The
Kentucky Fried Chicken
Organization
Content……
1. Introduction of KFC
2. Nature of KFC international business
operations
3. The impact of the international
PESTEL on the KFC
Introduction of KFC
01
02
03
04
KFC was founded by Colonel Harland
Sanders
The first ‘Kentucky Fried Chicken’
opened in 1952
Today, there are over 18500 KFC
outlets worldwide, each making a profit
of around $1.2 million a year
And, it is the world's second-largest
restaurant chain, with 22,621 locations
globally in 150 countries
Introduction of KFC
Mission
vision
To be the leading integrated food services group
in the ASEAN region delivering consistent quality
products and excellent customer-focused service.
To maximize profitability, improve shareholder
value and deliver sustainable growth year after
year.
Nature of KFC international
business operations
 4 Key elements (4Ps) of
KFC marketing mix
 Business segmentation
 Market segmentation
 Geographic segmentation
 Distribution centers
4 Key elements (4Ps) of KFC marketing mix
Place
 KFC has located their
restaurants in posh and
prominent places in the
country
 It uses direct channels to
deliver the product targeting
customers
Promotion
 KFC has developed
advertising slogan which is
“its finger licking good”
 It sponsors various projects
and games to attract the
customer
Positioning
 KFC offers a complete meal
with high quality, hygienic
and affordable fast food
products
 It differs by highlighting that
the chicken is prepared
through unique secret
recipes of different traditions
Price
 KFC have set different prices
for different products
 it is using the adopted cost
based pricing strategy
 Most of the KFC customers
are from high and middle
class groups the prices are
set on a higher side
Promotion
 KFC has located their
restaurants in posh and
prominent places in the
country
 It uses direct channels to
deliver the product targeting
customers
Promotion
 KFC has developed
advertising slogan which is
“its finger licking good”
 It sponsors various projects
and games to attract the
customer
Positioning
 KFC offers a complete meal
with high quality, hygienic
and affordable fast food
products
 It differs by highlighting that
the chicken is prepared
through unique secret
recipes of different traditions
Business
segmentation
Market segmentation Geographic
segmentation
KFC's customer gives
importance to Clean,
and comfort, such as
the middle income and
high income groups.
This group can afford
higher pricing. They
demanded quality and
taste, Therefore KFC
can charge higher
price as compared to
a Cooked food store
to this segment.
KFC initially
focused on single
segment through
Niche Marketing
with the offers of
Combo Deals, but
now the company is
focusing on other
classes and has
increased the target
market.
It is division of the
market into different
geographical units,
for example states,
nations, regions,
cities, countries, or
neighborhood. KFC
deals internationally
and has number of
outlets in various
countries.
Distribution centers
Promotion
 KFC has developed
advertising slogan which is
“its finger licking good”
 It sponsors various projects
and games to attract the
customer
Positioning
 KFC offers a complete meal
with high quality, hygienic
and affordable fast food
products
 It differs by highlighting that
the chicken is prepared
through unique secret
recipes of different traditions
 As of early 2020 there are KFC outlets in 150
countries and territories in the world
 The first KFC open in United State in 1952 and in
Canada year later the first
 The major market for KFC include China United State,
Japan, United Kingdom, South Africa, Malaysia,
Canada etc
T h e i m p a c t
o f t h e
I n t e r n a t i o n a l
P E S T E L o n
t h e K F C
Political Factor
 The operations of KFC are affected by the government
policies on the regulations of fast food operation
 KFC has handled this situation very tactfully and has
obeyed the policies of the government as prescribe by the
government in order to run this kind of business
 Changes of taxation, import regulations and employment
policies, animal rights campaign
 The political factors include the government policies as KFC
being a foreign company to many countries so they have to
obey the policies of the government of a particular country
where the business activities are being carried out
Economic Factor
 The benefits of economical that changes the strategy of
international business of KFC and they can grow up with
the lower price and the satisfying service
 An ever growing middle class with increasing purchasing
power
 Purchasing capacity of customers that affect the spending
on fast food products and eating out
 The consumption behavior the people plays an important
role
Socio-cultural Factor
 KFC, along with other popular fast food brands struggle
with many social issues and problems
 They adapt the culture of the country where they are located
 Farms mistreat animals by packing them in unhygienic
environments and facilities
 A lot of Indians are veggies, So KFC had to change their
menu. Then they removed beef from their menu
Technological Factor
 KFC has also increased its digital presence through better
social media management and promotions
 By using advance technology they are minimizing cost of
production, increase quality of production and satisfy their
customers
 KFC always support the work of research and development
in order to introduce the new technology
 Investment in technological innovation computer ordering
Ecological Factor
 Being a giant in the fast-food restaurant industry with over
22,000 locations, it is no surprise that KFC is a major
contributor to the environment. KFC’s paper supplier is
linked in many cases with deforestation, destruction of
wildlife, and endangering the environment
 Again, an increasing number of health-conscious
individuals opt to turn away from KFC due to reasons like
this. The restaurant needs to adopt more environmentally
friendly practices to reduce waste and consumption
 They just invite the environment to come to the restaurant
to enjoy their food
Legal Factor
 As KFC operates in over 140 countries, complying with the
local laws and regulations is one of the key factors in
continuous success and operation
 They have to adhere to the food and health quality
guidelines and laws in order to avoid lawsuits and
penalties
 KFC also can hold their recipe because it has been legality
so no one can steal
 It use franchising models and it available and working
successfully in India
Thank
you

KFC Analysis

  • 1.
  • 2.
    Content…… 1. Introduction ofKFC 2. Nature of KFC international business operations 3. The impact of the international PESTEL on the KFC
  • 3.
    Introduction of KFC 01 02 03 04 KFCwas founded by Colonel Harland Sanders The first ‘Kentucky Fried Chicken’ opened in 1952 Today, there are over 18500 KFC outlets worldwide, each making a profit of around $1.2 million a year And, it is the world's second-largest restaurant chain, with 22,621 locations globally in 150 countries
  • 4.
    Introduction of KFC Mission vision Tobe the leading integrated food services group in the ASEAN region delivering consistent quality products and excellent customer-focused service. To maximize profitability, improve shareholder value and deliver sustainable growth year after year.
  • 5.
    Nature of KFCinternational business operations  4 Key elements (4Ps) of KFC marketing mix  Business segmentation  Market segmentation  Geographic segmentation  Distribution centers
  • 6.
    4 Key elements(4Ps) of KFC marketing mix Place  KFC has located their restaurants in posh and prominent places in the country  It uses direct channels to deliver the product targeting customers Promotion  KFC has developed advertising slogan which is “its finger licking good”  It sponsors various projects and games to attract the customer Positioning  KFC offers a complete meal with high quality, hygienic and affordable fast food products  It differs by highlighting that the chicken is prepared through unique secret recipes of different traditions Price  KFC have set different prices for different products  it is using the adopted cost based pricing strategy  Most of the KFC customers are from high and middle class groups the prices are set on a higher side
  • 7.
    Promotion  KFC haslocated their restaurants in posh and prominent places in the country  It uses direct channels to deliver the product targeting customers Promotion  KFC has developed advertising slogan which is “its finger licking good”  It sponsors various projects and games to attract the customer Positioning  KFC offers a complete meal with high quality, hygienic and affordable fast food products  It differs by highlighting that the chicken is prepared through unique secret recipes of different traditions Business segmentation Market segmentation Geographic segmentation KFC's customer gives importance to Clean, and comfort, such as the middle income and high income groups. This group can afford higher pricing. They demanded quality and taste, Therefore KFC can charge higher price as compared to a Cooked food store to this segment. KFC initially focused on single segment through Niche Marketing with the offers of Combo Deals, but now the company is focusing on other classes and has increased the target market. It is division of the market into different geographical units, for example states, nations, regions, cities, countries, or neighborhood. KFC deals internationally and has number of outlets in various countries.
  • 8.
    Distribution centers Promotion  KFChas developed advertising slogan which is “its finger licking good”  It sponsors various projects and games to attract the customer Positioning  KFC offers a complete meal with high quality, hygienic and affordable fast food products  It differs by highlighting that the chicken is prepared through unique secret recipes of different traditions  As of early 2020 there are KFC outlets in 150 countries and territories in the world  The first KFC open in United State in 1952 and in Canada year later the first  The major market for KFC include China United State, Japan, United Kingdom, South Africa, Malaysia, Canada etc
  • 9.
    T h ei m p a c t o f t h e I n t e r n a t i o n a l P E S T E L o n t h e K F C
  • 10.
    Political Factor  Theoperations of KFC are affected by the government policies on the regulations of fast food operation  KFC has handled this situation very tactfully and has obeyed the policies of the government as prescribe by the government in order to run this kind of business  Changes of taxation, import regulations and employment policies, animal rights campaign  The political factors include the government policies as KFC being a foreign company to many countries so they have to obey the policies of the government of a particular country where the business activities are being carried out
  • 11.
    Economic Factor  Thebenefits of economical that changes the strategy of international business of KFC and they can grow up with the lower price and the satisfying service  An ever growing middle class with increasing purchasing power  Purchasing capacity of customers that affect the spending on fast food products and eating out  The consumption behavior the people plays an important role
  • 12.
    Socio-cultural Factor  KFC,along with other popular fast food brands struggle with many social issues and problems  They adapt the culture of the country where they are located  Farms mistreat animals by packing them in unhygienic environments and facilities  A lot of Indians are veggies, So KFC had to change their menu. Then they removed beef from their menu
  • 13.
    Technological Factor  KFChas also increased its digital presence through better social media management and promotions  By using advance technology they are minimizing cost of production, increase quality of production and satisfy their customers  KFC always support the work of research and development in order to introduce the new technology  Investment in technological innovation computer ordering
  • 14.
    Ecological Factor  Beinga giant in the fast-food restaurant industry with over 22,000 locations, it is no surprise that KFC is a major contributor to the environment. KFC’s paper supplier is linked in many cases with deforestation, destruction of wildlife, and endangering the environment  Again, an increasing number of health-conscious individuals opt to turn away from KFC due to reasons like this. The restaurant needs to adopt more environmentally friendly practices to reduce waste and consumption  They just invite the environment to come to the restaurant to enjoy their food
  • 15.
    Legal Factor  AsKFC operates in over 140 countries, complying with the local laws and regulations is one of the key factors in continuous success and operation  They have to adhere to the food and health quality guidelines and laws in order to avoid lawsuits and penalties  KFC also can hold their recipe because it has been legality so no one can steal  It use franchising models and it available and working successfully in India
  • 16.