Kentucky fried chicken to KFC

A drive

from a marketing slipping to finger licking product.

Group 1 Prachi Agarwal (2) Chandrashekhar (12) Abhishek Sahay(26) Saurabh Sawant(29) Namit Manglani(46)

Content
History Marketing mix Target market Swot Performance standard and financial controls Marketing implementation Environmental analysis Legal n regulatory forces Technological forces Marketing objectives Marketing strategies Marketing implementation Forces Economic Political Legal and regulatory forces Technological forces Socio cultural forces

History
KFC was the first fast food multinational to enter INDIA , after the economic liberalization policy of the Indian Govt. in early 1990s. KFC received permission to open 30 new outlets across the country & Opened first fast food outlet in Bangalore in June 1995 by targeting upper middle class population. PepsiCo planned to open 60 KFC and Pizza Hut outlets in next 7 yrs in the country.

Entry in Indian market and failure

WHAT WENT WRONG?????

Legal issues

Protests by PETA in the late 1990s intensified its campaign against the cruel treatment meted out to chickens by KFC. Chicken they serve is full of chemicals(MSG) Support of celebrities in against of KFC and protests by angry farmers led by the Karnataka Rajya Ryota Sangha . It was unethical to promote highly processed 'junk food' in a poor country like India with severe malnutrition problems.

Political issues
Protests by the Karnataka Rajya Ryote Sangha(KRRS) & the farmers leader was Nanjundaswamy who used the term junk food against KFC.

Protests by cultural & Economic activists.

Protests by PETA in the late 1990s.

Support of celebrities in against of KFC

Socio cultural issues

Full of chemicals (mono-sodium glutamate)

Need for protecting animal rights

It encourage farmers to shift production of crops to animal feeding

Leaves poorer section of society with no affordable food

Socio cultural issues contd.

Avoided nonvegetarian on festivals and religious occasions

Vegetarianism was predominant

Adverse effect on agriculture

Fried food

Technological forces
Home delivery and orders through various channels Web usage for customer connect & promotion Planning to launch poster site technology

Overcoming the challenges

Indian specific menu Indian flavors Rice meal and wraps Eggless mayonnaise and sauces Krushers introduced.

Products it offers Products offered

Products offered with price

BCG

Competitive analysis

STRENGTHS

SWOT analysis KFC s secret recipe of 11 herbs and spices. Stronger franchises all over the world. Interactive relationship marketing. Chains for its convenience and menu variety. Kids play area.

WEAKNESS
Lack of focus on research and development. Lack of knowledge about their customers. They only focus higher income level people. Dont blend with local culture, unlike McDonalds.

OPPORTUNITY

Growth of 18-24 age demographic. Home meal replacement market will exceed. International beef scare from mad cow disease. Updating the restaurants, balance menu. Changing customer lifestyle and taste. Increase delivery service. Increase competition from local and international outlets.

THREATS
Bird flu. Frozen food :health. Change of customer demands. Cultural threats from Muslim worlds. Law and Order situation (terrorism). Existing and new competitors.

Pestle analysis

Critical success factors

New products are key to a company's success, and it is critical that KFC learn to develop and introduce new products in such a way that new consumers will be attracted to the stores. Opportunities The greatest opportunity facing KFC is in the international arena where the company has already proven itself successful. Where some fast food operators have only recently begun expanding into the international market.

Core competence

Ever since KFC started, they have only and only emphasized on chicken, so people from all over the world take KFC as chicken expert!!

Marketing Strategy

Company strategy

Segmentation

Target Market

4 Ps

Company Strategy

Primary objective is to take advantage of the potential growth in the country, to establish a strong position and to develop their image. R&D, innovation and use of new technology to work efficiently. Lower the costs

Segmentation
Geographic segmentation: KFC has outlets nationally and sells products according to geographic needs of the customer.

Demographic segmentation: The market is divided into groups based on a 1.Age 2. Income 3. Family and individuals

Target Market
The process of evaluating each market segments attractiveness and selecting two and more segments KFC Targets the HUNGER, and we know there is no compromise when it comes to HUNGER

Pricing
Pr KFC offer different products at different list prices. KFC provide special discounts to only employees and special customers Payment period customer pays when the services are delivered to them Allowances are provided to employees Pricing Strategy: KFC pricing the products by keep the different points in the mind ,adopt cost base price strategy

Promotion

KFC is the sponsor of various playing clubs

20-20 cricket involvement

MAXIMUM ENJOYMENT IN MINIMUM TIME

Product

Superior Quality Fresh ingredients Provide neat and clean environment. Better taste with hot and Spicy version of chicken

Place
KFC adopt direct channel , to reach out customers. Assortment, KFC provides two type of meals in respect of size Family meal Individual meal South and North India Location , KFC have outlets per market area in all the world. Free home delivery KFC uses the Push Strategy to create awareness be different Sound attractive

Key recommendations
Market: Re-define the defined! Aggressive Research and Development Need of the customers like health consciousness Shift focus: higher income level people Lack of specific open spaces outlet. Unlike competition they dont blend with the local cultural needs when it comes to international marketing

Future innovations

Healthier food by offering some non fried items Healthier drinks like fresh fruit juices and more variety of milk shakes Kids by offering some gifts and also by letting them arrange theme birthday parties. Tier 2 & tier 3 cities as the disposable income in these areas has increase substantially.

Thank you !