC has a good product as far as chicken items are
concerned. But they have to increase other
varieties to attract the customers. And they must
targets the children, as McDonald’s targeting by
making a play land because children are the main
source and important ones to push their parents to
go to their favorite restaurants. And one more
aspect for KFC is that it must also reduce their
prices to compete their competitors like McDonald,
Crisps Pins and Pizza Hut. The largest threat KFC is
faced with is the restaurant industry as a whole.
The consumer continues to have many choices
when it comes to fast food restaurants. KFC
struggles are much do to the inability to bring new
products to the market quickly and its innovation
of new products. KFC fell behind the market in new
products and was copying other fast food chains to
stay competitive.
References:
Principle of marketing by Philip kotler

Marketing management by Philip kotler
www.kfc.com
24

www.google.com
www.scribed.com
www.encyclopedia.com
25

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KFC’s marketing mix

KFC is one of the most known fast food chains in the

CECOS university (IMIS)

• They spend 2% of its profits on

Kentucky fried chicken (KFC) - one of the most known fast

Food, fun and festivity, this is what KFC is all about.

KFC has more then 11,000 restaurants in more than 80

CECOS university (IMIS)

All the raw materials like chicken are bought from

KFC primarily sells chicken in form of pieces, wraps,

CECOS university (IMIS)

Hyderabad, Islam Abad, Peshawar, Multan, Rawalpinde,

Presently KFC has provided jobs to over 1200 Pakistanis,

• Product (goods and service)

Marketing mix at KFC

CECOS university (IMIS)

a product is anything that can be offered to a market that

KFC product planing

 KFC offers specialty goods.

 The stock turn over of KFC is high.

 Price and quality of the product is always compared.

 KFC’s product includes

 Goods (Burgers, Chicken Meals etc)

 Services (cleanliness, quick service, parties)

CECOS university (IMIS)

Product strategy of KFC

KFC was launched here as an innovative product. KFC

• Customer services (comments cards)

• Gallops survey (mystery shoppers)

KFC have a Quality Assurance department that decides

KFC’s products are tested externally by offering trials to

KFC adds a new product in its present assortment based

• Product’s adequate demand

• The satisfaction of key financial criteria

• Its compatibility with environmental standard

KFC product line

CECOS university (IMIS)

KFC product line includes all chicken based

Desserts & Beverages:

Snacks & Side Orders:

CECOS university (IMIS)

Product mix strategy

The product mix strategies are in relation to:

KFC has a head-on competition with McDonalds

The brand of KFC is so strong that it is the attribute

• Place and Quantity:

KFC products are based on high quality and prices.

CECOS university (IMIS)

Product mix expansion

• Through introducing new meals offers.

• Alteration of existing products:

 Quality Assurance department does it. The

 It is also decided by the Q.A. department to

 KFC has moved to masses rather than the

KFC introduced itself, has grown and now it is at

Change in product positioning

CECOS university (IMIS)

KFC products were first offered to upper socio-

Product management of KFC at initial

Market entry was not a big problem for KFC as it is

 Brand Name: KFC

 Color: Red and white