Summer Training Research Project Report

On
To study the Market Strategy and Customer
Perception about KFC in Delhi (NCR

For the partial fulfillment of the requirement of
M!ST"R #F $%S&N"SS !DM&N&STR!T&#N
Affiliated to Mahamaya Technical University !oida "U#P#$
"%&''(%&')$
%nder The 'uidance o() Under the Supervision
of:
Mr. UTTKARSH SHUKLA Mr. PANKAJ
CHAUDHARY
Submitted by
M&SS* S!D'& $!'+",
Roll No*-./0123300
*!+T Management School
,(- .no/ledge Par0(++ *reater !oida " *# 1# !agar$
*!+T Management School
,(- .no/ledge Par0(++ *reater !oida "*# 1# !agar
2ate3
To 4hom &t May Concern
This is to certify that Mr# 4Ms#S!D'& $!'+", student of M#1#A# course "%&'&('%$ at 'N&T
Management School /ith dual speciali5ation in M!RK"T&N' 5 +%M!N R"S#%RC" has
satisfactorily completed the summer "!-R$
Research project on STUDY ! MARK"T STRAT"#Y AND P"RC"PT$N A%UT
K!C $N D"LH$ &.
This study is done under the guidance of the undersigned 6y partial fulfillment for the a/ard of
M#1#A# + /ish him4her all the 6est for 6right future ahead#
Faculty Super6isor Director
Certi(icate
From company
!ckno7ledgement
Pre(ace
A'(no)*ed+e,ent
I would like to record our thanks to Mrs. Dr. S-vit- Moh-n. /Dire'tor0. #N$T1
M-n-+e,ent S'hoo*, Mahamaya technical University for encouraging and
supporting me in doing this project successfully.
I owe my personal debt of gratitude to our guide MR. Utt(-rsh Shu(*- for his
valuable ideas, creative support, timely advice, keen interest and the encouragement
shown in successful completion of this project.
I am deeply indebted to Mr. P-n(-2 Ch-udh-r3 (Field !ecutive" under whose
guidance the project was carried out, and for valuable support, motivation, and
assistance which served as the forces that helped me to bring this project to its
present shapes.
#nd all other faculty members, students, friends and all those who are directly and
indirectly involved in this endeavour.
2AT73 SA2*+ 1A*879
M1A )R2 S7M
PR"F!C"
:9earning categori5es you and practicing on that learning speciali5es you;# Theoretical
concepts taught and discussed in the classroom prove useful if they have to remain relevant#
Practice orientation of management student is must generating competence to deal /ith issues
at grass root level it is for this reason that t/o month training project study is prescri6ed as a
part of sylla6us for M1A 2egree#
This training is the mode of imparting practical training to the student# The o6jective is to
provide a deep insight into practical aspects of the functioning
of the organi5ation# Thetrain apprises the student to the actual function responsi6ility and
pro6lem faced 6y an organi5ation# +t provides him /ith the 0no/ledge of the various 0ind of
pro6lem that crop up in the day to day functioning of the organi5ation #The /ay they are
solved 6y the departments and appraisal of the crucial decision ta0en 6y the manager at the
crucial time# + got the opportunity to join +MR1 as a summer trainee#
+ /as fortunate enough to complete my mar0eting training at +MR1 2798+#
The e<perience that + have gathered during the period of training has certainly give me a lot of
courage to face the challenges in future#
D"C,!R!T&#N
+ here6y that the summer Training project titled :To Study The Market Strategy !nd
Custommer Percection #( KFC &n Delhi (NCR; 6ased on my training in &MR$ is an
original and authentic /or0 done 6y me and is 6ased upon the study conducted 6y me#
The project /as underta0en as a part of the M1A programme of *reater !oida +nstitute of
Technology and Management school *reater !oida#
$#%&
'#$(I )#(*+
M)# ,-$
'M
&nde8
Sl*no* Topics Page Number
From To
+nstitute=s certificate
-ompany=s certificate
Ac0no/ledgement
Preface
'# +ntroduction
'#' A6out the topic
'#% O6jective of the study
'#) Methods employed
'#>Significance of the study
%# +ndustry Profile
)# -ompany Profile
># S/ot Analysis
?# Financial analysis of the company
,# 2ata analysis and +nterpretation of
@# Findings
A# -onclusion
B# Suggestion
'&#9imitation of the study
''# Anne<ure
''#'Cuestionnaires
'%# 1i6liography
CHAPT"R 4 5
$NTRDUCT$N
A%UT TH" TP$C
Marketing Strategy
.F- as a 1rand
.F- is one of the 6est(0no/n 6rands /orld/ide 2oing +ntegrated assignment /e study ho/
.F- continually aims to 6uild its 6rand 6y listening to its customerDs also identifies the various
stages in the mar0eting process#
1randing develops a personality for an organi5ation product or service# 1rand +mage
represents
ho/ consumers vie/ the organi5ation#
1randing only /or0s /hen 6ehaves and presents itself in a consistent /ay Mar0eting
communication methods such as advertising and promotion are used to created colors design
and image /hich gives a recogni5a6le face #At .F- this is represented 6y its familiar logo(
-olonel 8arland Sanders is shedding his /hite suit jac0et for a red coo0#
Mar0eting involves identifying customerDs needs and requirements and meeting these needs in
6etter /ay then its competitors# +n this /ay a company creates loyal customers#
The stating point is to find out /ho are potential customers are(not everyone /ill /ant /hat
.F- has to offer# The people .F- identifies as li0ely customers are 0no/n as 0ey audiences#
8aving identified its 0ey audiences a company has to ensure a mar0eting mi< that created that
appeals specifically to those people# The mar0eting mi< is a term used to descri6e the four
main
mar0eting tools">PDs$3
'#Product
%#Price
)#Place
>#Promotion
Using that detailed information a6out its customers# .F-Ds mar0eting department can
determine3
'# Ehat products are /ell receivedF
%# Ehat prices consumer /illing to payF
)# Ehat T#G# Programmes ne/spapers and advertising consumer read or vie/F
># Ehat restaurants are visitedF
Mar0et research is the format /hich ena6les .F- to identify this 0ey information# Accurate
research is essential in creating the right mi< to /in customers loyalty#
+n all its mar0et .F- faces competition from other 6usinesses# Additionally economic legal
and
technological changes social factors retail environment and many other elements affect .F-
success in the mar0et#
Mar0et research identifies these factors and anticipates ho/ they /ill affect people=s
/illingness
to 6uy# As the economy and social attitudes change so do 6uying patterns# .F- needs to
identify /hether the num6er of target customers is gro/ing or shrin0ing and /hether their
6uying ha6its /ill change in the future#
Mar0et research considers everything that affect 6uying decisions# These 6uying decisions can
often 6e affected 6y /ider factors than just the products itself# 9f psychological factors are
important e#g# /hat image does the product give or ho/ the consumer feels /hen purchasing
itF
Through mar0eting Mc2onald=s esta6lishes a prominent position in the minds of customers#
This is 0no/n as 1randing#
Meeting the needs o( Key audience
There are a limited num6er of customers in the mar0et# To 6uild long(term 6usiness it is
essential to retain people once they have 6ecome customers# For e<ample a parent /ith t/o
children might visit and visits .F- to give the children a treat# -hildren /ant to visits as it is
fun place to eat# A 6usiness customer visits .F- during the /or0 day as service is quic0 the
food taste is great and can 6e eaten in the car /ithout affecting a 6usy /or0 schedule# These
e<amples represent just a fe/ of .F-Ds possi6le customer=s profile# 7ach has different reasons
to come .F-#
Using this type of information .F- can tailor communication to the needs of specific groups#
+t
is to the needs of specific group# +t is their needs that determine the type of products and
services
offered prices charged promotions
-reated and /here restaurants are located# To meet the needs of the 0ey mar0et it is important
to
analyses the internal mar0eting strengths the organi5ation#
Strengths and /ea0nesses must 6e identified so that a mar0eting strategy /hich is right for the
6usiness can 6e decided upon#
The analysis /ill include the3
H -ompany=s products and ho/ appropriate they are for the future #
H Cuality of employees and ho/ /ell trained they are to these additional psychological factors
are significantly offer the 6est service to important to the customer# They can 6e even more
customers important than the products= physical 6enefits#
H Systems and ho/ /ell they function in providing customer satisfaction e#g# mar0eting
data6ases and restaurant systems#
H Financial resources availa6le for mar0eting#
The business can then determine 7hat it needs to do in identi(y di((erent types o(
customers* For e8ample 3
A parent /ith t/o children might visit Gisits .F- to give the children treat#
A children /ants to visit .F- As it is a fun place to eat
A 6usiness customer
Gisits .F- during the /or0 day as service is quic0the food taste is great can 6e eaten in the
car /ithout affecting 6usy /or0 schedule#
Teenager visits .F-
The Rupee saver menu is afforda6le and there is +nternet access in some restaurant#
These e<amples represent just a fe/ of .F- possi6le customer profiles each has different
reasons to come .F-# Using this type of information .F- can tailor communication to the
needs of specific groups# +t is their needs that determine the type of products and services
offered prices charged promotions created and /here restaurants are located# To meet the
needs
of the 0ey mar0et it is important to analy5e the internal mar0eting strengths and /ea0nesses
must 6e identified so that a mar0eting strategy /hich is right for the 6usiness can 6e decided
upon# The analysis /ill include the3
H -ompany=s products and ho/ appropriate they are for the future
H Cuality of employees and ho/ /ell trained they are to these additional psychological factors
are significantly offer the 6est service to important to the customer# They can 6e even more
customers important than the products= physical 6enefits#
H Systems and ho/ /ell they function in providing customer satisfaction e<ample mare0ting
data6ase
H Financial resources availa6le for mar0eting
Once the strengths and /ea0nesses are determined they are com6ined /ith the opportunities
and threats in the mar0et place# This is 0no/n as SEOT analysis "Strengths Eea0nesses
Opportunities and Threats$# The 6usiness can then determine /hat it needs to do in order to
increase its chances of mar0eting successfully#
#$9"CT&:" #F ST%D;
Eill the customers 6e loyal to the specified product of .F-F
Ehat do the customers li0e or disli0e a6out the .F- productF
Ehat change they /ant to do in the .F-F
8o/ much the customer is satisfied from .F- productF
+s cutomer satisfied from the price and taste of .F- productF
Ehat are the customer e<pectation from .F-F
M"THD "MPLY"D
R"S"!RC+ M"T+#D#,#';
The information required for conducting the study /ould 6e 6ased on questionnaire# The
questions are designed to 0no/ the customer perception a6out .F-# The analysis /ould 6e
6ased on primary data collected through questionnaires and information o6tained through
internet and journals regarding the revival mar0eting strategy adopted 6y .F- in +ndia#
R"S"!RC+ D"S&'N< Descripti6e
The research design /ould 6e descriptive in nature as + have to find out the underlying
perceptions and 6ehavior of consumers#
R"S"!RC+ !PPR#!C+< =uestionnaire
The questionnaire as0ed from respondents is 6asically of o6jective type# +t is supported 6y
6oth open and close ended questions#
The questionnaire method is used to 0no/ the consumer 6ehavior and perception# The
questions are intended to 0no/ the underlying factors that affect perception to/ards .F- in
+ndia#
R"S"!RC+ M"T+#D#,#';< Sur6ey Method
For achieving the o6jectives of study survey /as conducted# For conducting the survey a
questionnaire /as made# The respondents /ere duly as0ed to fill questionnaires regarding their
perception li0ings and preferences regarding .F-#
Method o( Data Collection)
Primary Data3
The primary data for the project is collected through questionnaire filled 6y the
respondents#
Secondary Data3
The secondary data used in the project has 6een collected from various articles /e6sites I
1oo0s#
S!MP,&N' T"C+N&=%" > Random Sampling
Sample si?e( ,&
Statistical tools( MS(e<cel
S&'N&F&C!NC" #F T+" ST%D;
Selling of any product there is needed to 6uild relationship /ith customer# For 6uilding a
relationship there is need for 0no/ing the customer 6ehavior and ho/ /ill 6e they satisfiedF
This project is underta0en to 0no/ the customer satisfaction for the product of .F- "at 2elhi$#
The mar0et survey has done in .F- outlets# The project is useful for the 6etter understanding
of the customer satisfaction# The project encompasses the various satisfaction of customer#
Their pre and post satisfaction /hen they are eat# There is also overvie/ of the customer=s
attraction to/ards .F-# This study /ill help .F- to 0no/ the most popular /ay 6y /hich
they are providing services and quality to the customers and to 0no/ various customers
Perceptions# From the study /e found that the customers /ere highly satisfied /ith the
products and service of .F-J it also found that .F- is having a good 6rand image in the
mar0et# The present is the era of customers# -ustomers are more 0no/ledgea6le than ever
6efore and 6ecause the customer is more 0no/ledgea6le companies must 6e faster more agile
and more creative than fe/ years ago# So .F- should strive to enhance customer satisfaction
through 0no/ing their e<pectations regarding products#
CHAPT"R 4 6
$NDUSTRY PR!$L"
&NTR#D%CT&#N
Many companies in the domestic food and beverage industry were established during
the post ./01s, as part of the (overnment2s import substitution regime. %he I'I or
Import 'ubstitution Industry model as it came to be known, focused on substituting
foreign products with locally manufactured items.
*owever by .//,, after the liberali3ation of the %rinidad and %obago foreign
e!change system, the range of products produced by the local industry e!panded
considerably, in
response to greater competition.
%he Food and )everage sector today boasts of global players with internationally
recogni3ed brands, e.g. #ngostura +imited, 4iss )aking Industries, 45 5onfectionery,
'M 6aleel, 5hief )rand 7roducts, and a large cadre of smaller companies speciali3ing
in 5aribbean niche products. 8ith appro!imately 9:1 registered firms, the industry is
firmly established in the 5#-I5;M and regional markets.
#part from its direct dependence on primary agriculture, the food and beverage
industry is part of an established value chain, maintaining linkages with such areas as
printing and packaging, research and development, and training< which all together
support growth of the industry.
S"CTR PR!$L"
%he food and beverage sector continues to e!perience relatively high levels of
e!pansion, with real ($7 growth averaging / percent between :11, and :110 alone,
e!ports of over %%=/11 million, and employing appro!imately /,111 persons. In terms
of the future outlook for the industry, with the continued e!pansion of the local
economy, the domestic food and beverage sector is e!pected to continue along its
progressive track.
In addition, e!pansion of the regional economy, renewed efforts for research and
further product development, and strategic niche marketing will also support
sustained growth over the longer term. %he Food and )everage Industry
$evelopment 5ommittee (F)I$5" comprising Ministry of %rade and Industry technical
officers, industry operators and stakeholders has been mandated to drive the
development of the industry, in particular through implementation of the strategic plan.
The food and beverages industry is all companies involved in processing raw food
materials, packaging, and distributing them. This includes fresh, prepared foods as
well
as packaged foods, and alcoholic and nonalcoholic beverages. Any product meant for
human consumption, aside from pharmaceuticals, passes through this industry.
Highly FragmentedHighly Concentrated
The Food and everage industry is Fragmented. The production in this industry is
divided among a few different companies, however, no single firm has large enough
share of the market to be able to influence the industry!s direction or price levels.
Primary Demand Drivers
"emographic shift #particularly trends in population and age, household si$e,
and dispoable income%
Consumer tastes
Profitability Drivers
&ood product mi'
(fficient operations
)uperior service
(ffective marketing
the past half*century, the food and beverage industry has blossomed from a
collection
of mom*and*pop operations to a trillion*dollar powerhouse led by huge international
corporations. Familiar names like Coca*Cola, )tarbucks and +c"onald!s can be
found
in every corner of the globe. The overarching theme dominating the food and
beverage
industry is e'ploding global demand and rapidly rising food prices. The breakneck
economic growth of countries such as China, ,ndia, ra$il and -ietnam gives billions
of
people the ability indulge in ways previously en.oyed only by those in developed
nations. A massive influ' of consumers onto the global food market has resulted in a
rapid and sustained increase in food prices, stoking global inflation.
The related shift to ethanol and other bio*diesels in the face of rapidly rising energy
prices has only e'acerbated the world!s food inflation headache. Although some
members of the food and beverage industry #primarily farmers and agribusinesses%
benefit from higher prices, most corporations in the industry have seen their cost of
doing business increase, biting into profit margins. These higher costs are passed, in
part, onto consumers, who find their discretionary spending restricted when they must
spend a larger chunk of their paycheck at restaurants and grocery stores.
)o, .ust asoil prices are a key economic indicator, so too are the prices of key
agricultural commodities such as corn, wheat, andsoybeans.

FOOD AND BEVERAGES INDUSR! IN INDIA
+ndia is the /orldDs second largest producer of food ne<t to -hina and has the potential of
6eing
the 6iggest /ith the food and agricultural sector# The total food production in +ndia is li0ely to
dou6le in the ne<t ten years and there is an opportunity for large investments in food and food
processing technologies s0ills and equipment especially in areas of -anning 2airy and Food
Processing Specialty Processing Pac0aging Fro5en Food4Refrigeration and Thermo
Processing# Fruits I Gegeta6les Fisheries Mil0 I Mil0 Products Meat I Poultry
Pac0aged4-onvenience Foods Alcoholic 1everages I Soft 2rin0s and *rains are important
su6(sectors of the food processing industry# 8ealth food and health food supplements is
another
rapidly rising segment of this industry /hich is gaining vast popularity amongst the health
conscious#
+ndia is one of the /orlds major food producers 6ut accounts for less than '#? per cent of
international food trade# This indicates vast scope for 6oth investors and e<porters# Food
e<ports
in 'BBA stood at US K?#A 6illion /hereas the /orld total /as US K>)A 6illion# The +ndian food
industries sales turnover is Rs '>&&&& crore "' crore L '& million$ annually as at the start of
year %&&&# The industry has the highest num6er of plants approved 6y the US Food and 2rug
Administration "F2A$ outside the USA#
+ndiaDs food processing sector covers fruit and vegeta6lesJ meat and poultryJ mil0 and mil0
products alcoholic 6everages fisheries plantation grain processing and other consumer
product
groups li0e confectionery chocolates and cocoa products Soya(6ased products mineral /ater
high protein foods etc# Ee cover an e<haustive data6ase of an array of suppliers
manufacturers
e<porters and importers /idely dealing in sectors li0e the (Food +ndustry 2airy processing
+ndian 6everage industry etc# Ee also cover sectors li0e dairy plants canning 6ottling plants
pac0aging industries process machinery etc#
The most promising su6(sectors includes (Soft(drin0 6ottling -onfectionery manufacture
Fishing aquaculture *rain(milling and grain(6ased products Meat and poultry processing
Alcoholic 6everages Mil0 processing Tomato paste Fast(food Ready(to(eat 6rea0fast
cereals
Food additives flavors etc#
R"ST%R!NTS &N &ND&!
There are a6out A million restaurants in the /orld and some )&&&&& restaurant companies#
The
restaurant industry divides itself into full(service and fast(food restaurants# Full(service
restaurants include family restaurants "such as 2ennyDs$ dinner houses "2arden RestaurantsD
Red 9o6ster$ and grill46uffet type eateries "MetromediaDs Ponderosa$# The fast(food sector
includes sand/ich shops /hich means ham6urgers and Me<ican food as /ell as pi55a and
chic0en joints# -ompanies in this sector include giants such as .ahala "*reat Stea0 I Potato
Frullati -afe$ Te<as Pacific *roup "1urger .ing$ MUMN 1rands "Taco 1ell .F- Pi55a
8ut$
and of course Mc2onaldDs# +n a /ea0 economy the former categoryDs stoc0 suffers as people
/ith less disposa6le income settle for cheaper fare#
Overall restaurant sales have 6een rising just over ?O annually# 8o/ever the supply of
/or0ers
age ', to %> the primary pool for restaurant employees has 6een declining# To solve the
pro6lem companies are hiring more retirees and immigrants and are increasingly ma0ing use
of
automation# A slo/ing economy should help offset a shrin0ing la6or force 6y 0eeping /ages
"often minimum$ sta6le thus posing less threat to profits#
The restaurant industry is a classic mature mar0et# -ompanies face stiff competition and lo/
profit margins# *iven the latter e<pect companies to continue gro/ing through acquisition
rather than through 6uilding ne/ units /hich cost up/ards of K' million even for a fast(food
unit# Ma0ing acquisitions gives companies a larger revenue 6ase over /hich to spread costs
and
it also gives them more leverage /ith suppliers to 0eep costs do/n# 2emand should stay
steady#
Eith the rise of t/o(/or0ing adult families since the 'BA&s Americans have less time and
energy to prepare their o/n meals and have 6een eating out more frequently#
CHAPT"R 4 7
CMPANY PR!$L"
&NTR#D%CT&#N
.F- -orporation is the largest fast(food chic0en operator developer and franchiser in
the /orld# .F- is a /holly o/ned su6sidiary of Pepsi-o +nc# until late 'BB@ it operates
over ?&&& units in the United States appro<imately ,& percent of /hich are franchises#
+nternationally .F- has more than )@&& units of /hich t/o(thirds are also franchised#
+n addition to direct franchising and /holly o/ned operations the company participates
in joint ventures and continues investigating alternative venues to gain mar0et share in
the increasingly competitive fast(food mar0et# .entuc0y Fried -hic0en /as founded 6y
+arland Sanders in -or6in .entuc0y# Sanders /as 6orn on a small farm in 8enryville
+ndiana in 'AB&# Follo/ing the death of SandersDs father in 'AB, SandersDs mother /or0ed
t/o jo6s to support the family# The young Sanders learned to coo0 for his younger 6rother
and sister 6y age si<# Ehen Mrs# Sanders remarried her ne/ hus6and didnDt tolerate 8arland#
+n 'B%B Sanders opened a gas station in -or6in .entuc0y and coo0ed for his family and
an occasional customer in the 6ac0 room# Sanders enjoyed coo0ing the food his mother had
taught him to ma0e3 pan(fried chic0en country ham fresh vegeta6les and homemade 6iscuits#
2emand for SandersDs coo0ing rose eventually he moved across the street to a facility /ith a
'>%(seat restaurant a motel and a gas station# 2uring the 'B)&s an image that /ould 6ecome
0no/n throughout the /orld 6egan to develop# First Sanders /as named an honorary
.entuc0y -olonel 6y the state# +n the early 'B)&s /hen he started coo0ing and serving food
for hungry travellers /ho stopped 6y his service station in -or6in .entuc0y US# 8e did not
o/n a restaurant then 6ut served people on his o/n dining ta6le in the living quarters of his
service station# 8is chic0en delicacies 6ecame popular and people started coming just for food#
.entuc0y Fried
KFC's Mission Statement
The Association of Kentucky Fried Chicken Franchisees, Inc. is united to protect, promote
and advance the mutual interests of all member franchisees and the Kentucky Fried Chicken
system."
-hic0en /as 6orn# Over the ne<t nine years he perfected his secret 6lend of '' her6s and
spices and the 6asic coo0ing technique of chic0en# SandersD restaurant 6usiness /itnessed an
une<pected halt in the early 'B?&s /hen a ne/ interstate high/ay /as planned 6ypassing the
to/n of -or6in# 8is restaurant flourished mainly due to the patronage of high/ay travellers#
The ne/ development meant the end of this# Sanders sold his restaurant operations# After
settling all his 6ills he /as reduced to living on a meagre K'&? social security cheque# 1ut
Sanders did not lose hope# 1an0ing on the popularity of his product and confident of his
unique recipe for fried chic0en Sanders started franchising his chic0en 6usiness in 'B?%# 8e
called it .entuc0y Fried -hic0en# 8e travelled the length and 6readth of the country 6y car
visiting as many restaurants as possi6le and coo0ing 6atches of chic0en# +f the restaurant
o/ners li0ed his chic0en he entered into a handsha0e agreement that stipulated payment for
each plate of chic0en sold 6y the restaurant# 1y 'B,> Sanders franchised more than ,&&
chic0en outlets in the US and -anada#
Market !nalysis
A mar0et in this conte<t refers to a num6er of all actual and potential 6uyers of a product
".otler et al %&&)$# These 6uyers have a need
to satisfy their needs through e<change
"*raphic '$# These needs ma0e up the
demand for particular products and services#
Several components must 6e considered as
all these components have a direct or indirect impact on .F-=s success#
-hanges in the 6elo/ descri6ed components over the last couple of years have led to 6ig
changes in people=s attitudes to/ards healthy food# +t e<plains /hy Australians today /ant to
eat healthy and nutritious(rich food in order to 0eep themselves healthy and that .F- must
adjust their range of product and their company image to appeal to these ne/ e<pectations
people have# "http344///#mar0etresearch#com$#
Macro en6ironment
.F- operates in a larger macro environment of forces that creates opportunities 6ut also
threats# ".otler et al %&&)$# A company such as .F- usually cannot influence trends in the
macro environment as they affect people and organi5ations on a larger scale# 8o/ever .F-
has to carefully e<amine macro environmental trends and must create competitive responses to
such trends# There are si< major macro environmental forces .F- has to ta0e into account#
,ndustry
#a collection
of seller%
+arket
#a collection
of buyers
+oney
/roduct 0 service
,nformation
Communication
&raphic 1
Micro en6ironment
The microenvironment consists of all forces that are close to .F- and on /hich .F- has an
impact# They directly affect .F-=s a6ility to serve its customers# ".otler et al %&&)$# Three
major components influence .F-=s micro environment3

"F#
&raphic 2 #)ource3 4otler et al 5662%
+icro (nvironment
Company Competitors
Consumers
KFC &N &ND&!
Foreign fast food companies /ere allo/ed to enter +ndia during the early 'BB&s than0s to the
economic li6erali5ation policy of the *overnment of +ndia "*o+$# One of the first fast food
multinationals to set foot in +ndia /as .entuc0y Fried -hic0en ".F-$ o/ned 6y Pepsi-o#
.F- received permission to open )& ne/ outlets across the country# +t chose 1angalore as its
launch pad 6ecause the city had a su6stantial upper middle class population /ith a trend of
families eating out# Also it /as considered +ndia=s fast gro/ing metropolis in the 'BB&#
The 1angalore outlet /as opened in Pune 'BB?# Apart from 1angalore Pepsi-o planned to
open ,& .F- outlets in the country over the ne<t seven years# 8o/ever .F- 6ecame
em6roiled in various controversies even 6efore it started full(fledged 6usiness in +ndia# .F-
has total ?& outlets in +ndia
K(c@&ndia Menu
!on Q Gegetarian
HOT AND CRISPY -
ORIGINAL RECIPE
BONELESS CHICKEN
$%CK"T
BUCKET VARIETY
BUCKET
'!M" $#A
GAME BOX
T#!ST"D T4&ST"R
B&N'"R $%R'"R
:"' #PT&#NS
VEGGIE FEAST
VEG THALI
VEG RICE THALI
KR%S+"RS

D"S"RTS
SOFT TWIRL SUNDAES
BROWNIE SUNDAY

.F- is the /orld=s !o#' -hic0en CSR and has industry leading stature across many countries
li0e U. Australia South Africa -hina USA Malaysia and many more# .F- is the largest
6rand of Mum Restaurants a company that o/ns other leading 6rands li0e Pi55a 8ut Taco
1ell AIE and 9ong Pohn Silver# Reno/ned /orld/ide for it=s finger lic0ing good food
.F- offers its signature products in +ndia tooN .F- has introduced many offerings for its
gro/ing customer 6ase in +ndia /hile staying rooted in the taste legacy of -olonel 8arland
Sander=s secret recipe# +ts signature dishes include the :crispy outside juicy inside; 8ot and
-rispy -hic0en flavorful and juicy Original Recipe chic0en the spicy juicy I crunchy
Ringer 1urger Toasted T/ister -hic0en 1uc0et and a host of 6everages and desserts# For the
vegetarians in +ndia .F- also has great tasting vegetarian offerings that include the Geggie
1urger Geggie Snac0er and Geg Rice meals# +n +ndia .F- is gro/ing rapidly and today has
presence in '' cities /ith close to ?& restaurants

.F- 1A! "+! -A!A2A$
The follo/ing is an overvie/ of P7TA=s campaign against .F- in -anada#
-ampaign 1ac0ground
+n April %&&' P7TA started discussing cruelty to animals /ith .F-=s e<ecutives# At that time .F-
pledged to improve conditions and even hired four of P7TA=s five suggested animal /elfare scientists
as advisors# 8o/ever nearly t/o years later .F- hadn=t done anything to eliminate any of the /orst
a6uses suffered 6y the more than A?& million chic0ens 0illed for its 6uc0ets each year# On Panuary ,
%&&) P7TA called for an international 6oycott of .F-#
-ele6rity Support
From ay!atch 6a6e Pamela Anderson to 8is 8oliness the 2alai 9ama nota6les from all /al0s of life
have spo0en out against .F-=s cruelty#
Undercover +nvestigations
.F-=s suppliers /orld/ide have 6een documented a6using animals in sadistic and even illegal
/ays# Eor0ers at a .F- :Supplier of the Mear; slaughterhouse /ere documented tearing the
heads off live animals spitting to6acco into their eyes and spray(painting their faces#
-onsumer(Fraud 9a/suit
P7TA filed a la/suit in Puly %&&) accusing .F- of false advertising "6ased on false
information a6out its treatment of animals disseminated through its Ee6 site telephone
hotline and ne/s releases$ and forced .F- to stop overtly lying# Unfortunately .F- did not
agree to improve chic0en /elfare and continues to mislead its customers and the media a6out
ho/ its animals are treated#
Protests
P7TA activists have staged more than '%&&& protests in front of .F-s since the launch of the
campaign in %&&)# They=ve cra/led into cages tied on 6i0inis in the free5ing cold /al0ed
around on stilts and :slaughtered; and :6urned; an effigy of -ol# Sanders#
Resignation of .F-=s Animal Eelfare Advisors
For si< /ee0s in early Fe6ruary %&&? P7TA held several meetings /ith top .F- e<ecutives
including chief operating officer 8arvey 1ro/nlee and general counsel Scott Toop# +n
e<change for a moratorium on P7TA=s campaign .F- agreed to solicit advice from a panel of
five mutually agreed(upon animal /elfare scientists# The advisors sent their recommendations
to .F- 6ut resigned in frustration after .F- refused to adopt a single one of them# One former
advisor Adele 2ouglass told the Chica"o Tribune that :S.F-T never had any meetings# They
never as0ed any advice and then they touted to the press that they had this animal(/elfare
advisory committee# + felt li0e + /as 6eing used#; 2r# +an 2uncan another former advisor told
the #uelph $ercury that :SpTrogress /as e<tremely slo/ /hich is /hy + resigned# +t /as
al/ays going to 6e happening later# They just put off actually creating standards# U + suspect
that upper management didn=t really thin0 that animal /elfare /as important#; !o/ .F-=s
council consists mostly of its suppliers= e<ecutives#
!egotiations Eith .F- President -heryl 1achelder
+n May %&&) .F- President -heryl 1achelder met /ith P7TA President +ngrid 7# !e/0ir0 at
P7TA=s Girginia headquarters# Although 1achelder /as deeply moved 6y /hat happens to
chic0ens in factory farms and slaughterhouses and pledged to improve conditions for them
.F- reneged on her promises and 1achelder resigned shortly after/ard# P7TA 6elieves that
1achelder resigned 6ecause of her o6jections to .F-=s cruel treatment of chic0ens and
un/illingness to change#
8umane Organi5ations Unite Against .F-
As .F- continues to refuse to eliminate the /orst a6uses suffered 6y the more than A?&
million 6irds slaughtered for its restaurants each year humane organi5ations /orld/ide are
floc0ing together to demand that .F- adopt P7TA=s recommendationsV/hich are the same
recommendations made 6y mem6ers of .F-=s o/n animal /elfare 6oard# Poining P7TA in its
campaign against .F- are The 8umane Society of the United States United Poultry
-oncerns Animal Rights +nternational -ompassion Over .illing Gegan Outreach the
Association of Geterinarians for Animal Rights the Animal Eelfare Trust Farm Sanctuary
Animal Place Sequoia 8umane Society 9a0e Shore Animal Shelter -layton -ounty 8umane
Society Marin 8umane Society and Assisi Animal Foundation just to name a fe/#
P"T! D"C,!R"S :&CT#R; &N C!N!D!
P7TA called off its campaign in -anada after reaching a historic agreement /ith the company
that coordinates purchasing chic0ens for all .F-s in -anada to dramatically reduce the
suffering of the millions of chic0ens 0illed for -anadian .F-s# Most .F-s in -anada are also
introducing a vegan fau<(chic0en option to their menus# P7TADs campaign against .F-
continues in other countries including the United States#

PR#$,"MS F!C"D $; KFC &N &ND&!
A five(foot tall chic0en complete /ith an ensem6le of feathers and 6ea0 ho66led on a pair of
crutches outside .entuc0y Fried -hic0enDs ".F-$ +ndian outlet in 1angalore#
The chic0en /as 6rought 6y P7TA "People for 7thical Treatment of Animals$ activists /ho
carried placards reading WCuit +ndiaW and WStop Playing Fo/lW "a pun on WFoulW$# The chic0en
/as placed at the centre and a peaceful protest /as held against the alleged ill treatment of
6irds in .F-Ds poultry farms# Media persons /ere called to give the demonstration a /ide
coverage "Refer 7<hi6it + for a visual on the protest 6y P7TA activists$#
7<plaining the rationale 6ehind the protest 1ijal Gachcharajani special projects coordinator
of P7TA said WOurs is the land of *andhi# Pust as ,' years 6ac0 our leaders gave a call for
coloni5ers to quit +ndia /e too are saying /e /ill not tolerate cruel multinationals#W
On the ,'st anniversary of the DCuit +ndiaD movement P7TA +ndia /rote a letter to the
Managing 2irector of Tricon Restaurant +nternational the parent company of .F- as0ing
them to close their sole .F- outlet in +ndia#
They got no reply# P7TA activists decided to protest against .F- 6y carrying crippled
chic0en /hich represented the 6irds suffering in the .F-Ds farms# P7TA claimed that after
t/o years of intensive campaigning to increase animal /elfare standards in poultry farms
other foreign fast food restaurants operating in +ndia li0e Mc2onaldDs and 1urger .ing had
improved the treatment of animals specially raised and slaughtered for food#
Only .F- had not acted# Though P7TA had organi5ed other protests earlier the crippled
chic0en campaign 6ecame the precursor for more intensive protests# P7TADs /as one of the
many sho/s of protest against .F-Ds +ndian outlet# The regulatory authorities found that
.F-Ds chic0ens did not adhere to the Prevention of Food Adulteration Act 'B?># -hic0ens
contained nearly three times more monosodium glutamate "popularly 0no/n as MS* a
flavor enhancing ingredient$ as allo/ed 6y the Act# Since the late 'BB&s .F- faced severe
protests 6y People for 7thical Treatment of Animals "P7TA$ an animal rights protection
organi5ation# P7TA accused .F- of cruelty to/ards chic0ens and released a video tape
sho/ing the ill(treatment of 6irds in .F-Ds poultry farms# 8o/ever undeterred 6y the protests
6y P7TA and other animal rights organi5ations .F- planned a massive e<pansion program in
+ndia#
.F- entered +ndia in 'BB? 6ut a controversy surrounding the levels of MS* in its
preparations and su6sequent protests from farmersD groups and animal rights activists spelt
trou6le for the company# Ultimately the company had to shut all 6ut one outlet in the country#
Only recently in %&&) it made a quiet re(entry into the +ndian mar0et# Then came up /ith the
strategies and menu that is desira6le 6y the +ndian consumers# And since %&&) it is e<panding
successfully its 6usiness in +ndia#
.F- has not understood the significance of cultural economic regulatory and ecological
issues /hile esta6lishing 6usiness in a country li0e +ndia #
X.F- has not appreciated the need for protecting animal rights in developed and developing
countries li0e +ndia#
X They have not understood the importance of ethics in doing 6usiness#
XThey have not e<amine the reasons for protests of P7TA#
+!T7RG+7E OF TRA!77 AT .F-S7-#'A!O+2A3(
TRA!77=S !AM7 )< MR* P!NK!9 C+!%D+!R;
H 87 SA+2 T8AT E87! .F- 7!T7R72 +! +!2+A +! 'BB? +T EAS !OT
SU--7SSSFU9 17-AUS7 T87M 8AG7 !OT A2272 T87 F9AGOUR7S A!2 SP+-7S
+! T87 .F- M7!U E8+-8 +!2+A! P7OP97 9+.7#
H T87 MA+! R7ASO! OF .F- FA+9UR7 EAS T8AT .F- EAS TAR*7TT+!*
8+*87R -9ASS +!-OM7 *ROUP +! +!2+A TO 8AG7 T87 -OM7P7T+T+G7
A2GA!TA*7 E+T8 T87 9O-A9 Y -8+-.7! 28A1A EA9AS=#
H 1UT 2U7 TO PROT7ST OF +!2+A! FARM7RS A!2 *OG7R!M7!T PR7SSUR7 +T
8A2 TO 97AG7 +!2+A#
H 1UT A*A+! +! %&&) +T -AM7 1A-. +!TO +!2+A E+T8 T87 STRAT7*+7S 9+.7
TAR*7TT+!* 8+*87R +!-OM7 *ROUP 97G79#
H 1UT AT T87 SAM7 T+M7 PROG+2+!* M7!U E8+-8 -A! 17 AFFOR272 1M T87
M+2297 +!-OM7 *ROUP 97G79 9+.7 .F- M+!+ 1UR*7R AT RS#%? A!2 -AM7
UP E+T8 M7!U 9+.7 8OT -R+SPM -8+-.7! E8+-8 -O!TA+!S +!2+A! SP+-7S
E8+-8 +!2+A! P7OP97 9+.7#
H 1UT !OE T87M AR7 A287R+!* T87 RU97S OF FOO2 -ORPORAT+O! OF
+!2+A A!2 P7TA A!2 7ZPA!2+!* 1US+!7SS SU--7SSFU99M#
C%,T%R!, F!CT#RS &N&T&!,,; &N &ND&! T+!T '# !'!&NST KFCCs
#R&'&N!, R"C&P"
H .F- is perceived as a restaurant serving only chic0en(+ndian families o6viously /anted
more varieties#
H 1elieved to 6e e<pensive #
H Eanted to position itself as a :family restaurant; not as a :teenage hangout;
H Am6ience /as missing#
H Perceived differences in eating ha6its#
H Tried to target the vegetarian segment# 8o/ever this 6ac0fired as in +ndia having veg food
coo0ed in a non veg 0itchen doesn=t come out /ell /ith the vegetarian segment#
"T+&C!, F!CT#RS)
The regulatory authorities found that .F-=s chic0en did not adhere to the prevention of FOO2
A2U9TRAT+O! A-T 'B?># -hic0ens contained nearly three times more monosodium
glutamate "popularly 0no/n as MS* a flavor enhancing ingredients$ as follo/ed 6y the act#
Since the late 'BB&=s .F- faced severe protests 6y people for 7thical Treatment of Animals
"P7TA$ an animal rights protection organi5ation# P7TA accused .F- of cruelty to/ards
chic0ens and released a video tape sho/ing the ill(treatment of 6irds in .F-=s poultry farms#
KFC R"<"NTR; &NT# &ND&!N M!RK"T
.F- entered +ndia in 'BB? 6ut a controversy surrounding the levels of MS* in its
preparations and su6sequent protests from farmersD groups and animal rights activists spelt
trou6le for the company# Ultimately the company had to shut all 6ut one outlet in the country#
Only recently in %&&) it made a quiet re(entry into the +ndian mar0et# Then it came up /ith the
strategies and menu that /as desira6le 6y the +ndian consumers# And since %&&) it is
e<panding successfully its 6usiness in +ndia#
At the same time it provided menu items /hich can 6e afforded 6y the middle income group
level li0e .F-=s Mini 1urger for Rs# %? 8ot -rispy -hic0en /hich contained +ndian spices
that /ere li0ed 6y +ndian=s# !o/ they are adhering to the rules of Food -orporation of +ndia
and P7TA helping them to e<pand 6usiness successfully# The company aimed at targeting
cosmopolitan cities li0e -handigarh Pune .ol0ata -hennai and 8ydera6ad /here mall
culture is fast developing# Pepsi-o also decided to concentrate on the e<pansion of .F- since
its other 6rand WPi55a 8utW had successfully esta6lished a strong foothold in +ndia# The
e<pansion drive /ould ta0e Pi55a 8ut across )) citiesJ .F- /ill set foot in .ol0ata and
8ydera6ad after having forayed into Pune recently#
Ms Sharanita .es/ani 2irector .F- Mar0eting says that .F- also operates on the
franchisee model# WEe e<pect to scale up to '%(') restaurants 6y the end of this year from si<
at present# .F- is loo0ing at e<tending its presence across +ndia to create a national footprint#W
1oth Pi55a 8ut and .F- have made various alterations to their menus in +ndia to attract more
footfalls# +t has developed a range of pure vegetarian food# All the vegetarian products are
stored coo0ed and served separately 6y a separate cre/ distinctly identified 6y their colour(
coded uniform says Ms .es/ani#
.F- has around '&%A, units /orld/ide follo/ed 6y Taco 1ell /ith @''' restaurant units
/orld over# 9ong Pohn SilverDs is AmericaDs largest quic0(service seafood chain /ith more
than '%&& units /orld/ide# .F- caters to nearly @ million customers in more than @A
countries through ''))A outlets# The company 6elieves that +ndia o/ing to its si5e and
gro/ing aspirations of an up/ardly mo6ile middle class is a critical mar0et in its overall
scheme of things# MumN is a fortune ?&& corporation that operates or licenses Taco 1ell .F-
Pi55a 8ut and 9ong Pohn Silver=s restaurants /orld/ide#
MUMN 1rands +nc# is committed to conducting its 6usiness in an ethical legal and socially
responsi6le manner# To encourage compliance /ith all legal requirements and ethical 6usiness
practices Mum has esta6lished this Supplier -ode of -onduct for MumDs U#S# suppliers#
MumN has adopted 6est operational practices to ensure high customer orientation /hich is
demonstrated through -#8#A#M#P#S# This is the um6rella operation programme for measuring
and re/arding an employeeDs performance against customer standards# -#8#A#M#P#S stands
for3 cleanliness hospitality accuracy maintenance product quality and speed# .F-=s
challenge here is to ma0e sure to meet our quality standards in terms of food facilities people
and the overall e<perience# .F- /ant to ensure that the customers e<perience in +ndia is no
different from a Pi55a 8ut outlet any/here else in the /orld#
.F- caters to nearly @ million customers in more than @A countries through ''))A outlets#
The company 6elieves that +ndia o/ing to its si5e and gro/ing aspirations of an up/ardly
mo6ile middle class is a critical mar0et in its overall scheme of things# Stringent cleaning
standards ensure that all ta6les chairs highchairs and trays are sanitised several times each
hour# Such meticulous attention to cleanliness e<tends 6eyond the lo66y and 0itchen to even
the pavement and immediate areas outside the restaurant#
2id you 0no/ that every year Rs# ?&&&& crore /orth of food produce is /asted in +ndiaF This
is mainly 6ecause of the lac0 of proper infrastructure for storage and transportation under
controlled conditions# .F- is committed to providing quality products /hile supporting other
+ndian 6usinesses# And so .F- spent a fe/ years setting up a unique Supply -hain even
6efore they opened their first restaurant in +ndia#
R":&:&N' T+" M!RK"T !FT"R R"<"NTR;
-U9TURA9 FA-TORS -O!TR+1UT+!* TO .F-=s
:SU--7SS +! +!2+A
H Reducing the psychic distance 6y handling over of operations to local people so that
customers could relate to them more easily#
H A6le to adapt to cultural differences tastes and preferences# For e<ample 0eeping in mind the
+ndian tastes 6uds .F- launched a fierier :R+!*7R 1UR*7R;#
H *ot an edge since chic0en is a staple dish and is ta0en more frequently in Asian countries#
H More accustomed to ta0e out food over the counter#
H The target customer of .F- Supper middle and a6oveT are health conscious and hence to
cater to their interest .entuc0y fried -hic0en changed its name to .F-#
H Price sensitivity of the economy drove .F- to introduce menus that /ere easy on the
consumer=s poc0et#
1PDs o( Marketing
At this point the mar0eting mi< is put together3
'# Product
Anything that can 6e offered to a mar0et to satisfy a /ant or need# .F-Ds specialty is fried
chic0en served in various forms# .F-Ds primary product is pressure(fried pieces of chic0en
made /ith the original recipe# The other chic0en offering e<tra crispy is made using a garlic
marinade and dou6le dipping the chic0en in flour 6efore deep frying in a standard industrial
0itchen type machine# +t is important thing to remem6er /hen offering menu items to
customers is that they have a choice they have a huge num6er of /ays of spending their
money and places to spend it#
Therefore .F-Ds places considera6le emphasis on developing a menu /hich customers /ant#
Mar0et research esta6lishes e<actly /hat this is#
8o/ever customer=s requirements change over time# Ehat is
fashiona6le and attractive today may 6e discarded tomorro/# Mar0eting continuously monitors
customer=s preferences# +n order to meet these changes .F- has introduced and phased out old
ones# And /ill continue to do so# -are is ta0en not to adversely affect the sale of one choice 6y
introducing another choice /hich /ill canni6ali5e the sale from the e<isting one" trade
off$#.F- 0no/s that items on its menu /ill vary in popularity# Their a6ility to generate profits
/ill vary at different points in their life cycle# Products go through a life cycle /hich is
illustrated 6elo/3
The type of mar0eting ta0en and amount invested /ill 6e different depending upon the stage
product is reached# For e<ample launching a ne/ product involves automatically television
and other advertising support# At any time company /ill have a portfolio of products each is in
different stage of its life cycle# Some of .F-Ds option gro/ing tremendously 6ut some 8alal
products is in its maturity stage#
Segmentation
'eographic segmentation3
.F- has outlets internationally and sells its products according to geographic needs of the
customer# +n +ndia .F- focuses ho/ geographically its customers demand different products#
+n north +ndia -hic0en is the main selling product /hile in the south the Geg# items sell more
than the chic0en#
Demographic Segmentation
+n demographic segmentation the mar0et is divided into groups 6ased on an age gender
family si5e income occupation religion race and nationality# .F- divides the mar0et on
demographic 6asis in this /ay3
H Age is 6et/een ,(,?#
H *ender is 6oth males and females#
H Family si5e is '(% )(> ?[
H +ncome is Rs '&&&& n a6ove#
Psychographic segmentation
2ividing a mar0et into different groups 6ased on social class lifestyle or personality
characteristics is called psychographic segmentation#
.F- divides mar0et on the 6asis of psychographic varia6les li0e
Social class( Upper and Middle class#
9ifestyle is not specific#
Personality is am6itious and authoritarian
.* Price
Price is the any amount of money that customers have to pay /hile purchasing the
product# More 6roadly price is the sum of all the values that consumers e<change
for 6enefits of having or using the product or services The customer=s perception of
value is an important determinant of the price charged# -ustomers dra/ their o/n
mental picture of /hat a product is /orth# A product is more than a physical item it
also has psychological connotations for the customer#
The danger of using lo/ price as a mar0eting tool is that the customer may feel that
quality is 6eing compromised# +t is important /hen deciding on price to 6e fully a/are
of the 6rands and integrity# A further consequence of price reduction is that competitors
match prices resulting in no e<tra demand # This means the profit margin has 6een
reduced /ithout increasing sales#
Demographic Factors
Age3 *enerally there is no age limit focus 6y the .F-# The target and focus is on each
and every individual in a society# .F- finds its largest demographic in the young of
any society#
*ender3 1oth male and females are focused 6y .F- gender does not play any role
here#
8ousehold Si5e3 This plays a vital role in the demographic factor of the .F-# *enerally
they target /hole families rather than single persons# This 6eing the reason for their
Family Meals /hich are 6asically 6undled items served at a nominally cheaper rate#
"conomic Factor
+ncome3 +ncome is an important 0ey factor for .F-# This factor decides /hich class is
to 6e targeted# +n the early rise of .F- they focused on the upper class 6ut slo/ly are
introducing economy meals that attract the lo/er to middle classes#
-onsumption 1ehavior3 +t estimates the 6ehavior of people their li0ing and disli0ing
to/ards the pricing of the products#
Pricing Strategy
Mar0et s0imming3 .F- glo6ally enters the mar0et using mar0et s0imming# Their
products are priced high and target the middle to upper class people# *radually they
tric0le do/n the prices focusing on the middle to lo/er class people to penetrate 6oth
sides of the mar0et#
H -ost 1ased J .F- price their product 0eeping different points in vie/# They adopt the
cost 6ase price strategy# Pricing of the product includes the govt# ta< and e<cise duty
and then comes the final stage of determine the price of their product# The products are
6it high priced according the mar0et segment and it is also compara6le to the standard
of their product# +n the cost 6ased method /e include the varia6le and fi<ed cost#
E* Promotion
Promotion is the method used to inform and educate the chosen target audience a6out the
organi5ation and its products# Using all the resources of promotion3
H Advertising
H Sales Promotion
H Pu6lic Relations
H 7vents and 7<periences
H -oupons 2iscounts and 1undled pac0ages
H An organi5ation finds most of its meanings and survival through promotion#
At .F- Promotion is the main tool to 6ring all chic0en lovers attention to/ards its delicious
one(of(a(0ind product the Fried -hic0en#
The promotions aspect of the mar0eting mi< covers all mar0eting communications# The
methods include advertising sometimes 0no/n as Ya6ove the line= activity# Advertisements
conducted on T#G# Radio ne/s paper on /e6site etc#
Ehat distinguishes advertising from other mar0eting communications is that media o/ners are
paid 6efore the advertiser can ta0e space in the medium# Other promotional methods include
sales promotions telemar0eting e<hi6itions seminars loyalty schemes door drops
demonstrations etc# The s0ill in mar0eting communications is to develop a campaign /hich
uses several of these methods in a /ay that provides the most effective results#
For e<ample TG advertising ma0es people a/are of a food item and press advertising
provides more detail# This may 6e supported 6y in store promotions to get people to try the
product and a collect a6le promotional device to encourage them to 0eep 6uying the item
support each other
and do not confuse customers# A thorough understanding of /hat the 6rand represents is the
0ey to a consistent message the purpose of most mar0eting communications is to move the
target audience to some type of action# This may 6e to 6uy the product visit a restaurant and
recommend the choice to a friend or increase purchase of the menu item# .ey O6jective of
advertisement is to ma0e people a/are of an item feel positive a6out it and remem6er it#
The more .F- 0no/s a6out the people it is serving the more it is a6le to communicate
messages /hich appeal to them# Messages should gain customers= attention and 0eep their
interest# The ne<t stage is to get them to /ant /hat is offered# Sho/ing the 6enefits /hich they
/ill o6tain 6y ta0ing action are usually sufficient the right message must 6e targeted to the
right audience#
For e<ample to reach a single professional /oman /ith income a6ove a certain level it may
6e 6etter to ta0e an advertisement in -osmopolitan than Eoman 7ra# To advertise to mothers
/ith children it may 6e more effective to ta0e advertising space in cinemas during 2isney
films#
The right media depends on /ho the vie/ers readers or listeners are and ho/ closely they
resem6le the target audience#
Advertising
The logo of the smiling -olonel is pro6a6ly one of the most recogni5ed faces in the /orld and
instantly 6rings the image of fried chic0en to one=s mind# .F- and its ne/ company jingle
:finger lici0in good; is a frequent announcement on televisions 6ill6oards flyers and radio#
The concept of sho/ing a normal customer deeply involved in devouring his piece of chic0en
usually turns on the drool factory in every6ody=s mouth and ma0es them rush to the nearest
.F-# +n +ndia /here chic0en lovers are plenty a6ound these ads featuring normal people
connect instantly and create a rush at their outlets# Using the follo/ing methods .F- spreads
its message of finger lic0ing good chic0en#
Using Reminder ad6ertisements .F- stimulates repeat purchases of its products# The
company anthem :finger lin0in good; is just a /a0e up call to the consumer to remind them
ho/ good they felt the last time they ate .F- chic0en#
Sponsorship is another tool to strengthen an organi5ations image# .F- is currently the sponsor
of the Australian -ric0et Team and the colonel logo can 6e seen on their uniforms throughout
the matches#
Sales Promotion
H .F- uses the follo/ing tools to further enhance its sales#
H Premiums
H 7<hi6its
H -oupons
H 7ntertainment
H All .F- outlets offer its customers /ith various forms of incentives to 6uy its -hic0en#
Using coupons that one can acquire after spending a particular amount over a period of
fi<ed time customers can enjoy the 6enefits of free meals or free add(ons# Additionally
they provide meal vouchers and e<citing offers in their print ads /hich the customer
must cut and 6ring along#
1* Place
Place in the mar0eting mi< is not just a6out the physical location or distri6ution points for
products# +t encompasses the management of range of processes involved in 6ringing products
to the end consumer#
+n 2elhi .F- has open its shop /here middle and higher class family teenagers /ill come and
enjoy the food#
T!R'"T !R"!S
:Free home Deli6ery; strategy Q They provide free home delivery to offices I homes
"select countries$#
!ccessibility Q Resulting in several outlets to cater to the needs of people in I around
the city#
+ectic li(estyle Q 2ue to the hectic lifestyle of office goings individuals the fast food
concept saves time of preparing food and gives the customer a full meal quic0ly#
"conomically con6enient Q The pricing appeals to the many classes of a society#
T!R'"T M!RK"T
-* ,ocation
8ectic lifestyle of individuals Q giving them more time at /or0 and less stress a6out
/aiting for food#-ommerciali5ation of ur6an and su6(ur6an mar0ets leading to more
mid(sector people that find high(end eating joints very to e<pensive#Mid(sector people
are al/ays loo0ing for change /hich .F- provides in their range of fast food#Cuality
conscious Q people in ur6an areas are more conscious a6out the quality of food than
rural areas#Ur6an areas are more populated therefore they help /ith attracting higher
revenues
.* Placement o( outlets
2ue to .F- placing itself close to schools colleges cinemas and mar0ets /hich are
mostly populated 6y the young and those /ho are in a hurry .F- enjoys a large
num6er of footfalls every day# +n addition they also have outlets close to non(
vegetarians "mostly Muslim populated areas$#
PorterCs Fi6e Forces Model(KFC
"ntry
For the current +ndian mar0et for fast food it is not difficult for a fast food restaurant to enter
the mar0et# 8o/ever it /ould 6e e<tremely difficult to ta0e over already running major fast
food chainsD dominancy in +ndia or even ma0e a significant amount of profit# Ehile there are
enough people in ur6an +ndia for any restaurant to survive .F- holds the first(mover
advantage into the Dnon(veg food specialty food segmentD that gives them free reputation#
-ustomers especially children /ho are used to going to .F- as a treat or re/ard from their
parents or grandparents are not going to /ant to go to other restaurants they=ve never heard
of# The 6rand name is already esta6lished# Also there is already a large variety in the
numerous /estern(style dining places in +ndia such as
Mc2onald=s Pi55a 8ut 2ominoDs and Su6/ay and any ne/ fast(food entrants /ould just 6e
presenting something very similar to /hat=s already there# Ehile small
!eigh6orhood restaurants generally have lo/ 6arriers to entry these are the 6arriers to entry
for similar restaurant 6usinesses to enter the fast(food chain mar0et.
$uyerFSupplier $argaining Po7er
The customers of .F- especially as individual 6uyers have almost no 6argaining po/er
6ecause if only one customer threatens to no longer eat at .F- the store is not going to lo/er
its price 6ecause the cost of losing one customer is not very great# The suppliers li0e the
6uyers have very little 6argaining po/er#
+n terms of food .F- upon its move into +ndia urged many of its U#S# suppliers to also
e<tend 6ranches into +ndia# .F- also 6egan helping local suppliers 6y giving them
technological support to improve their products# This is a 6rilliant strategy 6ecause the
supplies that .F- /ould other/ise need to import from the
U#S# can no/ 6e o6tained domestically and if the U#S# suppliers decide to raise their prices
.F- can easily s/itch to the local suppliers# This gives us a 6rilliant strategy# Eith this
strategy .F- created competition among its suppliers lo/ering the supplier 6argaining
po/er# +n terms of human resources la6or cost is e<tremely lo/ 6ecause the supply of non(
s0illed /or0ers great e<ceeds the demand for them# Eith so little 6uyer and supplier
6argaining po/ers .F- is a6le to have a very tight control over its prices and e<penditures#
Substitutes and Complements
As mentioned a6ove there are a fe/ major competitors in the fast(food industry in +ndia for
.F- namely Mc2onald=s Pi55a 8ut 2ominoDs and Su6/ay# The su6stitute products in this
case /ould 6e 6urgers pi55a and sand/iches# Though they are competitors their primary
products differ greatly from each other in that they sell chic0en 6urgers and fries pi55as and
sand/iches respectively# Traditional +ndian dining home(coo0ed meals and grocery stores
/ith ready(to(eat foods are also su6stitutes as families could choose any one of these over
fast food for a meal# These su6stitutes are definitely considered healthy as compared to the
fast food chains# 7ven foods from street vendors count as su6stitute goods#
Ehile other fast foods serve as su6stitute to .F- they can also serve as complements for fast
foods as a /hole# +f the general price of fast foods goes up .F-=s price rises as /ell and the
same can 6e said of the quantity sold of these products /hich ma0e them complements to
each other# .F- also sets up stores located near popular tourist attractions so tic0ets to these
tourist spots are also complementary goods 6ecause the more people tour these attractions the
more customers .F- /ill get#
Ri6alry
Unli0e /hat one /ould e<pect .F- has little rivalry /ith similar fast(food chains in +ndia#
The primary reason is that their core products are different as in they sell different 0inds of
fast foods /ith very different tastes and styles# For e<ample if .F- raised its price for
chic0en 6y a small amount +ndian chic0en lovers /ho may not 6e as accepting to pi55as
"many +ndian people strongly disli0e the taste of cheese$ are not going to s/itch to Pi55a 8ut
just 6ecause the price for .F- increased# +n addition to that these restaurants have such
different target customers that the fluctuation of price for one restaurant is not going to affect
the others# For e<ample a full meal at .F- ranges a6out Rs# '&& /hereas a full meal at Pi55a
8ut can cost over Rs# )&&# The drastic difference in price assures no price competition
6et/een these restaurants#
PR#M#T&#N '##D&"S




P"ST", !N!,;S&S
Political )
The operations of .F- are affected 6y the government policies on the regulations of fast food
operation# -urrently government are controlling the mar0eting of fast food restaurant 6ecause
of health concern such as cardiovascular and cholesterol issue and o6esity among the young
and children in the country# *overnments also control the license given for open the fast food
restaurant and other 6usiness regulation need to follo/ such as for a franchise 6usiness# *ood
relationship /ith government in giving mutual 6enefits such as employment and ta< is a must
for the company to succeed in any foreign mar0et#
"conomic)
Though for last ' year their /as economic slo/do/n all across the glo6e 6ut the sales of .F-
and other fast food chains did not slo/ do/n to that e<tent that of other sectors # The *2P
"Purchasing Po/er Parity$ is estimated at %#B,? trillion U#S# dollars in the year %&'&# The
*2P( per -apita "PPP$ /as %@&& U#S# dollars as estimated in %&&A# The *2P( real gro/th rate
in %&&@ /as A#@O# +ndia has the third highest *2P in terms of purchasing po/er parity just
ahead Papan and 6ehind U#S# and -hina# Foreign direct investment rose in the fiscal year
ended March )' %&&@ to a6out K', 6illion from just K?#? 6illion a year earlier# There is a
continuous gro/th in per capita incomeJ +ndia=s per capita income is e<pected to reach '&&&
dollars 6y the end of %&&@(&A from @B@ dollars in %&&,(&@# This /ill lead to higher 6uying
po/er in the 8ands of the +ndian consumers# So ta0ing into considerations the economic
factors of +ndia .F- is safe# The only danger to it /ill 6e if there is a terrorist attac0 in +ndia
and the victim is .F-#
Socio cultural)
+ndia is the second most populous nation in the /orld /ith an appro<imate population of over
'#'6illion people# This population is divided in the follo/ing age structure3 &('> years Q
)'#AO '?(,> years Q ,)#'O and ,? years and a6ove Q ?#'O# There has also 6een a continuous
increase in the consumption of fast food in +ndia# The social trend to/ard fast good
consumption is changing and +ndia has seen an increase of B&O fast food consumption from
the year %&&%( %&&@# This increase is far greater than the increase in the 1R+- nations of
1ra5il "%& per cent$ Russia "?& per cent$ and -hina "almost ,& per cent$# Thus this sho/s a
positive trend for fast food industries in +ndia#
Technological)
The +ndian fast food +ndustry is heating up /ith a lot of foreign players entering the +ndian
mar0et# The technological 0no/ho/ and e<pertise /ill also enter the +ndian mar0et /ith an
increase in competition# Eith the lo/er rates and increase technology the fast food counters
are attracting youth 6y giving them attractive deals# For e#g# .F- and 2omino=s pi55a# For a
fast food restaurant technology does not give a very high impact on the company and it is not
a significant macro environment varia6les# 8o/ever .F- should 6e loo0ing to competitors
innovation and improve itself in term of integrating technology in managing its operation# For
e<ample in inventory system supply chain management system to manage its supply easy
payment and ordering systems for its customers and /ireless internet technology#
+mplementation of technology can ma0e the management more effective and cost saving in the
long term# This /ill also ma0e customer happy if cost savings results in price reduction or
promotional campaign discount /hich /ill 6enefits them from time to time#
"n6ironmental)
As one of /orld largest consumer of 6eef potatoes and chic0en .F- al/ays had 6een critics
for /orld environmentalist# This is 6ecause high consumption of 6eef causing the green house
effect 6y methane gasses coming from the co/=s ranch# 9arge(scale plantation has effect the
environment and lost of green forest opening for plantation activities# Gegetarian
environmentalist critici5es the fast(food giant for cruelty to animals and slaughtering# +n
America once .F- /ant to introduce /hale 6urger causing uproar 6ecause /hales are
endangered species# 1efore using paper pac0aging .F- once had 6een critici5ed for 6eing
insensitive to pollution 6ecause of using ne 6ased pac0aging for its food products# +magine
millions of people purchase from fast food operator and ho/ is the impact to /orld
environment 6y thro/ing a/ay those hard to recycle pac0aging# Our /orld is getting concern
on environment issue and 6usiness operating here should not just care for profit 6ut careful
usage of /orld resources for sustaina6le development and care for environment safety and
health for our future generation# -ritics and concern from all pu6lic or activist should 6e
revie/ and support if necessary to ensure /e play our social responsi6ility 6etter#
,egal (actors)
As a certified fast food operator there are many regulations and procedures that .F- should
follo/# For e<ample is the 8alal certification that 6ecomes a concern to Muslim consumers#
.F- should protect its integrity and consumer confidence 6y ensuring all materials and
process
are as claimed or must follo/ed#
Other legal requirement that the 6usiness o/ner should follo/ as stipulated in la/s are such as
operating hours 6usiness registration ta< requirement la6or and employment la/s and quality
I environment certification "such as +SO$ in /hich the outlet has 6een certified# The legal
requirement is important 6ecause the offenders /ill 6e fined or have their 6usiness prohi6ited #
$C' M!TR&A
4F5 I ndia > )5( Mat ri !
#ris$y
Boneless
#%i&'en
"r(s%ers
#%i&'en
B(&'et
Veg
%ali
7
%oston Consu*t-n'3 #roup /%C#0 M-tri8
=uestion Mark)
-urrently .F- have launched a ne/ product in the mar0et# They have also tried to come into
the 6everages mar0et 6y launching its ne/ 6rand of sha0es called .RUS87RS# As it is a
fairly
ne/ product it comes in the category of the Cuestion Mar0 in the 1-* Matri<# +t has a lo/
mar0et share thus 6rings lo/ revenue# .F- is advertising a lot to populari5e this product so
there is a lot of e<penditure on it# This product is individually not 6ringing any profits and is a
cash drain for the company# -ompany may decide to completely remove this product from the
mar0et if it does not do /ell soon and start 6ringing in revenue#
D#')
.F-=s Geg Thali comes under this category# Although company had launched this product
much earlier it has still failed to 6ecome a success# As .F- is 0no/n more for its non(veg
food
this also results in lo/ demand for this item# +t has a lo/ mar0et share and although lo/ on
e<penditure "as company does not spend on its promotion$ it does not 6ring in much revenue
as
demand is lo/# The product is mostly -AS8 !7UTRA9#
C!S+ C#4)
.F-=s -hic0en 1uc0et is the most successful product of the company# +t has the highest
mar0et
share amongst all the other products# +t has good demand in the mar0et and 6rings in huge
sales
revenue# The development and other e<penses are also lo/ and thus this product is a -AS8
S+RP9US for the company#
ST!R)
The star product of the company is its crispy 1oneless -hic0en# +t has a high mar0et share and
6rings in high revenue# 1ut it also has high developmental e<penditure involved# The profit
therefore is generally not very high 6rought in 6y this product# This product is -AS8
!7UTRA9 for the firm# The company is trying ma0e this product a co/ as /ell 6y reducing
the e<penditure
:"'"T!R&!N #FF"R&N' $; KFC
.F- is synonymous /ith chic0en# +t has to 6e 6ecause chic0en is its flagship product# The
latest they have on offer is the marinated hot and crispy chic0en that is Wcrisp and crunchy on
the outside and soft and juicy on the insideW# +t gives you a regular Pepsi /ith this at nothing
more than just Rs# )B# 1ut ma0e no mista0e /hile this is a rage across the /orld and in our
very o/n 1angalore .F- has made sure one other thing3 it doesnDt /ant to alienate the
vegetarian community Wthat gave 6irth to the vegetarian menuW# +t means you can 6e veg and
yet 6e at .F-# .F- offers a /ide range of vegetarian products such as the tangy lip(smac0ing
paneer ti00a /rap DnD roll the veg de(lite 6urger and the veg crispy 6urger# There are munchies
such as the crisp golden veg fingers and crunchy golden fries served /ith tangy sauces# +f you
are veg and loo0ing for a meal you can com6ine the veg fingers /ith steaming peppery rice
and a spice curry# The mayonnaise and sauces donDt have egg in them# Sharanita .es/ani
2irector .F- Mar0eting says the vegetarian menu in +ndia came a6out /hen .F- found the
country had a6out )? per cent vegetarians and in metros such as 2elhi and Mum6ai almost ?&
per cent# The non(vegetarian is the o6vious target customer 6ecause as Ms# Sharanita points
out 1angalore and the rest of south +ndia have over @& per cent non(vegetarians# 1ut she also
o6serves that chic0en is .F-Ds strength# .F-Ds vegetarian menu is almost e<clusive to +ndia
and is the most e<tensive# Most countries either do not have a vegetarian menu and some
/hich do have a 6urger at the most# W-ontrary to affecting chic0en sales the presence of a
vegetarian menu has made the 6rand more relevant to a /ider cross(section of the consumer
society# This is essential as /e gro/ the 6rand across the countryW says Ms# Sharanita# Ehile
the vegetarian menu has a significant presence in +ndia o/ing to the countryDs distinct tastes
and therefore the need to localise .F-Ds chic0en products that are standardised are also
modified in certain regards to suit local tastes# .F- officials say the 5inger 6urger in any part
of the /orld or original recipe chic0en tastes the same as the chic0en products are 6ased on
standard recipes# Ehile this 6rand standard chic0en may taste the same in !e/ Mor0 or
1angalore the sauce or topping is changed# The chic0en strips are served /ith a local sauce or
the sauce of the /rap is changed to local tastes# And as far as +ndia is concerned Ms# Sharanita
says3 WMa0ing itself relevant to local palates .F- launched the /rap as chic0en and paneer
ti00a roll in +ndia#W The .F- menu strategy is to W6alance standardisation and localisationW#
The localisation /or0s in t/o /ays3 to modify a standard chic0en product /ith a different
topping or sauceJ and to have a vegetarian menu /here necessary along /ith the flagship
product chic0en# The localisation e<ercise is underta0en in every country# WThe U#S# and
7uropean mar0ets have a traditional .F- menu 6ased on chic0en 6urgers and /raps /hile
Asian mar0ets li0e +ndia have 6een more e<perimental and adventurous# 8ere they have rice
meals /raps and sides# The change is imperative as Asian tastes can 6e very different from
Eestern onesW Ms# Sharanita o6serves adding that .F- learnt very early the high demand for
vegetarian products in +ndia# .F- has ta0en care to maintain safeguards on the production of
its non(vegetarian products in response to o6servations 6y People For 7thical Treatment of
Animals that chic0en /ere not 6eing treated humanely 6y suppliers# The de6ate has 6een on
for years no/ and animal rights activists have prompted companies to adopt stringent
measures# Pan0aj 1atra 2irector Mar0eting +ndian Su6(-ontinent MumN Restaurants
+nternational o6serves3 W.F- is committed to the /ell 6eing and humane treatment of
chic0ens# Ee require all our suppliers to follo/ /elfare guidelines developed 6y MumN
Restaurants +nternational U#S#A# /ith leading e<perts on their Animal Eelfare Advisory
-ouncil# +n +ndia /e source chic0en from Gen0atesh/ara 8atcheries 9imited "Gen0yDs$
/hich is one of the leading and respected organised players in the poultry farming 6usiness#
They also supply chic0en to several reputed hotel and restaurant chains in the country# Ee
respect the +ndian la/ and our guidelines completely adhere to them#W Ms# Sharanita points out
that /hile .F-Ds 6rand standard products are their strength throughout the /orld .F- /or0s
around the core and gives consumers products /ith a familiar taste especially Wimportant in a
country li0e +ndia that is home to such distinct and different food ha6itsW# .F-Ds challenge as
Ms# Sharanita puts it is to manage a 6randDs mar0et /ith the right degree of fle<i6ility so as to
6e strong in different and varied product mar0ets#
KFC Supply Chain &n &ndia
A Supply -hain is a net/or0 of facilities including ( material flo/ from suppliers and their
WupstreamW suppliers at all levels transformation of materials into semi(finished and finished
products and distri6ution of products to customers and their Wdo/nstreamW customers at all
levels# So ra/ material flo/s as follo/s3 supplier ( manufacturer Q distri6utor Q retailer Q
consumer# +nformation and money flo/s in the reverse direction# The 6alance 6et/een these )
flo/s is /hat a Supply -hain is all a6out#
Ehen there is a 6alance in the finished product ordering the Supply -hain operates at its 6est#
Any major fluctuation in the product ordering pattern causes e<cess 4 fluctuating inventories
shortages4stoc0 outs longer lead times higher transportation and manufacturing costs and
mistrust 6et/een supply chain partners# This is called the 1ull/hip 7ffect# 2epending on the
situation the Supply -hain may include major product elements various suppliers
geographically dispersed activities and 6oth upstream and do/nstream activities# +t is critical
to go 6eyond one=s immediate suppliers and customers to encompass the entire chain since
hidden value often emerges once the entire chain is visuali5ed# For e<ample a diesel engine
manufacturer may 6e a6le to integrate a *PS locator system into its engine control system# +ts
immediate customer a heavy truc0 manufacturer may see no need for this functionality#
8o/ever the do/nstream customer a truc0ing company /ith a large fleet may 6e very
interested in a locator system# Understanding the value to the do/nstream customer is part of
the supply chain management process#
Cold Chain
The -old -hain is necessary to maintain the integrity of food products and retain their
freshness and nutritional value# The -old -hain is an integral part of the Supply -hain# Setting
up the -old -hain involves the transfer of state(of(the(art food processing technology 6y .F-
and its international suppliers to pioneering +ndian entrepreneurs /ho have no/ 6ecome an
integral part of the -old -hain#
The term -old -hain descri6es the net/or0 for the procurement /arehousing transportation
and retailing of food products under controlled temperatures# .F-=s outlets store products to
6e used on a daily 6asis /ithin a temperature range of Q'A\- to >\-# A6out ?%O of the food
products need to 6e stored under these conditions 6efore they are used#
Gital 9in0s in .F-=s -old -hain
All suppliers adhere to +ndian government regulations on food health and hygiene /hile
continuously maintaining .F-Ds recogni5ed standards# As the ingredients move from farms to
processing plants to the restaurant .F-Ds Cuality +nspection Programme "C+P$ carries out
quality chec0s at over %& different points in the -old -hain system# Setting up of the -old
-hain has also ena6led .F- to cut do/n on operational /astage#
8a5ard Analysis -ritical -ontrol Point "8A--P$ is a systematic approach to food safety that
emphasi5es prevention of illness or presence of micro6iological data /ithin .F-=s supplier
facilities and the outlets rather than its detection through inspection# 1ased on 8A--P
guidelines control points and critical control points for all .F- major food processing plants
and outlets in +ndia have 6een identified# The 8A--P verification is done at least t/ice in a
year and certified#
Triya0a Agriculture Q Supplier of +ce6erg 9ettuce
+mplementation of advanced agricultural practices has ena6led Tri0aya to successfully gro/
specialty crops li0e ice6erg lettuce special her6s and many oriental vegeta6les# Farm
infrastructure features3
H A speciali5ed nursery /ith a team of agricultural e<perts#
H 2rip and sprin0ler irrigation in raised farm 6eds /ith fertili5er mi<ing plant#
H Pre(cooling room and a large cold room for post harvest handling#
H Refrigerated truc0 for transportation#
Gista Processed Foods Pvt# 9td#( Supplier of -hic0en I Gegeta6le
A joint venture /ith OS+ +ndustries +nc# USA and .F- +ndia Pvt# 9td# Gista Processed Foods
Pvt# 9td# produces a range of fro5en chic0en and vegeta6le foods# A /orld class infrastructure
at its plant at Taloja Maharashtra has3
H Separate processing lines for chic0en and vegeta6le foods#
H -apa6ility to produce fro5en foods at temperature as lo/ as ()? 2egree -elsius to retain total
freshness#
H +nternational standards procedures and support services#
2ynami< 2airy Q Supplier of -heese
2ynami< has 6rought immense 6enefits to farmers in 1aramati Maharashtra 6y setting up a
net/or0 of mil0 collection centres equipped /ith 6ul0 coolers# 7asy accessi6ility has ena6led
farmers augment their income 6y finding a ne/ mar0et for surplus mil0# The factory has3
H Fully automatic international standard processing facility#
H -apa6ility to convert mil0 into cheese 6utter4ghee s0immed mil0 po/der lactose casein I
/hey protein and humani5ed 6a6y food#
H Stringent quality control measures and continuous Research I 2evelopment
Amrit Food Q Supplier of Mil0 I Mil0 Products" Fro5en 2esserts$
Amrit Food an +SO B&&& company manufactures /idely popular 6rands ( *agan Mil0 and
!andan *hee at its factory at *ha5ia6ad Uttar Pradesh# +ts plant has3
H State(of(the(art fully automatic machinery requiring no human contact /ith product for total
hygiene#
H +nstalled capacity of ,&&& litres per hour for producing homogeni5ed U8T "Ultra 8igh
Temperature$ processed mil0 and mil0 products#
H Strict quality control supported 6y a fully equipped quality control la6oratory#
Radha0rishna Foodland Q 2istri6ution -entre
An integral part of the Radha0rishna *roup Foodland speciali5es in handling large volumes
providing the entire range of services including procurement quality inspection storage
inventory management deliveries data collection recording and reporting# Salient strengths
are3
H A one(stop shop for all distri6ution management services#
H 2ry and cold storage facility to store and transport perisha6le products at temperatures up to (
%% 2egrees -elsius#
H 7ffective process control for minimum distri6ution cost#
.F- ta0e great pride and care to provide customers /ith the 6est food and dining e<perience
in the quic0 service outlet 6usiness# They 6elieve eating sensi6ly com6ined /ith appropriate
e<ercise is the 6est solution for a healthy lifestyle# .F- offers a variety of menu items for
those that /ant lo/er fat and lo/er calorie choices in their menu#
9ocal Sourcing
.F- has al/ays 6een committed to sourcing its requirements from local suppliers and
farmers# This assurance is rooted in the philosophy of our companyDs founder# 8e firmly
6elieved in mutual 6enefits arising from a partnership 6et/een .F- and the local 6usinesses
thus ensuring that .F- commitment to gro/th /as mirrored 6y that of its partners#
+n 0eeping /ith this 6elief .F- has carefully identified local +ndian 6usinesses that ta0e pride
in satisfying customers 6y presenting them /ith the highest quality products# Adherence to
+ndian *overnment regulations on food health and hygiene is no/ a top priority#
.F- +ndia today purchases more than B,O of its products and supplies from +ndian suppliers#
7ven our restaurants are constructed using local architects contractors la6our and ma<imum
local content in materials# The relationship 6et/een .F- and its +ndian suppliers is mutually
6eneficial# As .F- e<pands in +ndia the supplier gets the opportunity to e<pand his 6usiness
has access to the latest in food technology and gets e<posure to advanced agricultural
practices and the a6ility to gro/ or to e<port#
All ra/ materials too have certifications from our suppliers to confirm that they comply /ith
halal requirements# All in all commitment to halal underscores commitment to putting
:-ustomers First; in all that /e do# To ensure that all locally manufactured products conform
to halal requirements /e implement stringent internal controls over ra/ materials
manufacturing and pac0aging# They are e<tremely careful to prevent cross contamination /ith
filth or dangerous contaminants during the storage preparation handling pac0aging and
transport of products# They also adhere to 6est practices to maintain the highest standards of
quality and hygiene#
:alues o( KFC
Focus all our resources to our restaurants operation 6ecause that is
/here /e serve our customers#
Re/ard and respect the contri6utions of each individual at .F-#
1e open honest and direct in our dealings /ith one and other#
-ommit ourselves to the highest standard to the personal and
professional integrity at all times#
7ncourage ne/ and innovative ideas 6ecause these are the 0ey to our
competitive gro/th#
Re/ard result and not simple efforts#KFC
2edicate ourselves to continuous gro/th in sales profit and si5e of organi5ation#
Eor0 as a team#
,&T"R!T%R" R":&"4
The project to study the Mar0et Strategy and -ustomer Perception a6out .F- in +ndia deals
/ith the the revival strategies adopted 6y .F- to reenter +!2+A and to understand the
consumer perception a6out .F- operating in +ndia# This /or0 related to revival mar0eting
strategies used 6y .F- has not 6een e<plored earlier in +ndia so + /ould 6e e<ploring literature
and /e6 regarding the mar0eting strategies adopted 6y .F- #Mr# !aveed +q6al of Pa0istan
from !ational University of modern 9anguage have studied the mar0eting study of .F- /hile
they entered Pa0istan they have also done the SEOT analysis on .F- regarding the customer
perception + /ould 6e ta0ing primary data through questionnaire as to 0no/ the +ndian
customer perception to/ards .F- # +nternet lin0 managementparadise#com has also given a
summary on .F- mar0eting strategy in +ndia# The research methodology used /ould 6e
2escriptive#
C+!PT"R > 1
S4#T !N!,;S&S
S4#T !nalysis
Strengths(&nternal
The 6rand detailed mar0et research to create the right mar0eting mi<#
'ood7ill and reputation3 The company certainly has earned a good name and
reputation 6y its previous products and services in the mar0et# +t is even more
recognised
in other mar0ets outside +ndia /here the company is among the leading fast food
giants#
The 6rand is recognised and trusted in +ndia for its quality products price and customer
service# +t therefore has a good head start and enjoys a good chance of 6ecoming a
leader
in +ndian fast food industry#
"mployee ,oyalty3 7mployee 9oyalty is one of the major strengths of .F-# The
turnover rate in the company is amongst the lo/est in the industry#
Customer ,oyalty3 2espite gain 6y 1oston Mar0et and -hic0(fill A .F-
customer
6ase remained loyal to the .F- 6rand 6ecause of its unique taste# .F- has
continued
to dominate the dinner and ta0e out segment of the +ndustry#
Ranks highest among all chicken restaurant chains for its convenience and
menu
variety# +t generates K'1 revenue each year#
4eaknesses (&nternal
.F- has 6een for around long time therefore they have to 0eep innovating#
.F- /as losing mar0et share as other -hic0en chain increased sales at a faster
rate#
.F- share of -hic0en Segment sales fell from @' percent 'BBB to less than ?,
percent in %&&B a '& (years drop of '? percent#
8uge competition in this segment#
+ndia is still mostly a vegetarian dominated cultured society# South +ndia is
especially
very much so# This may reduce the mar0et share of the company#
.F- has not yet invested much on RI2 and innovating ne/ products for +ndian
Mar0ets# This may lead to failure of their products as they are not in line /ith the
+ndian mind set people taste and preferences and their li0es and disli0es# This may
prove fatal for the company#
#pportunities("8ternal
Ne7 Markets3 *lo6alisation has opened doors for ne/ mar0ets for the company# As
the
developed mar0ets are mostly saturated the developing countries li0e +ndia and -hina
promises a good mar0et and generation of demand in the future# Eith more than @&O
of
the mar0ets in india 6eing une<plored and un organised .F- has a good scope of
e<panding its operations in the country#
Cross Culture3 *enerally there is a good acceptance of American culture of fast food
in
+ndia# People are opening up to fast foods more regularly in their daily lives and not just
0eeping it a once in a month affair# Thus +ndian mindset is fast changing#
,arge ;outh population3 +ndia has a very large share of youth population a compared
to
other countries# More than ,&O of the population is under the age of )&yrs# As the
young
generation are more open to fast foods and demand it more this is a good ne/s for the
company#

Threats ("8ternal
Competition) -ompetitor companies li0e Mc2onalds are fast catching up /ith the
mar0et# Mc2onald=s /ith sales of more than 'B 6illion in 'BBB accounted for '?
percent of the sales of the nation=s top '&& restaurant chains#
Organisations li0e P7TA People for 7thnic Treatment for Animals have given a
6ad
name to the company /hich may prove disastrous to the image of the firm#
-urrently
.F- is under massive attac0s from animal organisations questioning the /ay
.F-=s
suppliers are threatening the chic0en 6efore they got slaughtered# Anti(.F-
campaigns such as the one from P7TA are affecting .F-=s 6rand image in a
negative /ay and result in direct dollar losses as less people are consuming .F-
chic0en
Saturated %S Market3 !o/ .F- cannot rely on just its home mar0et to generate
sales# As the US mar0ets are already saturated and leave no or little scope for
gro/th
company necessarily needs to loo0 at offshore foreign mar0ets to generate sales and
0eep up the profits#
CHAPT"R 4 9
R"S"ARCH M"THDL#Y
R"S"!RC+ M"T+#D#,#';
The information required for conducting the study /ould 6e 6ased on questionnaire# The
questions are designed to 0no/ the customer perception a6out .F-# The analysis /ould 6e
6ased on primary data collected through questionnaires and information o6tained through
internet and journals regarding the revival mar0eting strategy adopted 6y .F- in +ndia#
R"S"!RC+ D"S&'N< Descripti6e
The research design /ould 6e descriptive in nature as + have to find out the underlying
perceptions and 6ehavior of consumers#
R"S"!RC+ !PPR#!C+< =uestionnaire
The questionnaire as0ed from respondents is 6asically of o6jective type# +t is supported 6y
6oth open and close ended questions#
The questionnaire method is used to 0no/ the consumer 6ehavior and perception# The
questions are intended to 0no/ the underlying factors that affect perception to/ards .F- in
+ndia#
R"S"!RC+ M"T+#D#,#';< Sur6ey Method
For achieving the o6jectives of study survey /as conducted# For conducting the survey a
questionnaire /as made# The respondents /ere duly as0ed to fill questionnaires regarding their
perception li0ings and preferences regarding .F-#
Method o( Data Collection)
Primary Data3
The primary data for the project is collected through questionnaire filled 6y the
respondents#
Secondary Data3
The secondary data used in the project has 6een collected from various articles /e6sites I
1oo0s#
S!MP,&N' T"C+N&=%" > Random Sampling
Sample si?e( ,&
Statistical tools( MS(e<cel
C+!PT"R > /
!N!,;S&S !ND
&NT"RPR"T!T&#N
D!T! !N!,;S&S
'# 8o/ many times in a month do you prefer visiting a restaurantF
"a$ >(, times "6$ ,(A times "c$ A('& times "d$ more than '& times
?; ;F @I'I%'
7-F-$
9>A %IM' :B
A>B %IM' :,
B>.1 %IM' 0
M;- %*#? .1 %IM' :
2ata sho/s that B&O of respondents prefer visiting restaurant >(A times a month# This gives an
impact that average footfall in a restaurant is t/ice in a /ee0#
%# Ehich is your most preferred outlet for having foodF
"a$ Mac 2onald=s "6$ .F-
"c$ Eimpey=s "d$ Pi55a 8ut
M#5 $;?#+$ :C
4F5 :B
8IM7DE' ,
7IFF# *U% 9
Survey suggest that .F- and Macdonald are among the most favored restaurant
for having food# .F- 6eing ne/ entrant of the t/o is still favored the most the
reason may 6e its effective mar0eting quality customer approach# Eimpey=s is
least favored among the given options#
)# Ehich of the factor influence you the most to visit .F-F
"a$ Am6ience "6$ Food Cuality
"c$ Food Gariety "d$ -ustomer Service
#M)I?5 :.
F;;$
GU#+I%D ,,
F;;$
@#-I%D A
5U'%;M-
'-@I5 1
??O of the respondents rated food quality as the most influencing factor for having food at
.F-# Then around )AO opted for am6ience as the judging factor and the remaining /ent for
food variety# So cru< can 6e ta0en that good food quality is offered at .F-
># 2o you prefer having vegetarian food at .F-F
"a$ MesUU "6$ !oUU###
D' :,
?; ,0
Survey sho/s that ,%O of people do not prefer having Gegetarian food at .F-#
Respondents are least favored in having vegetarian food at .F-
?# Ehich !on(Gegetarian +tem do you prefer the most at .F-F
"a$ Ringer 1urger "6$ -hic0en 1uc0et
"c$ Snac0ers "d$ 1o< Master
FI?(-
)U-(- .1
5*I54?
)U54% :A
'?#54-'
);H
M#'%- .

The survey sho/s that ,&O of !on(Gegetarian preferring people li0e having
-hic0en 6uc0et and remaining prefer Ringer 1urger# So it can 6e concluded that
Ringer 1urger is the most demanded !on(Gegetarian +tem preferred at .F-
Snac0er is the least preferred 6y customers#
,# Ehich Gegetarian +tem do you prefer the most at .F-F
"a$ Geg Feast "6$ Geg#Thali
"c$ -hana Snac0er
@( F#'% :1
@( %*#+I ,
5*#?#
'?#54-'


Geg Feast is preferred 6y %& out of %) Gegetarian food prefering customers at .F- then the
second preferred item is Geg Thali# -hana Snac0ers is among the least favored in Gegetarian
+tems#
@# Ehat do you thin0 a6out the Pricing hereF
"a$ Gery 7<pensive "6$ 7<pensive 6ut still paya6le
"c$ Reasona6le "d$ -heap
@-D
H7?'I@ /
H7?'I@ )U%
'%I++ 7#D#)+ 9:
-#';?#)+ /
5*#7 1
-ustomer study sho/s that @&O of customers find the pricing e<pensive 6ut still
paya6le /here as '? O find it very e<pensie and the remaining '?O find it
reasona6le # So it can 6e conclude that the pricing done 6y .F- is found
Afforda6le 6y customers and they are /illing to 6uy #
A# 2oes the 9ogo and tagline Finger<lickinC goodG attracts youF
MesUUU# !o UUU
D' 9C
?; .C
The respondents reply sho/s that @?O customers appreciate the 9ogo and Tagline
used 6y .F- #So /e can say .F- has applied there 1rand 7lements /ell in the
mar0et and they have maintained their 6rand communication /ith the customers#
B# Ehat do you thin0 a6out par0ing facility provided .F-F
"a$ *ood "6$ !ormal
"c$ 1ad "d$ !o -omments
(;;$ ,1
?;-M
#+ :,
)#$ 0
?;
5;MM?%' 1
Survey done sho/s that the Par0ing facility provided 6y .F- falls in the corridor of !ormal
to *ood facility provided ?) respondents out of ,& are in the favour of par0ing facility
provided 6y .F- remaining @ thin0 that par0ing facility is 1ad# So /e can conclude that .F-
is providing *ood Par0ing facility to its customers#
'&# Eith /hom do you often go /ithF
"a$ Alone "6$ Friends4-olleagues
"c$ Family "d$ OthersUUUU
#+;?
1
F-I?$'I5;++#(U
' 90
F#MI+
D .:
;%*
-' .
-ustomers visiting .F- prefer most to go /ith their friends4colleagues >@ out of ,& li0e their
friends to accompany them to .F- /here as '% li0e to go /ith their family# So it suggest that
.F- has provided an am6ience that is appreciated 6y 6oth friends and family

C+!PT"R > 2
F&ND&N'S
F&ND&N'S #F T+" ST%D;
From the /hole research + have got follo/ing major findings
First + conclude that teen ager4youngsters are more interested to visit .F-#
According to survey the people /ho are having %('& lacs household income are visiting
.F-# So /e can interpret that the price of .F- is economical#
Most of the people firstly tried lo/ price product 6ecause to have the e<perience#
According to the survey most of the people rate this .F- 6et/een > to ? upon ?#
As per findings people li0e visiting .F-##
As per findings most people say that product of .F-=s fits quite /ell /ith the image of
.F-#
As per findings + also conclude people agree .F- is hygienic and the am6ience is quite
praise /orthy and customer oriented#
C+!PT"R > 0
C#NC,%S&#N
Conclusion
.F- is a multinational fast food chain company that has successfully esta6lished itself
in the +ndian mar0et# +nitially it faced fe/ 7thical pro6lems in +ndia 6ut after re entry
.F- suited very /ell in +ndia mar0et#
The revival strategies li0e A6le to adapt to cultural differences tastes and preferences
Price sensitivity helped .F- to grasp its feet in +ndia#
.F- is slo/ly and steadily moving up the ladder of preference 6y +ndia customers #
The survey done sho/s that .F- is among the t/o most preferred place to have food in
+ndia#
The pricing strategy follo/ed 6y .F- is little e<pensive as compared to its nearest
competitor Mac 2onald=s 6ut customers are /illing to give that money 6ecause of
Cuality and am6ience offered 6y .F-#
.F- is also offering Gegetarian food in there menu of /hich Geg Feast is most
preferred 6y -ustomers#
The Par0ing facility provided 6y .F- "!oida$ is 0eeping its customer happy and
satisfied#
To summari5e this up .F- is adapting 6eautifully and effectively in +ndian mar0et
/hich is supported 6y their customer understanding and emotional rational shared
6et/een .F- and there customers# The only phase4 area they are lac0ing is that they
are living /ith a perception of 6eing one of the 6est !on(Gegetarian outlet so +ndian
customer prefer least to visit .F- for havingGegetarian food +tem#
C+!PT"R > H
S%''"ST&#NS
S%'"SST&#N
Al/ays serve food immediate after its preparation# Other/ise flavor is lost
Things has to 6e al/ays freshJ other/ise overall taste is not that delicious#
-ost of product should 6e lo/ as comparison to other other 6rands#
Advertising should 6e strong so that the customers are attracted to/ards the product#
-oupon system can 6e arranged for the customers so that they can taste or have the
product /ithout any delay#
There should 6e good customer dealing#
#

C+!PT"R > -3
,&M&T!T&#NS
,imitations
Though all the efforts have 6een made for an in(depth study and delineating the correct
picture 6ut in course of doing so there /ere some limitations involved /ith the methodology
adopted#
'# Survey is conducted in some areas of 2elhi region /hich may not 6e large enough to
generali5e on a nation/ide scale#
%# A sample si5e of ,& /as ta0en to fill the questionnaire /hich again might not 6e sufficient
to represent the true picture of perception I attitude#
)# Findings are restricted to geographical 6oundaries of 2elhi state#
># The time constraint did not allo/ed interaction /ith each individual#
?# Respondents can 6e 6ias to/ards some personal li0ing or disli0ing /hich restricts them
giving their fran0 and fair opinion#
,# Since the perception and attitudes varies /ith each individual so this effect has 6een
reflected in the study
"AP"R&"NC" D%R&N' S%MM"R TR!&N&N'
7<perience ma0e life enjoya6le and enriching just as my summer training in
:+MR1 +!T7R!AT+O!A9; proved to 6e an asset for me# + got practical e<posure in various
aspects of mar0eting and + also learnt the dynamics of /or0 related 6ehavior of the people
/or0ing in the organi5ation#
+n the :+MR1 +!T7R!AT+O!A9; the employee have same canteen and same
convenes from this + am very impress and the employee of the +MR1 international is very
helpful for every one# + never face the any type of pro6lem during my training period#
The company provides me all type of facility that + /ant in my training period# + 0no/
that all research /ho are the cliente of company and the all type of research /hich company
do# + sa/ that ho/ analysis and research are done at every point in the company#
Cuality of every research here chec0 at every step and from here + have learnt those
things /hich /ill help me in near future#
C+!PT"R > --
R"F"R"NC"
$&$,&#'R!P+;
///#.F-#com
///#.F-+!2+A#com
///#/i0ipedia#com
///#google#com
///#management paradise#com
///#6ussiness/ee0#com
C+!PT"R >-.
!NN"A%R"
=uestionnaire
'# 8o/ many times in a month do you prefer visiting a restaurantF
"a$ >(, times "6$ ,(A times "c$ A('& times "d$ more than '& times
%# Ehich is your most preferred outlet for having foodF
"a$ Mac 2onald=s "6$ .F-
"c$ Eimpey=s "d$ Pi55a 8ut

)# Ehich of the factor influence you the most to visit .F-F
"a$ Am6ience "6$ Food Cuality
"c$ Food Gariety "d$ -ustomer Service
># 2o you prefer having vegetarian food at .F-F
"a$ MesUU "6$ !oUU###
?# Ehich !on(Gegetarian +tem do you prefer the most at .F-F
"a$ Ringer 1urger "6$ -hic0en 1uc0et
"c$ Snac0ers "d$ 1o< Master
,#Ehich Gegetarian +tem do you prefer the most at .F-F
"a$ Geg Feast "6$ Geg#Thali
"c$ -hana Snac0er
@# Ehat do you thin0 a6out the Pricing hereF
"a$ Gery 7<pensive "6$ 7<pensive 6ut still paya6le
"c$ Reasona6le "d$ -heap
A# 2oes the 9ogo and tagline Finger<lickinC goodG attracts youF
MesUUU# !o UUU
B## Ehat do you thin0 a6out par0ing facility provided 6y .F-F
"a$ *ood "6$ !ormal
"c$ 1ad "d$ !o -omments
'&# Eith /hom do you often go /ithF
"a$ Alone "6$ Friends4-olleagues
"c$ Family "d$ OthersUUUU
'&# Eith /hom do you often go /ithF
"a$ Alone "6$ Friends4-olleagues
"c$ Family "d$ OthersUUUU
"''$ !ame (((
"'%$ *enderVMaleUU FemaleUU##
"')$ Age (((( "a$ 1elo/ %& yrs "6$ %&()& "c$ )&(>& "d$ A6ove >&
"'>$ Occupation (((((( "a$ Student "6$ Professional
"c$ 1usiness "d$ Self 7mployed