Kfc competitive advantage

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  • http://articles.economictimes.indiatimes.com/2011-08-28/news/29935857_1_kafeccino-kfc-s-krushers-colonel-sanders
  • http://businesstoday.intoday.in/story/kfc-takes-on-mcdonalds-with-potato-burgers/1/194291.htmlhttp://www.exchange4media.com/42907_pitch-exclusive-kfc-vs-mcdonald%E2%80%99s-%E2%80%93-the-big-fight.html
  • Kfc competitive advantage

    1. 1. COMPETITIVE ADVANTAGE OF ‘KFC’ CHAIN OF RESTAURANTS
    2. 2. COST ADVANTAGE COMPETITIVE ADVANTAGE DIFFERENTIATION ADVANTAGE
    3. 3. Market Segmentation & Targeting Geographic segmentation : In India KFC focuses how geographically its customers demand different products. Demographic Segmentation: In demographic segmentation, the market is divided into groups based on an age, gender, family size, income, occupation, religion, race and nationality. Psychographic segmentation: in this segmentation ,the market is divided into middle class & upper class. As the outlets of KFC are in posh area and prices are too high (overhead expenses-rent, airconditioning, employees), so KFC targets upper and middle classes. Target market depends upon size and growth rate of population, Company resources and structural attractiveness of market segment.
    4. 4. Market Positioning • For a product to occupy a clear, distinctive and desirable place relative to “Competing products in the minds of target consumer.” • In KFC feedback is taken from the customer in order to know the customer demands and then improvements are made in products. • KFC focuses on pure and fresh food in order to create a distinct and clear position in the minds of customers KFC has a strong brand name and they are leading the market in fried chicken.
    5. 5. Business Model
    6. 6. PESTLE Analysis POLITICAL ECONOMICAL SOCIAL TECHNOLOGICAL LEGAL ENVIRONMENTAL
    7. 7. PORTER’S 5 Force Model MEDIUM HIGH MEDIUM LOW MEDIUM
    8. 8. Threat of buyers bargaining power • Highly Elasticity (high demand fried chicken) • Too many options and substitutes FMCG, McDonald etc Threat of suppliers bargaining power • Bargaining power of suppliers is low. • Fixed rates Threat of intense segment rivalry • Low entry barriers • Too many big giants in the market like McDonalds, Subway, etc Threat of substitute products There are a lot of competitors in the market making substitute chicken products in the market Threat of new entrants Low entry barriers
    9. 9. KSF’s:  Location/Number of Outlets  Extensive Menu  Price  Service/Ambience  Taste Threshold Factors:  Operations  Quality Standards
    10. 10. Location Target market Free home delivery Mobile units 35 outlets in the country Internet
    11. 11.  Their products are priced high and target the middle to upper class people  KFC adopted the Costbased Pricing strategy  Pricing of the product includes the govt. tax and excise duty  The products are bit high priced according the market segment and it is also comparable to the standard of their product  In the cost based method we include the variable and fixed cost.
    12. 12. Cruel treatment of chickens 1 billion chickens killed each year Unsafe chicken/Bird flu Unhealthy food
    13. 13. Yum! Environment Yum! Animal Welfare Waste management Partnership with industry experts Sustainable building design Ongoing training and education Packaging Animal treatment
    14. 14. Specifications KFC Mc Donald’s Core Target Group Youth Kids Pricing Strategy Cost-based Pricing EDLP USP Differentiation Pricing + Value through variants in Provided product range
    15. 15. Short Term      Introduce new recipes suited to local taste Introduce cheaper items in the menu Introduce healthier recipes Differentiate through good service Work on the image of a healthy fast food chain through Advertising Long Term  Change the image of KFC from fried to ‘healthy’  Open up new outlets in Urban locations  Engage is CSR activities related to animals & environment  Develop a strong culture of good service

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