Project Report on

Marketing Management

OF

KFCSubmit to:

Mr. Jawed Ahmed Qureshi

Submitted by:Mr. Syed Faisal Hussain

Mr. Sher Muhammad

MBA –08E (Evening)

INDUS INSTITUTE OF HIGHER EDUCATION

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Acknowledgements

My all acknowledgments and regards to MERCIFUL ALLAH, Who blesses us with courage and enhances our skills in formation of the report also in all works of life

We are grateful to MR. Ali Usmaani branch manager of KFC, who provided us information in key aspects of this report and spared their precious time and knowledge for the completion of the report.

In last but of course not the least we show homage and all gratitude to our honorable teacher Mr. Jawed Ahmed Qureshi, who supported and shared his great professional experience and knowledge with us.

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TABLE OF CONTENTS

S.

NO.

PARTICULARS PAGE

NO.

1- EXECUTIVE SUMMARY 04

2 COMPANY INTRODUCTION AND HISTORY

05 … 07

3 PRODUCT LINE 08

4 SOCIETAL MARKETING 09 …10

5 BCG MATRIX 11

6 SEGMENTING, POSITIONING AND

TARGETING

12 …13

7 MARKETING MIX 14 …18

8 SWOT ANALYSIS 19 … 20

9 CONCLUSION 21

10 RECOMMENDATION 22

11 APPENDICES 23

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Executive Summary

The fast food industry of Pakistan is growing rapidly with the

influx of many foreign food franchises. This growth is

attributed to the fact that eating out has become the major

form of entertainment.

Kentucky fried chicken the world’s largest franchise operating

several outlets in Pakistan, the chicken lover’s nation, are

conducting several marketing activities to promote it sales

and brand name since 1997.

Through out analysis showed that although KFC is practicing

strong marketing activities and having strong brand name world

wide yet considered as an alien product and did not achieved

such a high market share as Pizza Hut and Mc Donald.

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Introduction and History

KFC Corporation, based in Louisville, Kentucky, is the world's

most popular chicken restaurant chain, specializing in Original

Recipe®, Extra Crispy™, Twister® and Colonel's Crispy

Strips® chicken with home style sides.

Every day, nearly eight million customers are served around

the world. KFC's menu includes Original Recipe® chicken --

made with the same great taste Colonel Harland Sanders

created more than a half-century ago. Customers around the globe also

enjoy more than 300 other products -- from a Chunky Chicken Pot Pie in

the United States to a salmon sandwich in Japan.

KFC has more than 11,000 restaurants in more than 80 countries and

territories around the world. And in quite a few U.S. cities, KFC is teaming

up with sister restaurants, A&W, All-American Food ™ , Long John Silver's,

Taco Bell and Pizza Hut, selling products from the popular chains in one

convenient location.

Over fifty years ago, Colonel Sanders invented what is now called "home

meal replacement" -- selling complete meals to busy, time-strapped

families. He called it, "Sunday Dinner, Seven Days a Week."

Today, the Colonel's spirit and heritage are reflected in KFC's brand

identity -- the logo features Colonel Harland Sanders, one of the most-

recognized icons in the world.

KFC is part of Yum! Brands, Inc., which is the world's largest restaurant

system with over 32,500 KFC, A&W All-American Food™, Taco Bell, Long

John Silver's and Pizza Hut restaurants in more than 100 countries and

territories.

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KFC PAKISTAN

Opening the first KFC outlet in Gulshan-e-Iqbal, Karachi in 1996, KFC

wore the title of being the market leader in its industry. Presently KFC is

branched out in nine major cities of Pakistan (Karachi, Lahore,

Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad,

Islamabad) with 29 outlets nation wide.

Economic Facts

Apart for fulfilling commitment of serving delicious, fresh and

hygienic food and at the same time providing customers with the

ultimate entertainment, KFC also plays part in the economic

environment of the nation.

Presently KFC has provided employment to over 1200 Pakistanis,

which adds up to 6000 individuals directly dependent on KFC

Pakistan.

The government of Pakistan receives over Rs.10 million per month

from KFC Pakistan as direct taxes.

95% of all food and packaging material used in KFC Pakistan is

procured locally, which sums up to a purchase of over Rs.35 million

per month.

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Cupola Pakistan

(KFC franchise owners in Pakistan)

Cupola is a Dubai based multinational company involved in several

business including oil, gas exploration, plastic cards, retail markets and

food franchising. Cupola holds the master franchise rights to operate KFC

in Pakistan.

Company Vision

We aspire to redefine your experience by achieving ever-higher

standards in quality and customer care.

Mission Statement

To be the world most famous best fast food franchise Brand.

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Product line Current product

Zinger Burger

Chicky Meals

Chicken Meals

Family Meals

Desserts

New product

Rice N Spice

Macho Burger

Upcoming

Sub 60. Fish burger

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Societal Marketing & KFC

School Partnership Program

Key Aspects,

Learning Competitions

KFC’s motto is “Learn with Fun”. Time and again KFC float

competitions, which enhance the many types of talents among

kids and give them a specific direction to grow. The regular

competitions feature the following:

Talent Awards

It is a mega event emphasizing on the following talents:

Art

Extraordinary achievements in academics.

Sports

Writing

Debates/Dramatics

Kids portraying extraordinary talents are given recognition by

KFC.

Mother’s Special

Every year children pay tribute to their mothers by making

exclusive beautiful cards for them and KFC displays them at their

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outlets. The best of them get a prize at exclusive colorful

ceremony arranged by KFC.

Eid Celebrity

Chicky Fund Raising

The objective of Chicky Fund Raising is to help needy children throughout

Pakistan. To play an active role in the development of nation’s most

valuable resource-children; to unite all members of local communities in a

common cause in the month of Ramadan each year during the annual

collection and distribution campaign; to contribute to better communities in

the future.

KFC Pakistan has been involved in community activities since last many

years. The main focus of company in these activities has been educating

the society.

Faryad

Is the environment campaign by KFC Pakistan. The main projects of

faryad are tree plantation, creating awareness and cleaning the

environment and traffic rules and regulation.

Jail Visits

KFC’s existing penal system has thousands of children who were born in

prison and know no existence outside of these prisons. KFC-Pakistan

periodically visits these under privileged children along with Chicky

(children’s mascot) to entertain them. Free food and gifts are provided.

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BCG MATRIXZinger Burger /Family Meal Macho Burger/Rice N Spice

Star:

Zinger Burger, Chicken Meals and Family Meals are star products of KFC and high promotional activities conducted to promote them.

Cash Cow

There is no product of KFC is cash cow.

Question Mark:

Macho Burger and recently launched Rice N Spice are question mark products.

High promotional activities are practicing to make them stars.

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Also these products are in testing period of three months as per company policy.

Market Segmentation and Positioning

KFC in Pakistan practices multiple-segment strategy so that good number of consumer attracted towards their product and avoiding the risk of having all eggs in one bucket.Segments are

Geographic

Urban Areas

More educated people and weather and civic conditions are good mode of life style is fast and trend of dining out is present.

Demographics

Social Class A and B Age Groups Singles Married with no Children. Married with young children.

Psychographics

Life Style Health Conscious people

Target Market Of KFC

In Pakistan KFC target market is

Kids. Teenagers. Single between 20 to 26. Married with Young Children.

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Social Class A and B. People love to travel and taking meal out of homes.

Positioning

Country like Pakistan where various ethnics and social groups exists, KFC positioned its product in the mind of the customers

As

We Serve Halal.

All about chicken.

The Chicken experts.

Finger- lickin good.

Hum tum sab.

Can you take the Heat?

You have come to the right taste.

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KFC & Marketing Mix

Product

KFC calls them Chicken experts and chicken is their specialty and

most of the people know KFC for their chicken. The product line

has been given earlier.

The actual product of KFC is KFC name itself. After launching the

product KFC tests the product for 3 months. If the product does

not achieve the desired target they stop producing it.

Branding / Packaging & KFC

Gray Haired, wearing spectacles French Beard with proud smile

hanging on hoarding recalls one name KFC.

KFC has thus far managed to establish a powerful brand name

that has been widely recognized as a key to its success.

KFC adopts corporate branding strategy.

Zinger

Macho

Rice and spice

Chicky meals

Chicken meals

Fish burger

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Packaging

KFC packaging is the main source of their promotional activities.

Large expenditure occurs only on packaging so that recall ability

brand increases.

It is the way they communicate with their customer who eat,

drink or visit their place, while having meals package attracts the

customers.

Attributes KFC packaging contains,

Colonel‘s picture printed even on tissue papers.

Clean and Tidy uniforms of restaurant staff.

Restaurants Building built on modern style and in most

urbanized manner.

Chicky picture printed on every Chicky meal attracting

kids.

100 % recyclable packaging.

Serving trays covered with different deals posters.

Place/(Distribution)

KFC opened its first outlet in Pakistan at Karachi; Gulshan-e-iqbal

in 1997 since then 29 outlets has been opened so far.

To access maximum target customers, the outlets are designed

on modern and most urbanized manner and most outlets are

located in commercial areas of the cities.

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KFC also offers free delivery service so that customers can be

effectively reached so that KFC products at their desired place,

could entertain them.

Distribution strategy

KFC follows selective distribution strategy, as their products are

only available at their restaurants or by free delivery service.

Promotion

Although KFC has worldwide acceptance but they are using print

and electronic media for their promotion and publicity.

Most of the promotion is done through their outlets.

Advertisements

KFC uses hoardings, leaflets, banners, press s and magazine

adds.

for their product advertisement now KFC’s first TV advertise

going to on air .

Sales promotion

For promoting their sales, KFC keep changing their strategies.

They conduct

Event management

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KFC is effectively celebrates events for their advertisement and

promotions like

Eid festivals

Independence day

Mothers day

Campaigns like cricket world cup 1999.

Pricing

KFC is all about the chicken, Pakistanis are chicken lover and

price of chicken fluctuates in various occasions like

Eid festivals

Winter season

Summer season

Marriage festivals after eid and bakra eid

As a well-known brand, KFC have to maintain their product prices

in these seasons so that their customer is satisfied in all ways.

Like in the case of “Bird flu”, the prices of KFC remained same.

Pricing Strategy

As an international brand KFC does not follows any fixed pricing strategy

Market Penetrating price for new products,

Rice N Spice Rs.100 with 1 regular drinks at starting and refill in just Rs.10

Macho Burger at Rs.100

Mostly KFC practice

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Segmented pricing strategy by giving teachers discount,

Product Bundle Pricing

e.g. Chicken Meals ,

Your Favorites 1 Pepsi 1 zinger 1 chicken piece All in

Rs.220

Quantity discounts on Chicken Pieces

1 piece Rs. 65, 2 in RS. 110 and maximum 20 in Rs.880/

KFC also offers discount cards of certain amounts at which

discounts are provided to customers.

Maintaining the perception of their products is an important

aspect for the pricing strategy of KFC so that the image of the

product remains high in the mind of the customers.

But only A class can afford regular visits to KFC for dining out

as the rates are quite high as compared to the local restaurants

that offered at low rates.

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KFC SWOT Analysis

STRENGTHS

KFC the most recognizable brand in chicken.

It was one of the first fast food chains to go international.

Original recipe is its core competency.

Large food supplies chain.

It has growing customer base and customer loyalty.

It is well positioned in attractive market.

Best Team.

WEAKNESSES

KFC’s only a chicken store.

Losing business because they lack the variety the other

stores offer.

They are slow adopter in technology.

No advertisements on TV.

Higher prices low quantity. No parking facilities available in premises.

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OPPORTUINTIES

Dining out trend is increasing.

Population is chicken lover.

People are becoming health conscious.

Labor is cheep.

Increasing population.

THREATS

Government Policies.

Chicken Diseases.

Some burger places have added chicken to their menus.

Other chicken chains are adding other types of food to

their product lines.

Anti US activities victim. Food Technology advancement.

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Conclusions

We reached at following conclusion after analysis,

Segment of KFC is not too large as in other countries. Most of the Pakistani population does not lie in the category of Social Class-A and still are not health conscious.

KFC has positioned itself as Chicken Expert, which provides “Halal”, and “hygienic” quality products in Pakistan.

KFC emphasis on hoardings, leaflets, banners, press and

magazine adds for their product advertisement. Conduct

event management for promotion of sales and product.

KFC is playing effective role in societal marketing.

KFC also promotes its brand by their attractive packaging

and modern designed outlets.

The star products of KFC are zinger and family meals every month the sale of these products in units is increasing.

The product prices are higher than other local restaurants.

KFC is conducting selective distribution strategy and not their products are offered at all outlets.

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Recommendations

Following are our recommendations

They should advertise their product through local media and advertise their products by TV ads.

Promote Rice N Spice to position it as a star product.

Proper parking place should develop with outlets.

KFC should introduce hot line number.

They should try to reduce the price with the same quality & quantity.

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Appendices

www.kfcpakistan.com. www.kfc.com . KFC outlets. Marketing reports in library.

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