Applied Marketing

ACKNOWLEDGEMENT

Our profound gratitude goes to God Almighty, most gracious, most merciful, who gives us wisdom, knowledge and understanding to live our lives as human being. We would like to thank our Teacher; Ms. Fareeha Nisar who makes it possible for us to finish our project in a best wa . And finall , we would like to thank our famil members and friends for alwa s be there for us. And we would like to thank from bottom of heart to Mr. Muhammad Nouman !"#ecutive Marketing $ervices %orporate& of '(%.

MI

ION TATEMENT
*roup + ,

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal

Applied Marketing

'(% Management feels so strongl about recognition that it.s near the top of their corporate mission statement. /0ecognition1 we find reasons to celebrate the achievements of others and have fun doing it,/ is right up there with /%ustomer (ocus/ and /2elief in 3eople./

!ision

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

Applied Marketing

'(%5s vision is to bring people of all ages, races and backgrounds together to enjo 5 $oul (ood5 6 7proper food at reasonable prices5 6 within bright and fun interiors. '(% is designed to be perceived as a fun and inclusive brand.

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

Applied Marketing

DEDICATION"

9) dedicate m project efforts to our respectable teachers who taught and hold our hands on several occasions to complete such complicated and interesting project:.

TA#LE OF CONTENT

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

Applied Marketing

A%'<OW=">*"M"<T........................................................................................................................................................................8 TA2=" O( %O<T"<T$........................................................; ;?)<T0O>@%T)O<1......................................................................................................., ........................................................................................................................................., T pe (ast (ood %hain................................................................, (ounded -A4A !<orth %orbin 'entuck &........................................., (ounder Barland $anders.............................................................., BeadCuarter =ouisville, 'entuck ........................................................, )ndustr (ast (ood........................................................................, 0evenues D E4F.8 million !4FFG&...................................................., "mplo ees 4;FFF !4FFG&................................................................., 3arents HumI 2rands................................................................., Web $ite www.kfc.com ...............................................................A Operation in 3akistan1......................................................................................................A OrganiJational $tructure1.................................................................................................A %urrent 3osition.............................................................................................................-F '(% is serving -, big cities of 3akistan in different region in the countr . )t has K4 outlets around the countr providing different menu items for different cities.............-F (irst '(%1......................................................................................................................-F E?Market $hare1.............................................................................................................-4 K?30O>@%T$1..............................................................................................................-; L@A=)TH A$$@0A<%" %"0T)()%AT"1.................................................................-, G?$T0AT)*)% 3=A<<)<*1.........................................................................................-A The process of developing and maintaining a strategic fit between the organiJational goals, capabilities and its changing marketing opportunities............................................-A ,?MAMO0 %OM3"T)TO0$1.........................................................................................4F A?0"$"A0%B 30A%T)%"$1.......................................................................................4%urrent 0esearch practices1...........................................................................................44 -F?2A$)% )<(O0MAT)O< 0"*A0>)<* MA0'"T)<* $T0"T"*)"$1..............48 A?$"*M"<TTAT)O<1................................................................................................48 2?%@00"<T TA0*"T MA0'"T1.............................................................................4E %?(A%TO0$ "(("%T)<* $A="$1............................................................................4K >& 3"$T A<A=H$)$1...................................................................................................4G 3O=)T)%A= ("%TO0$1 ..............................................................................................4G "%O<OM)%A= ("%TO0$1.........................................................................................4, $O%)A= (A%TO0$1.....................................................................................................4, T"%B<O=O*)%A= ("%TO0$1 .................................................................................4A "?%@$TOM"0 0"=AT)O<$B)3 MA<A*"M"<T $T0AT)*H1............................8F (?30O>@%T %=A$$)()%AT)O< W)TB 30O>@%T =)(" %H%="1........................84 *?30)%)<* $T0AT)*)"$1..........................................................................................88 %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , E

Applied Marketing

B?%BA<<"= MA<A*"M"<T1.................................................................................8E )?30OMOT)O< $T0AT)*)"$1...............................................................8G M?TA0*"T$ TBAT WO@=> =)'" TO A%B)"N"1...................................................;F '?"O3"<>)<* TA0*"T MA0'"T1........................................................................;=?"O3"%TAT)O<$ (O0 TB" %OM)<* H"A01......................................................;--?$WOT A<A=H$)$1.................................................................................................;-4 6%O<%=@$)O<1............................................................;; -8 60"%OMM"<>AT)O<$1.......................................................................................;; -; ?0"$O@0$" 3"0$O<1 ..........................................................................................;E 2ibliograph 1.................................................................................................................;E

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

Applied Marketing

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

Applied Marketing

$%INT&OD'CTION"
)t American based fast food chain all over the world. )t is a subsidiar of H@M international. '(% is part of HumI 2rands, )nc., which is the world.s largest restaurant s stem with over 84,EFF '(%, APW All?American (oodQ,Taco 2ell, =ong Mohn $ilver.s and 3iJJa But restaurants in more than -FF countries and territories.

T pe (ounded (ounder BeadCuarter )ndustr 0evenues "mplo ees 3arents

(ast (ood %hain -A4A !<orth %orbin 'entuck & Barland $anders =ouisville, 'entuck (ast (ood D E4F.8 million !4FFG& 4;FFF !4FFG& HumI 2rands , *roup + ,

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal

Applied Marketing

Web $ite

www.kfc.com

O*eration in +a,istan"
'(% came to 3akistan in -AAK with the first branch opening in 'arachi and later in =ahore. The (ranchisee was a 3akistani owned and operated, >ubai?based %ompan the %upola *roup, which owns licenses and its own restaurant throughout 3akistan and the middle?east. The compan .s creative have been changed significantl over the ears to promote a 3akistani image rather than an American one, after the invasion of Afghanistan and )raC, which resulted in loss of significant business. 3rocurement )ssues All the raw materials like chicken are bought from value chicken, vegetables from Monsalwa and the use caned fruit for salads. The machiner is all automated and is in conformance to international standards. '(% officials often visit the outlets without giving prior notice in order to check the conformance to Cualit standards and procedures. Moreover, (ood )nspection Teams from Bealth Ministr visits twice a ear to ensure B gienic %onditions at the 'itchen. 3erformance Overview '(% has taken advantage of all these e#cellent investment opportunities that 3akistan offers for franchising and has e#panded and penetrated the market a lot. '(% has adapted to the legal and political environment and conditions of 3akistan. The 3akistani culture has also molded the operations of '(% in 3akistan. All the outlets of '(% in 3akistan present 3akistani food culture. '(% has displa ed banners that it servers Balal food all over its outlets which represents 3akistani culture. The also offer families5 deals as the people are ver close to their families and like to have food with them. '(% has also brought some changes in the culture of 3akistan. The most significant is the wa it has changed the eating habits of the local population. 3eople now are aware of unh gienic conditions that prevail in some of local restaurants. And '(% has also brought the idea of self?service in 3akistan. General Manager (GM)
Manager Assistant Manager !)& Assistant Manager !))&

Organi-ational tru.ture"

The '(% adopted traditional structure for their outlets that

$hift )n?charge %ounter workers 'itchen workers *uards

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

Applied Marketing

other food chains are following. There is one *eneral for 3akistan.

Manager

The outlet is leaded b the Manager, assisted b two assistant managers, and one shift in?charge for each shift, that supervises the performance of counter workers and kitchen workers.

%urrent 3osition '(% is serving -, big cities of 3akistan in different region in the countr . )t has K4 outlets around the countr providing different menu items for different cities.

First KFC"
The restaurant in <orth %orbin, 'entuck where %olonel $anders developed 'entuck (ried %hicken.

World.s first '(% in $outh $alt =ake, @tah, since replaced b a new '(% on the same site. 2orn and raised in Benr ville, )ndiana, $anders passed through several professions in his lifetime. $anders first served his fried chicken in -A8F in the midst of the *reat >epression at a gas station he owned in <orth %orbin, 'entuck . The dining area was named /$anders %ourt P %afR/ and was so successful that in -A8K 'entuck *overnor 0ub =affoon granted $anders the title of honorar 'entuck %olonel in recognition of his contribution to the state.s cuisine. The following ear $anders e#panded his restaurant to -;4 seats, and added a motel he bought across the street. When $anders prepared his chicken in his original restaurant in <orth %orbin, he prepared the chicken in an iron skillet, which took about 8F minutes to do, too long for a restaurant operation. %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , -F

Applied Marketing

)n -A8A, $anders altered the cooking process for his fried chicken to use a pressure fr er, resulting in a greatl reduced cooking time comparable to that of deep fr ing. )n -A;F $anders devised what came to be known as his Original 0ecipe. The $anders %ourt P %afR generall served travelers, often those headed to (lorida, so when the route planned in the -AEFs for what would become )nterstate GE b passed %orbin; he sold his properties and traveled the @. $. to sell his chicken to restaurant owners. The first to take him up on the offer was 3ete Barman in $outh $alt =ake, @tah; together, the opened the first /'entuck (ried %hicken/ outlet in -AE4. 2 the earl -AKFs 'entuck (ried %hicken was sold in over KFF franchised outlets in both the @nited $tates and %anada. One of the longest?lived franchisees of the older %ol. $anders. chicken concept, as opposed to the '(% chain, was the 'enn 'ings chain. The compan owned man <orthern Ohio diner?st le restaurants, the last of which closed in 4FF;. $anders sold the entire '(% franchising operation in -AK; for D4 million @$> $ince that time, the chain has been sold three more times, most recentl to 3epsi%o, which made it part of its Tricon *lobal 0estaurants division, which in turn was spun off in -AAG, and has now been renamed to HumI 2rands. Additionall , %olonel $anders. nephew, =ee %ummings, took his own 'entuck (ried %hicken franchises !and a chicken recipe of his own& and converted them to his own /spin?off/ restaurant chain, =ee.s (amous 0ecipe %hicken. Toda , some of the older '(% restaurants have become famous in their own right. One such restaurant is located in Marietta, *eorgia. This store is notable for a EK?foot !-G m& tall sign that looks like a chicken. The sign, known locall as the 2ig %hicken, was built for an earlier fast?food restaurant on the site called Mohnn 0eb.s %hick, %huck and $hake. )t is often used as a travel reference point in the Atlanta area b locals and pilots.

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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Applied Marketing

The original handwritten recipe is kept locked awa at the '(% corporate headCuarters in =ouisville, 'entuck as a closel ?guarded secret. Onl two members within the HumI %orporation knows the recipe in its entiret .

/%Mar,et hare"
We can divide it into two parts -& Around the World 4& Around the 3akistan -& Around the World '(% has a ver long histor and has the most recogniJe able brand in chicken with over EFS of the market share. )t becomes difficult for the companies like $ub wa , Mc >onald5s, %hicken planet, >i#ie or those who ma want to enter in the market of fast food restaurants. !APW& are located in the same fast? food industr , the referent standard is the industr growth rate measured against the $2@s5 growth rate. The underl ing theor for e#amining market growth rate is the industr life c cle. The 2%* assumes that growth rates !life c cle stages& affect a firm5s finances.

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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Applied Marketing

Asia

Euro*e

0
' A Ameri.a

3lacing products in the 2%* matri# results in ; categories in a portfolio of a compan 1 -. $tars !Thigh growth, high market share& @se large amounts of cash and are leaders in the business so the should also generate large amounts of cash. (reCuentl roughl in balance on net cash flow. Bowever if needed an attempt should be made to hold share, because the rewards will be a cash cow if market share is kept. $o, '(% Mala sia is under $tar position.

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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Applied Marketing

4. %ash %ows !Tlow growth, high market share& 3rofits and cash generation should be high, and because of the low growth, investments needed should be low. 'eep profits high. 8. >ogs !Tlow growth, low market share& Avoid and minimiJe the number of dogs in a compan . 2eware of e#pensive 7turn around plans5. ;. Luestion Marks !T high growth, low market share& 4& Around the 3akistan )t has covered ,FS of the market share in fast food industr '(% has recognition around the world and has been globall positioned for man market share in 3akistan adopts champs philosoph . ears in 3akistan and to capture the

1%+&OD'CT "
2asicall the product is an thing that be offered to a market for attention, acCuisition, use, or consumption that might satisf a want or need. '(% is speciall dealing in the chicken products; 2asicall , '(% has the special rasp for chicken products that is wh , '(% known as a chicken specialist allover the glob. '(% target the Asia and east side because the observe that the people are like the chicken products, so the enter in the market due to the demand of their chicken products. '(% product variet of product in the chicken, those products are1

3roduct %ategories There are different products divided into sections according to the differentiation in them. -& %hicken 4& 2urger 8& >esserts P 2everages %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , -;

Applied Marketing

;& $nacks P $ide Orders -& %hicken

'(%.s Original 0ecipe fried chicken and (rench fries 2. '(%.s specialt is fried chicken served in various forms. '(%.s primar product is pressure?fried pieces of chicken made with original recipe. The other chicken offering, e#tra crisp , is made using a garlic marinade and double dipping the chicken in flour before deep fr ing in a standard industrial kitchen t pe machine.

'entuck *rilled %hicken ? This marinated grilled chicken is targeted towards health?conscious customers. )t features marinated breasts, thighs, drumsticks, and wings that are coated with the Original 0ecipe seasonings before being grilled. )t has less fat, calories, and sodium than the Original 0ecipe fried chicken. )ntroduced in April 4FFA.

'(% has two lines of sandwiches1 its /regular/ chicken sandwiches and its $nackers line. The regular sandwiches are served on either a sesame seed or corn dusted roll and are made from either whole breast fillets !fried or roasted&, chopped chicken in a sauce or fried chicken strips. The $nackers line are value priced items that consist of chicken strips and various toppings. )n the @', Australia and <ew Uealand, sandwiches are referred to as /burgers/; there is the chicken fillet burger !a chicken breast fillet coated in an original?recipe coating

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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Applied Marketing

with salad garnish and ma onnaise& and a Uinger 2urger !as with the former but with a spicier coating and salsa&. 2oth of these are available as /tower/ variants, which include a slice of cheese and a hash brown.

A variet of smaller finger food products are available at '(% including chicken strips, wings, nuggets and popcorn chicken. These products can be ordered plain or with various sauces, including several t pes of barbecue sauces and buffalo sauce. The also offer potato wedges.

The '(% Twister is a wrap that consists of either chicken strips or roasted chicken, tomato, lettuce and !pepper& ma onnaise wrapped in a tortilla. )n "urope, the Twister is sold in two varieties1 -& the *rilled Twister !chicked strips&, and 4& the *rilled Me#ican twisterV$pic Toasted Twister !@'& !chicken breast supplemented b tortilla chips and salsa, @'1 adds onl salsa to pepper ma onnaise&,

'(% (illers are a A/ !44cm& sub, available in four varieties over the summer period in Australia.

$hish kebab ? in several markets '(% sells kebabs.

4& 2urgers )t includes the following burgers items Might Uinger

Uinger "#treme INCLUDEPICTURE "http://media5.picsearch.com/is?dfwea !Lww"#5$%&'()*c+,a-"mU&N.,eEhPU/p01P2" 3 (ish Uinger

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Applied Marketing

Uinger burger Twister %ol.%hicken 2urger $ub KF 8& >esserts P 2everages $coop of Walls (ruit $alad =arge >rink Mineral water regular Mineral water large %offee Tea ;& $nacks P $ide Orders <uggets 0egular (ries =arge (ries %orn on the %ob Arabian 0ice >inner 0oll Bot $hots %heese

Other than fried chicken, man '(% restaurants serve side dishes like coleslaw, various potato?based items !including potato wedges, french fries and mashed potatoes with grav &, biscuits, baked beans, macaroni and cheese, rice, steamed vegetables and corn on the cob.

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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Applied Marketing

3'ALIT4 A

'&ANCE CE&TIFICATE"

>irector *eneral !0esearch& has issued Cualit assurance certificate for the chicken used b '(%.

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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KFC

Applied Marketing

5% T&ATIGIC +LANNING"
The process of developing and maintaining a strategic fit between the organiJational goals, capabilities and its changing marketing opportunities. $trategic planning sets the stage for the rest of the planning in the firm. '(% is looking that how much its current strategies are beneficial for them. Although these are good and profitable but d namic changes in environment are reCuiring identif ing the attractive opportunities. That is the reason that the are e#pending there market siJe b focusing on sub urban areas and targeting middle class people b providing them differentiated products at a fair price. The are opening their new mobile outlets in there potent ional markets. '(% is also going to increase its sweet dishes to avail the opportunit available for them.

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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Applied Marketing

6%MA7O& COM+ETITO& "

A(% "nterprises %hick?(il?A 3ope e5s 2oston Market 'enn 0ogers Mc>onald5s >omino5s Wend 5s 4F *roup + ,

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal

Applied Marketing

2urger 'ing %hecker5s $onic

8%&E EA&C9 +&ACTICE "

)t is divided into two sections -& )nternal 4& "#ternal -& )n internal research 3ractices %ompan 5s own 0 P > is involved in shorts research practices that are easil solvable b 0 P >.

4& )t includes the e#ternal practices that are time consuming for the organiJation like opening of outlet in an new cit around the countr .

'(% has a research and development department about particular problems. 0P> department conducts their research for the solution of problems. )f the are going to open a new outlet in a new cit . (irst of all the send their mobile container in that particular cit and conduct the research practices and anal Je the market. The also conduct research practices for their target market. <ow the are entering in sub urban areas where the customers are not ver high income and not to much Cualit %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , 4-

Applied Marketing

conscious that5s wh '(% is providing them low price products according to their taste and wants. %ompan 5s internal 0P> is not onl doing research but the are also conducting research through e#ternal sources. )n which the most common are Aftab associates. The are counting their research in $ahiwal for the sack of new branchVoutlet. (actors involved in research practices1 There are following factors which are not ignorable b the research conductors -& 4& 8& ;& 3urchasing 3ower of the people Bousehold income 3er capita income %ompetitors in the segment

%urrent 0esearch practices1 Outlet in $ahiwal '(% is going to open its new branchVoutlet in $ahiwal before this it will conduct a research whether this outlet will success or not. The will e#amine their competitors in $ahiwal that is A(% basicall and others are local brands that are not difficult to compete. Although the market of $ahiwal is not ver wide but the think that will successful in $ahiwal due to their differentiated products, taste and Cualit . <ew product launching

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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Applied Marketing

'(% is launching the new product !Bot Wing& in the e#isting cities of the 3akistan. (or this purpose '(% conducted the launching test of the product in the more attractive cities of the countr .

2:%#A IC INFO&MATION &EGA&DING MA&KETING T&ETEGIE " A% EGMENTTATION"

'(% has divided the market of 3akistan into distinct groups of customers with different demands, tastes and behavior who reCuire separate products or marketing mi#. )n 3akistan the niche marketing is being used for particular classes of people. The have made segments of the market on the following bases. >emographical 2ehavior *eographical 2 using these three bases the segmented the market as under. >"MO*0A3B)%A= 2A$)$ )n demographics their first segment is consisted of the income factor i.e. high income, average income and low income.

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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KFC

Applied Marketing

2"BAN)O0 )n behavioral aspect the segmented the market on the basis of Cualit , taste and price. (ollowing are the different possible segments in this regard. Taste conscious Lualit conscious %lass conscious %ombination of price and Cualit *"O*0A3B)%A= 2A$)$ On the basis of the geographical factor we have divided our market in two main segments. @rban areas $ub urban areas 30O()=" %0)T"0)A1

;. )ncome1 "ver one can use the '(% service upper and middle class . <. Age1 Age limitation for using their products is above G. $. Occupation1 2 profession also ever one can use this product means businessmen, students, workers and other peoples. /. "ducation1 )t has no need more education that wh the person who know something can easil enjo with their products. 1. (amil life c cle1 '(% is suitable in ever stage of life like single married couple and also those who have children can use this product. 5. =ifest le1 This product is used in ever level of social class like upper, middle class. 6. Attitude1 When the customers once bu this product after that the can use the product continuousl .

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

4;

KFC

-. *ender1 '(% is for each gender both male and female.

Applied Marketing

8. 3urchasing decision1 Often '(% changes the purchasing decision of customers because of its good attributes. 2:. *eographic region1 *eographicall '(% is used in ever part of the countr as well as all over the world.

#%C'&&ENT TA&GET MA&KET"

'(% will be using differentiated market coverage strateg . )t means that different marketing mi# will be used for different age groups. After evaluation of various segments, '(% has decided to target the market of urban and $ub?urban Areas of 3akistan. 3eople are educated and the want variet in their diet. <ormall people of rural areas don5t take fast food. On the other hand people of urban areas take fast food. )ncome of the people of urban areas is normall high and the can afford to purchase such products, which are slightl higher in price as compared to prevailing prices of local food in the market. 3eople of @rban Areas are more Cualit conscious than the people of 0ural Areas. )n @rban Area there lived people from ever walk of life and profit generation is easier than in 0ural Areas. 3opulation densit is higher in @rban Areas as compared to 0ural Areas, so the numbers of customers are more in @rban Areas.

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

4E

KFC

KFC

Applied Marketing

C%FACTO& EFFECTING ALE "

There are so man factors that are effect the sales of '(%. These includes over all world economic crises, terrorism, political instabilit of 3akistan, bird flu disease, etc. There are following factors that can influence the sale as increase or decrease. *lobal "conomic %risis1 <ow in these da s all global has economic crisis all round the world that has bad impact on the '(% sale. >ue to graduall decrease in per capita income of 3akistan5s econom also decreasing the annual sale of '(% (ast (ood %hain all around the countr as well as world.

)t is a graph that shows the sale of '(% high point indicates the before "conomic crisis and low point indicates the after "conomic crisis. 2ird (lu >isease1 )t is also a great danger for the '(% because the are chicken specialist in the world and perfect in taste. )f there is an bird flu disease in an part of the world it automaticall has impact on 3akistan5 '(% fast food chain in the countr . The demand of the chicken decreases the sale of the '(% also decreases in the business process.

Terrorism1 )t is a big problem for 3akistan5s econom as well as '(%. =ast two ears the terrorism increases that has bad impact on the '(% annual sale and the assets loss in %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , 4K

Applied Marketing

different cities in the countr . )n 'arachi, 3eshawar, Luetta and other big cities in which '(% is serving its services has huge loss, assets are insured but the dail sale is decrease due to breakdown in dail operations that are not carried out b the (ranchises. These factors have reduced the sales of '(% but the are competing with these factors b offering better Cualit , health products and b offering affordable prices.

D) +E T ANAL4 I "
3est anal sis includes how political, economical, social and technological factors are effecting the organiJation. "ver organiJation faces these factors for running the business process in the world. OrganiJation can not neglect these factors. These factors are not controllable b the organiJation.

3O=)T)%A= ("%TO0$1
Marketing and business decisions are strongl affected b the changing in political environment. There are different factors such as laws on business emplo ment; pollution and ta#ation appl on the organiJation which it has to follow regarding the rules. 2enJir 2hutto >eath1 The political instabilit of 3akistan is affecting the progress of '(%. $ome of their outlets have burned in 'arachi at the death of 2enJir 2hoto. <ow a da so side bombers are also a big danger for '(%. *ovt. also has increased the sales ta# from -E S to 4-Sthat has raised the prices of their products. $ome of their products are banded b the government because these are not Balal from )slam point of view. )nstabilit of *overnment1

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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Applied Marketing

)nstabilit of the government in the countr is also big danger for the organiJation because due to change in the *ovt; policies of the countr also changes speciall in 3akistan. 3eshawar P $wat )ssues1 )n last months war between American forces and Taliban5s forces in 3eshawar and $wat has impact on '(%5s operation in these cities in which it has more than AF S share like 3eshawar. )t is an American base compan therefore people think

ECONOMICAL FECTO& "

)t includes the following sub factors which has impact on the organiJation business process in the 3akistan. 3urchasing 3ower1 )t also has great impact of the business process in an areas of the world like 3akistan because if there is high purchasing power then '(% can earn more profits and there is low purchasing power then it might be loss for the firm. )f there is economic growth in the countr and per capita income is increasing due to increase in *>3. 3urchasing power of the people will also increase so the will spend more on purchasing. 2ut there is a down fall in the econom of 3akistan. *rowing inflation has reduced the purchasing power of people. @nemplo ment also has increased that has reduced the purchasing power of people. These economic crises are a danger for '(%.

$O%)A= (A%TO0$1
%ulture element includes the attitudes, values, norms, beliefs, behaviors and associated demographic trends that are features of a given geographic area. %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , 4,

Applied Marketing

Multinational compan faces the challenge to understand about the culture of that countr where the work. To solve these problems '(% hire all emplo ees of local area and now it is eas for them to understand about the culture of 3akistan. Bilal (ood1 '(% management knows about that 3akistan is a Muslim countr ; therefore the use -FFS Balal !Uibiha& chicken. '(% start their branches in those cities which are famous for food eating. 3akistani people like spic foods, therefore '(% also provide spic foods in 3akistan. (amil (ast (ood1 '(% open its branches in advance cities of 3akistan like =ahore, 'arachi, and )slamabadV0awalpindi etc. )n these cities mostl come out with their famil because '(% mainl focus famil .

TEC9NOLOGICAL FECTO& "

Technolog is ver important for the success of an organiJation. 2ecause without modern technolog no organiJation can compete in the market. '(% is using modern technolog for cooking and modern cooking recopies to get the competitive advantage. <ew 2aking $ stem1 '(% is the first who introduce the baking s stem in front of customer to satisf the customer. )t means that all the cocking, baking and all other work that is involved in the preparation of the fast food. %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , 4A

Applied Marketing

The are also maintaining customer data base management s stem and modern marketing techniCues for long lasting relations with their customers.

E%C' TOME& &ELATION 9I+ MANAGEMENT T&ATIG4"

Managing detailed information about individual customers and carefull managing customer touch points in order to ma#imiJe customer lo alt . '(% is managing its customer relations b providing them valuable and differentiated chicken products. The are providing home deliver services. The also creates customer data base and keep the records of their regular customers. The also fill the Cuestioners from their customers in order to provide them better Cualit according to their tastes. '(% also has developed its website. %ustomers can visit the website to know their operations and about their products. (eedback1 )t is also an effective tool for customer relationship management, for this purpose ever '(%5s outlet has drop bo# for complaint and suggestion for a particular problem or issue, because in this tool customer can direct contact therefore it is an effective tool.

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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Applied Marketing

(orum1 )t is also a direct contact tool for the customer relationship management. )n which customer can put hisVher complain and suggestion in the compan 5s web site for a particular branch in the countr . Mobile Nane1 )f an customer has an problem or suggestion regarding to the an branchVperson heVshe can contact the mobile vane supervisor because mobile vane can reach at our door step for deliver in the particular areas.

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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Applied Marketing

)n 3eshawar '(% is providing its services for 4; hours and each and ever product is available at an time. While its competitors are not providing services at night. $o this is the reason that it to much successful in that cit and in this wa it creating customer relation management with citiJens.

F%+&OD'CT CLA
3roduct =ife % cle1

IFICATION WIT9 +&OD'CT LIFE C4CLE"

"ver product has its life c cle whether it is successful or not in the market. This c cle has four stages given below in the diagram.

<ow discuss the '(% product line according to their life c cle )ntroduction1 )n this stage following product are included according to their life c cle Bot Wings1 %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , 84

Applied Marketing

*rowth1 Bot $hots Maturit 1 Uinger1 %hicken Mania1 %hicken 2urger1 0ice n $pice1

>ecline1 Twister

G%+&ICING T&ATIGIE "

3rice is a mone reward in return of some value given b the producer to its customer. )t is important for an stage of product life c cle whether it is introduction or maturit . 3rice decision is a vital role to capture the market share. There are following pricing strategies for the product regarding its life c cle in the marketing conducted b the '(%. A W 3rofile1 )t is another name of $kimming price in which high price is charged b the '(%. When '(% launch new products in the market the high price will charge b the '(%. (or e#ample there is new product will launch in the market it is charged A W 3rofile pricing. <ew 3roduct Bot Wings1 )t is a new product will launch in the e#isting cities in the countr the $kimming price will charge to the customer because the cost is high. When with the passage of the time it decreases the sale the low price is charged b the '(%. %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , 88

Applied Marketing

A 3rofile1 )t is comparativel low price as compare to the $kimming price. )t is charged when the sale of the product is decrease or the cost of the product line is achieved b the '(%. 2 3rofile1 )t also called as market penetration price in which low price is charge to capture the market share in low income areas.

'(% during pricing their products keep the different points in the mind like the adopt the cost base price strateg . 3ricing of the product includes the *overnment ta#es and e#cise duties and then the come at final stage of determine the price of their products. '(% prices of products are a bit high according to the market segment and it is also compatible to the stander of their products. %alculation of the price under %ost 2ased 3ricing $trateg 1 Total 3ounds of %hicken $erved in '(% 0estaurant Annuall T -.A-; 2illion Total '(% %hicken 3ieces $old Annuall T E.,A 2illion Total 0etail $ales T D,.A 2illion $ales 3rice of per %hicken 3iece 3ieces sold T Total 0etail $ales V %hicken T D,.A 2illion V DE.,A 2illion TD-.EWe assume that (i#ed %ost is Nariable %ost T DKGEFFFFFF 3rofit Margin is Or Mark @p 3er @nit Nariable %ost T D44EFFFFFF!4ES of $ales& T DKGEFFFFFF V E,AFFFFFFF T D F.--E @nit %ost T Nariable %ost W (i#ed %ost V %hicken pieces $old %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , 8; T DKFFFFFFFFF

Applied Marketing

T F.--E W KFFFFFFFFF V E,AFFFFFFF T F.--E W -.F4 T D-.-8E <ow suppose manufacturer wants to earn 4ES mark up on sale. The manufacturer mark up price is calculated1 Mark @p 3rice T @nit %ost V !- 6 >esired 0eturn on $ales& T-.-8E V !-?.4E& T -.-8E V F.GE T D-.E'(% also uses cost based price for old and new products in the market.

9%C9ANNEL MANAGEMENT"
)t is a link between consumer and producer. )f the channel management s stem is strong it is helpful to satisf the customers b delivering the Cuick service. )t has two t pes. -? )ndirect channel management s stem. 4? >irect channel management s stem. '(% is using >irect %hannel Management $ stem for satisf ing the customers b providing them superior value b their own "#perience. There is no compromise on customer satisfaction and Cualit . (or this purpose '(% adopts the franchising s stem which is beneficial for both !'(% and customers&. )n the case of the '(% the placement of the product is not important but the placement of the restaurant is important. '(% has following method for channel management s stem. -& franchising %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , 8E

Applied Marketing

All the franchises are controlled b %upola !Hum international&. There are si# brands =ies under the Hum '(% )ndulge =al Lila Taco 2ell 3iJJa But All American (ood !AM& 3epsi %ola ! )t was also a part of H@M till 4FF;& The products of the '(% are cooked at the spot. '(% is providing products and services to consumer market as well as business market. '(% chose the well income class area for their restaurants. (ranchises '(% opens its franchises in most populated and well income area such as in =ahore there are nine outlets in highl income based areas like o 2arket Market ! <ew *arden Town & o MM Alam 0oad o H 2lock o $hadman Town o Thokar <iaJ 2aig o >efence o %avalr gound o Mall 0oad %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , 8K

Applied Marketing

o * T 0oad

I%+&OMOTION T&ATIGIE "

3romotion is one of the necessar plates in an form of business or in other words ou can sa that promotion is the ke of success. )f ou promote our product at the right time. '(% also known the importance and significance of promotion so the uses the bill boards the major source of advertisement and one of the most important thing that the uses media especiall the newspapers to promote their products. The are also creating awareness among the masses about their e#isting product range as well the tell us about the future product. Marketing efforts to be taken b the restaurant1 3aste deliver posters at petrol pumps, flats, colleges, plaJas, and departmental stores. >istribution of deliver fl ers in residential areas, markets, plaJas and institutions !as per the plan& Nisit offices, business places, $chools, colleges and universities also.

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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Applied Marketing

(or sales promotion '(% has introduced different strategies such 0amadan 3ackage, 2irthda 3ackage, Midnight 3ackage and the are also celebrating man occasions like Mother5s da , 2asant etc. Also the have introduced goods like watches, ke chain, coffee cup, T?shirt, to s etc to the customers.'(% also offers man luck draw schemes to attract their customers. Advertisement1 )t includes the following 3rint media1 Mang !'arachi, =ahore P 0awalpindi&. The news !'arachi, =ahore P 0awalpindi&. >awn !'arachi, =ahore, 0awalpindi&. MagaJine. Online media1 3ersonal web site1 '(% also making promotion through its own web sites of all branches in the countr like )slamabad, =ahore, Muree, Multan and other cit in which it is dealing. Tagged1 )t is world famous chating, friendship and communit site in which promotion is made b the '(% for the seasonal and new product campaign. )n which most oung are surfing the internet. Apniisp1 )t is most famous 3akistan5s music site '(% also targets this site for their promotion. Other %ommunities sites1

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

8,

Applied Marketing

'(% also make advertisement in other sites and communities in which most of the public are surfing these sites.

"lectronic media1 )t includes the following TN %ommercials1 Advertising on different %able channels like *eo, A0H World, Ten $ports, Music channels, etc and also advertising on world call %able advertising. 0adio %ommercials1 '(% also makes promotion through (M radio services in different cities like in =ahore ((M -FF) and in 'arachi ((M -F-) Transaction media1 )t includes the following Mobile vane1 (or the deliver of the order is ver Cuick service for this purpose '(% has a mobile vane that makes it possible within <: minutes. )t is also a source of advertisement.

Trucks1 (or seasonal campaign and festival there are road shows were conducted b '(%. )t also contributes its part of promotion.

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

8A

Applied Marketing

%o 2randing1 '(% also has co branding with 3epsi and Walls.

7%TA&GET T9AT WO'LD LIKE TO AC9IE!E"

"ver organiJation and compan has some certain goals laid down b them to achieve to make it renown and have value added services to satisf customers. 2uild an organiJation dedicated to e#cellence. %onsistentl deliver superior Cualit and value in our products and services. Maintain a commitment to innovation for continuous improvement and grow, striving alwa s to be the leader in the market place changes. *enerate consistentl superior financial returns and benefits our owner and emplo ees. %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , ;F

Applied Marketing

To establish a position in 3akistan as a leading WL$0 !Western Luick $ervice 0estaurant& chain, serving good value added services and )nnovative chicken based products. '(% is consistentl providing a pleasant dining e#perience, with fast friendl , in a clean and convenient location. "ver moment dedicated to providing e#cellent and delighting customers.

K%E=+ENDING TA&GET MA&KET"

'(% started its business from the big cities in 3akistan. Their business has been e#tended in almost all big cities. <ow the are going to target the small cities. Where a middle class famil are living but due to rapid change in their living standard and Cualification has provided the opportunities to businessmen of fast foods to e#pand their target market. The people in those cities are also wants to eat in restaurants. $o '(% is availing the opportunit and e#pending the target market from big cities to sub urban areas. '(% will provide fair price products in those cities.

L%E=+ECTATION FO& T9E COMING 4EA&"

<ow a da '(% has K4 outlets all around the countr . 2ut their current e#pectation is to open -FF outlets all around the countr in 3akistan up to 4F-F. There main target areas 'agan, <aran and other visiting places where people comes from abroad and also from the different cities of 3akistan for visit. The are also going to target 2lochistan.

22% WOT ANAL4 I "

$WOT anal sis mean strength, weakness, opportunities and threats and the $WOT anal sis of '(% are1 %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , ;-

Applied Marketing

T&NGT9E "
'(% secret recipe of -- herbs and species has made it the leader in chicken for the last EF ears. '(% sells three recipe, original recipe, e#tra crisp , tender roast '(% adopted ver different market concept then other companies that help '(% to be strong in market '(% is the onl best fast food restaurant in 3akistan with great recipes

'(% has a hold at the market and through customer satisfaction the have higher profits rates '(% has good approach to media The have different strategies to handle different problems The alwa s choose a ver good location in the bus area of cit The have well educated staff and the all are ver skilled and handle all the situation ver well and satisf there customers "ach and ever deal is available at ever time as well as the time of closing. As we know '(% is the multinational compan and the have reserves of finance and pa man ta#es to government

WEAKNE

"

'(% sweet dishes portion is not as better as should be The onl focus higher income level people The have much higher price as compare to the other fast food restaurants

O++O&T'NITIE "
The have the opportunit to e#pand their sweet products The can open more branches to get ma#imum market share %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , ;4

KFC

>ue to its chicken products '(% has no competitors in the market

Applied Marketing

The can open branches in northern areas of 3akistan. The can open temporar outlets in peak season in the hill stations like Murree, <aran, and 'agan etc. The can capture more customer b decreasing the price of their products To market their products the have to do more social projects for the countr and due to that the attract more customers

T9&EAT "

Web site of '(% currentl become the big threat for '(% market $ome international events badl affected the market of '(% in 3akistan like )raC and Afghan war and we know '(% is American based. Therefore, it creates a great impact on the performance of '(%. >uring the war the sale of sale '(% decrease more then 4ES

%urrent political situation is a big threat for '(%

$ome uncertain situation like bomb blasts is also the big threat for '(% >iseases like bird flu is the big threat for '(% 3eople wrong perception created b some our religious people or Molvies that the chicken products of '(% are not Bilal that effect the '(% market ver much.

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

KFC
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Applied Marketing

2; >CONCL' ION"

After our research on '(%, we come to conclude that '(% has good products as far as chicken items are concerned. There products are ver valuable and according to the perceived values of customers. That is the onl reason that customers like to eat from '(%. The are market leaders and also increasing their sales b providing good products and services. There customers are increasing ever da . The are also going to increase their target market all over the world as well as in 3akistan.

2< >&ECOMMENDATION "

'(% has to increase other varieties of products to attract the customers. And the must target low income people and children also because children push their parents to go to their favorite restaurants. And one more aspect for '(% is that it must also reduce their prices to compete their competitors like Mc>onald, %risps 3ins and 3iJJa But. '(% is a American 2ased (ast (ood restaurant. There is a contradiction between 3akistani %ulture and American culture .'(% should adopt the 3akistani culture. '(% also work for social aspects. %OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + , ;;

Applied Marketing

2$ %&E O'& E +E& ON"

#i?liogra*hy"

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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Applied Marketing

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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Applied Marketing

%OM$AT$ )nstitute Of )nformation technolog , $ahiwal *roup + ,

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