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 OVERVIEW
Type : Wholly owned subsidiary
Industry : Fast food
Genre : Southern fried chicken
Founded : 1930 (original) (North Corbin, Kentucky)
1952 (franchise) (South Salt Lake, Utah)
Founder : Harland Sanders
Headquarters : Louisville, Kentucky, U.S.
Key people : Roger Eaton, President
Harvey R. Brownlea, CEO
James O'Reilly, VP for Marketing
Products : Fried chicken, grilled chicken,
related Southern foods
Revenue : $520.3 million USD (2007)
Employees : 24,000 (2007)
Parent : Yum! Brands
Website : http://www.kfc.com
 KFC

Kentucky Fried Chicken, is a chain of fast food restaurants based in

Louisville, Kentucky in the United States.

While it͛s primary focus is fried chicken, it also offers grilled and
roasted chicken products, beef based products (hamburgers or
kebabs), as well as pork based products.
 HISTORY
1930 - Great Depression - Sanders (Henryville, Indiana) served his first fried
chicken at his gas station in North Corbin, Kentucky "Sanders Court &
Café͟.

1936 - Kentucky Governor Ruby Laffoon granted him the title of honorary
Kentucky Colonel.

1937 - Expanded his restaurant to 142 seats, and added a motel across the
street.
He prepared the chicken in an iron skillet, which took about 30 minutes.

1939 - He used a pressure fryer, to reduce the cooking time.

1940 - His Original Recipe.

 HISTORY

1950 - Sold his properties and traveled to U.S. to sell his chicken to restaurants.

1952 - Pete Harman (South Salt Lake, Utah) and Sanders; together, opened the
first "Kentucky Fried Chicken" outlet.

1960s - KFC was sold in over 600 franchised outlets in the U.S. and Canada.

1964 - Sold KFC for $2 million

1971 - Heublein
1982 - R.J. Reynolds
1986 - PepsiCo
1997 - Tricon Global Restaurants.
 YUM!
Created on October 7, 1997, as Tricon Global Restaurants, Inc.

On May 16, 2002, the company's name changed to Yum! Brands, Inc.

Since 2006, Yum! Brands has served as

The corporate sponsor of the Kentucky Derby

Brands :
A&W Restaurants,
KFC/Kentucky Fried Chicken,
Pizza Hut,
Taco Bell,
WingStreet,
Long John Silver's,
Dong Fang Ji Bai.
 MISSION STATEMENT
To be the leader in western style quick service restaurants through
friendly service, good quality food and clean atmosphere.

VISION
The world͛s premier Fast Food Company, offering nutritious,
superior tasting foods to people everywhere.

SLOGANS
No body͛s cooking like KFC today and we are the chicken experts

There is no competitor for spicy chicken which is made by KFC

 GOALS

Build an organization dedicated to excellence.

Consistently deliver superior quality and value in our products and

services.

Maintain a commitment to innovation for continuous improvement.

Generate consistently superior financial returns and benefits our

owner and employees
 VALUES
PREMIER VALUES :
Passion
Risk Tolerance
Excellence
Motivation
Innovation
Empowerment
Respect

THE CHAMPS :
Cleanliness
Hospitality
Accuracy
Maintenance of Facilities
Product Quality
Speed of Service
 SECRET RECIPE

The Colonel's secret flavor recipe of 11 herbs and spices that creates the famous
͞finger licking good chicken͟ remains a trade secret.

The recipe, is written in pencil on a single sheet of notebook paper and signed
by Sanders is kept in a vault in corporate headquarters.

Sep 08 - It was temporarily moved under extremely tight security.

Feb 09 - The secret recipe returned to KFC's Louisville headquarters in a more

secure, computerized vault.
a


  

 MENU

Zinger burger

Krushers Zing Kong

Twister Snacker(chicken & veggie)

Veggie Feast
Chicken Bucket
Veg Finger
Hot wings
Snack Box
Corn on the cob
Sundae
 PRICE

PRICING POLICY FOR A PRODUCT

Manufacturing cost -
5% marketing cost -
Total cost -
15% G.S.T + 15% Retail Margin -
Total retail Price -
 PRODUCT

PACKAGING

The famous paper bucket that KFC uses for its orders of chicken was originally
created by Wendy's restaurants founder Dave Thomas.
The paper packaging helped in keeping the chicken crispy by wicking away
excess moisture.
Thomas was also responsible for the creation of the famous rotating bucket
sign.
 ADVERTISMENT
1950s - Colonel Sanders licking his fingers and talking to the viewers about his
secret recipe and the chain's striped bucket had became well-known.
1960s - The bucket as product placement can be seen in the hands of both
Annette Funicello and Dwayne Hickman in V
   
 
1965 
Peter Sellers,  1968).
The Colonel made appearances as himself in Jerry Lewis's    
(1967), Herschell Gordon Lewis'     (1967), 
   
 1968) and Al Adamson's V  
 !"  (1970).
1980 - Sanders died, but still he remains as the key symbol of the company.
1980s - Will Vinton Studios produced a series of humorous, claymation ads,
featuring a cartoon-like chicken illustrating the negative aspects of its
competitors.
1980s - Associate sponsor for Junior Johnson's NASCAR Winston Cup Series cars.
1990s - An animated version of "the Colonel" voiced by Randy Quaid.
Now - The customers enjoying the food with a modified version of Lynyrd
Skynyrd's "Sweet Home Alabama" as its theme song.
OTHER TOOLS FOR PROMOTION

Banners
Bill Boards
Leaflets
News papers
Exhibitions
Posters
Coupons
Internet
Entertainments
 MILESTONES
2006 - KFC claimed to have made the first logo visible from outer space (though
Readymix has had one since 1965). The logo was built from 65,000 one-
foot square tiles, and it took six days on site to construct in early
November. The logo was placed in the Mojave Desert near Rachel, Nevada.

2007 - The original, non-acronymic | # $

%# name was resurrected.

2010 - An advertisement was shown in Australia showing an Australian cricket fan

giving West Indies fans KFC chicken to keep them quiet.
The ad sparked a debate over racism, and the ad was later pulled from TV.

2010 - Yum! signed a naming rights deal with the Louisville Arena Authority for
Louisville's new downtown arena, which will open in November of that
year as the KFC Yum! Center.
INTERNATIONAL OPERATIONS

Blue: Countries currently with KFC restaurants

 MAJOR COMPETITORS

Kenny Rogers
McDonald͛s
Wendy͛s
AFC Enterprises
Burger King
Domino͛s
Checker͛s
Popeye͛s
Subway
 SWOT ANALYSIS
Strengths : Weakness :

Brand Equity Lack of Research and Development

KFC secret recipe Lack of knowledge about customers
Stronger Franchises Focus on high income level people only
Interactive relationship marketing Don͛t blend with the local culture
Menu variety

Opportunity : Threats :

Growth of 18-24 age demographic Bird Flu

Home meal replacement market Frozen food
International beef scare Change of customer demands
Changing Customer lifestyle and taste Cultural threats
Increase delivery service Recession
Competitors
 CRITICISM
Environmental concerns

Accused by Greenpeace for the destruction of the Amazon Rainforest for

importing soy (chicken food) from Cargill.
The parent company denied this illegal operation, and said that their supply of
soy is grown in parts of Brazil.

Trademark disputes

1971 - Sanders sued Heublein Inc. (parent company at that time), over the
misuse of his image in promoting products.
1975 - Heublein Inc. unsuccessfully sued Sanders after he publicly referred to
their gravy as "sludge" with a "wallpaper taste".
May 07 -KFC (Great Britain) requested that Tan Hill Inn, Yorkshire Dales, North
Yorkshire, UK to refrain from using the term 'Family Feast' to describe
its Christmas menu.
Hygiene

Feb 07 - An outlet in New York City was found to be rat infested.

2009 - Two outlets in Sydney, Australia, were fined record amounts for
having unhygienic food preparation areas. They were charged with 11
breaches of food hygiene laws.
2009 - An outlet in Leicester Square, London was charged with 13 food
hygiene charges, claiming a mouse was seen running across the floor
and flies buzzed around the heads at the premises.
Aug 10 - A court case revealed poor hygiene at an outlet in Villawood, Sydney,
Australia. The staff admitted that they would drop cooked chicken
pieces on the floor, and indulge in food fights using french fries and
chicken pieces and they did not wash their hands between handling
raw chicken blood, and serving cooked chicken pieces to customers.

An 11-year-old girl launched legal action against the outlet, claiming she caught
salmonellosis after eating a Twister at the store, which left her with brain
damage and quadriplegia.
Animal rights

Since 2003 People for the Ethical Treatment of Animals (PETA), have been
protesting KFC͛s treatment of the animals used for its products, claiming that
the recommendations of the KFC Animal Welfare Advisory Council have been
ignored.
KFC responded by saying the chickens used in its products are bought from
suppliers who are routinely monitored for animal welfare violations.
Several PETA undercover investigations and videos of the KFC suppliers show
chickens being beaten, ripped apart, and thrown against walls.
KFC says its suppliers meets UK legal requirements.
PETA have held more than 12,000 demonstrations at KFC outlets since 2003
because of this alleged mistreatment of chickens by KFC suppliers.
June 2008 - KFC Canada agreed to PETA's demands for better welfare
standards, including favoring suppliers who use controlled-atmosphere killing
(CAK) of chickens, and other welfare standards.
 References

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