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Table of Contents
Acknowledgement…………………………………………………………..3
Executive Summary…………......……….....……………………….….3
Management Team……………………………………….....……..……4
Mission Statement………………………………………………...……..6
Vision…………………………………………………………………….……6
Company Overview……………………………………………….………6
KFC In Pakistan……………………………………………………………8
Cupola Pakistan…………………….…………………………………….8
KFC Facts……………………………………………………………………8
Performance Overview…………………………………………………9
Organization Structure………………………………………….……11
Advertisement…………………………………………….……….……..11
Organizational Culture……………………………………………….12
SWOT Analysis……………………………….……….
S u b m i tt e d t o M i s . S h u m a i l a G u l
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..........................12
Analysis………………………………………..13
BCG Matrix…………………………………………………………..……15
Marketing Strategies……………………………………………….….17
Marketing Mix………………………………………………………….…18.
Publicity Of KFC IN Guinness Book Of World Record………22
KFC Nutritional Information…………………………………………23
Marketing Research Process…………………………….….……….23
Survey Report Of KFC……………………………………..………….24
Strategic Management…………………………………………….…..26
Recent Achievement Of KFC……………………………….………..26
Conclusion………………………………………………………………….27
Perception………………………………………………………………….27
References………………………………………………………………….28
ACKNOWLEDGEMENT
First of all, we would like to offer our eternal thanks to the Almighty Allah who
blessed us with the perseverance and the sprit of hard work to complete this project.
We are also grateful to our parents for their patience and belief in us. We offer our
respectful gratitude to our Business and Management teacher Mis. Shumaila
Gul for his guidance &encouragement. We would like to thank all of those people
specially
the Marketing Manager of KFC Mr. Shabir who helped us through our entire
project.
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 has become a well known personality
throughout thousands of KFC restaurants World wide. Quality, service and
cleanliness (QSC) represents the most critical success factors to KFC's global
success.
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Food, Fun & Festivity, this is what KFC is all about.
Leading the market since its inception, KFC provides the ultimate
chicken meals for the Chicken Loving Nation. Be it Colonel Sanders
secret Original Recipe Chicken or the Hot & Spicy version, every bite brings a YUM
on the face. At KFC we proudly say:
KFC has more than 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 (which was working as a public relations and
goodwill ambassador) and Heublein management over quality control issues and
restaurant
KFC is part of Yum! Brands, Inc., however in the case of Pakistan KFC build
the relation of Quality Service and cleanliness for Customer
KFC was acquired by PepsiCo in 1986, it had grown to approximately 6,600
units in 55
countries
and
territories. Due to strategic reasons, in 1997 PepsiCo spun off its restaurant
businesses (Pizza Hut, Taco Bell and KFC)
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Mission statement:
KFC is an internationally renowned fast food industry in the world. They
have the main ambition to increase & maintain the quality in fast food
industry. Their aim is to capture the fast food market. Basically they
want to provide their products to anyone that is why they expending
their branches in all over the world.
They want to increase their profit through giving maximum satisfaction
& other better facilities to people that they want. Now after catching such a
marvelous position in the International Market, KFC is introducing a new item
“Boneless Fried Chicken”, with even more attractive and charming taste.
VISION
“Our passion, as a restaurant company, is to put a YUM on people's faces around
the world, satisfying customers every time they eat our food and doing it better than
any other restaurant company”.
Company overview:
Colonel Harland sanders, born September 9, 1890,actively began franchising his
chicken business at the age of 65. Now, the Kentucky fried chicken business
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he started has grown to be one of the largest retail food service
systems in the world. And Colonel Sanders, a quick service
restaurant pioneer, have become a symbol of entrepreneurial
spirit. More than two billion of the colonel’s “finger
lickin’ good” chicken dinners are served annually. And not just in
America. The colonel’s cooking is available in more then 82 countries around the
world. When the colonel was six, his father died. His mother was forced to go to
work, and young Harland had to take care of his three year old brother and baby
sister. This meant doing much of the family cooking. By the age of seven, he was a
master of a score of regional dishes. At age 10, his first job working on a nearby
farm for $2 a month. When he was 12, his mother remarried and he left his home
near Henryville, Ind., for a job on a farm in Greenwood, Ind. He held a series of jobs
over the next few years, first as a 15-year-old streetcar conductor in New Albany,
Ind., and then as a 16-year-old private, soldiering for six months in Cuba. After that
he was a railroad fireman, studied law by correspondence, practiced in justice of
the peace court, sold insurance, operated an Ohio River steamboat ferry, sold tires,
and Operated service station. When he was 40, the colonel began cooking for
hungry travelers who stopped at his service station in Corbin, KY. He didn’t have a
restaurant then, but served folks on his own dining table in the living quarters of his
service station. As more people started coming just for food, he moved across the
street to a motel and restaurant that seated 142 people. Over the next nine year, he
perfected his secret blend of 11 herbs and spices and the basic cooking technique that
is
still used today.
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Their bone structure is dramatically shrunk to get more meat
out of them. This is great for KFC because they do not have to
pay so much for their production costs. There is no more plucking
of the feathers or the removal of the beaks and feet.
KFC In Pakistan
Presently KFC is branched out in nine major cities of Pakistan (Karachi, Lahore,
Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad, and Islamabad)
with 45 outlets nation-wide. Opening the first KFC outlet in Gulshan-e-Iqbal,
Karachi in 1997, and KFC wore the title of being the market leader in its industry.
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.
In Pakistan totally Chicken buy from Pakistani Poultry Forms, and also
this Chicken is 100% Halal.
About Cupola
Cupola is a Dubai based multinational company involved in several business
including, oil gas exploration, plastic cards, retail markets and food franchising.
Cupola Pakistan
Cupola holds the master franchise rights to operate KFC in Pakistan since 1999.
That was a major difference that when Cupola takes complete Operate in Pakistan
that was only 05 Outlets in all over Pakistan, and then now the major difference
that Cupola takes 45 Outlets in Pakistan.
Apart from fulfilling the commitment of serving delicious, fresh and hygienic food
and at the same time providing the customers with the ultimate entertainment; KFC
also plays part in the economic development of our country.
KFC Facts
Presently KFC has provided employment to over 1200 Pakistanis, which adds
up to 6000 individuals directly dependent on KFC Pakistan.
The Government of Pakistan receives over Rs.10 to 11 million per month from
KFC Pakistan as direct taxes.
95% of all food and packaging material used in KFC Pakistan is procured
locally, which sums up to a purchase of over Rs.35 million per month.
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Each new outlet developed by KFC Pakistan costs
approximately Rs.40 million, which is a huge amount for
our construction industry.
Organizational Structure:
The KFC adopted traditional structure for their outlets that other
food chains are following. There is one General Manager for Pakistan. The outlet is
leaded by the Manager, assisted by two
assistant managers, and one shift in-charge for each shift, that supervises the
performance of counter workers and kitchen workers.
Competition:
KFC does not consider Mc Donald’s are its direct competitors. As Mc
Donald’s has a limited menu and cater to different segments of society
e.g. Mc Donald is catering to lower middle society of Pakistan. Though
KFC has faced a little competition from local restaurants but their
breakeven in terms of revenue has been done and they are planning to
expand further to other cities like Islamabad and Peshawar.
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Customers
KFC’s customer market consists solely of the consumer market (Kotler et al 2003).
KFC’s products are bought by individuals (males, females, singles, and families).
Therefore, the product range KFC offer should appeal to as many people within this
consumer market as possible, to ensure that the maximum amount of products can
Company
KFC is a multinational fast food chain company that has successfully established
itself in the Pakistan market. It has a long history, going back to where Colonel
Harland Sanders created its distinct recipes. The KFC brand is well known in
the way KFC’s suppliers are threatening the chicken, before they got slaughtered.
Anti-KFC campaigns, are affecting KFC’s brand image in a negative way and result
Advertising
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One of KFC's advertisements is a commercial advertising its
"wicked crunch box meal". The commercial features a fictional
black metal band called "Hellvetica" performing live, the lead
singer then swallows fire. The commercial then shows the lead singer at a KFC
eating the "wicked crunch box meal" and saying "Oh man that is hot".
In 2007, the original, non-acronymic Kentucky Fried Chicken name was resurrected
and began to reappear on company marketing literature and food packaging, as
well as some restaurant signage.
Organizational Structure:
The KFC adopted traditional structure for their outlets that other food chains are
following.
There is one General Manager for Pakistan. The outlet is leaded by the Manager,
assisted by two assistant managers, and one shift in-charge for each shift, that
supervises the performance of counter workers and kitchen workers.
Organizational Chart
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ORGANISATION CULTURE
FOUNDING TRUTHS
STRENGTH:
• Refocused international strategies
• Competitive marketing strategy
• Distribution strategy
WEAKNESS:
• Management Shift
• Conflicts between KFC and PepsiCo cultures
OPPORTUNITIES:
• International Appeal to American products
• Economies of Scale and Scope
THREATS:
• Consumer health food trend
• Saturated fast food industry in the U.S. market
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Porters Five Force Analysis
Entry
For the current Pakistan market for fast food, it is not difficult for a fast food
restaurant to enter the market. However, it would be extremely difficult to take
over already running major fast food chains' dominancy in Pakistan or even make
a significant amount of profit. While there are enough people in urban Pakistan for
any restaurant to survive, KFC holds the first-mover advantage into the 'non-veg
food specialty food segment' that gives them free reputation. Customers, especially
children who are used to going to KFC as a treat or reward from their parents or
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grandparents, are not going to want to go to other restaurants
they’ve never heard of. The brand name is already established.
Also, there is already a large variety in the numerous western-style
dining places in Pakistan, such as
McDonald’s, Pizza Hut, Domino's and Subway, and any new fast-food entrants
would just be presenting something very similar to what’s already there. While
small
Neighborhood restaurants generally have low barriers to entry, these are the
barriers to entry for similar restaurant businesses to enter the fast-food chain
market.
As mentioned above, there are a few major competitors in the fast-food industry
in Pakistan for KFC, namely McDonald’s, Pizza Hut, Domino's and Subway. The
substitute products, in this case, would be burgers, pizza, and sandwiches. Though
they are competitors, their primary products differ greatly from each other, in that
they sell, chicken, burgers and fries, pizzas, and sandwiches, respectively.
Traditional
Pakistan dining, home-cooked meals, and grocery stores with ready-to-eat foods
are also substitutes, as families could choose any one of these over fast food for a
meal. These substitutes are definitely considered healthy as compared to the fast
food chains. Even foods from street vendors count as substitute goods.
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While other fast foods serve as substitute to KFC, they can also
serve as complements for fast foods as a whole. If the general
price of fast foods goes up, KFC’s price rises as well, and the same
can be said of the quantity sold of these products, which make them
complements to each other. KFC also sets up stores located near popular tourist
attractions, so tickets to these tourist spots are also complementary goods because
the more people tour these attractions, the more customers KFC will get.
Rivalry
Unlike what one would expect, KFC has little rivalry with similar fast-food
chains in Pakistan. The primary reason is that their core products are
different, as in they sell different kinds of fast foods with very different tastes
and styles. For example, if KFC raised its price for chicken by a small
amount, Pakistan chicken lovers who may not be as accepting to pizzas
(many Pakistan people strongly dislike the taste of cheese) are not going to
switch to Pizza Hut just because the price for KFC increased. In addition to
that, these restaurants have such different target customers that the
fluctuation of price for one restaurant is not going to affect the others. For
example, a full meal at KFC ranges about Rs. 100, whereas a full meal at
Pizza Hut can cost over Rs. 300. The drastic difference in price assures no
price competition between these restaurants.
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KFC I n d ia - BCG Ma t r ix
Crispy
Boneless
Chicken
Krushers
?
Chicken
Bucket
Veg
Thali
Question Mark:
Currently KFC have launched a new product in the market. They have also tried to
come into the beverages market by launching its new brand of shakes called
KRUSHERS. As it is a fairly new product it comes in the category of the Question
Mark in the BCG Matrix. It has a low market share thus brings low revenue. KFC is
advertising a lot to popularize this product so there is a lot of expenditure on it. This
product is individually not bringing any profits and is a cash drain for the
company. Company may decide to completely remove this product from the market
if it does not do well soon and start bringing in revenue.
DOG:
KFC’s Veg Thali comes under this category. Although company had launched this
product much earlier, it has still failed to become a success. As KFC is known more
for its non-veg food, this also results in low demand for this item. It has a low
market share and although low on expenditure (as company does not spend on its
promotion), it does not bring in much revenue as demand is low. The product is
mostly CASH NEUTRAL.
CASH COW:
KFC’s Chicken Bucket is the most successful product of the company. It has the
highest market share amongst all the other products. It has good demand in the
market and brings in huge sales revenue. The development and other expenses are
also low and thus this product is a CASH SIRPLUS for the company.
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STAR:
The star product of the company is its crispy Boneless Chicken. It
has a high market share and brings in high revenue. But it also has
high developmental expenditure involved. The profit therefore is
generally not very high brought in by this product. This product is CASH NEUTRAL
for the firm.The company is trying make this product a cow as well, by reducing the
expenditure.
KFC fast-food chains are currently under the restaurant division of PepsiCo
Incorporated. Some major threats include the changing attitudes of society toward
healthier eating habits, KFC has more than 9,800 outlets located in 77 countries. In
marketing, KFC restaurants are not restricted from locating within close proximity
of other KFC restaurants. There are two alternative strategies for KFC. The first
strategy involves keeping PepsiCo beverage division and snack foods division
together, and a divestiture of PepsiCo restaurant division; selling Taco Bell, Pizza
Hut, and KFC.
Market Strategies:
KFC Target Market:
KFC targets the young generation, as here in this country the young
generation is more towards eating out and is more energetic. It targets the early
single segment that is the upper class.
Aggregation Strategy:
KFC does not need aggressive marketing or advertising because Brand is
strong enough.
Market Segmentation:
Previously they were focusing on single segment that was through Niche
Marketing by offering “Combo Deals”. Now they are focusing more on other
classes as well. They are dealing in masses by introducing value deals; most
recently introduced “Zinger Junior”.
Benefits:
Colonel’s value combo meals introduced previously were expensive and so
there were less sales but through their recent offers, they have increased the sales by
offering low prices.
Purpose:
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Inflation highly affects the purchasing power of the
customers. And here the purchasing power of many customers is
low. To cover this major segment, they have introduced affordable
meals, so that it is in reach of the masses.
Want Specification:
The people here need a friendly and family restaurant, which must be
affordable for them.
Consumer Market Segmentation:
Region:
Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot,
Hyderabad and Islamabad
Geographic:
Lahore:
Gulberg:
Barket Market:
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Thokar Niaz Baig:
Fortress Stadium:
It also covers the large commercial and populated area .
Marketing Mix:
Marketing mix consists of 4P’s. It contains everything a firm can do to influence the
demand for its product. The 4P’s are:
PRODUCT
PRICE
PLACE
PROMOTION
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Color: Red, 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.
KFC Brand:
KFC's brand identity -- the logo features Colonel Harland Sanders, one
of the best-recognized icons in the world.
Brands Equity
The brand equity is very high as the value added by brand to the product effects the
product selling.
Branding Strategies
Complementary Branding
Pepsi & Nescafe.
Packaging Strategies
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.
Labeling
KFC does brand labeling. Some of its products also have informational labels
such as Halal, Veggi Burgers and Chicky Meals.
Pricing
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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.
KFC has only one channel of distribution i.e. direct where the goods are transferred
to the consumer directly. KFC has no middlemen.
KARACHI 12
LAHORE 7
HYDERABAD 1
FAISALABAD 1
RAWALPINDI 1
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
KFC does intensive distribution on its outlets. (All and everything on every outlet).
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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. Today the Colonel’s Spirit and heritage are reflected in
KFC’s brand identity.
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. They 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 give informative messages like “Faryad: Keep the city Clean”. 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.
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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)
KFC in its advertisements says;
“Nobody does chicken like KFC”
“We do chicken right”
The message conveyed in the ads is recognition for the brand. KFC does competitive
advertisement with its head on competition with McDonalds. Regarding this KFC
uses Pricing below competition strategy.
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.
With the caption “Biggest Birthday Party”. The event took place on
Louisville, Kentucky, USA, on Sept.8, 1979, to celebrate the 89 th birthday of
Kentucky Fried Chicken founder Col.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 solution for a healthy lifestyle.
Food Safety:
Chicken & its Products:
Locally produced and processed chicken.
Supplied in frozen form
100% Halal
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Recipe/E-Breast
Original 59(g) 140(g) 8(g) 75(mg)
Recipe/E-
4(g)
Drumstick
14(g)
Original 126(g) 360(g) 25(g) 165(mg) 12(g) 22(g)
Recipe/E-Thigh
Hot & Spicy- 53(g) 180(g) 11(g) 60(mg) 9(g) 11(g)
Wing
Hot & Spicy- 179(g) 450(g) 27(g) 130(mg) 20(g) 33(g)
Breast
Hot & Spicy- 60(g) 140(g) 9(g) 65(mg) 4(g) 13(g)
Drumstick
Hot & Spicy- 128(g) 390(g) 28(g) 125(mg) 14(g) 22(g)
Thigh
Original Recipe- 206(g) 450(g) 27(g) 60(mg) 22(g) 29(g)
Fillet
Zinger Burger 246(g) 640(g) 40(g) 405(mg) 38(g) 32(g)
Hot Wings 144(g) 460(g) 30(g) 125(mg) 22(g) 25(g)
Corn on the Cob 82(g) 90(g) 0.5(g) 0(mg) 19(g) 2(g)
3*
French Fries 100(g) 136(g) 3.7(g) 1(mg) 23.3(g) 2.3(g)
The kind of people who used to go to KFC based on the nature of their
work.
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• It was conducted after the survey that mostly students
prefer to go to KFC than other people. The second in
majority were people who are in services. That covers the
majority of this country.
CUSTOMER'S CATAGORY
STUDENTS
BUSINESS
SERVICES
OTHERS
FREQUENTLY VISITS
OCCASIONALLY
MONTHLY
WEEKLY
QUALITY
VERY GOOD
FINE
UN SATISFACTORY
ATMOSPHERE
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PRICES
HIGH
NORMAL
Strategic management:
Market Development
KFC will introduce their present and new products and services into new
geographic/demographic areas.
Product Development
Bring back rotisserie chicken
Concentric Diversification
Add more to KFC product & service variety to the patients .
Implementations:
• Market Research
• Determine area’s demand to determine boundaries
• Expand menu
• Healthier choices
• Meals will be sold at cost
• Determine effects on budget.
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“Marketing Campaign of the Year”. Mr. Muhammad
Fuad Hameed, Marketing Manager, was present to receive the
award at the ceremony.
“KFC Pakistan has won this prestigious award for the second
year running and has done so promoting a message that is very near
and dear to our hearts. Providing hope and a means to project the thoughts and
impressions of our patrons is something we consider very important. To see other
responsive companies follow suit is testimony to KFC’s achievements”, says Rafiq
Rangoonwala, the CEO of Cupola Pakistan Ltd. Under his leadership and vision
KFC Pakistan had won this prestigious award for the second consecutive year
after being recognized last year for its Corporate Social Responsibility initiative
operating three Hearing and Speech Impaired special restaurants in Pakistan.
Cupola has been at the forefront of such initiatives that nurture on the essence of
fellowship and togetherness among the people of Pakistan, acting as the link
between people, ideologies and actions.
Marketing Manager Mr.Muhammad Fuad Hameed Receiving Award
KFC’s Unity Drive had a simple but essential message and objective. To bring
together the people of Pakistan by promoting, in the words of our founder, “Unity,
Faith & Discipline”. In a time of uncertainty and fear, KFC rose to the occasion and
built a platform of solidarity and togetherness for the people of Pakistan. The
campaign proved to be a successful initiative in not just providing hope for our
patrons, but also allowed KFC Pakistan to take an effective step forward during
tough times and entrust other responsive companies to act in a similar manner.
Mr. Fuad Hameed, echoed this notion “This initiative has allowed KFC to take a
stand in the community and provide hope for people, our responsiveness has been a
model for others to follow and learn from. This international recognition further
exemplifies our achievement”
KFC Pakistan was honored to receive the award among 100 countries and 800
participants. The award was presented to Mr. Rangoonwala by Mr. Graham Allan,
President, YUM Restaurants International at a recent conference in Prague, Czech
Republic.
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KFC is a very strong chain of fast food restaurants with
more than 10,000 restaurants all over the world. Being in
“Maturity Stage” it has high opportunities of introducing its new
products and deals. In Future it will be expanding its chain by introducing more
outlets in Pakistan as well as in other countries.
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