Marketing plan PG (B)

Marketing Plan
Submitted by: Shambhavi Doddawad (70) Meena Iyer (73) Charu Shrama (103) Ruchi Aggarwal (96)

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Marketing plan PG (B)

INDEX
Sr.no 1. 2. 3. 4. a. b. c. d. e. 5 6 Particulars Introduction Marketing Mix STP Models PESTEL BCG Matrix Porters 5 forces Ansoff Matrix Financials Promotion campaign Budget Page no. 3 5 7 9 10 12 13 16 18 22

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Marketing plan PG (B)

Introduction

Vision: To be the No. ONE Restaurant Company in every category we operate Mission: Growth with a Big Heart Promise: We guarantee great Taste

KFC (Kentucky Fried Chicken) is a fast food restaurant chain headquartered in Louisville, Kentucky, United States, which specializes in fried chicken.KFC primarily sells fried chicken pieces and variations such as chicken sandwiches and wraps, salads and side dishes such as French fries and coleslaw, desserts and soft drinks, often supplied by PepsiCo. Its most famous product is pressure fried chicken pieces, seasoned with Sanders' "Original Recipe" of 11 herbs and spices. The exact nature of these ingredients is unknown, and represents a notable trade secret. Large portions of fried chicken are served in a cardboard "bucket", which has become a signature of the chain since being introduced by franchisee Pete Harman. KFC is famous for the slogan "finger lickin' good", which has since been replaced by "Nobody does chicken like KFC" and "So good".

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Marketing plan PG (B)

KFC In India The first Indian KFC opened in the city of Bangalore in June 1995. Protests ensued from left wing, anti-globalisation and environmental campaigners, as well as local farmers, who objected to the chain bypassing local producers. Many Indians were concerned about the onslaught of consumerism, the loss of national self-sufficiency, and the disruption of indigenous traditions. The protests came to a head in August 1995, when the Bangalore outlet was repeatedly ransacked. KFC Bangalore demanded, and received, a police van permanently parked outside for a year. Rural activist M. D. Nanjundaswamy subsequently claimed KFC would adversely affect the health of the impoverished, by diverting grain from poor people to make the more profitable animal feed. Former environment minister Maneka Gandhi joined the anti-KFC movement. KFC was also accused of using illegally high amounts of monosodium glutamate (MSG) and frying its food in pork fat. A store in Delhi was closed by the authorities, purportedly for health reasons, but more likely to avoid a repetition of the Bangalore incident. KFC eventually abandoned the Indian market, not returning until 1999, with a new Bangalore outlet. This was the sole KFC in India until 2004, when the chain began to expand. As of December 2012, there were 280 KFCs in the Indian market. As well as the standard KFC offerings, the chain sells a chickpea burger and hot wings with chilli lemon sprinkles. Marketing Plan: The process of analysing one or more potentially interesting marketplaces in order to determine how a business can optimally compete in them. The market planning process typically results in a marketing strategy that can be used to enhance sales for the business producing it.

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Marketing plan PG (B)

Marketing Mix
Product: Offers All Kfc Products Introduced So Far. The Menu List Also Mentions The Energy Nutrients Consumed With Each Kfc Dish.

PRICE: It is a little moderately priced. But the latest 25rs menu is doing wonders in pulling college crowd especially two ice creams in just 25Rs.

Place: Plot No. 5, Sector No. 1, Patil Road, Nerul, Navi Mumbai Landmark: Opposite D Y Patil College. Vey strategically located, KFC successfully attracts the student bunch around and the professionals who look for afternoon snacks. The outlet is an considerable option to have Corporate meeting as it is decently spacious and also extends wi-fi connection.

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Marketing plan PG (B)

Promotion: It does a basic promotion of distributing pamphlets outside SIES and D.Y Patil. But the outlets prime location itself does the major part of self promotion as its presence cannot be missed. The KITCHEN TOUR an innovative approach to build customer trust is a top-drawer in not only building faith, but also developing valuable bond with the PEOPLE because of their most hospitable manner in explaining the PROCESS.

People: KFC staff has a standard uniform. It focuses on fast and friendly services to its customers from their employee. Process: The food manufacturing process at KFC is transparent i.e the process can be seen by the customers. It allows its customers to view and judge the

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hygienic standards of their kitchen by allowing them to enter the area where the process takes place. It focuses on neat and clean environment.

Physical evidence: It has a logo of the founder with his signature string ties with a red apron. It has bright and bold graphics on the restaurant exterior and interior. Warm and contemporary interior design with spacious and innovative seating with wi-fi connectivity helps the customer feel comfortable and welcome.

STP
Segmentation: Following are the ways in which segmentation can be done. a. Geographic: To appeal to the student crowd and developing corporate offices in and around Nerul, the outlet is settled in an apt location. Having to B-schools around, it also becomes a very significant option for hostel students to order take-aways. b. Demographic: Divides the market on demographic basis in this way: Age is between 6-65. Gender is both males and females. Family size is 1-2, 3-4, 5+ Generally they target whole families rather than single persons. This being the reason for their Family Meals which are basically bundled items served at a nominally cheaper rate. Income is Rs 10,000 and above. Family lifestyle is almost all.

c. Psychographic: KFC divides market on the basis of psychographic variables like Social class- Upper and Middle class. Lifestyle is not specific.
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Personality outgoing and ambitious d. Economic Factors: Income In the early rise of KFC they focused on the upper class but slowly are introducing economy meals that attract the lower to middle classes. Consumption behavior Liking and disliking towards the pricing of the products. e. Behavior Factors taste conscious quality conscious class combination of product and quality

Target Market: Having two prime colleges just opposite the obvious target are the students. They are targeting the Hectic lifestyle Due to the hectic lifestyle of office goings individuals and the out station students in the locality the fast food concept saves time of preparing food and gives the customer a full meal quickly. Economically convenient The pricing appeals to the many classes of a society.

Positioning: KFC has a very interesting kind of feedback form. 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.

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Marketing plan PG (B)

Models
PESTEL Analysis

Political

Economic Growing Middle and Upper Middleclass population is increasing the PPP POSITIVE

Social Increase in working women and out-station students imporved the prospects Considerable number of vegetarians in the locality calls for increase in the veg dishes POSITIVE

No such political hinderance in the locality POSITIVE

Technological Enough enabling technologies available POSITIVE

Legal Franchising models and Equity brands working quite successfully in India POSITIVE

Environmental After PETA controversy KFC has not had any major environmental issue. The KITCHEN TOUR is a great initiave to win back confidence WATCH OUT

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BCG Matrix

20 Combo Meal Hot & Crispy Bucket Krushers WOW 25 Bucket Twister Meal 10 Market Growth Chicken Popcorn Bucket Snacker Zinger Veg. Strips Rizo

0 Relative Mkt Share

0.1

Question Mark: KFC has the advantage of being the one of the most preferred choices for Chicken dishes. Hence try to optimize its Chicken meal (Twister etc) by try trying to make it more lucrative (like Mcd does with Happy Meal gifts). WOW 25 is a great introduction and has the potential of becoming a STAR for the outlet. Krusher is also a very innovative and tasteful offering and slowly becoming a STAR.

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Star Combo meal and Hot & Crispy Bucket are the fresh STARs for the outlet.

Cashcow Chicken Popcorn and Bucket are the most famous dishes of KFC this outlet is no different in this regard. They have a regular porpcorn at 59Rs., and a combo meal with Pepsi at 69rs, which is doing wonders.

Dog Veg. Strips has never been able to pick up demand. It is time for it to start considering chopping it off from the menu or revamp to make it taste better. Same is the case with Rizo. Apart from a negligible demand here and there, RIZO creates no sales.

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5 Force Model
Threat of new entrant: Market is full with players like McDonalds, Wendys, Subway and many other local players. local players are also looking to enter into the market to earn profit. Market is reasonably attractive.

Determinants of supplying power: Major suppliers areregional suppliers of chicken, vegetables. Power of suppliers is relatively small, unless the main ingredient of the product is not readily available. Rivalry among existing forms: McDonalds, Pizza hut, Subway all are heading to make profits and expand their market share.

Determinants of buying power: bargaining power of customer is very strong as a result many big and local players are working on the perceived value based pricing therefore the price level isreasonably adequate.

Threat of substitute products: local restaurant outlets can make a dent to their market share. Local restaurants serve food and entertainment with more variety of Indian food which is more economical like the thali system.

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Ansoff Matrix
The Ansoff Growth matrix is another marketing planning tool that helps a business determine its product and market growth strategy. Ansoffs product/market growth matrix suggests that a business attempts to grow depend on whether it markets new or existing products in new or existing markets. The output from the Ansoff product/market matrix is a series of suggested growth strategies which set the direction for the business strategy. These are described below:

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Marketing plan PG (B)

Market penetration for KFC (Nerul) To increase market share and compete with well established competitors they can have following strategies in place : Special discount on college ID cards as it is surrounded by 2 colleges. Loyalty card system for frequent visitors.

Already they have introduced wow 25 they continue to keep this but on different menus like today Rs 25 for veg snacker and tomorrow chicken shots for Rs 25. They a very good promotional activity in place wherein customer can visit their kitchen and can review each and every thing which makes consumers feel that they are important to them The most important thing is they have kept veg section totally different which makes veg consumers feel good and which helps them in increasing their sales. As this equity outlet is just 4 months old they must promote aggressively among students crowd by sponsoring the college events so that footfall would increase in return increases sales.

Market development for KFC (Nerul) Most eligible market for KFC to expand is VEG market as they have very limited menu in VEG where as MC Donalds has extensive range of menu for vegetarian customers. KFC should make an effort to create different packages for vegetarian customers.

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KFC is not present in all areas of Mumbai as compared to MC donalds , MC donalds has presence everywhere in Mumbai u name the place in Mumbai u have MC donalds present there. But KFC has yet to do that. KFC has to concentrate on this part.

Product development for KFC (Nerul) KFC can do product development in the following ways: Can introduce products which have Indian spices and tastes. They can experiment on new flavors of chicken like Barbeque, grilled, Indian flavors. Their strategy should mainly focus on their varied recipes.

Diversification for KFC Diversification strategy for KFC would entail the following. Selling raw chicken to existing customer. New menu consisting lamb and fish which would increase their customer base. Diversifying themselves to other saviors like Pizza and Frankies.

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Financials
Initial Investment of the store is very high as KFC is international brand . To reach BEP they need to curtail the cost and put in efforts to improve both top and bottom line

Store Location: Nerul. Opposite to D.Y Patil Outlet Launched: 23rd November 2012 Warehouse For vegetables Lonavala For Chicken - Taloja

Financial Data
Particluars Amount Rs.200,00,000 Rs. 12,00,000 Rs 40,00,000 15000 per month Rs 70,00,000 Rs2,50,000 per month Rs 4,00,000 Per month Rs 5,00,000 Per month Rs 4,00,000 Per month 25 ( Manager 5 , worker 20) 8,500 pm

Initial Investment Franchisee Fees Monthly Sale Transactions Fixed Assets Promotion Cost Rent Electricity Transportation Cost No of Employees Salary :for workers is (as per minimum wages act)

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Estimated Break Even Point

Break Even in Units = Fixed Costs WA Selling Price - WA Variable Costs = 2,82,00,000 272-150

= 2,31,147.5 Units

Store will reach its breakeven point in less than 1 year time.

Inventory Management Inventory is replenished on timely basis from warehouse. They maintain a very sound projection chart for raw material consumption

Quality is of utmost importance at KFC . To preserve quality of chicken they maintain optimum temperature of 68 79 degree
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KFC Barnyard Kollege Carnival

Carnival timing 11a.m 11p.m Venue D. Y. Patil Camous Ground Date July 6th 7th 2013. Theme Barnyard Target College Students and Kids Live Concert on the final day by AGNEE

MENU

Colonels Latest Combo Meals Individual and Family Meals Chicky Meal Snacks & Burgers Late Night Combo KFC 24 Hours Side Orders Thirst Quenchers Desserts Nutritional Values

TEEN

Hot Box Twister, Regular, Delux Snack Box Fries, Rolls, Nuggets, Meatball +Add ons Krushers Wraps Chipotle Pokkits

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GAMES

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BUDGET
Expected Customers Sponsorship from Samsung Entry Fees For DY Patil Students For Others For Students Below 12 Rent & Lighting Promotion: Pamphlets Online Marketing Set up Cost (Theme and decorations) Rock Band (Agnee) Gifts : First Prize ( Galaxy Grand ) Second Prize (Samsung Tab) KFC Hampers Vouchers and Coupons 50,000 70,000 Rs7,00,000 No Fee Rs 100 per person Rs 50 Per person RS 1,50,000 75,000 25,000 2,25,000 1,00,000 2,00,000 Rs 1,00,000

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