1.

0 Executive Summary
Kentucky Fried Chicken (KFC) continues to be recognized as an earliest franchising company around the world. Approximately 50% of KFCs worldwide restaurant businesses are owned & operated by independent businessmen & women, KFC franchisees. KFCs outstanding brand recognition, experienced management, high quality food, site development expertise, advanced operational systems & unique global infrastructure position them to capitalize on global opportunities. KFC is currently seeking highly qualified individuals to join its family as new franchisees in both North America. & International markets. The features of their tasty fast food items with unique value & services, creating a high demand for KFC in the international business arena. KFC already proves their demand in the global market by providing quality fried chicken & other fast foods. More than a billion of the KFCs "finger licking good" chicken dinners are served annually. And not just in North America. The KFCs cooking is available in more than 80 countries and territories around the world. Furthermore, there is a golden opportunity for KFC to expand their global foodservice in Bangladesh also. KFC can enter the Bangladeshi market for its demand & brand image. One of the biggest franchising companies is Kentucky Fried Chicken. Unique brand quality fast food provider KFC holds some exclusive strength. KFC is the provider of world quality foods. Different varieties of food items are there in KFC. KFC will get the maximum competitive advantage in Bangladesh for their exclusive brand image & superior food & service. Demand for KFC foods is other strength for them. KFC is always famous for their customer- oriented attitude. KFC hold some fabulous opportunities in Bangladesh as a worldclass fast food provider. For a high demand of fast food in our country, they can set the high standard of fast food restaurant over here. One was the present condition of the fast food shops in Bangladesh & the other one was introducing KFC in Bangladesh. Almost 80% people are already aware of KFC & around 80% of the targeted audience wants KFC to be in Bangladesh. Itll be beneficial for our countrys people, where they can get some world famous quality foods from KFC.

2.0 Situation Analysis

2.1 Present condition of fast food shops in Bangladesh Fast food is a growing trend in Bangladesh. Its rapid increase has showed that fast food restaurants are quite popular among the local people, especially to the youth. A survey was conducted which was based on the present demand of fast food in our country. Through the survey we found out the following preferable conditions. Such as: The growing demand for fast food in Bangladesh is 85%. According to the peoples need, there are not enough quality fast food shops in Dhaka. From the survey it shows that 92% of the people seek for more quality fast food shops. Reviewing the customers preference, it shows that 36% people are not satisfied with the existing quality of the fast food. Only 31% of the people are satisfied with the quality. The rest of the people would eat anyway. In terms of price range, 84% of the people can afford to have fast food. Whereas, only 8% thinks that its beyond their affordability. Most popular fast food shop in Dhaka right now seems to be Helvetia. They have the preference of 60% people.

2.2 Introducing KFC in Bangladesh Along with the present situation of fast food in Bangladesh, we also found from the survey that how the people will perceive the introduction of KFC. 95% of the people are already aware of KFC. There is a positive reaction pattern among 80% of the people who are demanding for KFC to be in the Dhaka City. 69% of the people are expecting to be the price of the food items of KFC within the range of 100-150Tk. Majority of the people wants KFC to be situated in Dhanmondi area. It was quite obvious from the survey that KFC will definitely have a competitive advantage. Its about 85% people who believe it that way. The potential age group is found to be between 16- 28. Majority of the people would prefer to go to KFC with their friends & family.

2.3 SWOT ANALYSIS of KFC 2.3.1 STRENGTHS of KFC KFC is famous for their brand image all around the globe. The potential customers of Bangladesh will support them, as KFC title is already in their mind. Means, peoples awareness will automatically create the demand. KFC is the provider of world quality foods. Different varieties of food items are there in KFC. This is one of the major strength that KFC holds to be successful in our country. KFC will get the maximum competitive advantage in Bangladesh for their exclusive brand image & superior food & service. Demand for KFC foods is other strength for them. KFC will sell their foods in a comparable price like Helvetia & Wimpy, where these two are regarding as their main competitor. KFC is always famous for their customer- oriented attitude. They are always conscious about consumers perception, their choice, their demand & so on. They always take customers suggestions & all the information. Such kind of attitude can easily make customers in Bangladesh.

2.3.2 WEAKNESSES of KFC A high initial cost is needed for the establishment & decoration of KFC. Unavailability of some raw materials can be a major weakness of KFC in Bangladesh. As we already mentioned, setup cost for KFC is really high. So, affordability is really necessary for that.

Location is a big factor for KFC in Bangladesh. They need a good place to be selected for their location.

2.3.3 OPPORTUNITIES of KFC For a high demand of fast food in our country, they can set the high standard of fast food restaurant over here. Availability of supplier will be on their support. Availability of labor is also one of their advantages in Bangladesh. KFC will get the opportunity of expanding their branch on the other part of the Bangladesh if they can create & maintain the overall demand. So, the branching opportunity is also in KFCs favor.

2.3.4 THREATS of KFC As a major opponent, Wimpy can be a threat for them. Economic infrastructure of Bangladesh is not that superb. So that can be judge as a threat for this world quality restaurant. During strike time, supplier of KFC will face a major problem. Lack of customer at that time can be a major threat for their profit- making flexibility.

2.4 PEST ANALYSIS of KFC 2.4.1 POLITICAL CONDITIONS Following political conditions can affect KFC in different manner: 1. Political corruption like strike, hartal, etc. can negatively affect KFC 2. Government rules & regulations can intervene in KFCs success. 3. Trade barrier can create a lot of problem for KFC on bringing raw materials from other country. 2.4.2 ECONOMICAL CONDITIONS of KFC Some economical criterias can affect KFC. These are as following: 1. Poor economical infrastructure might affect KFC. 2. Financial help can be generated from the banks of Bangladesh. 3. Maintaining the profitability with high investment to be returned can be a Job in hand for KFC. 2.4.3 SOCIAL CONDITIONS of KFC There are some social factors that should be taken under consideration while entering the Bangladeshi market KFC has to be lineal to judge those factors. Those are as following:

1. First of all, they have to understand the culture of Bangladesh. Food must be provided according to the cultural substances. 2. Religion is also important to consider. 95% people in Bangladesh are Muslim. There are also other religions people also. So, they can bring their items easily in Bangladesh. 2.4.4 TECHNOLOGICAL CONDITIONS of KFC Some technological criterias should be mentioned which is important in KFCs perspective. Those are as following: 1. KFCs technological items give them the competitive benefit on producing high quality food. 2. KFC franchising department will provide all the necessary machines. We dont have to pay any additional fees or charges for those exclusive machines. Itll be included with the initial cost.

3.0 Marketing strategy

3.1 Franchising Requirements of KFC Business qualification that KFC seek in its potential franchisees: 1. 2. 3. 4. 5. 6. High personal integrity. Entrepreneurial spirit & strong desire to succeed. A proven ability to motivate & train people. The ability to manage finances. A willingness to personally devote fulltime. A willingness to complete a comprehensive training program

3.2 Marketing mix 1. Product Policy of KFC Product policy of KFC must be according to ones country culture and their food habits. For instance, 98% of the Bangladesh population is Muslims and as a result pork is prohibited in Bangladesh. Therefore, any kind of food items made from pork will not be accepted by our culture. So the management who are in charge of this has to keep this in mind while franchising KFC in Bangladesh. There are a wide variety of products that we can offer but there are some specific products that we cannot afford to offer. So to address the ingredients of KFC food, a complete list with details of the menu items from big to small order of fries must be provided to the franchisee of Bangladesh. It therefore gives the management a clearer view about the contents of the food items as well as nutrition analysis. 2. Pricing Policy of KFC Now we are going to focus on the pricing policy of KFC. It should be according to the pricing policy of Wimpy as well as other local fast food shops for competitive reasons. If

compared with Wimpys King size burger, which is 150Tk, and in KFC it is 140taka. Again nugget is 150tk both in Wimpy and Helvetia. But in KFC only 130t.This perhaps gives KFC competitive advantage over the local competitors regarding the pricing policies & also in terms of the quality of the foods. A SAMPLE PRICE LISTING OF SOME FAMOUS KFCs ITEMS ITEMS COLONEALS CHICKEN CHICKEN NUGGETS (6 pcs.) CHICKEN BURGER POPCORN CHICKEN CRISPY CHICKEN STRIPS CRISPY CHICKEN BURGER (6 pcs.) SANDWICH CHICKEN/FRUIT SALAD FRENCH FRIES DESSERTS GARDEN SALAD COFFEE SHAKE MIX ORANGE JUICE HOT CHOCOLATE MIX PEPSI 3. Distribution Policy of KFC Distribution is needed very much for any company, and more complicated while a foreign company is entering a new market. It goes with KFC while entering Bangladesh. For the storehouse distribution, KFC does not need to work hard at first, as in the beginning it will start with only one place in Dhaka. So in the preliminary stage, the distribution of the foods to the customers will not be of much hazard. And even when there will be more than one stores, the distribution of the foods to the customers will never be a very big thing, as the foods are always prepared on spot at KFC. So the foods are always ready to reach the customers within some moments. The main distribution KFC has to think is the external distribution of how will they get the supplies of the raw materials and from where. There are many materials usually used to prepare the foods that are not easily available in Bangladesh. For those materials KFC has to bring them from other places, like India. As an example, the potatoes used by KFC for preparing their French-fries have to be of a certain quality. The potatoes have to be of a certain shape and size, and this needs special type of soil to grow, which may not be found here. So maybe the potatoes have to be brought from somewhere else. Like that items as sesame seeds for the buns, special sauce of KFC, tartar sauce, cellulose gum and some others are not very much available here. They need to be brought from somewhere else.According to the management contract policy of KFC, they have their certain PRICE (In BDT) 170 130 140 160 140 140 140 150 60 100 100 30 80 50 50 20

distribution system. For the raw materials, they have certain places from where to bring which product and how. So we have to follow the instructions of the policies given by the authority to conduct the distribution. 4. Promotion Policy of KFC Biggest fast food restaurant KFC promotional style will be vast. As we already know that they are very familiar with the potential customers in Bangladesh, their promotional activities will give them the additional benefit with the existing awareness among customers. There are different types of promotional campaign that can be taken to consideration. Advertising in the front page of the famous newspapers of our country. Like, The Observer, The Daily Star, Ittefaq, and Jugantar etc. Advertising inside the magazines. Lots of leaflets will be published & distributed in the roadside to make the awareness more among the people. Attractive brochures will also be published for more convenience. Electronic media, like television, radio will also help with general advertisement for more publicity. Itll be generated almost every day. Use of Internet based media will help KFC to advertise itself that it has now in Bangladesh. Advertisement in different web- sites & web pages will allow KFC to make more of their publicity. KFC will provide gift items with each food purchase; this can be a very good promotional policy for KFC. From this they can gain much more competitive advantage, because still no fast food shop in our country is creating such kind of attraction. KFC will make a KID ZONE for small children just beside or inside the food store. This will make a quite good attraction among the young children. Finally, a lot of advertisement in the road- side billboards, posters, banners, & signboards will attract people. Whenever they see, wherever they see- all around the city; will give them the 100% competitive advantage in the fast food competition.

4.0 Financial objectives

4.1 KFC franchising cost New restaurant costs range from $444,800- $742,150 Additional cost for size, area, kitchen, decoration, inventory, pre- opening expenses Cash or liquid assets require to acquire a franchise- $175,000 4.2 KFC grant Business Facilities Lease (BFL) An individual must have a minimum of $100,000 of no- borrowed personal resources to be considered to be franchise under the BFL Program.

4.3 Sales Potential of KFC ESTIMATED TOTAL COST: Approximately 5, 00, 00, 000 BDT. Cost Type NEW RESTAURANT COST OPENING EXPENSES INITIAL CASH INVESTMENT PROMOTIONAL CAMPAIGN COST OTHER EXPENSES TOTAL COST (approximately) Cost in Tk. 2,90,00,000Tk. 26,10,000Tk. 58,00,000Tk. 75,00,000Tk. 50,00,000Tk. 4,99,10,000Tk.

TARGETED TIME TO REACH THE BREAK- EVEN POINT: 4 yrs SALES NEEDED TO REACH THE INITIAL POINT (per year): 1, 24, 77, 500BDT. 4.4 ESTIMATED SALES: ITEMS SALES COLONEALS CHICKEN CHICKEN NUGGETS FRENCH FRIES CHICKEN BURGER CHICKEN STRIPS POPCORN CHICKEN SANDWICH CHICKEN SALAD FRUIT SALAD TOTAL SALES (per year) (Price*quantity per day*365days) 140*40*365 = 20,44,000Tk 120*25*365 = 10,95,000Tk 40*100*365 = 14, 60,000Tk. 200*25*365 = 18, 25,000Tk. 145*25*365 = 13, 23,125Tk. 150*25*365 = 13, 68,750Tk. 50*25*365 = 4, 56,250Tk. 30*200*365 = 21, 90,000Tk. *****= 7,50,000Tk 1,25,12,125Tk

The above chart shows the estimated sales of KFC each year. This calculation will vary according to the demand, quantity, preferences & so on. It can also vary yearly. So, this is just an estimated figure by how KFC can reach the break-even point in 4 yrs.

5.0 Feasibility Study

After finishing all the analysis & planning, if we do the feasibility study for KFC, then some criteria has to be considered. Those are as following: For bringing KFC in Bangladesh, a very high investment is necessary. Making such a high payment at- a- time is really tough. Initial cost for bringing KFC is also very high.

 Cash/ liquid assets require to acquire a franchise is worth $175,000, which is a very big amount. Other additional costs are also there to make the investment very high. When KFC will be in Bangladesh, they have make a very quick sales & heed to reach at the break- even point in 4 yrs time. If they couldnt reach the target, then they might face a severe struggle in Bangladeshi market. They might create the attraction in the first year of their arrival. But if they couldnt continue in the same speed next couple of years, then loss will be there. Price of KFC items will play a big role on their success or failure. If the price is too high, the customer will be at the minimum level, because of the low affordability. KFC cant even dream of the profit then in Bangladesh. So, we can conclude in our feasibility study that, for the high investment & price of foods, its not quite feasible enough to bring it in our country. Its just because, when a company is in international business, theyll always look for demand & then profit will be automatically there. So, if KFC cant guarantee to cover the whole cost in 4 years after their arrival in Bangladesh, and then in our view its not feasible to bring KFC for the time being.