PROJECT REPORT ON MARKETING STRATERGIES WITH REFERENCE TO KFC

Submitted in partial fulfillment of the requirement for award of Post Graduate Diploma in Management Approved By AICTE (2011-2013)

Submitted to: Mrs. Sanjeela Mathur

Submitted by: Saurabh Dennis Roll no. 88 PGDM VII (B)

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL Kalkaji, New Delhi-110019

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ACKNOWLEDGEMENT
I would like to express my deep sense of gratitude towards the Faculty and the seniors around us, for their guidance and encouragement throughout the period of the project study. I am indebted to their guidance, spirit and valuable suggestions. I would also like to thank KFC and its employees, who has been a continuous source of inspiration for me throughout the curriculum. I would like to thank everyone who has been a help directly or indirectly leading to the successful completion of the study report. I am also greatly thankful to the faculty members of our institute who co-operated with me and gave me their valuable time.

CONTENTS
Contents Contents 1. Acknowledgement 2. Introduction 3. Company profile 4. Product line 5. Values of kfc 6. Target market 7. Competitive analysis 8. Porter analysis 9. BCG Matrix 10. Marketing strategy 11. SWOT analysis 12. Questionnaire 13. Findings 14. Conclusion 15. Bibliography Page no. 2 4 6 7 8 10 12 13 17 21 24 31 29 31 32

Introduction of Company
KFC Corporation, based in Louisville, Kentucky, is the worlds most popular chicken restaurant chain, specializing in Original Recipe , Extra Crispy
TM

, and

Colonels Crispy Strips chicken with home style sides and five new freshly made sandwiches. Every day, nearly eight million customers are served around the world. KFCs menu everywhere includes Original Recipe chickenmade with the same great taste Colonel Harland Sanders created more than a halfcentury ago. Customers around the globe also enjoy more than 300 other productsfrom a Chunky Chicken Pot Pie in the United States to a salmon sandwich in Japan. KFC continues reaching out to customers with home delivery in more than 300 restaurants in the United States and several other countries. And in quite a few U.S. cities, KFC is teaming up with other restaurants, Taco Bell and Pizza Hut, selling nearly fifty years ago; Colonel Sanders invented what is now called home meal replacement selling complete meals to harried, time-strapped families. He called it, Sunday Dinner, Seven Days a Week. Today, the Colonels spirit and heritage are reflected in KFCs brand identity the logo features Colonel Harland Sanders, one of the best-recognized icons in the world.

KFC History
KFC is an internationally renowned fast food industry in the world. They have the main ambition to increase & maintain the quality in fast food industry. Their aim is to capture the fast food market. Basically they want to provide their products to anyone that is why they expanding their branches in all over the world. They want to increase their profit through giving maximum satisfaction & other better facilities to people that they want. Now after catching such a marvelous position in the International Market, KFC is introducing a new item Boneless Fried Chicken, with even more attractive and charming taste.

Company overview:
Colonel Harland sanders, born September 9, 1890, actively began franchising his chicken business at the age of 65. Now, the Kentucky fried chicken business he started has grown to be one of the largest retail food service systems in the world. And colonel sanders, a quick service restaurant pioneer, have become a symbol of entrepreneurial spirit. More than two billion of the colonels finger lickin good chicken dinners are served annually. And not just in America. The colonels cooking is available in more then 82 countries around the world. When the colonel was six, his father died. His mother was forced to go to work, and young Harland had to take care of his three year old brother and baby sister. This meant doing much of the family cooking. By the age of seven, he was a master of a score of regional dishes. At age 10, his first job working on a nearby farm for $2 a month. When he was 12, his mother remarried and he left his home near Henryville, Ind., for a job on a farm in Greenwood, Ind. He held a series of jobs over the next few years, first as a 15-year-old streetcar conductor in New Albany, Ind., and then as a 16-year-old private, soldiering for six months in Cuba. After that he was a railroad fireman, studied law by correspondence, practiced in justice of the peace court, sold insurance, operated an Ohio River steamboat ferry, sold tires, and Operated service station. When he was 40, the colonel began cooking for hungry travelers who stopped at his service station in Corbin, KY. He didnt have a restaurant then, but served folks on his own dining table in the living quarters of his service station. As more people started coming just for food, he moved across the street to a motel and restaurant that seated 142 5

people. Over the next nine year, he perfected his secret blend of 11 herbs and spices and the basic cooking technique that is still used today.

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. For the vegetarians in India, KFC also has great tasting vegetarian offerings that include the Veggie Burger, Veggie Snacker and Veg Rice meals. In India, KFC is growing rapidly and today has presence in 11 cities with close to 50 restaurants.

Goals of KFC
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 and grow, striving always to be the leader in the market place changes. Generate consistently superior financial returns and benefits our owner and employees. To establish in India our position as leading WQSR (Western Quick Service Restaurant) chain, serving good value. Innovative chicken-based products consistently, providing a pleasant dining experience, with fast friendly, in a clean and convenient location. At all times we must be dedicated to providing excellent and delighting customers.

Product Lines
Kentucky fried chicken Zinger burger Krushers Game Box Twister Boxmaster Chicken Bucket Hot wings Fries Corn on the cob Zing Kong Snacker (chicken & veggie) Veggie Feast Soft Drink Coleslaw Chicken Thali Veg Finger Snack Box Sundae Soft Twirl Brownie Sundae

Values of KFC
Focus all our resources to our restaurants operation because that is where we serve our customers. Reward and respect the contributions of each individual at KFC. Expand and update training with time and be the best we can be and more. Be open, honest and direct in our dealings with one and other. Commit ourselves to the highest standard to the personal and professional integrity at all times. Encourage new and innovative ideas because these are the key to our competitive growth. Reward result and not simple efforts. Dedicate ourselves to continuous growth in sales, profit and size of organization. Work as a team.

PHILOSOPHY OF KFC
The CHAMPS Program
Champs stands for our belief that the most important thing each of us can do is to focus on the customer. It stands for our commitment to provide the best food and best experience for the best value. CHAMPS stand for the six universal areas of customer expectation common to all cultures and all restaurants concepts.

THE CHAMPS
These are: Cleanliness Hospitality Accuracy Maintenance of Facilities Product Quality Speed of Service

CHAMPS is the philosophy to ensure that the customer has the consistent quality experience in every restaurant, everyday, on every occasions and you will be playing role in delivering CHAMPS to our customers.

Current target market

Segmentation : KFC has divided the market of India into distinct groups of
customers with different demands, tastes and behavior who require separate products or marketing mix. In India the niche marketing is being used for particular classes of people. They have made segments of the market on the following bases. Demographical Behavior Geographical By using these three bases they segmented the market as under.

DEMOGRAPHICAL BASIS
In demographics their first segment is consisted of the income factor i.e. high income, average income and low income.

BEHAVIOR
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In behavioral aspect they segmented the market on the basis of quality, taste and price. Following are the different possible segments in this regard. Taste conscious Quality conscious Class conscious Combination of price and quality

GEOGRAPHICAL BASIS
On the basis of the geographical factor we have divided our market in three main segments. Urban areas Sub urban areas

Profile criteria: 1. Gender: KFC is for each gender both male and female. 2. Income: Everyone can use the KFC service upper and middle class. 3. Age: age limitation for using this product above 15. 4. Occupation: By profession also everyone can use this product means businessman student workers and other peoples. 5. Education: It has no need more education that why the person who know something can easily enjoy with this product. 6. Family life cycle: KFC is suitable in every stage of life like single married couple and also those who have children can use this product. 7. Lifestyle: This product is used in every level of social class like upper, middle class. 8. Attitude: When the customers once buy this product after that they can use the product continuously.

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9. Purchasing decision: Often KFC changes the purchasing decision of customers because of its good attributes. 10. Geographic region: Geographically KFC is used in every part of the country as well as all over the world. 11. Product positioning: Customer perceive this product as a unique product that other are not giving. 12. Attitudes: The attitudes of the public is very good people like our this new product like others. 13. Purchasing process: Many people come from home to eat this , and some make impulse decision as they saw it .

Competitive analysis : Competitors

You cannot enjoy the business without competitors. No organization can afford to ignore their competitors. It is very important for a marketing managers to monitor the activities of their competitors, what they are doing? KFC adopted such sort of strategy that there is no competitor for spicy chicken, which is made by KFC. KFC beats its competitors through the revising marketing strategy at every movement but the main competitor of KFC are Mc Donald.

COMPETITIVE ADVANTAGE
KFC Spicy Products Indian people like spicy products instead of boiled food Arabian Rice and Zinger Burger Free Delivery Chicken is eaten by every community McDonalds Burger and French Fries

Big Mac Charges for home delivery Beef is banned in some community

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Local Staff and Highly Qualified because local staff can better deal with the customers KFC uses Top to Bottom and Bottom to Top Approach in Management. KFC is Co branding with Walls

Its Staff consist of simple Graduates and give them training McDonalds Uses Top To Bottom Approach. No such Case.

Porters five forces

Entry
For the current Indian market for fast food, it is not difficult for a fast food restaurant to enter the market. However, it would be extremely difficult to take over already running major fast food chains' dominancy in India or even make a significant amount of profit. While there are enough people in urban India for any restaurant to survive, KFC holds the first-mover advantage into the 'non-veg food specialty food segment' that gives them free reputation. Customers, especially children who are used to going to KFC as a treat or reward from their parents or grandparents, are not going to want to go to other restaurants theyve never heard of. The brand name is already established. Also, there is already a large variety in the numerous western-style dining places in India, such as McDonalds, Pizza Hut, Domino's and Subway, and any new fast-food entrants would just be presenting something very similar to whats already there. While small Neighborhood restaurants generally have low barriers to entry, these are the barriers to entry for similar restaurant businesses to enter the fast-food chain market.

Buyer/Supplier Bargaining Power

The customers of KFC, especially as individual buyers, have almost no bargaining power because if only one customer threatens to no longer eat at KFC, the store is not going to lower its price because the cost of losing one customer is not very great. The suppliers, like the buyers, have very little bargaining power. In terms of food, KFC, upon its move into India, urged many of its U.S. suppliers to also extend branches into India. KFC also began helping local suppliers by giving them technological support to improve their products. This is a brilliant strategy because the supplies that KFC would otherwise need to import from the U.S. can now be obtained domestically, and if the U.S. suppliers decide to raise 13

their prices, KFC can easily switch to the local suppliers. This gives us a brilliant strategy. With this strategy, KFC created competition among its suppliers, lowering the supplier bargaining power. In terms of human resources, labor cost is extremely low because the supply of non-skilled workers great exceeds the demand for them. With so little buyer and supplier bargaining powers, KFC is able to have a very tight control over its prices and expenditures.

Substitutes and Complements

As mentioned above, there are a few major competitors in the fast-food industry in India for KFC, namely McDonalds, Pizza Hut, Domino's and Subway. The substitute products, in this case, would be burgers, pizza, and sandwiches. Though they are competitors, their primary products differ greatly from each other, in that they sell, chicken, burgers and fries, pizzas, and sandwiches, respectively. Traditional Indian dining, home-cooked meals, and grocery stores with ready-to-eat foods are also substitutes, as families could choose any one of these over fast food for a meal. These substitutes are definitely considered healthy as compared to the fast food chains. Even foods from street vendors count as substitute goods. While other fast foods serve as substitute to KFC, they can also serve as complements for fast foods as a whole. If the general price of fast foods goes up, KFCs price rises as well, and the same can be said of the quantity sold of these products, which make them complements to each other. KFC also sets up stores located near popular tourist attractions, so tickets to these tourist spots are also complementary goods because the more people tour these attractions, the more customers KFC will get.

Rivalry
Unlike what one would expect, KFC has little rivalry with similar fast-food chains in India. The primary reason is that their core products are different, as in they sell different kinds of fast foods with very different tastes and styles. For example, if KFC raised its price for chicken by a small amount, Indian chicken lovers who may not be as accepting to pizzas (many Indian people strongly dislike the taste of cheese) are not going to switch to Pizza Hut just because the price for KFC increased. In addition to that, these restaurants have such different target customers that the fluctuation of price for one restaurant is not going to affect the others. For example, a full meal at KFC ranges about Rs. 100, whereas a full meal at Pizza Hut can cost over Rs. 300. The drastic difference in price assures no price competition between these restaurants.

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KFC Outlets in Delhi

KFC in Central Delhi KFC in Noida A-12, Inner Circle, CP, Delhi-110001 Store Timing:8:30am to 11pm Sector 18, Noida -201301 Store Timing:11am to 11pm Great India Place, Noida-201301 Store Timing:11am to 11pm

KFC in West Delhi KFC in South Delhi Back Wing, Select Citywalk Mall, Saket, Delhi-110017 Store Timing:11am to 11pm Vasant Square Mall, Vasant Kunj-110070 Store Timing:11a.m. to 11 p.m. City Square Mall, Rajouri Garden, Delhi-10027 Store Timing:11am to 11pm Vikas Surya Plaza, Sector 4, Dwarka, Delhi-110075 Store Timing:11 am to 11 pm Below Netaji Subhash Place Metro Station, Pitampura, Delhi-110034 Store Timing:11am to 11pm

KFC in East Delhi

KFC in Gurgaon 15

Shipra Mall, Indirapuram, Delhi-201012 Store Timing:11am to 11pm V3S Mall, Laxmi Nagar, Delhi-110092 Store Timing:11am to 11pm

JMD Regent Mall, Mall Road, GurgaonStore Timing:11 am to 11 pm Ambience Mall, Gurgaon-122001 Store Timing:11am to 11pm

BCG Matrix
KFC I ndia - BCG Matrix

Crispy Boneless Chicken

Krushers

?
Veg Thali

Chicken Bucket

Question Mark:
Currently KFC have launched a new product in the market. They have also tried to come into the beverages market by launching its new brand of shakes called 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 product is individually not bringing any profits and is a cash drain for the 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:

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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 for its 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:
KFCs Chicken Bucket is the most successful product of the company. It has the 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. This product is CASH NEUTRAL for the firm. The company is trying make this product a cow as well, by reducing the expenditure.

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Market Coverage Strategy

KFC will be using differentiated market coverage strategy. It means that different marketing mix will be used for different age groups.

TARGET MARKET FOR FAST FOOD

After evaluation of various segments, KFC has decided to target the market of Urban and Sub-urban Areas of Pakistan.

Product usage
People are educated and they want variety in their diet. Normally people of rural areas dont take fast food. On the other hand people of urban areas take fast food. Income of the people of urban areas is normally high and they can afford to purchase such products, which are slightly higher in price as compared to prevailing prices of local food in the market. People of Urban Areas are more quality conscious than the people of Rural Areas. In Urban Area there lived people from every walk of life and profit generation is easier than in Rural Areas. Population density is higher in Urban Areas as compared to Rural Areas, so the number of customers are more in Urban Areas.

Competitors
Because the fast food market in India is highly competitive, KFC faces a wide number of direct and indirect competitors. KFCs main competitors are fast food 18

chains such as McDonalds and Dominos, which are already well established throughout India. McDonaldss in particular is a direct competitor, as they have already successfully introduced their Salads plus line (http://www.theage.co.in), which directly targets healthy food conscious Indians. But, there are a number of other competitors that is also focusing on chicken types products. All this competition makes it quite difficult for KFC to maintain or even broaden their customer base. However, with the introduction of a new and healthy product range, KFC can differentiate itself from most competitors and will gain a competitive advantage.

Customers
KFCs customer market consists solely of the consumer market (Kotler et al 2003). KFCs products are bought by individuals (males, females, singles, and families). Therefore, the product range KFC offer should appeal to as many people within this consumer market as possible, to ensure that the maximum amount of products can be sold. The characteristics of these individuals and a segmentation of them are discussed later in this report.

MARKETING STRATEGIES OF KFC

There are different strategies adopted by KFC for different events. They market their products on different events and in different activities as they are helping SOS village. 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.

Marketing

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Since 1982, KFCs All-American salute to Mothers national card contest has been KFCs way of honoring moms and their families for making mothers Day KFCs biggest sales day of the year. The contest encourages children to creatively express their feelings for their moms by making a homemade card and give them chance to compete for more than $10,000 in cash and prizes. Educational packets, including language, history and art exercises highlighting Mothers Day, were sent to thousands of schools nationwide. There are 4 Ps of Marketing: 1. 2. 3. 4. PRODUCTION PRICING PROMOTION PLACEMENT

1. Production:
Basically the product is anything that be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. KFC is specially dealing in the chicken products; Basically, KFC has the special raspy for chicken products that is why, KFC known as a chicken specialist allover the glob. KFC target the Asia and east side because they observe that they people are like the chicken products, so they enter in the market due to the demand of their chicken products. KFC product variety of product in the chicken, those products are:

PRODUCTS:
Original recipe chicken Extra Tasty CrispyTM chicken Hot WingsTM pieces Tender Roast chicken Chunky Chicken pot pie Kentucky Nuggest Colonels Crispy Strips Honey BBQ sandwich Original Recipe Sandwich Tender Roast Sandwich Triple Crunch Sandwich Triple Crunch Zinger Sandwich

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Product Issues
Quality Control Over Ingredients Every Chicken Tested K & Ns state-of-the-art Quality Assurance Lab monitors the entire integration process from livestock to feed and on to preparation of ready-to-cook and cooked products. Every Chicken Certified HACCP K & Ns ensures food safety by implementing the international HACP (Food Safety System) and enjoy the unique privilege of being the first and only HACCP certified company is India producing chicken and chicken products. Free from diseases and bacteria, drug residues and other contaminants. Quality Assurance Certificate Director General (Research) has issued quality assurance certificate for the chicken used by KFC.

BRAND: There are three brands of the KFC: 1) Taco bell 2) Pizza Hut 3) Long john silvers

2. Pricing:
KFC during pricing their products keep the different points in the mind like they adopt the cost base price strategy. Pricing of the product includes the Government taxes and excise duties and then they come at final stage of determine the price of their products. KFC prices of products are a bit high according to the market segment and it is also compatible to the stander of their products. Calculation of the price under Cost Based Pricing Strategy: Total Pounds of Chicken Served in KFC Restaurant Annually = 1.914 Billion Total KFC Chicken Pieces Sold Annually = 5.89 Billion Total Retail Sales = $8.9 Billion Sales Price of per Chicken Piece sold = Total Retail Sales / Chicken Pieces 21

= $8.9 Billion / $5.89 Billion =$1.51 We assume that Fixed Cost is = $6000000000 Variable Cost = $675000000 Profit Margin is Or Mark Up = $225000000(25% of Sales) Per Unit Variable Cost = $675000000 / 5890000000 = $ 0.115 Unit Cost = Variable Cost + Fixed Cost / Chicken pieces Sold = 0.115 + 6000000000 / 5890000000 = 0.115 + 1.02 = $1.135 Now suppose manufacturer wants to earn 25% mark up on sale. The manufacturer mark up price is calculated: Mark Up Price = Unit Cost / (1 Desired Return on Sales) =1.135 / (1-.25) = 1.135 / 0.75 = $1.51

3. Promotion:
Promotion is one of the necessary plates in any form of business or in other words you can say that promotion is the key of success. If you promote your product at the right time. KFC also known the importance and significance of promotion so they uses the bill boards the major source of advertisement and one of the most important thing that they uses media especially the newspapers to promote their products. They are also creating awareness among the masses about their existing product range as well they tell us about the future product. Marketing efforts to be taken by the restaurant: Paste delivery posters at petrol pumps, flats, colleges, plazas, and departmental stores. Distribution of delivery flyers in residential areas, markets, plazas and institutions (as per the plan) Visit offices and business places.

Promotion Issues Sales promotion

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For the sales promotion KFC introduced their goods like watches , keychain, etc., to the customers.

Advertisement
The advert titled Pool was done by OGILVY & MATHER, New Delhi advertising agency for KFC ZINGER BURGER (KFC company) in INDIA. It was released in the June 2009. Business sector is Fast food outlets & restaurants.

One of KFC's latest advertisements is a commercial advertising its "wicked crunch box meal". The commercial features a fictional black metal band called "Hellvetica" performing live, the lead singer then swallows fire. The commercial then shows the lead singer at a KFC eating the "wicked crunch box meal" and saying "Oh man that is hot". In 2007, the original, non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and food packaging, as well as some restaurant signage.

4. Place:
In the case of the KFC the placement of the product is not important but the placement of the restaurant is important. The products of the KFC is cooked at the sport and then served after that. KFC Cavalry branch opened in June 1998, in the main commercial zone of Cavalry Grounds near the Jinnah Flyover. The restaurant is a three-story building including the basement (where the chicky play area is located). It is ideally located in the center of a main commercial and residential area of Lahore. The area that KFC Cavalry caters for is the residential and office area of Cavalry Grounds and Cantt, as the main target market. Another branch the KFC opened in the Lahore is in Garden Town (opposite to Barkat Market). KFC also target the Faisalabad and open its branch in D ground. 23

Now we can easily judge that the KFC target the place for their restaurant, which is well known and is in the Porsche area where the income level of the people is high then the middle class level. Because the prices of the KFC products is high with comparison to the local products manufacturer who are dealing in the same kind of product in which KFC is dealing but the prices of the KFC is high due to special taste, high quality, and due to international brand, it is the world recognized fast food restaurant all around the world. So, for the placing strategy, KFC chose the well income class area for their restaurants.

SWOT Analysis
SWOT analysis mean strength, weakness, opportunities and threats and the SWOT analysis of KFC are:

STRENGTHS
Goodwill and reputation: The company certainly has earned a good name and reputation by its previous products and services in the market. It is even more recognised in other markets outside India, where the company is among the leading fast food giants. The brand is recognised and trusted in India for its quality products, price, and customer service. It therefore has a good head start and enjoys a good chance of becoming a leader in Indian fast food industry. Employee Loyalty: Employee Loyalty is one of the major strengths of KFC. The turnover rate in the company is amongst the lowest in the industry. Customer Loyalty: Despite gain by Boston Market and Chick-fill A, KFC customer base remained loyal to the KFC brand because of its unique taste. KFC has continued to dominate the dinner and take out segment of the Industry. Ranks highest among all chicken restaurant chains for convenience and menu variety. It generates $1B revenue each year. 24 its

WEAKNESSES
KFC was losing market share as other Chicken chain increased sales at a faster rate. KFC share of Chicken Segment sales fell from 71 percent 1999, to less than 56 percent in 2009 , a 10 -years drop of 15 percent.

Huge competition in this segment. India is still mostly a vegetarian dominated cultured society . South India is especially very much so. This may reduce the market share of the company. KFC has not yet invested much on R&D, and innovating new products for Indian Markets. This may lead to failure of their products as they are not in line with the Indian mind set, peoples taste and preferences and their likes and dislikes. This may prove fatal for the company.

OPPURTUNITIES
New Markets: Globalisation has opened doors for new markets for the company. As the developed markets are mostly saturated, the developing countries like India and China promises a good market and generation of demand in the future. With more than 70% of the markets in india being unexplored and un organised, KFC has a good scope of expanding its operations in the country. Cross Culture: Generally there is a good acceptance of American culture of fast food in India. People are opening up to fast foods more regularly in their daily lives and not just keeping it a once in a month affair. Thus Indian mindset is fast changing. Large Youth population: India has a very large share of youth population a compared to other countries. More than 60% of the population is under the age of 30yrs. As the young generation are more open to fast foods and demand it more, this is a good news for the company. New variety: Company can also come up with new variety in the menu like Pizzas, garlic breads to attract more customers.

THREATS
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Competition: Competitor companies like McDonalds are fast catching up with the market. McDonalds with sales of more than 19 billion in 1999, accounted for 15 percent of the sales of the nations top 100 restaurant chains. Organisations like PETA People for Ethnic Treatment for Animals have given a bad name to the company which may prove disastrous to the image of the firm. Currently, KFC is under massive attacks from animal organisations, questioning the way KFCs suppliers are threatening the chicken, before they got slaughtered. Anti-KFC campaigns, such as the one from PETA are affecting KFCs brand image in a negative way and result in direct dollar losses, as less people are consuming KFC chicken. Saturated US Market: Now KFC cannot rely on just its home market to generate sales. As the US markets are already saturated and leave no or little scope for growth, company necessarily needs to look at offshore foreign markets to generate sales and keep up the profits.

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QUESTIONNAIRE
1. Tick Your Choice ()
Perfect Above Average Average Below Average Poor

Food Quality Food Temperature Waiting Time Menu Board Sitting Arrangement Restaurant Temperature Music Restaurant Cleanliness Overall Experience
2.

When will you be back? Next time I blink (very soon) May be sometime later When I win a Nobel Prize (Never)

3. How many people were in your group? I was alone Just me and someone For me, three is company 4 or more 4. Would you rather order than Dine in? Yaa, I like to mostly order at home Sometimes, but I mostly like to dine in No fun without Dine in 5. How close is your house to your nearest KFC outlet? Within 1 Km 27

 Between 1 3 Kms Between 3 5 Kms Above 5 Kms 6. Do you want a KFC home delivery service? My dreams are coming true That would help Doesnt make much of a difference No thanks

THANK YOU

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FINDINGS
The data we received is as follows:We did a survey on KFC on people with age group of mostly 20-25yrs. Mostly all were open to non-veg food, and following were the results. As seen below KFC has shown a good report on all the micro factors that we considered.

We also asked questions on whether they would like KFC to start homedelivery services.

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We also inquired How close is the nearest KFC outlet from your house?

Would you like to order at home or Dine in?

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CONCLUSION
It is clear from the above report that a high number of people actually like to order from their home or workplace rather than coming. This may be due to more convenience, time shortage or just not willing to come and dine. Certainly the home delivery market is huge and KFC can take well advantage of the situation. Thus it would be in the best interest of the company to start the service as soon as possible and capitalize on the opportunity. KFC expects a rise in the orders by at least 20% by starting this service.

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BIBLOGRAPHY
www.kfcindia.com Times of India www.google.com www.wikipedia.org Retail magazines

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