An in-depth analysis of FIVE STAR CHICKEN.

1. BY:-
SUDHARSHAN
HITESH
KEYUR
NIKITA
SMRITHI
AMOG

2. CONTENTS
• CHAROEN POKPHAND
• FIVE STAR CHICKEN
• WHAT MAKES FIVE STAR CHICKEN SO SPECIAL?
• REASONS FOR FAILURE
• CURRENT SCENARIO
• CONCLUSION

3. CHAROEN POKPHAND
• Five star chicken is a brand of Charoen Pokphand foods.
• The Charoen Pokphand Group is a Thai conglomerate based in Bangkok.
• It is Thailand's largest private company and one of world's largest
conglomerates.
• It consists of three core businesses that operate in agribusiness and food,
retail and distribution, and the telecommunications industries with
investments in over 30 countries, employing over 300,000 people.
• It’s total revenue is $45 billion(2016).

4. FIVE STAR CHICKEN
• Five star chicken is a brand of CP foods.
• Since its founding in 1985, Five Star Franchise has been selling the Five
Star Grilled Chicken, its first product. For more than 30 years, the
company has been expanding its product line. More than 30 years that
Five Star has been cultivating its expertise in food kiosk operation.
• It is present in 9 countries : Thailand, Myanmar, Cambodia, Vietnam,
Laos, Malaysia, China, Bangladesh and India, and has more than 7000
outlets worldwide.
• The first ever five star chicken was launched in Ulsoor, Bangalore in
2012.
• They have around 70 outlets in Bangalore.
• In 2013 and 2014 they started to expand their chain in Bangalore and
extended to Chennai and Kerala.

5. WHAT MAKES FIVE STAR CHICKEN SO
SPECIAL?
• Their specialty in fried chicken was a delight to taste buds and other
products that were a heartthrob for the consumers.
• It manages the end-to-end system of the supply chain right from the
farms to the processing units, distribution and outlets resulting in high
quality throughout the supply chain .
• The five star team emphasizes on the importance of customer service
and experience which is delivered as a part of high quality training and
quality control.
• Finally, the convenience provided to the customers because it is
available so easily that it is popularly known as the neighbourhood
store.
• As a part of their CSR activity in Bangalore they provide free food to the
poor every month.

6. REASONS FOR FAILURE
• Reason 1: WRONG LOCATION
• The main reason for their failure was the poor choice of location for
setting up their shops. Five star wanted to acquire a large market share,
so set up shops in many locations. This lead to their failure.
• Reason 2 : POOR QUALITY OF PRODUCT
• The product in some places was not up to the expectations of user.
Some of their branches used poor quality chicken which affected five
star has whole.
• Reason 3 : POOR IMPLEMENTATION OF MARKETING PLAN
• Their marketing plan was not well established to promote the product.
The product reach was significantly less. The poor execution of
strategies lead to the product failure.

7. REASONS FOR FAILURE
• Reason 4 : LACK OF PRODUCT UNIQUENESS
• This is most important feature one should keep in mind that product should
be made according to the market requirement along with the uniqueness. But
five star failed to do so.
• Reason 5 : PRODUCT DEFICIENCIES
• Product is developed with full uniqueness but still has some features which are
not responding properly as compared to competitors.
• Reason 6 : HIGHER PRICE OF THE PRODUCT
• No matter how great your product is, if its price is more compared to the
competitor then the product is going to fail for sure. As it is the mentality of
the customer to choose the cheaper product. Here KFC has a lower pricing
strategy compared to five star chicken. Five star chicken did not plan their
pricing strategy and failed to capture the market.

8. CURRENT SCENARIO
• Thailand-based quick service restaurant chain Five Star Chicken has
shut down 133 outlets in India in the past five months owing to
sluggish growth even as it seeks to push sales.
• The chain, which recently rebranded itself as Five Star, now has 220
outlets in Kerala, Tamil Nadu and Karnataka, and an outlet each in
Hyderabad, Goa, Pune and Mumbai, where it is testing the waters.
• “We have shut down non-performing stores and slowed down our
rate of expansion,” said Sanjeev Pant, senior vice president-food
business. “While we were opening 10-15 stores in a month before,
now it is down to three-four stores in a month,” he said.

9. CURRENT SCENARIO
• The company is now looking at a new strategy to gain growth momentum as
the Rs 6,000 crore quick service restaurant or QSR segment has been
reporting single-digit or negative same-store sales growth for the past two
years.
• The company, which entered India in 2012, has tied up with supermarket
store Spar, Tata-led Star Bazaar and a few local bakeries to open six shop-in-
shop stores. These stores will entail lower real estate cost than standalone
stores and are expected to have a healthier footfall.
• Known for its non-vegetarian offerings, the company has also revamped its
menu from 100% non-vegetarian to 40% vegetarian and 60% non-
vegetarian.
• “We are aiming to make the menu 50% veg and 50% non-veg to bring in our
vegetarian customers and loyal consumers who don’t prefer eating non-veg

10. CONCLUSION
• To conclude, we would like to say that for a successful business it
is necessary that a thorough and appropriate research of the
market has to be done wherein all the aspects of starting the
business has to be taken care off.