PROJECT REPORT ON MARKET SEGMENTATION, TARGETING AND POSITIONING Company: KFC

Submitted To:

Submitted By:

1|Page

Preface

This report focus on KFC marketing strategies, its marketing environment, demographic factor, marketing factors. We designed a report to provide a brief description about its marketing segmentation, targeting and Positioning. In addition to it, this report includes a research base survey on KFC. We all have tried our level best to fulfill all the requirements mentioned to us. Now its depending upon the reader to read it carefully and understand what we want to communicate. This report provides a brief knowledge about KFC in INDIA with respect to Global Business of KFC.

2|Page

ACKNOWLEDGEMENT
In the name of GOD, the most beneficent & the Merciful. Firstly, we all likely to thank mighty GOD who provides us knowledge, energy & skills to get opportunities & to increase our knowledge & experience by completing this project.

Secondly, we especially thank to our instructor Ms. RAHEELA ZULFIQAR who guides us at every step & every aspect of this report, so thats competed successfully.

Finally, thanking management of KFC, for providing us with helpful knowledge needed. After that we are able to complete this report with hard working & cooperation.

3|Page

TABLE OF CONTENTS
Sr. No. Chapter Page No.

KFC History (Start Up)

KFC In INDIA

Products

7-8

Best Features

Research Methodology

10

Segmentation

11-13

Targeting

14

Positioning

15-16

Conclusion

17

4|Page

KFC History
Way back in 1930s Colonel Harland Sanders got some distinguished Kentucky folks lickin their fingers. Its been in fashion since then! Colonel Harland Sanders, founder of the original Kentucky Fried Chicken, was born on September 9; 1890.When he was six, his father died and his mother was forced to go to work while young Sanders took care of his three year old sibling. This meant he had to do much of the family cooking. By the time he was seven, Harland Sanders was a master of a range of regional dishes. After a series of jobs, in the mid 1930s at the age of forty, Colonel Sanders bought a service station, motel and cafe at Corbin, a town in Kentucky about 25 miles from the Tennessee border. It is here that Sanders began experimenting with different seasonings to flavor his chicken which travelers loved and for which he soon became famous. During the next nine years he developed his secret recipe of 11 herbs and spices and the basic cooking technique which is still used today. Sander's fame grew. He sold his chicken on the highway! But when the highway was removed, he sold up and traveled the United States by car, cooking chicken for restaurant owners and their employees. If the reaction was favorable Sanders entered into a handshake agreement on a deal which stipulated a payment to him of a nickel for each chicken the restaurant sold. By 1964, from that humble beginning, Colonel Harland Sanders had 600 franchise outlets for his chicken across the United States and Canada. Later that year, Colonel Sanders sold his interest in the United States operations for $2 million. The 65-year-old gentleman had started a worldwide empire using his $105 social security cheque. Sadly, Colonel Harland Sanders passed away on December 16th, 1980 aged 90. His legacy lives on with KFC restaurants all over the world. KFC now stretches worldwide with more than 13,000 restaurants in more than 80 countries and territories around the world serving up the Colonels Original Recipe. It is a $13 billion brand based out of Kentucky and is the leading QSR around the world which is based in Louisville, Kentucky. Yum! Brands own 5 brands, out of which KFC is the largest brand within the Yum! Portfolio, founded by Colonel Harland Sanders in the year 1938.

5|Page Reference: www.kfc.co.in

KFC India
KFC is the worlds No.1 Chicken QSR and has industry leading stature across many countries like UK, Australia, South Africa, China, USA, Malaysia and many more. KFC is the largest brand of Yum Restaurants, a company that owns other leading brands like Pizza Hut, Taco Bell, A&W and Long John Silver. Renowned worldwide for its finger licking good food, KFC offers its signature products in India too! KFC has introduced many offerings for its growing customer base in India while staying rooted in the taste legacy of Colonel Harland Sanders secret recipe. Its signature dishes include the crispy outside, juicy inside Hot and Crispy Chicken, flavorful and juicy Original Recipe chicken, the spicy, juicy & crunchy Zinger Burger, Toasted Twister, Chicken Bucket and a host of beverages and desserts. Specially for the vegetarians in India, KFC also has great tasting vegetarian offerings that include the Veg Zinger and Veggie Snacker. In India, KFC is growing rapidly and today has presence in 21 cities with close to 107 restaurants.

6|Page Reference: www.kfc.co.in

PRODUCTS
KFC has segregated its product according to different segments of the society and their taste and demand. They have shifted towards the Vegetarian Snacks in India because of the Culture and Tradition of the India.

Product Range
Streetwise
o Veg Snacker o Chicken Snacker o Snack Box o Rizo Rice o Rizzo Gravy o Mini Krusher

Snacks
o Popcorn Chicken o Hot Wings o Boneless Chicken Strips

Veggie Selections
o Veg Zinger o Veg Snacker o Rizo Rice o Rizzo Gravy o Veg Strips with Salsa

Toasted Wrap
o Toasted Twister

7|Page

 Box Meals
o Zing-Kong Box

Chicken Delight
o Hot & Crispy o Original Recipe o Hot wings o Chicken Snacker o Chicken Bucket

Signature Sides
o Corn on the Cob o Cole Slaw o Fries

Krushers
o Crunchy o Smoothe o Sparkling o Frappe o Iced Mochaccino o Kappuccino

Desserts
o Soft Twirl o Chocamor o Brownie Sundae
8|Page

o Sundaes

KFCs BEST FEATURE

Reference: KFC Restaurant, Ansal Plaza Personal Visit, www.kfc.co.in

Packaging
The famous paper bucket that KFC uses for its larger sized orders of chicken and has come to signify the company was originally created by Wendy's restaurants founder Dave Thomas. Thomas was originally a franchisee of the original Kentucky Fried Chicken and operated several outlets in the Columbus, Ohio area. His reasoning behind using the paper packaging was that it helped keep the chicken crisp by wicking away excess moisture. Thomas was also responsible for the creation of the famous rotating bucket sign that came to be used at most KFC locations in the US.

Nutritional value
KFC has used partially hydrogenated oil in its fried foods. This oil contains relatively high levels of trans fat, which increases the risk of heart disease. In the United States, the Center for Science in the Public Interest (CSPI) filed a court case against KFC with the aim of making it use other types of oils or make sure customers know about trans fat content immediately before they buy food. In October 2006, KFC said it would begin frying its chicken in trans fat-free oil (<0.5g per serving) in the United States. This would also apply to their potato wedges and other fried foods, however, the biscuits, macaroni and cheese, and mashed potatoes would still contain trans fat. Trans fat-free soybean oil was introduced in all KFC restaurants in the U.S. by April 30, 2007, and CSPI dropped its lawsuit.

Yum! Global Diversity and Inclusion

9|Page

For us, diversity is not a target - it's a way of life and a way of doing business. Everyone can and does make a difference in our organization. One of our HWWT2 principles Believe in all People - underscores the importance of actively seeking diversity in others; believing everyone has the potential to make a difference; and coaching and supporting every individual to grow to their full capacity. This adds perspective and depth to everything we do. We've also found that a diverse team makes for better problem solvers, services all our customers more effectively, and creates a richer culture for all of us to enjoy.

Research Methodology
Reference: www.wikipedia.org, www.kfc.com

Research has been done over the KFC marketing strategies with respect to the Market Segmentation by KFC and wow they targeted the different Segments and how the position in the market has been made. Method of Research is through Internet findings and Visit to the KFC outlets in local region and finding the difference in the products of local KFC outlets and outlets Overseas. It is found that KFC has segregated its market according the community of customers and had diversified into Vegetarian products only because of Indian market where Culture is the main dominating power over the Demand by the customers.

Objective of the Study o To know how KFC segmented its market o How they targeted the segments o How they made their position in the globally.

Scope of the Study o Globally KFCs business is taken as scope of Study o Special coverage and focus over the local market.
10 | P a g e

TODAY TASTES SO GOOD

SEGMENTATION
Dividing the market into distinct groups of buyers who have distinct needs, characteristics or behavior or who have might require separate products or marketing mix In case of KFC, we have considered four variables for market segmentation which are Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation World Region Asia

Geographic Segmentation
Dividing the market into different geographical units such as nations, states, regions, countries, cities or neighborhood.

11 | P a g e

Country City Density Climate

India I tier, II tier and III tier cities Urban Not specific

KFC has outlets internationally and sells its products according to geographic needs of the customer. In India, its geographic segmentation is,

Demographic Segmentation
Dividing the market into groups based on an age, gender, family size, income, education, occupation, religion, race and nationality. KFC divides the market on demographic basis in the following way, Age Gender 6-65 Both Males and Females

12 | P a g e

Family Size Income Occupation Education Religion Generation Social Class Nationality Family lifecycle

1-2, 3-4, 5+ Rs. 10,000 above Not Specific Not Specific Not Specific Not Specific Middle class, Upper class and Not Lower class Specific Almost All

Reference: www.google.com, Study bySegmentation Psychographic Research Scholars

Dividing a market into different groups based on social class, lifestyle or personality characteristics. KFC divides market on the basis of psychographic variables such as,
13 | P a g e

Life Style Personality

Not Specific Authoritarians, Gregarious and Ambitious

Behavioral Segmentation
Dividing a market into groups based on consumer knowledge, attitude, use or response to a product KFC divides the market on the basis of psychographic variables as Occasion Benefits Regular Occasion Quality, Convenience, Service And Speed Potential status, ex-users, first time user and regular users Medium and Strong

User Status

Loyalty Status

Readiness Status

Aware, informed, interested, desirous and intending to buy Enthusiastic, Positive and Indifferent

Attitude towards Product

14 | P a g e

TARGET MARKET
The process of evaluating each market segments attractiveness and selecting two or more segments Target market depends upon size and growth rate of population, Company resources and structural attractiveness of market segment.

As the outlets of KFC are in posh area and prices are too high, so KFC is targeting upper class. KFC also targeting the KIDS with some packs for Kids. They have started this concept after the Happy meal Concept made by Mc Donald their rival Company who are leading ahead in India over the number of outlets and count of customers. Thirdly with its Nutritious Product they are targeting with Oil free chicken, varieties of salads to youth who are always conscious for the health. For KFC, this as a plus point over the other Restaurant Chains like Mc Donald that they give variety of products so targeted the each segment of market very efficiently. In India it has targeted to the people who are mad for Chicken. They have also introduced the Veg products so that they can accompany the Chicken lovers in the restaurants.

POSITIONING
15 | P a g e

Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumer. In KFC feedback is taken from the customer in order to know the customer demands and then improvements are made in products.KFC focuses on pure and fresh food in order to create a distinct and clear position in the minds of customers KFC has a strong brand name and they are leading the market in fried chicken.

KFC adopting positioning strategies Brand positioning

KFC (Kentucky fried Chicken) has used its Brand name to make position in the minds of people. KFC brand name itself is (C) Chicken which even a layman can know that its brand name of Chicken restaurant.

User Positioning
With user positioning strategy KFC shows the people who use and like this product. All users are from Posh Society who can spend lot of bucks on Chicken Buckets and positioned in the mind of Youth that it is so notorious for health. Example: Advertisement by KFC in which 4 guys in Car are eating chicken wings are totally unaware about the outside environment when eating KFC product that shows that it is so tasty and mind blowing.

USP (Chicken)
KFCs unique selling possession is that they are the only fried Chicken seller globally. They have the largest Chain providing variety of Chicken Products. So it creates a healthy image of KFC in the minds of customers that if you want to have best Chicken Snacks so come KFC

Benefit Positioning
16 | P a g e

KFC products have also beneficial and have less adverse affect over the health because its use less oil to fry the Chicken and Chicken gives its proper fat to the customer. It is an edge over the other players in the Non Veg Market.

Price Positioning
Price is the amounts of money customers have to pay to obtain the product. List Price: KCF offer different products at different prices. Discounts: They provide special discounts to only employees. Payment period: Customer pays when the services are delivered to them. Allowances and credit terms: They provide no credit terms and allowances to customer

Attribute Positioning
KFC is an old name in the Business of Chicken snacks and also diversified into Veg products. Old name and its reliability makes it as famous brand in the eyes of customers. Whenever any dispute arises of some problem with environment or food quality, teams of Quality Inspectors are ready to inspect and rectify the situation as soon as possible.

CONCLUSION

17 | P a g e

Each new outlet developed by KFC INDIA spends 40 million rupees thats a massive amount for this industry. From above analysis, its clear that KFC and INDIA are growing together. So KFC is doing well at Pakistan. KFC is also following marketing strategies, segmenting the market to segmentation variables and increasing their market share. KFC is leading in Fried Chicken. It gives quality, variety and fresh meal as of its competitors.

THANK YOU

18 | P a g e