kfc
TRANSCRIPT
Kentucky fried chicken
Strategic marketing
Presented by-
Robert PollandPunit Kapoor
Rohan KhadabadiShashank Shetty
Swagata KarmalkarVenkat Narayanan
Ankur JhaveriSwapnil Lal
• KFC is a chain of fast food restaurants based in Louisville.
• The company was founded by Colonel Harland Sanders in 1952.
• Born and raised in Henryville, Indiana, Sanders first served his fried chicken in 1930 in the midst of the Great Depression at a gas station he owned in North Corbin, Kentucky.
• KFC has approx everyday eight million customers all across the world.
• As of year end 2007, KFC was the leader in the U.S. chicken QSR segment among companies featuring chicken-on-the-bone as their primary product offering, with a 45 percent market share.
• KFC operates in 105 countries and territories throughout the world. As of year end 2007, KFC had 5,358 units in the U.S. and 9,534 units outside the U.S., including 2,140 units in mainland China.
Introduction
Worlds largest Fast Food Company in 2004
KFC & Pizza Hut were 2 of the world’s recognizable brands
Strategic move towards multibranding
Joint venture with local franchisees worldwide
Brand Value(KFC,Pizza Hut & Taco Bell)
Internal Environment (S/W) Analysis
STRENGTHS
Internal Environment (S/W) Analysis
weaknesses
•Model for analyzing international business risk was rather weak
•Wider focus on core business activities
External Environment (O/T) Analysis
value of traditional brands will weaken
Political Issues
Perception that high consumption of fast food diets poses a health risk
Need to adopt to local market conditions
THREATS
Problem Statement
KFC’s low or negative sales growth rate in India when compared to next best competitors – Non Acceptance
competition
• Mcdonald’s
• Bembo’s
• Subway
•Pizza Hut
•Burger King
•Local Outlets such as Nirula’s
•Unorganized vendors
Keys to Success
Price reductions and discounting
Heavy promotional plans.
Expansion of new restaurants.
Product and service modification based on the customer need analysis
Alternative Solutions
Implementation Plan
• Identification of proper geographical segments – Indian Market
• Areas for ethnic foods• Areas for dining concept• Areas for lounge concept
• Develop 2 restaurant concept• International Market
– Target growing markets– Independent business units
Favorable Factors
High % of disposable income on food
Social influences (Culture, Family and Friends & Co-workers).
Relaxing habits resulting in more sit-in consumers.
Changing Lifestyle from traditional eating at home to eating out
Large Tourist Market
Product •Old Indian recipes, New names, LOCALIZE the menu
Position •“CHICKEN”, > Full Scale Restaurant, “Free Chicken” with non-veg orders
Price Points •lower them subject to the MENU, Desserts/Side dishes, Display other things that they offer
Target Customer •Urban, Young, SEC A&B, Couples? “Corporate Climbers”
•Lounge
Product
KFC - Unwind
Product
Boneless chicken is better, chicken with bones is messy, children + Adults feel the same
Push the focus away from CHICKEN, onto the FOOD and QUALITY/EXPERIENCE/AMBIENCE
Kentucky Fried Chicken -> KFC
Mascot -> Uncle SAM
BTL marketing – coupons – tie up with credit card companies
Promotions – Drive Thru – Home Delivery
Young Office goers, Adults, problems perception of parents, drinking age limit
Product
Where does the KFC source its chicken from?
Captive Poultry Farming?
People want to know where the chicken come from?
Indian Population Veg. so no heads on competition
Concentrate on Non Veg
Boneless variety, kebabs, Halal certification
Regional Meal Plan, with a local speciality and free chicken scrap.
Beer Brands, Fruit Beer, 10 Brands
Price
Same prices
People should perceive quality and not a low cost place
Place
Increase the number of family restaurants
People should perceive quality and not a low cost place
Better Ambience
Kiosks at multiplexes selling Flagship products + Beer
Stand alone lounges in select locations
Promotion Buzz Marketing, Social Networking Sites, Radio + Television Commercials, Product Placements/In film ads
Home Delivery from family restaurants
In store promotions: Credit Card preferences, Happy Hours (Food Cost = Free Beer)
Event Screenings
VODAFONE Tuesdays
Newspaper coupons
Corporate Discounts
Process
IMC
“KFC Unwind…!!”
Above the line:
Radio: fever 104 fm – weekdays (5 p.m. to 9 p.m.)
Weekends – throughout the day in hourly intervals.
Teaser ads through newspaper media for a week (Sunday-Saturday..Saturday the brand is unveiled).
OOH- After the brand is unveiled
BELOW the line:
In store promotions: Credit Card preferences, Happy Hours (Food Cost = Free Beer)
Event Screenings
VODAFONE Tuesdays
Newspaper coupons
Corporate Discounts
P&L Account
Thank You