KFC

INTRODUCTION
KFC stands for Kentucky Fried Chicken and was started by a budding entrepreneur by the
name Harland Sanders. It is currently a subsidiary of Yum! Brands. KFC Corporation, based
in Louisville, Kentucky, is one of the few brands in America that can boast a rich, decadeslong history of success and innovation. It all started with this one cook who created a soonto-be world-famous recipe more than 70 years ago, a list of secret herbs and spices scratched
out on the back of the door to his kitchen. That cook was Colonel Harland Sanders, of course,
and now KFC is the worlds most popular chicken restaurant chain, specializing in that
same Original Recipe along with Extra Crispy chicken, home-style sides and buttermilk
biscuits. There are more than 18,000 KFC outlets in 115 countries and territories around the
world.

INITIATIVES TO LOCALIZE THE OFFERINGS

KFC, the Kentucky-based fast-food chain known for its "finger-lickin' good" range of
chicken fillets and burgers, in order to localize its offerings gave in to India's penchant for
vegetarianism. In what appeared to be a first across all KFC franchises globally, KFC India

unveiled a segregated vegetarian menu along with a strong message about its newfound bias
for vegetarian offerings.
Paneer Zinger and Veg Twister, in addition to the hot-selling Potato Krisper Burger, Veg
Strips, Veg Rockin' Burger and Veg Rice Bowl will now vie for consumer mind space along
with their popular non-veg counterparts.
The company has not only introduced new products under its veg range, it has also tweaked
its global tagline "So good" to "So veg, so good" to show its commitment towards the
category.

KFC introduced a vegetarian menu that included rice meals, wraps and side dishes the
most extensive meat-free menu across the chains worldwide operations. KFC has a
vegetarian thali (a mixed meal with rice and cooked vegetables) and Chana Snacker (burger
with chickpeas) to cater to vegetarians in India.
It stuck to eggless mayonnaise and sauces. Even its trademark chicken dishes were given a
local flavour with the use of Indian spices and cooking techniques.

Specifically created to please local palates. This innovative menu has been designed bearing
in mind high local demand for vegetarian options, and it enabled a whole new and untapped
set of customers to bite into the great taste of KFC. They even launched a campaign
#OMGKFCHASVEG to get in touch with the common people. A Bollywood Moment as
lovelorn Simran Chases A KFC veggie treat is shown below.

CHALLENGES FACED WHILE LOCALIZING

KFC was the fastest-growing major chain in India in 2012, recording 45% value growth yearover-year based on a 41% increase in outlets (a net addition of 62). This level of growth has
helped KFC become the third-ranked brand in India, a fact that is particularly notable
considering they were a relatively late entrant in terms of widespread expansion. In 2003,
KFC had just 3 local outlets, putting them well behind Baskin-Robbins, Dominos, Pizza Hut,
and McDonalds, all of which had over 50 outlets already in operation, and were growing
quickly.
KFCs success has come as a combination of clever localization, savvy pricing strategies,
successful consumer education, and a menu that appeals well to the changing preferences of
sophisticated, urban Indian consumers. KFCs entry into the market was slow, and despite
opening three initial outlets as early as 1995, the chain had reached just five units nearly a
decade later. At that time, the market posed significant logistical issues, and sourcing enough
poultry, beef and other products continues to be a challenge even in 2012. Back in the 90s,
local leader McDonalds famously spent years building its own India supply chain from
scratch, training local farmers and designing a cold chain that would be robust enough to
handle its needs, while Yum! Brands focus was firmly on building its now-dominant
presence in China. The chains investment in the latter market has paid off handsomely, but it
also left the brand with some catching up to do.
When Yum Restaurants India opened the first Kentucky Fried Chicken (KFC) outlet in
Bangalore in the mid-1990s, locals protested about the brands multinational origins. As the
ensuing months proved, it wasnt only KFCs parentage that was too foreign; the chicken
wings and wraps it offered were too alien for Indian taste buds. In just a few years, Yum
closed all its KFC restaurants in India, and did not relaunch the brand until 2004.

OVERCOMING THE CHALLENGES

To overcome the ethical issues and various problems faced by KFC it took various steps.
When the time was finally right and Indian consumers were broadening their foodservice
horizons through travel, the internet, and generally greater exposure to global cuisine, KFC
began expanding aggressively and adapting their menus to bridge the gap between familiar
and innovative.
The quintessential non-vegetarian KFC (Kentucky Fried Chicken) opted to launch vegetarian
offerings in India. By 2012, the chain had reached 220 outlets and added spicier versions of
their chicken, including a Fiery Grill flavour that mimics the red hue and hot spice of
traditional tandoori, and Curry Chicken, modelled after popular local curries.
Indian consumer preferences were changing. Chicken consumption in India may be more
common than beef, but meals are typically carbohydrate-heavy, and many local consumers
prefer a vegetarian diet. Further, the chicken that is eaten is traditionally taken in the form of
tandoori, a fiery-red, spicy grilled dish thats eaten alongside rice and vegetables. When the
time was finally right for expansion, and Indian consumers were broadening their foodservice
horizons through travel, the internet, and generally greater exposure to global cuisine, KFC
began expanding aggressively and adapting their menus to bridge the gap between familiar
and innovative. By 2012, the chain had reached 220 outlets and added spicier versions of

their chicken, including a Fiery Grill flavour that mimics the red hue and hot spice of
traditional tandoori, and Curry Chicken, modelled after popular local curries.
In addition to promoting its chicken items, KFC also added plenty of vegetarian options. The
chain now serves fried vegetable strips and burger patties made of either potato or vegetables,
and many new menu launches have been accompanied by a similar vegetarian item, such as
the Zing Kong beef burger meal combo and Veg Zing Kong combo, both launched in mid2012.
Finally, KFC has also achieved success through the use of its pricing strategy, which was
designed to help turn what appeared to many as a special-occasion novelty restaurant into an
everyday option. In recent years, KFC has taken steps to drastically reduce its prices,
launching a Streetwise branded menu targeted to students who have very little income but
tend to be willing to spend on foodservice at the right price. The menu starts with items as
low as Rs25 and was marketed with a youthful campaign that promoted the range as a better
alternative to the university dining hall at similar prices. In 2013, KFC followed up with a
Wow@25 marketing campaign and augmented reality smartphone app. Cash-strapped
students can scan any small bill with their phones, and the app suggests low-priced items off
of a new KFC Wow menu that fits within their budget.
KFC outlets even ran a campaign to bring home the fact that the oil and utensils used for
vegetarian cooking were kept separate.
The problem of sourcing the poultry was even solved as KFC started with purchasing 100 %
of its chicken locally in India from the highest quality and reputed suppliers like Venkys,
Godrej and Suguna.
Finally, KFC has also achieved success through the use of its pricing strategy, which was
designed to help turn what appeared to many as a special-occasion novelty restaurant into an
everyday option.

KFC SUCCESS IN INDIA

KFC has been named the Most Trusted Quick-Service Restaurant Brand in India, ahead of all
other Indian and global quick-service restaurant brands, by The Brand Trust Report 2015
study.
Yum! India opened the first specially-abled KFC restaurant in 2008 and has since expanded
to 16 speech and hearing impaired stores in nine cities employing over 300 hearing and
speech impaired team members. Our goal is to employ over 1,000 specially abled employees
by 2015.
The success of this program is driven by a 360 degree approach to developing specially-abled
team members focused on hiring, training, creating an enabling work environment, engaging
the team members and assisting their development for growth and career progression.
In 2014, Yum! India was awarded with the prestigious National Award for the Empowerment
of Persons with Disabilities by India's president Pranab Mukherjee. The award recognizes
KFCs outstanding contribution as an employer of people with disabilities, providing them
the opportunity to harness their professional aspirations and potential.

KFC also ranked as the number one brand in India on the Retail Category list. KFC is part of
Yum! Restaurants India, a division of Yum! Brands Inc. The recognition reflects that the
brands building strategy is focused on providing exceptional customer service, localised
menu offerings, a skilled yet diverse workforce and deep penetration across Tier I and Tier II
cities.