This is a brief description about the brand KFC and also their marketing strategies such as product,place ,price , promotion and also the consumers behavior towards them with B2c B2B models.
2. TOPICS
PART A
INTRODUCTION TO BRAND
INTRODUCTION TO SUB BRAND
FRANCHISEE SYSTEM
VALUE SPHERE
STP
MARKETING MIX
CUSTOMER DEVELOPMENT PROCESS
VALUE DELIVERY
CUSTOMER PYRAMID
PART B
CONSUMER BUYER BEHAVIOUR
VALS
BUYERS ROLE
5 STAGES OF BUYERS PROCESS
BRAND BELIEF
PART C
B2B AND B2C
EXPECTANCY VALUE MODEL
R-F MODEL BUY GRID
VENDOR ANALYSIS
TARGET MARKET SELECTION
PART D
BRND POSITIONING
PERCEPTUAL MAPPING
PART E
FEATURE AND BENEFITS
PRODUCT LINE
BRAND KNOWLEDGE TREE
PRICE
PLACE
PROMOTION
PROMOTION MIX
APPENDIX
REFERENCE
3. INTRODUCTION
There is great trend of fast food, which is increasing day by day and huge number
of people spends their amount. This fast food is becoming popular due to quality of
ingredients, and convenience for the people .This is successfulbrand of the parent
company Devyani International. It’s been more than 75 years since its inception
and still, KFC’s original recipe of fried chicken is satisfying the taste buds of
customers because it is finger licking good!
BRAND – KFC (Kentucky Fried Chicken)
As it created a huge impression in the Indian market and a huge competitor of the
various bran which is dominos , burger king etc, It has a huge brand equity and
brand demand automatically customers are attracted to this brand .
SUB PRODUCT – ChickenRice bowl
It is such a kind of productwhere the most of indian will be attracted since the
main staple food of India is rice as it is became a great boomin the Indian Market,
this rice with crispy chicken was not expected this the first innovation that kfc had
done to make boomin the Indian maket.
4. KFC is the franchise brand of Deviyani International they have the franchise
contract between them. Deviyani International have a joint venture with the biggest
brand which is known as YUM which is outside INDIA.
ONE TIME FEE – Deviyani international takes one time fee from kfc and
pizza hut to set an outlet approx60 lakhs in Indian money
ANNUAL FEE –Deviyani international takes annual fees from this brand
ROYALTY on SALES – Fixed royalty is to be given by KFC to Deviyani
international such as 9% when the sales is even if less
RESIDUAL Profit – After the expenditure by the franchise by giving the
royalty ,annual fee and all the profit which is left is with the KFC franchise.
Yum
master franchisee
Deviyani
international
Regional franchisee
KFC
franchise
PIZZA
HUT
franchise
5. Value spheres
Value creation– As KFC is having successfulmarket in America, they started to
expand their market in India .KFC gives its best to get a tasty fried chicken with
good environment to the customers. They have wide range of products suchas rice
bowls and variety of chicken dishes to create a persona in customers mind.
Value capture – They came to India and targeted meat lovers and the places
where meat are consumed at most with variety of meals they captured the
customers .They have good reasonable pricing through all the food items which
are served to the customers.
Value communication – They started value communication through ads in you
tube, if some one is buying any product from any shop, KFC coupons are gifted as
a reward, social media as a marketing platform, through hooding, promotions by
Indian celebrities. KFC have there own app which plays a important role to
communicate.
Value Delivery – KFC have there outlets across different part of India they deliver
there products through outlets, they have there own home delivery services. They
also grab there customers through fast deliveries. They also gave a good
environment to the customers so as to experience the food and the ambience both.
STP (SEGMENTING,TARGETING, POSITIONIG)
Segmenting
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. Through
psychographic they divided classes into two types upper class, middle class, and
there lifestyle.
Targeting
KFC is now providing its facilities in India in the metro and non metro cities,
where the people have no time to wait for their lunch and they have to reach at
their other work. The company is providing the wholesome food with fine quality
food products in it. In the emerging market, the industrial activities are now in full
swing and the people find it difficult to do their lunch so they look for the suitable
food chain to do their lunch.
6. Positioning
KFC is the leading food chain, which is the market leader in providing the quality
food products to the clients in short time. The people can visit there and they can
get this food item at very reasonable rate and they complete their lunch in short
time and reach to their destinations, the food chain is making its sound position as
in the industrial and business, there is not time with the workers and business and
they have to rely over the food items of this food chain.
For whom: KFC position them in the mind of teenager mostly those who are from
the upper and middle class so they can come and hangout with friends and can
have a good quality food .
Seeking whatbenefit:-Best food with less cost, Premium quality.
Brand Name: KFC .
Product category:Chicken rice bowl
Key differentiation: They introduced a new productwhich is chicken rice bowl
which is very unique so as o attract the families and also the people those who
likes there staple food.
7. Marketing Mix
Product
Streetwise: VegSnacker, Chicken Snacker, Snack Box, Mini Krusher,Snacks:
PopcornChicken, Hot Wings, Boneless chicken strips ,Veggie Selection : Veg
Snacker, Veg Zinger, Veg Strip with Salsa Toasted Wraps ,Burger: Veg Zinger,
Chicken Zinger, Tower Zinger ,Box Meal.They have huge variety of productbut
concentrated in chickenrice bowl.
Place
KFC has established its food chain branches in all big cities of India. The clients
can find the big food chain branch near their home in the big city and they can go
there to buy the wholesome food from there. The company is now spreading its
more branches in many other small cities and also tapping the new cities so as to
grab the whole market and to make a tough chance for dominos and MacDonald’s.
Price
The food items of this food chain are provided to the clients at the reasonable rates
and they can afford to buy these foods. The brand has provided such food items to
the common people, who cannot afford to buy the expensive food and do their
lunch. These food items are prepared keeping in view their financial capacity and
also provide the healthy food to meet their requirements.
Promotion
The advertisement policy of the brand is wonderful and it can bring the customers
closer to this brand. The complete information about the food products are also
provided to the clients in their website and they increase their customer basein
different cities and earn more revenue on the sale of their food products .The
promotion tag line of KFC is “FINGER LICKING GOOD”.
8. CUSTOMER DEVELOPMENT PROCESS:The CDP of KFC based on
A.I.D.A-Awareness, Interest, Desire, Action
Awareness: Brand Recognition-Brand
recall-Brand knowledge.
Advertisements , Campaign ,Social
media, displays in shopping malls.
Interest: Feature beliefs.
Easy delivery, lowpricing which can
feed the whole family.
Desire: Feeling emotion, caring.
Good Tasty,Good smell , Good colour,
Colorful packing, Good quotes.
Action: Trail, repeat.
Giving them coupons,reminding them
about food items, telling about offers.
9. VALUE DELIVERY :
CATEGORY BENEFIT COST
Pricing Price is kept low Depends upon the
franchise how sales will
it do to improve the profit
margin.
Products Varieties of food product
starting from chicken
bucket, fiery grilled
chicken ,chicken rice
bowl.
Depends upon the
productwhich is to be
sold.
Place Easily accessible such as
shopping malls ,super
markets, crowded places,
visiting areas
To get maximum sales of
productin each varieties
of taste
Promotion Through social media
,news paper, television,
coupons given in super
market etc.
To create awareness of
product,to get more
customers and to enhance
profit.
10. CUSTOMER PYRAMID
KFC “KENTUCKY FRIED CHICKEN”.
Something Bigger
Emotional Benefits
ProductBenefits
CONSUMER BUYER BEHAVIOUR
Customer of KFC are the people from different age group, all who want to satisfy
their taste buds with the finger licking delicious chicken menu. Most of the
customers can be defined as youngsters or young adults who can shell out a
minimum amount of money to have a delicious meal.
Entertainmentwithfamilies
Delicious,costsaving
Deliciousfood,fastserving
TV& movie streamingcontent,original content.
11. VALS –VALUE, ATTITUDE, LIFESTYLES
KFC has millions of customers thus their VALS is only :
EXPERIENCE
Customer consumes good food in less time with the experience which they are
selling to the customer. In todays era KFC sells not only food they also sells the
experience of having food with the family together in good places,where family
can even sit together and gossip.
BUYER’S ROLE: 5 stagesofBuyer’s Role for KFC
1. Initiator: Advertisements, social media etc.
2. Influencer: Peer circles, family, any other reliable sources like coupons
through newspapers .
3. Decider: Peer circles, family or him/herself.
4. Buyer: individual, family, friends.
5. User: buyer, family or relatives, friends.
12. 5 STAGE BUYERS PROCESS
2.6 BRAND BELIEF
KFC “ We promise our customers to have a great experience of food, As the
mother brand is Devyani International has a profitable growth, and our employees
the allure of huge impact”.
1. Need Recognition:
(Full filling the appetite, relaxation,
Enjoyment with families.
2. Information Search
(Twitter, Facebook ads, billboards, other social
media advertisements, coupons.)
3. Evaluation of alternatives
(Alternatives like Dominos, Macdonald’, Burger King)
4. Purchase Decision
(offers in rice bowl, fried chicken)
5.After purchase decision
(Great experience with families)
13. BUYER’S BEHAVIOR PROCESS:
KFC as B2C model KFC as B2B model
B2C & B2B model for KFC
N KFC
OOUTLET
CUSTOMER
N KFC
CUSTOMER
OUTLETSInstagram, FB,
Twitter
Social Media
Distributors
14. EXPECTANCYVALUE MODEL:
Benefits:
Price Low price as compared to others
Importance ratings:
Category excellent Good average Poor
Taste
Quantity
Quality
Availability
Healthy
15. R-F model: BUY GRID-Nano segmentation
Need
Identifica
tion
Requirem
ents
specificat
ions
Supplier
Search
Choice
of
supplie
r
Purchas
e
order
Post
purchas
ing
evaluat
ion
Supplier
manage
ment
Straig
ht
Rebuy
yes
Modif
ied
Rebuy
yes yes yes Yes Yes
New
Buy
yes yes
yes
Yes
yes
Yes Yes
16. VENDOR ANALYSIS TABLE
Quality Quantity Price Speed
Service
KFC
Bread,
chicken
5 star
12 pieces
Chicken
bucket
RS 400
15 mins
Dominos
Bread
,chicken
4 star
1 Large
pizza
RS 750
30 mins
MacDonald’s Bread ,
Chicken
5 star
4star
1
Mc.king
burger
RS 500
20 mins
Burger King Bread ,
Chicken
4 star 2
star
8 pieces
Chicken
dips
RS 450
25 mins
17. TARGET MARKET SELECTION :
In case of KFC the target market is international (Full market coverage). But for
India they targeted only on those places where meat lovers are more, they targeted
the area where people comes for shopping mostly in shopping malls ac markets.
1. Value-seekers – Looks for benefits with good quality food. Fair price and
convenience are the top priority.
2. Children- KFC offers a wide range of items of chicken, crushers to grab
kid’s attention.
18. Brand positioning on unipolar axes:
K
DO
BK
WM
PHD
K – KFC
BK – BURGER KING
W - WOW MOMO
D – DOMINOS
PHD – PIZZA HUT
More Affordability
Lessaffordability
Lessquality More quality
19. K
BK
DO
PHD
WM
This types of brand positioning helps KFC to evaluate their brand , their
competitors and the market place through different angles. This tells us the strength
and limitations of other brands and also the place where KFC stands in the market.
More Availability
Lessavailability
Lessvariety More variety
K – KFC
DO- DOMINOS
WM – WOW MOMO
PHD – PIZZA HUT
BK – BURGER KING
20. Perceptualmapping:
K
BK
DO
WM
PHD
This is the bipolar mapping of KFC. KFC positioned itself in quadrant 1 which
conveys the message that their product is crispy and fried, may be taste depends
upon customer to customer but being crispy and there unique recipe is now also a
top secret so it is the top priority for every customer.
CRISPY
SOFT
BARBECUED FRIED
K – KFC
BK – BURGER KING
DO – DOMINOS
PHD – PIZZA HUT
WM – WOW MOMO
21. Marketing plan:
Product:
FEATURES BENEFITS
Pocketfriendly pricing Affordable for all
Fast food movie makers Quick delivery
Currency augmented app Time savior
Employee motivation Food meal discount , paid holidays
Packaging Well packaged , food not wasted
Productline: This depends upon the consumers taste accordingly which product
they like .
Box meals
Bucket meals
Sandwiches and toasted
lines
Bowl snack
Crushers
Desserts and breakfast
Salads
22. Brand knowledge tree:
It is multinational food chain in almost every country acronym is Kentucky fried
chicken
People recognized the brand being “ Finger Licking Good”
People started relating quick delivery to fill the apetite
People’s emotion started getting attached to the unique chicken with crusher
which they serve the guests
Brand awareness
Brand recognition
Brand recall
Brand knowledge
23. A brand which represents the benefits of fast food with fast delivery and proper
guest handling
Effective pricing , easily available, superior quality, tasty , sustainable packaging
system
KFC successfully positioned itself in a quadrant where it is highly accepted by the
customers. India was the core targeting area where KFC started to target after
booming into the European market since India is a huge diversified country and
people love to socialize with their own families .Fastservices , good ambience
which not only helps in leisure of life but also gives a huge experience to the
consumers. The unique recipe now also not disclosed in front of any one as it is
the main key for the success to attract the customers in there outlets.
Brand image
Features and benefit
Overall evaluation
24. Customer awarenesspyramid
Unawareness
PRICE:
Price ranges from to 199-1499 rupees of an individual food product
KFC food products are sold at a price 5 to6 % lower than that of competition
• Pricing Strategy has helped KFC establish itself in marketplace of India
KFC Pricing Key Features – “Penetrative Pricing”: • The company’s product
are priced at 5-6 % discount to competition • It is able to offer such
discounts primarily because of having negligible A&P( Advertising and
Promotion) spend versus other companies • Other companies have A&P
spends ranging from 12-18% as a % of sales • Another reason for discounts
is consumer centric ideology of the organization and selling best quality
food product at attractive price points • There are even some food products
which are making losses or have low margins, but it sells those products to
meet consumer needs.
Lower and Effective Advertising aids Lower Pricing • KFC has limited
advertising expenses which helps them in lower pricing • The company
advertises in a limited way – digital advertising , coupons from outlets in the
market.
TOMA
BR. RECALL
BR. RECOG
25. PLACE:
It is sold through retail outlets. It is also available on the personalized app of
the brand . KFC use this channel to get the reach and breadth to sell its products
across all the corners of the country.
KFC
KFC Online
Platform
KFC
Outlet
CUSTOMER
27. PROMOTION
Communication objective price Product Brand ambassador
Digital media ,
YouTube
channel,
Facebook
page, twitter,
television ads ,
coupons from
the super
markets, news
paper ads,
hoardings in
different parts
of the country.
Promoting
their food
products
while
focusing on
the budgeting
aspects and
also to target
the market
with minimal
pricing of the
food products
so the school
children and
the college
students gets
attracted.
More than
300 crore
is spent
on the
promotion
of the
brand
KFC has
picked up
few food
items from
its huge
product line
up so as to
make the
product
portfolio
strong to
advertise
aggressively
The renowned actor
and producer Denzil
Smith is has done all
the ads related to
KFC there is no
particular ambassador
of KFC but the
founder is the only
person who looks
after everything
“COLONEL
SANDERS”.
28. PROMOTIONALMIX
KFC offers different varieties of food products in its segment . KFC is the most
biggest food chain in India .
ADVERTISING:
5 Ms of Advertising:
1. Mission:creating awareness for the existing product
2. Money: it spends 35% of their promotional budget on advertising only.
3. Media: media forms are newspaper, online, hoardings, coupons
4. Message:has particular criteria.
5. Measurement: it will develop an ad campaign and test it in a certain
geographic region.
29. Appendix A: The MarketResearch Survey for KFC
Behavioral Psychographic Demographic
Q1.Which brand
food product you
consume?
Q2. Which food
product do you
consume the most?
Q3. Are you ready to
try for new food
products
Q4. How much
conscious are you
about your taste?
Q1. What category of food
product do you like the
most ?
Q2. On a scale of 1-5
where 1 being not satisfied
and 5 being fully satisfied.
Rate your experience about
KFC food product.
Q3. If you haven’t tried
will you like to experience
Q1. Highest level of
education
Q2. Age between
Q4. Please select your
gender