A Project on Retail Management
Strategy by KFC in Bihar
BACKGROUND OF KFC
Based in Corbin, Kentucky, U.S. and is the world’s most popular chicken
restaurant chain, founded by Colonel Harland Sanders in in the early 1930s.
In 1952 ,started franchising his chicken business & named it as KENTUCKY
Part of Yum! Brands, Inc., world's largest restaurant company in terms of
system restaurants, with more than 36,000 locations around the world.
Operates 15,000 + units in 109 countries and territories around the world.
World famous for its Original Recipe fried chicken -- made with the same
secret blend of 11 herbs and spices.
Ranked #239 on the Fortune 500 List, with revenues of $11 bn + in 2008.
KFC’s Entry in INDIA:
Was the first fast food multinational to enter INDIA , after liberalization
Received permission to open 30 new outlets across the country
Opened first outlet in Bangalore in June 1995 targeting upper middle class
PepsiCo planned to open 60 KFC and Pizza Hut outlets in next 7 yrs.
Indian Fast food market is fundamentally different-Eating at home remains very
much ingrained in Indian culture.
QSRs are one of the cheap sources of taking a break from home cooked food
and eating out.
The growth in nuclear families, particularly in urban India, exposure to global
media and Western cuisine and an increasing number of women joining the
workforce are responsible for changing this trend.
KFC’s &BIHAR- A Strategic Move :
Opened on 29 November 2012
Set up in an area of about 5,000 square feet
Capacity of catering to 150 customers at a time.
Demography: Urban people of both genders aged between 15
to 45 years of age.
Target Market (Consumers):
Income Group: A, B and C segment of people.
Psychographic: People who have a busy lifestyle and are influenced
by western culture .
Initially KFC faced a real big time glitch in Bihar when not even
one month completion of its operation it was sealed due to lack
of “License for Operations”.
It successfully overcame through this and is now operating with
3 prime locations in Patna.
•Image of “Fried”
•Limited variety in
in between Brand
“Yum” and PepsiCo.
• Increase in outlets
• Increase in Per Capita
income (here of Bihar)
• Change in mindsets
• Increase in youth segment
who admires the metro
• A step to increase the
variety by introducing
vegetarian cuisines like
“Rice bowl veg curry "and
Health conscious eating habits.
Animal welfare activists
Plan of Biggies like Mc Donald to
Other competitors with equal brand
repute and demand CCD, Pizza Hut,
Threat from Indigenous brands like
Haldirams, Food Plaza,Nirulas etc.
KFC’s Bihar Saga: Going Long and Strong
The objective of KFC’s set up in Bihar was to get « First Mover Advantage » in the market of
Bihar which was changing and getting inspired with the metro culture.
Strong Cash Generation and Returns.
Increasing the profit margin from 11% to 17% through improved operations and reduced
Overall Strategies & Specific Promotional activities:
To deliver the customers with world class fast food delicacies which
was restricted for them due to these being only limited upto metros.
A strategic move as large number of population here are chicken
Targeted prime locations of Patna.
KFC’s Bihar Saga: Going Long and Strong
Various interesting offers and in –store promotional campaigns
specifically for youth and couples.
Promotional offers to their loyal and repeat customers through SMS,
Celebration and other festive offers (keeping in mind Bihar).
After riding high in Patna, KFC is planning further expansion in other
parts of Patna and also in some cities like Gaya, Muzaffarpur etc.
Further at present they are working at expanding their menu and
introducing more variants, with emphasis on Vegetarian menu.
It is also working on its pricing part as to give an competitive edge to
their other counterparts and local players.
KFC & Bihar : A Different Scenario
Source: Cold calls and interaction with the sample customers of different age group in between 15 to 35
KFC Bihar: Control and Recommendations
Open up new outlets
Introduce cheaper items in the menu
Differentiate as one proving fastest service
Should work on its logistics.
Also work on their service and delivery over the counter.