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DELHI INSTITUTE OF ADVANCED STUDIES

MANAGEMENT OF INTERNATIONAL
BUSINESS
A REPORT ON
KFC.
SUBMITTED TO:
SUBMITTED BY:
Ms. RUCHIKA SHARMA
KUMAR

AKSHAY
BALRAM
ROHIT

KUMAR
JAYA
DAWAR

ASHI
MA BANSAL

CONTENTS

About the company


Vision and mission
Marketing mix
Organizational structure
Key Success Factor
SWAT Analysis
Organization Design
EPRG Approach
Marketing Strategy
BCG Matrix
References

ABOUT KFC

KFC is based in Corbin, Kentucky, U.S. and is the worlds most popular chicken
restaurant chain.
Founded by Colonel Harland Sanders in in the early 1930s by cooking & serving food for
hungry travellers.
In 1952 Sanders started franchising his chicken business & named it as KENTUCKY
FRIED CHICKEN.
KFC is part of Yum! Brands, Inc., the world's largest restaurant company in terms of
system restaurants, with more than 36,000 locations around the world.
KFC operates more than 15,000 units in 109 countries and territories around the world.
Every day, more than 12 million customers are served at KFC restaurants.
KFC is world famous for its Original Recipe fried chicken -- made with the same secret
blend of 11 herbs and spices
Customers around the globe also enjoy more than 300 other products -- from KFC

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

MISSION
Basically they want to provide their products to anyone that is why they expending their
branches in all over the world

Marketing Mix of KFC


Product

Streetwise: Veg Snacker, Chicken Snacker, Snack Box, Rizo Rice, Rizo Gravy, Mini
Krusher,

Snacks: Popcorn Chicken, Hit Wings, Boneless chicken strips

Veggie Selection : Veg Snacker, Veg Zinger, Veg Strip with Salsa

Toasted Wraps

Burger: Veg Zinger, Chicken Zinger, Tower Zinger

Box Meal

Chicken Delight : Fiery Grilled, Hot and Crispy, Original Recipe

Bucket Chicken

Signature sides: Corn on the cob, Coleslaw, Fries

Krusher: Frappe, Iced Mochaccino, Iced Kappucino

Desserts: Soft wirl, Choamor, Brownie Sundae

Price
KFC follows both optional pricing and mixed bundling pricing. A consumer can buy dishes from
the basic menu and go for add-ons (Optional pricing) and there are combo offers which comprise
a mix of items. The pricing of products ranges approximately from 25 Rs. to ~675 Rs. KFC has
variety of options in each category, For e.g.: In Bucket, there are menus with 8pcs, 12pcs and
also 12pcs variety bucket(Hot & Crispy Original Recipe and Chicken Strips).

Place
KFC initially opened its outlets in metros and Tier I cities, now it has gradually moved to Tier II
cities where the buying power is one the rise due to rapid urbanization. KFC has its outlets in all
major cities and has overtaken Pizza Hut in Quick service restaurants. By the year 2015, KFC is
expected to have 500 outlets in India.

Promotion
KFC does promotional activities by offering add-ons to the existing menu, gift coupons, T-shirts,
Kids meal etc. KFC promotes its products through LCD displays kept inside its outlets which
promotes their products and kindles desires among consumer. India being the country with
largest youth population has favored the growth of KFC and it has become the fastest growing
fast food chain in India pushing aside McDonalds and Pizza Hut.

ORGANIZATIONAL STRUCTURE
M. D.
G. M.

H. R. DEPARTMENT

MARKETING MANAGER

RESTAURANT MANAGER

FIRST ASSISTANCE

SECOND ASSISTANCE

TRAINING MANAGER

FLOOR MANAGER

CREW
LEADER
CREW

CUSTOMER CARE OFFICER

FINANCE MANAGER

Key Success Factors


Location/Number of Outlets
Extensive Menu
Price
Service/Ambience
Taste

Threshold Factors:
Operations
Quality Standards

SWOT ANALYSIS
Strengths

Delicious and well liked recipes.

Strongest category among nearest competitors.

Well Global Penetration.

Well recognised brand logo.

Strong Cash Flow via franchisee and license fee.

Weakness

Most KFC items have close substitutes in market.

No product innovations.

Lack of control in joint venture arrangements.

Inconsistent quality of service in many outlets

Opportunities

Undeveloped markets in many countries.

Increased 18-25 age group.

Increasing trends to take meal out of homes

Threats

Other cheap alternatives available.

Bird flu.

Cannibalization of own products.

Changing health trends of customers.

High calorie food

Organizational Design
KFC follows:

Bureaucratic Design : i.e it has the rigid framework and standardized products and
process
The Bureaucratic Model
Given by Max Weber, a German sociologist
A bureaucracy is defined as an organization founded on a legitimate and formal system of
authority.
Weber considered bureaucratic organization as being logical, rational and highly efficient.
Ideal bureaucracy has following characteristics:
Each organization
should create an absolute and clear division of labor and staff each job with an

expert in that particular staff.


Should establish a hierarchy of position
Should establish a concise and consistent set of rules and regulations
Should establish specific personnel policies and practices
Managers should conduct business in an impersonal manner, maintaining an
appropriate social distance from their sub ordinates

Strengths of Bureaucracy

First model of OD, still serves as basic foundation for the understanding and application
of new OD approaches
Despite the changes in technology and workers attitude, operational efficiency and
effectiveness can still be improved by the selective application of such bureaucratic
principals.
Example: KFC.

EPRG APPROACH
The form and substance of a companys response to global markets opportunities depend
greatly on managements assumptions and beliefs (conscious & unconscious) about the
a.
b.
c.
d.

nature of the world. The worldview of a companys personnel can be described as:
Ethnocentric
Poly centric
Regiocentric
Geocentric

Ethnocentric orientation
A person who assumes his or her home country superior compared to the rest of the world
is said to have an ethnocentric orientation. The ethnocentric orientation means company
personnel see only similarities in markets and assume the products and practices that
succeed in the home country will, due to their demonstrated superiority, be successful any
where

Polycentric Orientation
The Polycentric Orientation is the opposite of ethnocentrism. The term polycentric
describes management beliefs that each country in which a company does business is
unique. The assumption lays the groundwork for each subsidiary to develop its own
unique business and marketing strategies in order to succeed.

Regiocentric Orientation
In a company with Regiocentric Orientation, management views regions as unique and
seeks to develop an integrated regional strategy.

Geocentric Orientation
A company with a Geocentric Orientation views the entire world as a potential market
and strives to develop integrated world market strategies

A company whose management has a regiocentric or Geocentric Orientation is known as


global or a transnational company.

BUT KFC FOLLOWS:

Polycentric approach

: Because they understand the cultural differences and

operate as per the market.


Unique items
Thailand Shrimp donut, wing zeed
France desserts tiramisu and sweet pie
Australia the parmy
Arabia ramdan meals
London cajun boxmaster

Entry mode

Franchise mode of entry


18,875 KFC outlets in 118 countries and territories around the world
4,563 outlets in China, 4,491 in the United States, and 9,821 across the rest of the world
Outlets are owned by franchisees or directly by the company
Strategic Alliance and Joint Venture

MARKETING STRATEGIES OF KFC

According to KFC, kids become the future permanents customers and we know very well
that without any marketing strategy no marketing program and no product is successful

because we depend upon customers, customer not depend on us.


KFC is following Niche Marketing and Societal Marketing techniques.
KFC possess a western culture because some of the Indian people are also following that

culture.
KFC are moving from Divisional Level to the District level by opening branches
KFC also offer free home delivery.
KFC open their outlets on reachable places.
KFC menu consists of more than 30 products.
KFC gives more priority to Family.

Boston Consultancy Group (BCG) Matrix


Question Mark

Currently KFC have launched a new product in the market. They have also tried
toc o m e i n t o t h e b e v e r a g e s m a r k e t b y l a u n c h i n g i t s n e w b r a n d o f s h
a k e s c a l l e d 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 p r o d u c t i s i n d i v i d u a l l y n o t b r i n g i n g a n y p r o f i t s a n d i s a c a s h d
r a i n f o r t h e 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
KFCs 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 f o r i t s
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
K F C s C h i c k e n B u c k e t i s t h e m o s t s u c c e s s f u l p r o d u c t o f t h e c o m p a n y. I t
h a s t h e 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.

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. T h i s p r o d u c t i s C A S H
NEUTRAL for the firm.

REFRENCES

www.kfc.co.in/
en.wikipedia.org/wiki/KFC
Yum! Brands. Retrieved April 7, 2013.
"Restaurant counts". Yum! Brands. Retrieved April 3, 2014.
"Yum! Brands: Senior Officers". Yum! Brands. Retrieved September 8, 2013.
Iconic Global Brand. Louisville: Yum! Brands. 2014. p. 98.
Whitworth, William (February 14, 1970). "Kentucky-Fried". The New Yorker. Retrieved

February 23, 2013.


Klotter, James C. (2005). The Human Tradition in the New South. Rowman & Littlefield.

p. 129. ISBN 978-0-7425-4476-5. Retrieved June 29, 2013.


Sanders, Harland (2012). The Autobiography of the Original Celebrity Chef. Louiseville:

KFC. p. 15.
Ozersky, Josh (April 2012). Colonel Sanders and the American Dream. University of

Texas Press. pp. 1924. ISBN 978-0-292-74285-7. Retrieved September 27, 2013.
Aaseng, Nathan (January 2001). Business Builders in Fast Food. Oliver Press. p. 116.
ISBN 978-1-881508-58-8. Retrieved March 13, 2013.