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Fall08Kentucky Fried Chicken

Table of ContentsAcknowledgement .3Executive Summary . . . .3Management Team . . 4Mission Statement . .6Vision . 6Company Overview . 6KFC In Pakistan 8Cupola Pakistan . .8KFC Facts 8Performance Overview 9Organization Structure . 11Business And Management ProjectSUBMITTED TO:Miss. Shumaila GullSUBMITTED BY:Anum Amin ShahZunaira AzamAnum MukhtarMadiha SultanAqsa ement . . .11Organizational Culture .12Submitted to Mis. Shumaila Gul2

SWOT Analysis . .12Porters Five ForceAnalysis .13BCG Matrix . 15Marketing Strategies . .17Marketing Mix . 18.Publicity Of KFC IN Guinness Book Of World Record 22KFC Nutritional Information 23Marketing Research Process . . .23Survey Report Of KFC . .24Strategic Management . .26Recent Achievement Of KFC . .26Conclusion .27Perception .27References .28ACKNOWLEDGEMENTFirst of all, we would like to offer our eternal thanks to the Almighty Allah whoblessed us with the perseverance and the sprit of hard work to complete this project.We are also grateful to our parents for their patience and belief in us. We offer ourrespectful gratitude to our Business and Management teacher Mis. ShumailaGul for his guidance &encouragement. We would like to thank all of those peoplespeciallythe Marketing Manager of KFC Mr. Shabir who helped us through our entireproject.Kentucky Fried Chicken (KFC)- one of the most known fast food chains in theworld started in the early 1930's by Kernel Sanders in the Southern USA as a smallfranchise operation. Colonel Sanders has become a well known personalitythroughout thousands of KFC restaurants World wide. Quality, service andcleanliness (QSC) represents the most critical success factors to KFC's globalsuccess.3

Food, Fun & Festivity, this is what KFC is all about.Leading the market since its inception, KFC provides the ultimatechicken meals for the Chicken Loving Nation. Be it ColonelSanders secret Original Recipe Chicken or the Hot & Spicy version, every bite bringsa YUM on the face. At KFC we proudly say:KFC has more than 11,000 restaurants in more than 80 countries andterritories around the World. In 1971, Heublein, Inc. acquired KFC, soon after,conflicts erupted between the Colonel (which was working as a public relations andgoodwill ambassador) and Heublein management over quality control issues andrestaurantKFC is part of Yum! Brands, Inc., however in the case of Pakistan KFC buildthe relation of Quality Service and cleanliness for CustomerKFC was acquired by PepsiCo in 1986, it had grown to approximately 6,600units in 55 countries and territories. Due to strategic reasons, in 1997 PepsiCo spunoff its restaurant businesses (Pizza Hut, Taco Bell and KFC)4

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Mission statement:KFC is an internationally renowned fast food industry in the world. Theyhave the main ambition to increase & maintain the quality in fast foodindustry. Their aim is to capture the fast food market. Basically theywant to provide their products to anyone that is why they expendingtheir 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 amarvelous position in the International Market, KFC is introducing a new item“Boneless Fried Chicken”, with even more attractive and charming taste.VISION“Our passion, as a restaurant company, is to put a YUM on people's faces aroundthe world, satisfying customers every time they eat our food and doing it better thanany other restaurant company”.Company overview:Colonel Harland sanders, born September 9, 1890,actively began franchising hischicken business at the age of 65. Now, the Kentucky fried chicken business7

he started has grown to be one of the largest retail food servicesystems in the world. And Colonel Sanders, a quick servicerestaurant pioneer, have become a symbol of entrepreneurialspirit. More than two billion of the colonel’s “fingerlickin’ good” chicken dinners are served annually. And not just inAmerica. The colonel’s cooking is available in more then 82 countries around theworld. When the colonel was six, his father died. His mother was forced to go towork, and young Harland had to take care of his three year old brother and babysister. This meant doing much of the family cooking. By the age of seven, he was amaster of a score of regional dishes. At age 10, his first job working on a nearbyfarm for 2 a month. When he was 12, his mother remarried and he left his homenear Henryville, Ind., for a job on a farm in Greenwood, Ind. He held a series of jobsover 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 thathe was a railroad fireman, studied law by correspondence, practiced in justice ofthe peace court, sold insurance, operated an Ohio River steamboat ferry, sold tires,and Operated service station. When he was 40, the colonel began cooking forhungry travelers who stopped at his service station in Corbin, KY. He didn’t have arestaurant then, but served folks on his own dining table in the living quarters of hisservice station. As more people started coming just for food, he moved across thestreet to a motel and restaurant that seated 142 people. Over the next nine year, heperfected his secret blend of 11 herbs and spices and the basic cooking technique thatisstill used today.“We Do Chicken Right”Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has come a long way,with over 10,000 outlets in the world; KFC has maintained its title, for the last 60years, of being “The Chicken Experts”.Kentucky Fried Chicken has become KFC. Does anybody know why? We thoughtthe real reason was because of the "FRIED" food issue. It's not. The reason why theycall it KFC is because they can not use the word chicken anymore. Why? KFC doesnot use real chickens. They actually use genetically manipulated organisms. Theseso called "chickens" are kept alive by tubes inserted into their bodies to pump bloodand nutrients throughout their structure. They have no beaks, no feathers, and nofeet.8

Their bone structure is dramatically shrunk to get more meat out of them. This isgreat for KFC because they do not have to pay so much for their production costs.There is no more plucking of the feathers or the removal of the beaks and feet.KFC In PakistanPresently KFC is branched out in nine major cities of Pakistan (Karachi, Lahore,Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad, and Islamabad)with 45 outlets nation-wide. Opening the first KFC outlet in Gulshan-e-Iqbal,Karachi in 1997, and KFC wore the title of being the market leader in its industry.Serving delicious and hygienic food in a relaxing environment made KFC everyone’sfavorite. Since then, KFC has been constantly introducing new products andopening new restaurants for its customers.In Pakistan totally Chicken buy from Pakistani Poultry Forms, and alsothis Chicken is 100% Halal.About CupolaCupola is a Dubai based multinational company involved in several businessincluding, oil gas exploration, plastic cards, retail markets and food franchising.Cupola PakistanCupola holds the master franchise rights to operate KFC in Pakistan since 1999.That was a major difference that when Cupola takes complete Operate in Pakistanthat was only 05 Outlets in all over Pakistan, and then now the major differencethat Cupola takes 45 Outlets in Pakistan.Apart from fulfilling the commitment of serving delicious, fresh and hygienic foodand at the same time providing the customers with the ultimate entertainment; KFCalso plays part in the economic development of our country.KFC Facts9

Presently KFC has provided employment to over 1200Pakistanis, which adds up to 6000 individuals directlydependent on KFC Pakistan. The Government of Pakistan receives over Rs.10 to 11 million per month fromKFC Pakistan as direct taxes. 95% of all food and packaging material used in KFC Pakistan is procuredlocally, which sums up to a purchase of over Rs.35 million per month. Each new outlet developed by KFC Pakistan costs approximately Rs.40million, which is a huge amount for our construction industry. Annual turn over in Pakistan 2.5 billion. KFC doesn’t buy its supplies from Pakistan“KFC and Pakistan Growing Together”Performance Overview:KFC has taken advantage of all these excellent investment opportunities thatPakistan offers for franchising and has expanded and penetrated the market alot.KFC has adapted to the legal and political environment and conditions ofPakistan. The Pakistani culture has also molded the operations of KFC in Pakistan.All the outlets of KFC in Pakistan present Pakistani food culture. KFC has displayedbanners that it servers Halal food all over its outlets which represents Pakistaniculture. They also offer families’ deals as the people are very close to their familiesand like to have food with them. KFC has also broughtsome changes in the culture of Pakistan. The most significant is the way it haschanged the eating habits of the local population. People now are aware ofunhygienic conditions that prevail in some of local restaurants. And KFC has alsobrought the idea of self-service in Pakistan.Organizational Structure:The KFC adopted traditional structure for their outlets that otherfood chains are following. There is one General Manager for Pakistan. The outlet isleaded by the Manager, assisted by twoassistant managers, and one shift in-charge for each shift, that supervises theperformance of counter workers and kitchen workers.Competition:KFC does not consider Mc Donald’s are its direct competitors. As McDonald’s has a limited menu and cater to different segments of societye.g. Mc Donald is catering to lower middle society of Pakistan. ThoughKFC has faced a little competition from local restaurants but theirbreakeven in terms of revenue has been done and they are planning toexpand further to other cities like Islamabad and Peshawar.Yum! Brands, Inc. International Presence & Competition:10

The International Portfolio of 5 leading U.S. Brands give Yum! adistinctive advantage over the single-brand competitors.CustomersKFC’s customer market consists solely of the consumer market (Kotler et al 2003).KFC’s products are bought by individuals (males, females, singles, and families).Therefore, the product range KFC offer should appeal to as many people within thisconsumer market as possible, to ensure that the maximum amount of products canbe sold. The characteristics of these individuals and a segmentation of them arediscussed later in this report.CompanyKFC is a multinational fast food chain company that has successfully establisheditself in the Pakistan market. It has a long history, going back to where ColonelHarland Sanders created its distinct recipes. The KFC brand is well known inPakistan, which makes it a powerful marketing tool to use against competitors.Currently, KFC is under massive attacks from animal organizations, questioningthe way KFC’s suppliers are threatening the chicken, before they got slaughtered.Anti-KFC campaigns, are affecting KFC’s brand image in a negative way and resultin direct dollar losses, as less people are consuming KFC chicken.Advertising11