Mayank Final Kfc

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CHAPTER 1

INTRODUCTION

About the topic

KFC (the name was originally an initialismfor Kentucky Fried Chicken) is a fast

food restaurant chain that specializes in fried chicken and is

headquartered in Louisville, Kentucky, United States (US). It is the

worlds second lar!est restaurant chain (as "easured #y sales)

after $c%onalds, with &',' outlets in &&' countries and

territories as of %ece"#er *+&. -he co"pany is a su#sidiary of

u"/ 0rands, a restaurant co"pany that also owns the 1izza 2ut

and-aco 0ellchains.

K34 was founded #y 2arland Sanders, an entrepreneur who #e!an

sellin! fried chicken fro" his roadside restaurant in 4or#in,

Kentucky, durin! the 5reat %epression. Sanders identi6ed the

potential of the restaurant franchisin! concept, and the 6rst

7Kentucky 3ried 4hicken7 franchise opened in Utahin &8*. K34

&
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popularized chicken in the fast food industry, diversifyin! the

"arket #y

challen!in! the esta#lished do"inance of the ha"#ur!er. 0y

#randin! hi"self as 74olonel Sanders,7 2arland #eca"e a

pro"inent 6!ure of 9"erican cultural history, and his i"a!e

re"ains widely used in K34 advertisin!. 2owever, the co"panys

rapid e:pansion saw it overwhel" the a!ein! Sanders, and in

&8;< he sold the co"pany to a !roup of investors led #y=ohn .

0rown, =r. and=ack 4. $assey.K34 was one of the 6rst fast food

chains to e:pand internationally, openin! outlets in >n!land,

$e:ico and =a"aica #y the "id?&8;+s. -hrou!hout the &8+s and

&8'+s, K34 e:perienced "i:ed fortunes do"estically, as it went

throu!h a series of chan!es in corporate ownership with little or

no e:perience in the restaurant #usiness. In the early &8+s, K34

was sold to the spiritsdistri#utor

2eu#lein, who were taken over #y the @.=. @eynolds food and

to#accocon!lo"erate, who sold the chain to 1epsi4o. -he chain

continued to e:pand overseas however, and in &8' K34 #eca"e

*
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the 6rst Aestern restaurant chain to open in 4hina. -he chain has

since e:panded rapidly in 4hina, which is now the co"panys

sin!le lar!est "arket. 1epsi4o spun oBits restaurants division as

-ricon 5lo#al @estaurants, which later chan!ed its na"e to u"/

0rands.

K34s ori!inal product is pressure friedchicken pieces, seasoned

with Sanders recipe of && her#s and spices. -he constituents of

the recipe represent a nota#le trade secret. Lar!er portions of

fried chicken are served in a card#oard 7#ucket,7 which has

#eco"e a well known feature of the chain since it was 6rst

introduced #y franchisee 1ete 2ar"an in &8. Since the early

&88+s, K34 has e:panded its "enu to oBer other chicken

products such as chicken 6llet #ur!ers and wraps, as well as

saladsand side dishessuch as 3rench friesand coleslaw, desserts

and soft drinks, the latter often supplied #y 1epsi4o. K34 is known

for the slo!an76n!er lickin !ood,7 which has since #een replaced

#y 7Co#ody does chicken like K347 and 7So !ood.7
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HISTORY

Harland Sanders was born in 189 and raised on a farm outside Henry!ille"

#ndiana$ %hen Harland was fi!e years old" his father died" forcing his mother to

work at a canning&lant$ 'his left Harland" as the eldest son" to care for his two

younger siblings$ fter he reached se!en years of age" his mother taught him how

to cook$ fter lea!ing the family home at the age of 1" Sanders &assed through

se!eral &rofessions" with mi*ed success$ #n 19" he took o!er a Shell filling

stationon +S ,oute -./ust outside0orth Corbin" Kentucky" a small town on the

edge of the &&alachian ountains$ #t was here that he first ser!ed to tra!elers the

reci&es that he had learned as a child2 fried chicken and other dishes such as steaks

and country ham$ fter four years of ser!ing from his own dining room table"


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Sanders &urchased the larger filling station on the other side of the road and

e*&anded to si* tables$ 3y 194" this had &ro!en successful enough for Sanders to

be gi!en the honorary title of Kentucky colonel by 5o!ernor ,uby 6affoon$ #n

197 he e*&anded his restaurant to 1- seats" and added a motelhe &urchased

across the street" naming it Sanders Court Caf:$

Sanders was unha&&y with the .;minutes it took to &re&are his chicken in an iron

frying &an" but he refused to dee& frythe chicken" which he belie!ed lowered the


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6awrence %etherby" Sanders began to dress the &art" growing a goatee and

wearing a black frock coat(later switched to a white suit)" a string tie" and referring

to himself as ?Colonel$? His associates went along with the title change" ?/okingly

at first and then in earnest"? according to biogra&her >osh @Aersky$$'he Sanders

Court Caf: generally ser!ed tra!elers" so when the route &lanned in 19.. for

#nterstate 7.by&assed Corbin" Sanders sold his &ro&erties and tra!eled the +S to

franchise his chicken reci&e to restaurant owners$ #nde&endent restaurants would

&ay four (later fi!e) centson each chicken as a franchise fee" in e*change for

Sanders= ?secret blend of herbs and s&ices? and the right to feature his reci&e on

their menus and use his name and likeness for &romotional &ur&oses$ #n 19.- he

had already successfully franchised his reci&e to his friend Bete Harmanof South

Salt 6ake" +tah" the o&erator of one of the city=s largest restaurants$ on nderson"

a sign &ainter hired by Harman" coined the name ?Kentucky Fried Chicken$? For

Harman" the addition of KFC was a way of differentiating his restaurant from

com&etitorsD a &roduct from Kentucky was e*otic" and e!oked imagery of Southern

hos&itality$ Harman trademarked the &hrase ?#t=s finger lickin= good"? which

e!entually become the com&any;wide slogan$ He also introduced the ?bucket

meal? in 19.7 (1 &ieces of chicken" fi!e bread rolls and a &int of gra!y in a

;
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cardboard bucket)$ Ser!ing their signature meal in a &a&er bucket was to become

an iconic feature of the com&any$ 3y 194 there were 4 KFC restaurants"

making the com&any the largest fast food o&eration in the +nited States$ KFC

&o&ulariAed chicken in the fast food industry" di!ersifying the market by

challenging the established dominance of the hamburger$ #n 194" Sanders sold the

com&any to a grou& of in!estors led by >ohn E$ 3rown >r$and >ack C$ asseyfor

+S- million (around +S1. million in -1)$ 'he contract included a lifetime

salary for Sanders and the agreement that he would be the com&any=s


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1987" with an outlet in 3ei/ing$ #n 1991" the KFC name was officially ado&ted"

although it was already widely known by that initialism$ Kyle Craig" &resident of

KFC +S" admitted the change was an attem&t to distance the chain from the

unhealthy connotations of ?fried?$'he early 199s saw a number of successful

ma/or &roducts launched throughout the chain" including s&icy ?Hot %ings?

(launched in 199)" &o&corn chicken (199-)" and internationally" the

?Ginger?" a s&icy chicken fillet burger (199)$ 3y 199" KFC had ."19 outlets in

the +S" and 9"7 o!erall" with o!er 1" em&loyees$ #n ugust 1997" Be&siCo

s&un off its restaurants di!ision as a &ublic com&any !alued at +S$. billion

(around +S4$. billion in -1)$ 'he new com&any was named 'ricon 5lobal

,estaurants" and at the time had " outlets and annual sales of +S1 billion

(around +S1 billion in -1)" making it second in the world only to

conald=s$ 'ricon was renamed Eum 3randsin ay --$

OPERATIONS

KFC is a subsidiary of Eum 3rands" one of the largest restaurant com&anies in the

world$ KFC had sales of - billion in -1$ KFC has its head


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5ardiner 6ane" 6ouis!ille" Kentucky" in a three;story colonial style building

known collo


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million in -1$ s chairman and CI@ of Eum" a!id C$ 0o!akultimately has

foremost res&onsibility for KFC o&erations$ Sam Su is chairman and CI@ of

Eum=s Chinese o&erations" and uktesh Bant is the CI@ of KFC$ ,ichard '$

Carucci is &resident of Eum" and ,oger Iaton is the C@@ of Eum and the

&resident of KFC$

42IC9

KFC is the largest restaurant chain in China" with ".4 outlets$ KFC became the

first %estern fast food com&any in China after its first outlet o&ened in Jianmen"

3ei/ing" in 0o!ember 1987$ 6ocal food items include rice congee" egg custard tarts

and tree fungus salad" with an a!erage of . different menu items &er store$

#n ecember -1-" the chain faced allegations that some of its su&&liers in/ected

anti!iral drugsand growth hormonesinto &oultry in ways that !iolated food safety

regulations$ 'his resulted in the chain se!ering its relationshi& with 1 su&&liers"

and agreeing to ?acti!ely co;o&erate? with a go!ernment in!estigation into its use

of antibiotics$ KFC China sales in >anuary -1 were down 1 &ercent against the

&re!ious year$ 'o counter sluggish sales" the menu was re!am&ed in -1$

&+
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UCI->% S-9->S

co;branded KFC;'aco 3ell in @scoda" ichiganKFC sales in the +nited States

in -1 were estimated at $-- billion by 'echnomic$ 'he basic model for KFC in

the +nited States" not necessarily du&licated elsewhere" is a focus on low &rices" a

limited menu (-9 items on a!erage) and an em&hasis on takeout$ any KFC

locations are co;located with either 'aco 3ell or BiAAa Hut" or other Eum

restaurants$ %hen Eum owned 6ong >ohn Sil!er=s and % ,estaurants" these

brands were often co;branded with KFC as well$ @ften these locations beha!e like

a single restaurant" offering one menu with food items from both restaurant brands$

#n -" there were . KFC;'aco 3ell combines" offering the full KFC menu and

'aco 3ell items" and 1 units offering the full KFC menu and a limited number of

BiAAa Hut items$ 'he conce&t originated in 1991" when a KFC;'aco 3ell

&&
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combination o&ened in irginia$ Some locations were also o&ened as combinations

of KFC" 'aco 3ell and BiAAa Hut" but this failed to catch on" and Eum CI@ a!id

0o!ak blamed a lack of franchisee commitment for its lack of success$ #nitially"

Sanders and KFC used hydrogenated !egetable oilfor frying" but in the 198s the

com&any began to switch to chea&er oils such as&almor soybean$ #n the -s it

became a&&arent that these oils contain relati!ely high le!els of trans fat" which

increases the risk of heart disease$ 3y &ril -7" the chain had switched to trans

fat;free soybean oil in all of its +S outlets$ #n -8" 0o!ak credited low +S sales

as being the result of a lack of new ideas and menu items$ 'he S&ring -9 launch

of Kentucky 5rilled Chicken only resulted in a tem&orary halt to the sales decline$

#n -1 KFC announced a turnaround &lan that included im&ro!ing restaurant

o&erations" introducing !alueitems and &ro!iding healthier menu o&tions$ #n the

same year"Advertising Agenoted that KFC was losing market share to its smaller

chicken restaurant ri!al" Chick;fil;$ #n -11 3loomberg 0ewsreferred to KFC

+S as ?an also;ran to conald=s Cor&$? #n -1-"ForbesmagaAine described how

many of the KFC outlets were ?aged and unin!iting"? and that the chain ?hasn=t

introduced an e*citing new food item in ages$?

KFC was described in -1- byBloomberg Businessweekas a ?muscular &layer? in

de!elo&ing regions" s&ecifically frica" China and #ndia" while noting its falling

&*
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market share in the +S to ri!als such as Chick;fil;and Bo&eyes$ Some analysts

s&eculated that KFC would begin s&inning off its ailing +S o&erations$ 'hat year"

the com&any began di!esting control of com&any;owned +S restaurants to

franchised o&erations" with the intention of reducing o!erall com&any ownershi&

from . &ercent to . &ercent$

=919C

>a&an is the third;largest market for KFC after China and the +nited States with

1"- outlets$ #n >a&an" 7 &ercent of sales are takeout" with customers tending to

buy fried chicken for &arties and other s&ecial occasions and eating it as a side

dish$ KFC >a&an was originally formed as a/oint !enturebetween the merican

&arent and the >a&anese itsubishi Cor&oration$ fter four years of negotiations"

itsubishi was awarded the franchise rights to KFC in >a&an" and a test store was

o&ened at the @saka %orld I*&oin arch 197$ fter the d:but &ro!ed to be a

success" the first store &ro&er was o&ened in the suburban location of0agoya in

0o!ember 197$ 'he merican &arent wanted suburban locations" whereas

itsubishi had argued for city centrelocations" as the car had not been widely

&
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ado&ted in >a&an at that time$ 'wo more locations were o&ened in @saka" but the

stores struggled" and after less than a year o&erations had lost >BL1 million$ s a

result of this failure" itsubishi=s original &lan for urban locations was &ursued$

'he first new strategy store o&ened in Kobein 197-" an u&market residential area

with a large %estern e*&atriate community$ 'he new strategy was a success" and

by ecember 197" 1 outlets had been o&ened$ #n ecember 197" KFC >a&an

began to &romote fried chicken as a Christmasmeal$ Iating KFC as a Christmas

time meal has since become a widely &ractised custom in >a&an$ Harland Sanders

himself !isited the >a&anese o&erations in 197-" 1978 and 198$ #n ugust 199"

KFC >a&an was listed on the 'okyo Stock I*change$ KFC had benefited from the

economic boom in >a&an during the 198s" but a ra&id e*&ansion of outlets saw

franchisees taking market share from each other" and around 1 outlets were

closed down in the mid;199s$ #n -" KFC >a&an re&orted sales of nearly .98

million$ #n ecember -7" itsubishi assumed ma/ority control of KFC >a&an in

a >BL 1$8 billion transaction$ 9s of %ece"#er *+&, there were 'n!landhad the 6rst overseas

#ranch of K34 which opened in 1restonin the Corth Aestin $ay

&8;, and was the 6rst 9"erican fast food restaurant chain in the

country, pre?datin! the arrival of $c%onalds, 0ur!er Kin! and

1izza 2ut#y al"ost a decade -he 6rst London #ranch opened in

Corth 3inchleyin Cove"#er &8;'. In &8& there were & outletsE

#y &8 the chain had !rown to *+ outlets. In the late &8+s and

throu!hout the &8'+s, K34s #e!an to introduce seatin!. K34

opened its 6rst drive throu!h restaurant in the UK in &8'


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9US-@9ILI9 F C>AG>9L9C%

KFC outlet in erwent Bark" a northern suburb of Hobart" ustralia$'here are

o!er 4 KFC outlets in ustralia" and around 1 in 0ew Gealand$ KFC was the

first merican style fast food chain to o&en in both countries$ #n -1" KFC

re&orted an annual turno!er of almost +- billion for its ustralia and 0ew

Gealand o&erations$ Eum directly o&erates 14 KFC outlets in ustralia$ 'he

largest of the . inde&endent franchisees in ustralia is Collins Foods" which

o&erates 149 stores$ KFC=s ma/or &oultry su&&liers in ustralia are #nghams"

Steggles and 'uri Foods$ 'he first ustralian KFC was o&ened in 1948 in

5uildford" a suburb of Sydney$ 'he franchise was owned by a Canadian

entre&reneur called 3ob 6a&ointe$ 3etween 197 and 1971" 7. outlets were

o&ened$ 'his had a ma/or im&act on ustralian chicken &roduction" which

increased by 8 &ercent during the &eriod$ 3y 199. there were .- outlets" and the

com&any em&loyed 1-" staff$ 'hat year" ustralia &roduced . &ercent of

KFC=s international earnings$

IC%I9

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#n ecember -1" there were -99 KFC outlets in #ndia$ s well as the standard

KFC offerings" the chain sells a chick&ea burger and hot wings with chilli lemon

s&rinkles$ ma/or franchise holder is JS, 3rands () Holdings" which o&erated

-4 outlets as of -1-$

'he first #ndian KFC was a two;storey outlet on the fashionable 3rigade ,oad in

3angalore in >une 199. ccording to /ournalist ichael %hite" the com&any could

not ha!e chosen a ?more difficult !enue for its maiden entr:e into the country$?

3angalore housed the head


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Court blocked the local authorities= order on an a&&eal by KFC$ 'he com&any had

argued that it &re&ared food in #ndia using the same formula as in 77 other

countries$ ,ural acti!ist $ $ 0an/undaswamy subse


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B,@+C'S @F KFC #0 #0#

CHICKEN DELIGHT2 chicken meal that include @riginal ,eci&e or

HotCrisry with fries and Be&si$

BURGER MEALS2 ery famous range of KFC burger" Ginger meal" Ginger

chicken meal and eggie feast meal$

BUCKET2 Hot Cris&y" @riginal ,eci&e" Chicken Stri&s$

RICE MEAL2 eggie ,ice eal" Chicken ,ice eal$

DESSERTS2 3rownie Sundae" Soft 'wirl$

B,@36I ,IC@50#'#@0 2 BI,CI#05 0II

'he need was hunger and the immediate satisfaction of hunger through fast

food$

ainly targeted at chicken lo!ers$

&8


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'he traditional eating habits in #ndia ha!e changed$

Eoungsters" now days want a hanging /oint with good food$

5rowing fast food market 2 KFC came u& as a N3urger kingO$

INTERNAL INFLUENCES ON CONSUMER BEHAVIOUR

MOTIVATION:For o!e" #oo$ %oo$ i o&e o% the !ot i!port'&t &ee$

bec'ue o% thi re'o& peop(e (i)e to tr* '&$ e+peri!e&t ,ith their t'te-

A&* &e, %oo$ .oi&t i %irt /iite$ b* peop(e ,ho 're i&ter&'((*

!oti/'te$-

PERCEPTION:The peop(e percei/e$ 0FC o% i&ter&'tio&'( t'&$'r$

'&$ cre'te$ ' !i&$ et th't 0FC ,ou($ er/e %oo$ o% #oo$ u'(it* '&$

t'te-

LEARNING

Beh'/iour th't reu(t %ro!

Repe'te$ e+perie&ce

*+


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Thi&)i-

O/er *e'r peop(e h'/e (e'r&t 'bout 0FC %ro! their '$/ertie!e&t" their

pri&t !e$i' pro!otio&- A 0FC2 t'#(i&e 3%ier (ic)i #oo$4 h' !'$e

peop(e (e'& th't it re('te$ to #oo$ t'te-

DRIVE: %or #oo$ %oo$

CUES:'$/ertii *!bo(" et'b(ihe$ 0FC ' o&e o% %oo$ (e'$er-

RESPONSE:purch'i pro$uct 't 0FC

REINFORCEMENT: repe't purch'e-

VALUES" BELIEFS" AND ATTITUDES

ATTITUDE FORMATION: %or *e'r peop(e i& I&$i' h'/e %o((o,e$ the

'!e Tr'$itio&'( %oo$ h'bit- E!ph'i h' '(,'* bee& #i/e& o& the

&utritio& co&te&t o% the %oo$- Our /'(ue '&$ be(ie% h'/e bee& c'rrie$

%or,'r$ %ro! '#e-

*&


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ATTITUDE CHANGE:No, the e!ph'i i !ore o& the t'te th'& the

Tr'$itio&'( &utrie&t /'(ue- 5ith ('r#e &o o% e&tr'&t i& I&$i'" the

co&u!ptio& p'tter& o% peop(e h'/e co!p(ete(* ch'e$-

5ith '$$itio& o% #oo$ u'(it* %oo$ i& !'r)et" the !i&$ et o% peop(e

're ch'i '&$ the* 'ccept thee %'t %oo$ .oi&t ' #oo$ p('ce to e&.o*

their !e'(-

LIFEST6LE

A the i&ter&'( %'ctor 're co&i$ere$" the ch'e i %oo$ p'tter& 're

'%%ecte$ b* 'ttitu$e '&$ be(ie%" but there i '& i!port'&t %'ctor th't

h' co&t'&t(* ch'e$ !'&* (i%e2 o% !'&* peop(e-

Peop(e 're &o, orie&te$ to,'r$

Pri&cip(e

St'tu

Actio&

Thee 're #o/er&e$ b* i&co!e" e$uc'tio&" i&te((i#e&ce" e&er#* (e/e( etc-

**


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E7TERNAL INFLUENCES ON CONSUMER BEHAVIOUR

REFERENCE 8ROUP

Re%ere&ce #roup i the o&e to ,hich '& i&$i/i$u'( re%er- A& i&$i/i$u'(

'$'pt it e(% to the #roup he i i&- Hi co&u!ptio& p'tter&" t'te"

be(ie%" beh'/ior etc ch'e 'ccor$i to the #roup-

A the co&u!ptio& p'tter& ch'e" pero& ,ho ,' &ot %o&$ o% 0FC

!'* ch'e 'ccor$i to e'ti h'bit o% hi #roup !e!ber- E/e& '&

i&$i/i$u'( $e/e(op ' t'te o% hi re%ere&t #roup-

So the #roup h' i&%(ue&ce$ peop(e-

FAMIL6 INFLUENCE

*


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The tr'$itio& %o((o,e$ b* %'!i(* 're c'rrie$ %or,'r$ i& chi($re&-

F'!i(* co&u!i &o&9/e#et'ri'& %oo$ p'e thi 'ttitu$e to their

chi($re& '(o-

M'&* repo&$e&t to($ u th't the* 're &o&9/e# bec'ue o% their %'!i(*-

So peop(e $e/e(ope$ their i&teret o% #oi to 0FC bec'ue the* 're &o&

/e#et'ri'&-

S!'(( chi($re& #o to 0FC ,ith their p're&t" ,hich re%(ect th't %'!i(*

p('* '& i!port'&t ro(e i& $eciio& !')i-

SOCIAL CLASS

0FC i t'r#ete$ to,'r$ upper9!i$$(e c(' o% ociet*- For !i$$(e

c('e the* h'/e ('u&che$ ' e#!e&t o% pro$uct 't che'per r'te-

Soci'( c(' i $eter!i&e$ b*

I&co!e

Occup'tio&

E$uc'tio&

*


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B'('&ce$ (e/e( o% '(( three cre'te ','re&e o% &e, pro$uct '&$ i&co!e #i/e

the purch'i po,er-

So oci'( c(' %or! '& i!port'&t p'rt o% e+ter&'( i&%(ue&ce o&

co&u!er bu*i beh'/iour-

CULTURE

Di%%ere&t cu(ture h'/e $i%%ere&t be(ie% :%or o!e cu(ture No& 9Ve# i

co!p(ete(* prohibite$ e# ;'i& cu(ture


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A 0FC e&tere$ I&$i'" the* tu$ie$ the I&$i' cu(ture" the &or!

%o((o,e$ here" ' i& I&$i' bee% i &ot co&u!e$" o the* $i$ &ot i&c(u$e

the bee% %oo$ ite! i& their !e&u-

0FC MISSION STATEMENT

%e are committed to customer satisfaction through offering high


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SCOPE

'he &ro/ect s&eaks about the different ty&es of &roducts ser!ices offered by the

KFC$ 'he &ro/ect tries to highlight the awareness of the customers in res&ect to

!arious &roducts and ser!ices offered by the KFC$ #t also tries to find out

satisfaction rate amongst its customers$

*


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OB;ECTIVES

1$ 'o know the customer towards KFC$

-$ 'o know the most &referred &roducts$

$ 'o know the com&etiti!e &osition of KFC$

$ 3uild an organiAation dedicated to e*cellence$

*'


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.$ Consistently deli!er su&erior


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I*&and and u&date training with time and be the best we can be and more$

3e o&en" honest and direct in our dealings with one and other$

4o""it ourselves to the hi!hest standard to the personal

and professional inte!rity at all ti"es.

>ncoura!e new and innovative ideas #ecause these are the

key to our co"petitive !rowth.

@eward result and not si"ple eBorts.

%edicate ourselves to continuous !rowth in sales, pro6t and

size of or!anization.

Aork as a tea".

0FC2 PRODUCTS

'< Core Be&e%it

'he core benefit is P'o Kill hungerQ$

b< Pro$uct o% 0FC

KFC ha!e three main &roduct lines$ 'he burgers" chicken meals and the snacks$

'he category of chicken is relati!ely static$

c< Bur#er

+


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'he category of burgers is

1$ Ginger

-$ Chicken 3urger

$ Ginger Rtreme

$ Fish Ginger

.$ S+3 (4"8)

4$ Col$ Filled 3urger

$< S&'c)

Snack family has been !arious &roducts$

1$ rabic ,ice

-$ Fruit Salad

$ Corn on the cob

$ Scoo& of %alls

.$ Fries

4$ H@' SH@'S

7$ ,ice S&ice

() 'hese items are not a!ailable at a few restaurants$

&


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e< Chic)e& Me'(

Chicken meals include the different combinations of fried drum sticks$

Fe'ture

ifferent and better taste

Hot and S&icy !ersion of chicken

Su&erior Juality

Marketing Strategy

Segmentation

KFC has di!ided the market of Bakistan into distinct grou&s of customers with different

demands" tastes and beha!ior who re


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CHAPTER9=

LITERATURE REVIE5

Kentucky Fried Chicken (KFC) alaysia is a ma/or Juick Ser!ice

,estaurant (JS,) o&erator in alaysia and has been established for /ust

o!er - years now$ #t ser!es mainly chicken related items" but offers side

dishes to its consumers as well$ 6ately" more and more alaysians ha!e

been o&ting for a healthier eating diet as a large number of them ha!e

become more health conscious$ 'his has o&ened the door for KFCOs main

com&etitors" such as conaldOs" to come out with a new range of

healthier &roducts" allowing them to mount a greater challenge on KFC

alaysiaOs current &osition as alaysiaOs leading fast food o&erator$ s a

res&onse to the ad!ancement made by KFCOs com&etitors in &ro!iding

healthier fast food" KFC are to introduce a new set of healthier &roducts


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that would be mainly targeted at health conscious &eo&le" li!ing in

alaysia$ #ts target market would largely be based on segmentation of age"

where it would be focused on customers in the age grou& of between to

years old$ KFC alaysia would" ne!ertheless" ha!e to fight off fierce

com&etition from other fast food o&erators" such as Kenny ,ogerOs" 3urger

King" %" and KFCOs biggest ri!al" conaldOs" who are also trying to

take hold of the new market of healthier &roducts$ 'he new healthier menu

that KFC alaysia is going to introduce would not only be a new healthier

alternati!e to its e*isting &roducts" but also an addition to what it already

has to offer$ 'he &ricing and &romotion strategies would also be looked into

as KFC alaysia &re&ares to introduce its new healthier menu to the &ublic$

detailed e*&lanation of the summary abo!e would be the content of this

following re&ort$


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CHAPTER >

RESEARCH DESI8N

#n order to accom&lish the ob/ecti!es of the study" it is essential to articulate the manner

in which it is to be conducted" i$e$ the research &rocess is to be carried;out in a certain

framework$ 'he ,esearch ethodology" which follows is the backbone of the study$'he

system of collecting data for research &ro/ects is known as research methodology$ 'his

section deals with the methodology used in the &resent in!estigation$ #t describes the

,esearch esign" 'y&es of data" ethods of data collection" Sam&le siAe" Sam&ling

esign" and finally the rea Co!ered" and after that statistical treatment through which

data ha!e been obtained and analyAed$

>-19 RESEARCH DESI8N


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,esearch design is the &lan" structure and strategy of in!estigation$ 'o formulate a good

research design it is necessary to know that what kind what nature of research are to be

conducted$ ,esearch designis considered as a ?blue&rint? for research" dealing with at

least four &roblems2 which -1-=9 N'ture?Fe'ture o% the ree'rch

Few features of descri&ti!e research are as follows$

escri&ti!e research" also known as statisticalresearch" describes data and

characteristics about the&o&ulationor &henomenon being studied$

lthough the data descri&tion is factual" accurate and systematic" the research cannot

describe what caused a situation$

'hus" escri&ti!e research cannot be used to create a causal relationshi&" where one

!ariable affects another$

;
http://en.wikipedia.org/wiki/Statisticshttp://en.wikipedia.org/wiki/Statisticshttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Statisticshttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Causality


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>-=9 T6PES OF DATA

'he data which will be used" are both like Brimary as well as secondary$

>-=-19 Pri!'r* D't'

->9METHOD OF DATA COLLECTION

#n this research" as described earlier also that Brimary and Secondary both data are

re


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&arametersTcriteria which are com&letely for measuring analyAing consumer

&reference$ 3esides this" # ha!e also used some additional close ended -9 SAMPLIN8 DESI8N

# ha!e chosen the PCon!enient sam&lingQ under P0on;&robabilityQ sam&ling$ # ha!e

selected this techni--19 S'!p(i E(e!e&t

'he basic elements to be studied are mainly the Consumers !isiting the selected KFC

outlet and #n;charge of the stores$

>--=9 S'!p(e Sie

. res&ondents$

'


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>-->9 S'!p(e Are'

3areilly

Since this is a research based on organiAed fast food outlets so # ha!e !isited following

areas of 3areilly for res&onses$ 0ow the res&onses collected from these areas would

re&resent entire 3areilly as they are the key regions2;

Pi' hut Do!i&o2

Mc$o&'($

>-9 STATISTICAL TOOLS USED

'he statistical tools are2;

>--19 @uetio&&'ire

'he


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RESEARCH METHODOLOGY

RESEARCH BACKGROUND

,esearch ; Juantitati!e

,esearch design ; escri&ti!e study

ata collection ; Brimary ata

Sam&le area ; 3areilly

Sam&le siAe ; . customers

Sam&ling design ; 0on;&robability techni


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CHAPTER9

INTERPRETATION ANAL6SIS

J1$ %hat are the factor=s which make you to !isit KFCU

a$ mbience b$ 'aste of chicken

c$ Broduct &rice d$ Ser!ice

9"#ienceE *+

-aste of chickenE ;+

1roduct priceE &+

ServiceE &+

'he results were as astonishing$Iach &erson had no


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J-$ %hich &roduct do you like mostU

a$ eg &roduct=s b$ 0on !eg &roduct=s

Je! productsE +

Con ve! productsE +

s the kfc &ro!ides the delicious cris&y &roducts that are also nutrious so mostly he &eo&les

like the &roducts belonging to non !eg category$ s the KFC #S the &ionees in its field$


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J$$ %ith reference to


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J$ %ith reference to


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J.$ #n which way KFC chicken is differ from other com&etitorsU

a$ Juality b$ Brice

c$ Blace d$ Hygiene factor

HualityE


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#$. ow do you come to know about services&

a. 'ore promotion b. (ree pemplates

c. )eg products d. *iscount

$ore pro"otionE *

3ree pe"platesE *Je! producysE +

%iscountE *+

Col!mn"

ost of customers will know about the KFC by of the !eg &roducts V" free &em&lates -.V"

ore &romotion -.V by discount -V$

#+. ate the services of -( on scale of 1 to 4&


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1. ighly satisfied /. ihgly dissatisfied

". 0atisfied 4. *issatisfied

2i!hly satis6edE

2i!hly dissatis6edE &

Satis6edE +

%issatis6edE *+

Sale

Beo&les rate the ser!ices of KFC as highly satisfied with .V" highly dissatisfied

Ha!ing 1.V" satisfied ha!ing V and dissatisfied ha!ing -V$

#. What attracted you to go to -( as compared to other&

a. rand image b. 2lobally recognised


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c. #uick service d. rispy ! delicious

0rand i"a!eE +

5lo#ally reco!nisedE

Huick serviceE &

4rispy F deliciousE *+

Col!mn"

s it is known globally so it ha!e good global image said by .V"brand image by V"cris&y

and delicious by -V and


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a$ eli!ery time b$ High &rice

c$ %ater ser!ice d$ Jueue

%elivery ti"eE *+

hi!h priceE +

water serviceE


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a$ 6ocal &layers b$ 3utchers

c$ other non !eg sho& d$ eg sho&

local playersE


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FINDIN8S

1- #t has been clearly obser!ed that in 3areilly city there are no fi* time of fooding"

whene!er they feel need of the &roduct they immediately go there$=- Consumers &refer to get the &roduct from the nearest stores according to2;

'- Loc'tio&

b- @u'(it*

c- V'riet*

$- Prici '&$ Ditributio&e- Cuto!er Ser/ice

>- 'here was an increase in number of youths in getting the &roducts because

from the KFC$

- 'he res&onses for BiAAa hut" ominoOs" cdonald from the sur!eyed &eo&le

is also good a&&ro* 1V of the res&ondents ha!e at least once !isited the

abo!e stores$- ost of the &eo&le always like to !isit the nearest KFC stores in their locality$- #n sur!ey we find that there are significant amount of &eo&le who !isit the

stores as a leisure time acti!ity and childrenOs demand$

- @ut of !arious food stores" KFC has huge customer base as it is the &riority of

most of the res&ondents$G- ,eady to eat foods like burgerOs BiAAas are bought on weekly basis$- #n 3areilly city &eo&le donOt &refer to eat FroAen foods like froAen meat $1-Customer finds the con!enience"


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11-#n the KFC stores most of the consumers find em&loyees beha!iour !ery co

o&erati!e towards them$1=-ost of the &eo&le found that &ricing of the are higher than other food store$1>-ost of the res&ondents said that KFC is com&arati!ely better Food store than

other like BiAAa hut "cdonald ominoOs etc on !arious &arameters and

dimensions like Juality" Bricing" ,ange of the &roducts" goodwill$

CONCLUSION

From the abo!e sur!ey now we can conclude that2;

'he main factors that affect the KFC business are &ricing and location$

#ndians are &rice sensiti!e they seek !alue for money so &rice is also matter for

#ndian customers$ 'he &urchasing &attern of the &eo&le in one location is totally different from

other location in 3areilly city$

Customer ser!ice is much im&ortant as a &art of business strategy$

'he reason for which &eo&le &refer to eat from KFC is !ariety of &roducts

a!ailable under one roof and customers are not re


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RECOMMENDATIONS

0ew &olicies should be u&dated on websites at regular inter!al$

Im&loyees should more focuses on consumerism$

ake out concern on costlier &roducts$

'hey should more focuses on strategies and functions so that they

can com&ete with other &layers$


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ore ad!ertising should re


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LIMITATIONS

1- 'he consumer &reference is !ery dynamic and tough to measure and analyse$

%e canOt &redict the beha!iour of the human being e*actly and /ust because this

to&ic is only based on consumer &reference so this research re&ort may not be

a&&licable in all areas for /udging customer buying beha!iour$=- nalysis of customer &reference is com&le* sub/ects" which uses non;

ob/ecti!es method" which is not reliable$>- ue to lack of time # was unable to s&end more time with the res&ondents so

that the e*hausti!e study could not be conducted$- 5enerally the res&ondents were busy in their work and were not interested in

res&onding rightly so the res&onses might be wrong or irrele!ant also$

- ost of the res&ondents might not be interested to disclose the information

about the !arious &arameters shown in the


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BIBLIO8RAPH6

# ha!e taken the hel& of many sources which ha!e &ro!ided me the !aluable information

about my &ro/ect$ 'his information hel&ed me in &resenting this re&ort in an effecti!e and

efficient manner$

y !aluable Source %or Pri!'r* $'t'collection was @uetio&&'ire-

For eco&$'r* $'t' I /iite$ the ,ebite (i)e---

www$KFC$com

www$google$com

www$wiki&edia$com

I h'/e #o&e throu#h p'per boo) (i)e---

>ournals" re&orts" &a&ers of !arious com&anies like business today",eaderOs digest"

etc related to customer buying beha!iour

3usiness world (agaAine)

3usiness 6ine (0ews&a&er)

C$,$ Kothari for ,esearch ethodology (3ook)

3eri 5$C$ Parketing ,esearchQ (3ook)

;


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ANNE7URE

@uetio&&'ire %or the ree'rch i ' %o((o,-

Purpoe9 'his


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Co&%i$e&ti'(it*9'he information data collected from this


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#1. What are the factors which make you to visit -(&

a. 5mbience b. 6aste of chicken

c. 7roduct price d. 0ervice

#/. Which product do you like most&

a. )eg products b. 8on veg products

#.". With reference to 9uestion no / if you prefer veg then go for which

product&

a. hicken shots b. hicken burger

c. hicken fring d. :eg bucket

8


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#4. With reference to 9uestion no /. if you prefer non veg then go for which

products&

a. Zingkong boxes b.)eg snacker

c. )egetarian sandwich d. )eggie burger

#3. ;n which way -( chicken is differ from other competitors&

a. #uality b. 7rice

c. 7lace d. ygiene factor

#$. ow do you come to know about services&

a. 'ore promotion b. (ree pemplates

c. )eg products d. *iscount

;+


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#+. ate the services of -( on scale of 1 to 4&

1. ighly satisfied /. ihgly dissatisfied

". 0atisfied 4. *issatisfied

#. What attracted you to go to -( as compared to other&

a. rand image b. 2lobally recognised

c. #uick service d. rispy ! delicious

#


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#1=. 'a>or competitors of -(&

a. :ocal players b. utchers

c. other non veg shop d. )eg shop

: THANK YOU:-

Mayank Final Kfc

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