COLONEL HARLAND SANDERS, born on September 9, 1890 is the founder of Kentucky Fried Chicken. When he was of six , his father died. Due to this his mother was forced to go to work. This meant he had to do much of family cooking and take care of his 3 year old sibling. After a series of jobs, in mid 1930, colonel sanders bought a service station, motel and cafe at Corbin, a town in Kentucky.
Colonel also sold his chicken on highway. When highway was removed , he went to U.S by car to cook for restaurant owners an employees. By 1964, Colonel had 600 franchise outlets for his chicken across U.S and Canada. The same year he sold KFC for 2mn USD. ON December 16, 1980 at age of 90 Colonel sanders passed away. His legacy continues to live with KFC restaurants all over the world.
KFC, under YUM! Brand is serving in 80 countries and territories with 13,000 restaurants. Out of the brands owned by YUM! , KFC is the largest brand.
CHAMPS stand for the six universal areas of customer expectation common to all cultures and all restaurants concepts.These are: Cleanliness Hospitality Accuracy Maintenance of Facilities Product Quality Speed of Service
CHAMPS is the philosophy to ensure that the customer has the consistent quality experience in every restaurant, everyday, on every occasions and you will be playing role in delivering CHAMPS to all customers.
Foreign fast food companies were allowed in INDIA only during the early 1990‟s due to the economic liberalization policy of the government. KFC was among the first fast food multinationals to enter India. First KFC store in BANGALORE in June 1995. Reason was upper-middle class population with a trend of families eating out.
Apart from Bangalore, PepsiCo planned to open 60 KFC and PIZZA HUT outlets in the country in next seven years. But it got embroiled in various controversies even before starting a full-fledged business in India. Ministers from opposition party were also vocal about their displeasure in the Parliament.
• Initial success of KFC proved that Indians could make a success of most new ventures entering India.• KFC faced a setback due to its boring and insipid menu.• The major reason was innumerable permutations and combinations of street food.• Another major problem was ethical issues in KFC‟s business operations in India.
Regulatory authorities found that KFC‟s chicken did not adhere to Prevention of Food Adulteration Act ,1954. It contained three times more monosodium glutamate(a flavor enhancing ingredient). Also PETA , an animal rights protection organization accused KFC of cruelty towards chicken. PETA also released a video showing ill-treatment of birds in kFC poultry farms.
• KFC also suffered a setback due to its own strategies.• It did not lower its product prices in its initial years.• Also the market-segmentation strategy failed as 2 pieces of KFC chicken was about the same price of a full tandoori chicken offered by a local Indian restaurant.• Thus KFC‟s status was totally ruined and they were forced to move out of India for three years.
KFC re-entered India in 2003. Changing of Strategies. Following Rules and Regulations. Localization of the menu. Changing Target Segment.
Current Logo unveiled in 2007. The logo is changing for only the fourth time in 50 years, and for the first time in nearly a decade.
The smiling Colonel is featured against a red background that matches his red apron, with the KFC brand name in black thick lettering under his chin. The new logo includes bolder colors and a more well-defined visage of the late Kentucky Fried Chicken founder, who will keep his classic black bow tie, glasses and goatee.
KFC is rolling out its first global tagline, "so good”. This global change is part of the efforts to make the overall KFC experience “So Good” for its customers. The “So Good” tagline reflects- freshly prepared food recipe, as well as the entire experience of good food with family and friends. Mohammad Alwi, director of finance, KFC Holdings Malaysia Bhd,” “So Good” will allow us to effectively communicate our message and brand to a wider audience”.
Primary objective is to take advantage of the potential growth in other countries. Key success factors are ever continuing cost saving through R&D. These success techniques lowers the costs and increase the profit of the company.
ADVERTISING TECHNIQUE KFC advertised very rarely on Indian television till almost 12 years after their establishment. The TV ads maintain the fun element that is associated with KFC. Their print ads are vibrant with shades of red detailing special offers. The concept of showing a normal customer deeply involved in devouring his piece of chicken usually turns on the drool factory in everybody‟s mouth and makes them rush to the nearest KFC.
KFC is geared up to tap the countrys Youth crowd. KFC has launched their new menu Streetwise„ aiming at the college goers. With “Streetwise”, KFC is offering a range of signature KFC products at affordable prices. KFC has also launched several new television commercial as part of the promotional activities for the new offering.
KFC‟s earlier menu consisted of Chicken Wings and Wraps which were too alien for Indian taste buds. Hence, KFC localized its brand by introducing the Veggie Options to its menu that included rice meals, wraps and side dishes that was desirable to the Indian consumers . Also, it stuck to eggless mayonnaise and sauces.
Even its trademark chicken dishes were given a local flavor with the use of Indian spices and cooking techniques. The recently launched Veg Zinger burger is at par with its chicken counterpart. Also, KFC has changed its target audience. From Higher Income group to Middle Income Youth. While they have localized the menu according to the Indian Taste they haven‟t forgotten their originality that is resides in Chicken.
KFC has made segmentation on the following basis: Demographical Psychographic Geographic
DEMOGRAPHIC PSYCHOGRAPHIC Age: is between 6-65. BEHAVIOR However, they generally try to attract younger age • Taste conscious groups. • Quality conscious Income Group: First it was Upper class but it now has • Combination of price and changed to middle class. quality Gender, occupation, religion, race & nationality: Have no significance to KFC.
GEOGRAPHIC KFC has outlets internationally and sells its products according to geographic needs of the customer. In India KFC focuses how geographically its customers demand different products. In north India Chicken is the main selling product, while in the south the Veg. items sell more than the chicken.
KFC holds the position of a youth based brand with its youthful, lively ambience of stores and the friendly service. KFC positions itself as a youthful, quick service restaurant brand that serves unique, great tasting food and beverages. The focus of our brand strategy is to highlight this across all our communication, menu offerings and the experience that is delivered .
STRENGTHS WEAKNESS Strong brand name and Innovation cycle is too long- Identity. KFC misses first mover advantage. Strong trademarks recipes Lack of knowledge about their customers Very strong Internationally Lack of focus on R&D. UK, Middle East, Thailand, Misses top of the mind China, Japan, Korea, advantage. Mexico No quick Service.
OPPORTUNITIES THREATS Increasing no. of Changing customer restaurants demands. Balanced menu Change in Market Stability. Health Trend away from Home delivery service fried foods.
It adapted to Indian ways quickly. First no-beef no- pork serving menu. Affordability has been the cornerstone of McDonald‟s strategy. McDonald‟s web-based delivery model is based on serving the customer quickly. Target Audience is well-placed.
KFC should introduce more on healthy serving items in its menu. KFC should start web service and home delivery service. It should advertise more so as to increase top of the mind awareness. KFC should tie up with major events. KFC should tools such as coupons and premiums to further enhance its sales.
India is one of the fastest growing markets for KFC. Yum! Plans to expand KFC outlets in three formats high street location, malls and food courts, drive- throughs. It plans to increase its presence from 115 stores in 21 cities now to 500 stores in 75 cities by 2015.
The vegetarian offerings have made the brand more relevant to a larger section of consumers and that has playing a huge role in KFCs growth. Though currently India market accounts for a very small part in KFCs global business, it is slowly and steadily growing.