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MINOR PROJECT

REPORT
ON KFC

Session: 2013-2016

UNDER THE GUIDANCE OF:

SUBMITTED BY:-

SUPRIYA CHAUDHARY

SIMARJOT SINGH
Enrollment No.02714901813
Course: BBA (B&I) 3rd Sem.

MAHARAJA SURAJMAL INSTITUTE


(Affiliated to Guru Gobind Singh Indraprastha University)

(Recognized by UGC U/S2 (F))

C-4 JANAK PURI, NEW DELHI-58

CERTIFICATE

This is to certify that the research project initiated to certify that is the
innovative effort of SIMARJOT SINGH ROLL NO-02514905010 and it
has been accomplished under my guidance.
Certified that this project report KFC Is the bonafide work of "SIMARJOT
SINGH who carried out the project work under my supervision.

SIGNATURE
SIGNATURE

SIMARJOT SINGH
SUPRIYA CHAUDHARY

SUPERVISOR

ACKNOWLEDGEMENT

A project can never become a success with efforts of only one individual. It
requires a group of people to complete a project at its best. And its my
friends, my teacher and my family member who have helped me to complete
my project report.
The present work is just an effort to throw some light on KFC. The work
would not have been possible to come to the present shape without the
guidance, supervision and help of number of people.
With deep sense of gratitude I acknowledge the encouragement and
guidance received from Mrs. SUPRIYA CHAUDHARY, and other staff
members.

I convey my heartfelt thanks to all those people who helped and supported
me during the course, of completion of my Project Report.

SIMARJOT SINGH
ENROLL. NO. 02714901813

Course: BBA (B&I) 3rd Sem.

KFC (Kentucky Fried Chicken)

Type:

Subsidiary

Industry:

Restaurant

Genre:

Fast food

Founded:

Sanders Court & Cafe


1930 in North Corbin, Kentucky

First franchise:
Founders:

1952 in Salt Lake City, Utah


Harland Sanders

Headquarters:
States

1441 Gardiner Lane, Louisville, Kentucky, United

Number of locations:

18,875 (2013)

Key people:

David C. Novak (Yum! Brands Chairman and CEO)


Roger Eaton (Yum! COO and KFC President)
Muktesh Pant (KFC CEO)

Products:
Fried chicken, chicken burgers, wraps, French fries,
soft drinks, salads, desserts,
Revenue:

US$23 billion (2013)

KFC

(The name was originally an intitalism for Kentucky Fried Chicken) is a fast
food restaurant chain that specializes in fried chicken and is headquartered
in Louisville, Kentucky, in the United States. It is the world's second largest
restaurant chain (as measured by sales) after McDonald's, with 18,875
outlets in 118 countries and territories as of December 2013. The company is
a subsidiary of Yum! Brands, a restaurant company that also owns the Pizza
Hut and Taco Bell chains. KFC was founded by Harland Sanders, an
entrepreneur who began selling fried chicken from his roadside restaurant in
Corbin, Kentucky, during the Great Depression. Sanders identified the
potential of the restaurant franchising concept, and the first "Kentucky Fried
Chicken" franchise opened in Utah in 1952. KFC popularized chicken in the
fast food industry, diversifying the market by challenging the established
dominance of the hamburger. By branding himself as "Colonel Sanders,"
Harland became a prominent figure of American cultural history, and his
image remains widely used in KFC advertising. However, the company's
rapid expansion saw it overwhelm the ageing Sanders, and in 1964 he sold
the company to a group of investors led by John Y. Brown, Jr. and Jack C.
Massey. KFC was one of the first fast food chains to expand internationally,
opening outlets in the United Kingdom, Mexico, and Jamaica by the mid1960s. Throughout the 1970s and 1980s, KFC experienced mixed fortunes
domestically, as it went through a series of changes in corporate ownership
with little or no experience in the restaurant business. In the early 1970s,
KFC was sold to the spirits distributor Heublein, who were taken over by the
R.J. Reynolds food and tobacco conglomerate, who sold the chain to PepsiCo.
The chain continued to expand overseas however, and in 1987 KFC became
the first Western restaurant chain to open in China. The chain has since
expanded rapidly in China, which is now the company's single largest
market. PepsiCo spun off its restaurants division as Tricon Global

Restaurants, which later changed its name to Yum! Brands. KFC's original
product is pressure fried chicken pieces, seasoned with Sanders' recipe of 11
herbs and spices. The constituents of the recipe represent a notable trade
secret. Larger portions of fried chicken are served in a cardboard "bucket,"
which has become a well known feature of the chain since it was first
introduced by franchisee Pete Harman in 1957. Since the early 1990s, KFC
has expanded its menu to offer other chicken products such as chicken fillet
burgers and wraps, as well as salads and side dishes, such as French fries
and coleslaw, desserts, and soft drinks, the latter often supplied by PepsiCo.
KFC is known for the slogan "finger lickin' good," which has since been
replaced by "Nobody does chicken like KFC" and "So good.

HISTORY

Harland Sanders was born in 1890 and raised on a farm outside Henryville,
Indiana. When Harland was five years old, his father died, forcing his mother
to work at a canning plant. This left Harland, as the eldest son, to care for
his two younger siblings. After he reached seven years of age, his mother
taught him how to cook . After leaving the family home at the age of 13,
Sanders passed through several professions, with mixed success. In 1930, he
took over a Shell filling station on US Route 25 just outside North Corbin,
Kentucky, a small town on the edge of the Appalachian Mountains.
It was here that he first served to travelers the recipes that he had learned
as a child: fried chicken and other dishes such as steaks and country ham.
After four years of serving from his own dining room table, Sanders
purchased the larger filling station on the other side of the road and
expanded to six tables. By 1936, this had proven successful enough for
Sanders to be given the honorary title of Kentucky colonel by Governor
Ruby Laffoon.

In 1937 he expanded his restaurant to 142 seats, and added a motel he


purchased across the street, naming it Sanders Court & Caf. Sanders was
unhappy with the 35 minutes it took to prepare his chicken in an iron frying
pan, but he refused to deep fry the chicken, which he believed lowered the
quality of the product. If he pre-cooked the chicken in advance of orders,
there was sometimes wastage at day's end.
In 1939, the first commercial pressure cookers were released onto the
market, mostly designed for steaming vegetables. Sanders bought one, and
modified it into a pressure fryer, which he then used to fry chicken.The new
method reduced production time to be comparable with deep frying, while, in
the opinion of Sanders, retaining the quality of pan-fried chicken.
In July 1940, Sanders finalized what came to be known as his "Original
Recipe" of 11 herbs and spices. Although he never publicly revealed the
recipe, he admitted to the use of salt and pepper, and claimed that the
ingredients "stand on everybody's shelf."
After being recommissioned as a Kentucky colonel in 1950 by Governor
Lawrence Wetherby, Sanders began to dress the part, growing a goatee and
wearing a black frock coat (later switched to a white suit), a string tie, and
referring to himself as "Colonel."
His associates went along with the title change, "jokingly at first and then in
earnest," according to biographer Josh Ozersky.
The Sanders Court & Caf generally served travelers, so when the route
planned in 1955 for Interstate 75 bypassed Corbin, Sanders sold his
properties and traveled the US to franchise his chicken recipe to restaurant
owners.
Independent restaurants would pay four (later five) cents on each chicken as
a franchise fee, in exchange for Sanders' "secret blend of herbs and spices"
and the right to feature his recipe on their menus and use his name and
likeness for promotional purposes.
In 1952 he had already successfully franchised his recipe to his friend Pete
Harman of South Salt Lake, Utah, the operator of one of the city's largest
restaurants.
Don Anderson, a sign painter hired by Harman, coined the name "Kentucky
Fried Chicken."

For Harman, the addition of KFC was a way of differentiating his restaurant
from competitors; a product from Kentucky was exotic, and evoked imagery
of Southern hospitality.
Harman trademarked the phrase "its finger lickin' good," which eventually
become the company-wide slogan.
He also introduced the "bucket meal" in 1957 (14 pieces of chicken, five
bread rolls and a pint of gravy in a cardboard bucket). Serving their
signature meal in a paper bucket was to become an iconic feature of the
company.
By 1963 there were 600 KFC restaurants, making the company the largest
fast food operation in the United States. KFC popularized chicken in the fast
food industry, diversifying the market by challenging the established
dominance of the hamburger .
In 1964, Sanders sold the company to a group of investors led by John Y.
Brown Jr. and Jack C. Massey for US$2 million (around US$15 million in 2013).
The contract included a lifetime salary for Sanders and the agreement that
he would be the company's quality controller and trademark . The chain had
reached 3,000 outlets in 48 different countries by 1970.
In July 1971, Brown sold the company to the Connecticut- based Heublein, a
packaged food and drinks corporation, for US$285 million (around US$1.6
billion in 2013).promotional work making him a prominent figure in American
cultural history.
By the time of his death, there were an estimated 6,000 KFC outlets in 48
different countries worldwide, with $2 billion of sales annually.
In 1982, Heublein was acquired by R. J. Reynolds, the tobacco giant.
In July 1986, Reynolds sold KFC to PepsiCo for $850 million (around US$1.8
billion in 2013).
PepsiCo made the chain a part of its restaurants division alongside Pizza Hut
and Taco Bell.
The Chinese market was entered in November 1987, with an outlet in
Beijing.
In 1991, the KFC name was officially adopted, although it was already widely
known by that initialism.

Kyle Craig, president of KFC US, admitted the change was an attempt to
distance the chain from the unhealthy connotations of "fried".
The early 1990s saw a number of successful major products launched
throughout the chain, including spicy "Hot Wings" (launched in 1990),
popcorn chicken (1992), and internationally, the "Zinger", a spicy chicken
fillet burger (1993).
By 1994, KFC had 5,149 outlets in the US, and 9,407 overall, with over
100,000 employees.
In August 1997, PepsiCo spun off its restaurants division as a public
company valued at US$4.5 billion (around US$6.5 billion in 2013).
The new company was named Tricon Global Restaurants, and at the time
had 30,000 outlets and annual sales of US$10 billion (around US$14 billion
in 2013), making it second in the world only to McDonald's. Tricon was
renamed Yum! Brands in May 2002.

BRIEF HISTORY OF
KFC
HOW IT ALL BEGAN!

Harland David Sanders was born September 9, 1890 in Indiana, USA. The
young Harland Sanders had many jobs such as a farmhand, a bus conductor,

a steam boat driver, a soldier, and a salesman. Eventually he became a


business man owning a petrol service station in Kentucky, one of the 52
states of the USA. Many travelers stopped at his service station wanting
refreshments and food. The Colonel saw this as a business opportunity and
decided to offer food to these customers. The Colonel enjoyed making his
customers happy . He was passionate about entertaining them with excellent
food and superb service. His food and service was so good that he was
mentioned in several newspapers around the country. As a result he had to
expand his dining room to keep up with the increase in new customers. This
'Customer Mania' experience made people drive from far away just to visit
the Colonel's restaurant.

A WINNING RECIPE!

After careful testing for many years to find just the right combination of
ingredients, the Colonel knew that he was at last onto a winning recipe.
When he added the 11th and final ingredient, he was truly satisfied that he
had created the best chicken he had ever tasted he wanted to share it with
the world! To this day, the Original Recipe of 11 Herbs and Spices is one of
the biggest secrets in the world the Finger Lickin' Taste of KFC! The Colonel
also introduced the idea of using a pressure cooker to cook the chicken. This
ensured that the product cooked faster and produced the best results ever.
The Colonel decided that his Original Recipe needed to be introduced to
people further from his home and from his state. At the age of 66, he started
selling his idea of Kentucky Fried Chicken by traveling from town to town,
preparing his famous chicken recipe for restaurants and their employees.
Soon everybody wanted to try it families stood in queues to try his great
Original Recipe. Colonel Sanders appeared on national Television promoting
the idea of Kentucky Fried Chicken. He always licked his fingers as he
described the Original Recipe taste to viewers.

This is how the slogan It's Finger Lickin' Good developed.

KFC is a subsidiary of Yum! Brands, one of the largest restaurant companies


in the world. KFC had sales of $23 billion in 2013. KFC has its headquarters
at 1441 Gardiner Lane, Louisville, Kentucky, in a three-story colonial style
building known colloquially as the "White House" due to its resemblance to
the US president's home. The headquarters contain executive offices and the
company's research and development facilities.
KFC is incorporated at 1209 North Orange St, Wilmington, Delaware.
By December 2013, there were 18,875 KFC outlets in 118 countries and
territories around the world. There are 4,563 outlets in China, 4,491 in the
United States, and 9,821 across the rest of the world. Outlets are owned by
franchisees or directly by the company. Eleven percent of outlets are
company owned, with the rest operated by franchise holders.
Although capital intensive, company ownership allows for faster expansion
of the chain.
Most restaurants are furnished with images of the company founder, Colonel
Harland Sanders.
As well as dine-in and take-out, many stand-alone KFC outlets offer a drivethrough option.
KFC offers a limited delivery service in a small number of markets. Units
include express concessions and kiosks which feature a limited menu and
operated in non-traditional locations such as filling stations, convenience

stores, stadia, theme parks and colleges, where a full scale outlet would not
be practical.
Average annual sales per unit was $1.2 million in 2013.
Worldwide, the daily average number of food orders at an outlet is 250, with
most occurring within a two hour peak-period.
As chairman and CEO of Yum!, David C. Novak ultimately has foremost
responsibility for KFC operations.
Sam Su is chairman and CEO of Yum!'s Chinese operations, and Muktesh
Pant is the CEO of KFC.
Richard T. Carucci is president of Yum!, and Roger Eaton is the COO of Yum!
And the president of KFC.

PRODUCTS

KFCS CHICKEN BUCKET


KFC's core product offering is pressure fried on-the-bone chicken pieces
seasoned with the "Original Recipe". The product is typically available in
either two or three piece individual servings, or in a family size cardboard
bucket, typically holding between 6 and 16 chicken pieces. Poultry is divided
into 9 different cuts (2 drumsticks, 2 thighs, 2 wings, 1 keel, and a backbone
based breast cut divided into 2 pieces. The product is hand-breaded at
individual KFC outlets with wheat flour mixed with seasoning in a two to four
minute process. It is then pressure fried for a maximum of seven minutes at
185 degrees Celsius. Following this, the chicken is left to stand for 5 minutes
in order for it to sufficiently cool before it is placed in the warming oven.
It is KFC policy to discard chicken if it has not been sold within 90 minutes,
in order to ensure freshness.
The frying oil varies regionally, and versions used include sunflower,
soybean, rapeseed and palm oil.
A KFC executive stated that the taste of the chicken will vary between
regions depending on the oil variety used, and whether the chicken has been
corn-fed or wheat-fed.
As well as its core chicken on the bone offering, KFC's major products
include chicken burgers (including the Zinger and the Tower burgers); wraps
("Twisters" and "Box masters"); and a variety of finger foods, including
crispy chicken strips and hot wings.
Popcorn Chicken is one of the most widely available KFC products, and
consists of small pieces of fried chicken.
In some locations, chicken nuggets are sold, and are sometimes sold, as in
Australia, under the "Kentucky Nuggets" trademark .

KFC adapts its menu internationally to suit regional tastes, and there are
over three hundred KFC menu items worldwide.
Some locations, such as the UK and the US, sell grilled chicken.
In Asia there is a preference for spicy foods, such as the Zinger chicken
burger .
Some locations in the US sell fried chicken livers and gizzards.
A small number of US outlets offer an all-you-can-eat buffet option with a
limited menu.
A number of territories, such as Japan, Jamaica, Trinidad, Barbados, Ecuador
and Singapore sell fried seafood products under the "Colonel's Catch"
banner .
In Jamaica, what was originally a seasonal offering for the Lent period was
expanded to a year-round offering from 2010.
Value menu items are sold under the "Streetwise" name in locations such as
Canada.
Side dishes often include French fries, coleslaw, barbecue baked beans, corn
on the cob, mashed potato, bread rolls and American biscuits. Salads
include the bean salad, the Caesar salad and the garden salad. In a number
of territories, KFC sell onion rings.
In Asia, rice based side dishes such as kanji are often sold.
In Malaysia, chicken meatball soup is sold. In the US and Greece, potato
wedges are sold instead of French fries.
McCormick & Company is KFC's largest supplier of sauces, seasonings and
marinades, and is a long-term partner in new product development.
Due to the company's previous relationship with PepsiCo, most territories
supply PepsiCo products, but exceptional territories include South Africa, the
Philippines, Turkey, Romania, Greece and Barbados, which stock drinks
supplied by The Coca-Cola Company, and Aruba, which stocks RC Cola from
the Cott Corporation.
In Peru, the locally popular Inca Kola is sold.

In a number of Eastern European locations and Portugal, beer is offered, in


addition to soft drinks.
Launched in 2009, the Krusher/Krushem range of frozen beverages
containing "real bits" such as Kit Kat, Oreo and strawberry shortcake, is
available in over 2,000 outlets.
Egg custard tart is a popular dessert worldwide, but other items include ice
cream sundaes and tres leches cake in Peru.
In 2012, the "KFC am" breakfast menu began to be rolled out internationally,
including such items as pancakes, waffles and porridge, as well as fried
chicken.

11 HERBS AND SPICES


Sanders' Original Recipe of "11 herbs and spices" is one of the most famous
trade secrets in the catering industry.
The recipe is not patented, because patents eventually expire, whereas
trade secrets can remain the intellectual property of their holders in
perpetuity.
A copy of the recipe, signed by Sanders, is held inside a safe inside a vault
in KFC's Louisville headquarters, along with eleven vials containing the herbs
and spices.
To maintain the secrecy of the recipe, half of it is produced by Griffith
Laboratories before it is given to McCormick, who add the second half .

KFC ORIGINAL FRIED CHICKEN RECIPE

KFC initially used stove-top covered cooking pots to fry its chicken. In the
1960s, the officially recommended model was the L S Hertzog developed
"KFC 20-Head Cooker," a large device that cost $16,000.
The Hertzog model had no oil filtration system, meaning that filtering had to
be done manually, and the pressure fryers occasionally exploded.
In 1969, an engineer called Winston Shelton developed the "Collectramatic
519" pressure fryer that would self-filter the oil, and used precision timers
and temperature controls.
Fred Jeffries, then vice president of purchasing at KFC, claimed that the
invention helped fuel the company's rapid expansion and success: "There's
no way it could have grown like it did without the Collectramatic. Stores were
doing about $200,000 a year in sales on average with the pots but they
could never have done the $900,000 a year it became without Win's fryer."
Although a number of franchisees bought the Collectramatic, which had the
support of Colonel Sanders from 1970 onwards, John Y. Brown had already
signed an exclusive contract to only use the L S Hertzog fryer. Brown warned
franchisees that they were in violation of their contract if they used the
Collectramatic.
Brown held his ground on the issue until he learned that his father, John Y.
Brown, Sr., who was a KFC franchisee himself, was also using the
Collectramatic.
The issue was eventually resolved after Heublein purchased KFC and
acquired Hertzog in order to invalidate the contract.
The Collectramatic thus became the official pressure fryer for KFC from 1972
onwards.
Winston previously supplied KFC with holding cabinets, but since 2010,
these have been supplied by Henny Penny.

ADVERTISING

A Colonel Sanders statue outside a KFC


outlet in Japan

Such statues are common outside Asian KFCs. Colonel Sanders was a key
component of KFC advertising until his death in 1980. Despite his death,
Sanders remains a key symbol of the company; an "international symbol of
hospitality."

Modern renditions of the Colonel are sometimes used in post-1980


advertising.
In 1994, Henderson Forsythe portrayed the Colonel in a television campaign
entitled "The Colonel's Way."
From 1998 to 2001 an animated version of the Colonel voiced by Randy
Quaid was used for television advertisements.
In 2012, a UK advertisement entitled "4000 cooks" featured an actor made
up to resemble Sanders.
The ubiquity of Sanders has not prevented KFC from introducing a mascot
aimed at children.
"Chicky," a young animated chicken, was first introduced in Thailand in the
1990s, and has since been rolled out across a number of markets
worldwide, mostly in Asia and South America.

SLOGANS
Early official slogans included "North America's Hospitality Dish" (from 1956)
and "We fix Sunday dinner seven nights a week" from 1957 until 1967.
The "finger lickin' good" slogan was used from 1956, and went on to become
one of the best-known slogans of the twentieth century.
The trademark expired in the US in 2006, and was replaced in that market
with "Follow your taste" until 2010.
In 2011, the "finger lickin' good" slogan was dropped in favor of "So good," to
be rolled out worldwide.
A Yum! executive said that the new slogan was more holistic, applying to
staff and service, as well as food.
"Nobody does chicken like KFC" was first introduced by KFC Australia in
1998, and has continued to be used by the company in some markets.

LOGOS

The first KFC logo was introduced in 1952 and featured a "Kentucky Fried
Chicken" typeface and a logo of the Colonel.
It was designed by the Lippincott & Margulies corporate identity agency.
Lippincott & Margulies were hired to redesign it in 1978, and used a similar
typeface and a slightly different Sanders logo.
The "KFC" initialism logo was designed by Schechter & Luth of New York and
was introduced in 1991, and the Colonel's face logo was switched from
brown to blue ink .
Landor redesigned the logo in 1997, with a new image of the Colonel. The
new Colonel image was more thinly lined, less cartoonish and a more
realistic representation of Sanders. In 2006, the Colonel logo was updated by
Tesser of San Francisco, replacing his white suit with an apron, bolder colors
and a better defined visage.
According to Gregg Dedrick, president of KFC's US division, the change,
"communicates to customers the realness of Colonel Sanders and the fact
that he was a chef.

CONTROVERSIES AND
CRITICISM !
Since the turn of the 21st century, fast food has been criticised for its animal
welfare record, its links to obesity and its environmental impact.
Eric Schlosser's book Fast Food Nation (2002) and Morgan Spurlock's film
Super Size Me
(2004) reflected these concerns.
Since 2003,People for the Ethical Treatment of Animals (PETAhas protested
KFC's choice of poultry suppliers worldwide.

The exception is KFC Canada, which signed an agreement pledging to only


use "animal friendly" suppliers.
PETA have held thousands of demonstrations, sometimes in the home towns
of KFC executives, and CEO David Novak was notably soaked in fake blood
by a protester . President of KFC's US division Gregg Dedrick said PETA
mischaracterized KFC as a poultry producer rather than a purchaser of
chickens.
In 2008, Yum! stated: "[As] a major purchaser of food products, [Yum!] has
the opportunity and responsibility to influence the way animals supplied to
us are treated. We take that responsibility very seriously, and we are
monitoring our suppliers on an ongoing basis."
In 2006, Greenpeace accused KFC Europe of sourcing the soya bean for its
chicken feed from Cargill, which had been accused of clearing large swathes
of the Amazon rainforest in order to grow the crop.
In May 2012, Greenpeace accused KFC of sourcing paper pulp for its food
packaging from Indonesian rainforest wood.
Independent forensic tests showed that some packaging contained more
than 50 percent mixed tropical hardwood fiber, sourced from Asia Pulp &
Paper (APP).
APP said such fiber can be found in recycled paper, or: "It can also come from
tree residues that are cleared, after a forest area has become degraded,
logged-over or burned, as part of a sustainable development plan. APP has
strict policies and practices in place to ensure that only residues from legal
plantation development on degraded or logged-over forest areas and
sustainable wood fiber enters the production supply chain."
KFC said: "From a global perspective, 60 percent of the paper products that
Yum! (our parent company) sources are from sustainable sources. Our
suppliers are working towards making it 100 percent."
In December 2012, the chain was criticized in China when it was discovered
that a number of KFC suppliers had been using growth hormones and an
excessive amount of antibiotics on its poultry in ways that violated Chinese
law.
In February 2013, Yum! CEO David Novak admitted that the scandal had
been "longer lasting and more impactful than we ever imagined. The issue is

of major concern to Yum!, which earns almost half of its profits from China,
largely through the KFC brand. In March 2013, Yum! Reported that sales had
rebounded in February, but that lower sales in December and January would
result in a decline in same-store sales of 20 percent in the first quarter .

KFC to open 500 outlets in India by 2015


November 1, 2010 | PTI PANAJI: KFC, world's one of the biggest restaurant
chain, expects to open 500 outlets by 2015 in India. "We will be expanding to
500 stores by 2015," KFC India (Director Marketing) Unnat Varma told
reporters here. He said that KFC will be present in 75 cities by that time and
will explore bigger cities first before going to smaller markets. Varma said
that they will increase their presence in states like Maharashtra, Tamil Nadu,
Orissa, and Uttar Pradesh...
Restaurant chains increasing vegetarian menu rapidly in the country
September 27, 2014 | Ratna Bhushan, ET Bureau NEW DELHI: When
Kentucky Fried Chicken, synonymous with its 'finger lickin good' positioning,
altered its tagline for India to 'so veg, so good' to promote its paneer zinger
burger and veg twister this March, it was not just a marketing fad. Since then
the fast-food chain's sales of its vegetarian items in the country have shot up
by 50%. "On different days of the week, various people turn vegetarian for
different religious reasons. We realized we couldn't..

China seals McDonald's, KFC supplies after


stale meat scandal
BEIJING: Authorities in China have rushed to seal up suspicious meat
products in fast food chains, including McDonald's and KFC, after one of their
suppliers was accused of selling stale meat. The move came in response to
media and public outcry after a Shanghai TV station exposed Shanghai Husi
Food Co. , a supplier to a string of fast food brands, including McDonald's and
Yum Brands Inc., for selling adulterated products with rotten meat and meat
beyond its...

KFC to serve calorie count

October 23, 2009 | Ratna Bhushan, ET Bureau NEW DELHI: Your finger lickin'
chicken and Zinger burgers will soon have calorie counts on their labels, as
Yum! Brands, the $16-billion owners of Kentucky Fried Chicken fast-food
restaurant, join the growing number of foods and beverages companies
hopping on to the health and nutrition platform. In an exclusive interaction
with ET, David C Novak, global chairman and CEO of the Kentucky-based
fast-food company that also owns Pizza Hut, Taco Bell and A&W Restaurants,
said the move would be kicked off...

KFC owner says China scandal hurting sales


July 31, 2014 | AP BEIJING: The owner of the KFC and Pizza Hut restaurant
chains said Thursday a food safety scandal in China has hurt sales and might
be severe enough to cut into the company's global profit. Yum Brands Inc., in
a filing with the US securities regulator, gave no financial details and said it
was too early to know when sales might rebound. But it said if the
"significant sales impact" continues, it might hurt this year's profit. The
scandal...

KFC earns $250 million annually from China


November 29, 2001 | BEIJING, PTI American fast food giant, Kentucky fried
chicken earned at least two billion Yuan (about $250 million) from the
Chinese mainland annually since the end of 1999, the state statistical bureau
said. Tricon global restaurants said that it had opened over 520 kfc chain
stores in 130 cities in china. And over 99 per cent of kfc stores in china have
made a handsome profit, president of tricon in china, j Samuel su said. In
fact, western fast food restaurants now control a considerable market share
in...

Yum! KFC is back on your plate


January 22, 2003 | Sutapa Raha, TNN KOLKATA: It's time for Kentucky Fried
Chicken to reappear on Indian plates. US-based Yum! Restaurants
International which owns brands like Pizza Hut, Long John

Silvers, Taco Bell and others, has decided to relaunch KFC in India. And
Kolkata seems to be the hub which will flag-off KFC's spread in the country.
Devyani International (DIPL), the franchise for Pizza Hut and KFC in the north
and east India, is slated to open a 4000 sq ft KFC outlet in Harshavardhan
Neotia promoted multiplex...

Court summons to top KFC executive


quashed
January 30, 2012 summons to top Indian executive of an US multinational
firm, owning popular KFC and Pizza Hut outlets, to answer charges of running
a fast food eatery here without licence, has been quashed by a session court.
Additional Sessions Judge (ASJ) Rajeev Bansal quashed the summons to India
Managing Director Niren Chaudhary of US-based Yum! Brands, which owns
food chains KFC and Pizza Hut, saying the trial court order summoning the
top... | PTI NEW DELHI: A magisterial court

Starbucks chicken products off shelves in


China
July 22, 2014 | PTI BEIJING: China has expanded meat scandal probe
nationwide as Starbucks has become the latest international chain to
withdraw products from its shelves in the wake of the rotten meat in
McDonald's, KFC and Pizza Hut in Shanghai. An investigation into a meat
scandal expanded nationwide as China's top food quality watchdog launched
a "thorough" probe, state-run Xinhua news agency reported. China Food and
Drug Administration asked local authorities to investigate all the...

Yum! Restaurants reports third straight drop


in quarterly same store sales
July 18, 2014 | Ratna Bhushan, ET Bureau NEW DELHI: Yum! Restaurants,
owner of KFC and Pizza Hut restaurant chains, reported its third straight drop
in quarterly same store sales in India in the April-June period, indicating that
high food inflation and slowing discretionary spends continue to impact
quick-service restaurants business in the country. Yum! Restaurants reported
a 2% decline in its same-store sales in India even as sales in its biggest
emerging market, China, bounced..

KFC net profit rises by 7.4%


June 28, 2011 | ET Bureau KOCHI: Kerala Financial Corporation (KFC) has
clocked a 7.4 % in the net profit at Rs 35.82 crore for 2010-11. The company
declared a dividend of 5 % for the year. Business portfolio increased by 26.4
% to Rs 1125 crore and the disbursements rose 6 % to Rs 444 crore. The
recovery of loans has improved by 18.73 % to Rs 355 crore.

Yum, partners to invest $10 bn in emerging


markets by 2020
October 22, 2013 | PTI NEW DELHI: Yum! Brands Inc that owns KFC and Pizza
Hut chains plans to invest $10 billion along with its franchise partners to
have 20,000 restaurants in emerging markets, including India, by 2020. The
fast food chain, which today announced its 40,000th restaurant globally with
the opening of an outlet in Goa, also said that by 2015 it will have over 1,000
KFC, Pizza Hut and Taco Bell outlets in more than 100 cities in India division
that...

EARLY FRANCHISES

The Sanders Court & Caf generally served travelers, so when the route
planned in 1955 for Interstate 75 bypassed Corbin, Sanders sold his
properties and traveled the US to market his chicken concept to restaurant
owners.

Independent restaurant owners would pay five cents on each chicken sold as
a franchise fee, in exchange for Sanders' "secret blend of herbs and spices",
his recipe and method, and the right to advertise using his name and
likeness.
In 1952 he had already successfully franchised his chicken recipe to Pete
Harman of South Salt Lake, Utah, the operator of one of the largest
restaurants in the city.
Don Anderson, a sign painter hired by Harman, coined the name "Kentucky
Fried Chicken".
Sanders adopted the name because it distinguished his product from the
deep-fried "Southern fried chicken" product found in restaurants.
Harman claimed that in his first year of selling "Kentucky Fried Chicken", his
restaurant sales more than tripled, with 75 percent of the increase coming
from the sale of fried chicken.
In Utah, a product from Kentucky was exotic and evoked imagery of
Southern hospitality.
As a franchise-led operation, KFC's success depended on the work of the
early franchisees, and Harman has been described as the "virtual cofounder" of the chain by Sanders' biographer .
Harman trademarked the phrase "It's finger lickin' good", which was
eventually adopted as a slogan across the entire chain.
In 1957 Harman bundled 14 pieces of chicken, five bread rolls and a pint of
gravy into a cardboard bucket, and offered it to families as "a complete
meal" for US$3.50 (around US$30 in 2014).
He first trialed the packaging as a favor to Sanders, who had called on behalf
of a Denver franchisee who did not know what to do with 500 cardboard
buckets he had bought from a traveling salesman.

SALE BY SANDERS
KFC popularized chicken in the fast food industry, diversifying the market by
challenging the established dominance of the hamburger .

In 1960 the company had some 200 franchised restaurants; by 1963 this had
grown to around 600, making it the largest fast food operation in the United
States.
In 1963, Sanders met John Y. Brown, Jr, the son of his lawyer, John Y. Brown,
Sr., at a political breakfast.
Brown told Sanders that he was keen to join the company, which had
developed a strong reputation in the Kentucky area.
According to Brown, Sanders had lost interest in the business operations of
KFC. Sanders explained that he saw useful qualities in Brown, such as youth,
enthusiasm and vision. Brown and franchisee Dave Thomas agreed that
Sanders "wasn't a very good businessman". Brown convinced the financier
Jack C. Massey to provide 60 percent of the acquisition capital, and provided
a major contribution himself, with smaller contributions from franchise holder
Pete Harman and company officials Lee Cummings and Harlan Adams.
Sanders then began to have doubts about selling the company, as members
of his family were against it.
Knowing that Sanders placed faith in astrology, Massey waited until he had a
particularly positive and dramatic horoscope before offering a price for the
company. When Massey made the written offer, Sanders read the figure,
immediately consulted his horoscope, then agreed to sell.
The group of investors acquired the company from Sanders in 1964 for US$2
million (around US$15 million in 2013). The contract included a lifetime
salary for Sanders and the agreement that he would be the company's
quality controller and trademark .

GROWTH
Massey and Brown introduced standardization to the fragmented company.
After visiting Pete Harman's operations in Utah, they began to implement the
stand-alone take-out model across the entire chain.
Franchisees were ordered to delist their own menu items so that they could
concentrate on KFC products.

The restaurants were re-branded with a distinctive red-and-white striped


color pattern and mansard roofs with cupolas.
The roll-out of freestanding stores accelerated the company's growth as
outlets exclusively selling fried chicken proved to be more appealing to
potential franchisees.
Sanders did not approve of all of the changes to the company that he had
founded, and became incensed when Massey moved company headquarters
from Kentucky to Nashville, Tennessee, which was closer to where Massey
lived.
Sanders bellowed, "This ain't no Tennessee Fried Chicken, no matter what
some slick, silk-suited man says".
Sanders also became frustrated with some of the changes to the company,
such as introducing an initial franchisee fee of $4,000, and charging
franchisees a percentage of total sales rather than a nickel per chicken sold.
Sanders also believed that the company had reneged on their contract with
him when they opened operations in Canada, because as he understood it,
the contract had granted him the exclusive rights to operate in the country.
Sanders complained to the press
The Washington Post , "I don't like some of the things John Y. done to me. Let
the record speak for itself. He over- persuaded me to get out".
The outburst was embarrassing for Brown, who argued that he made the
management structure more efficient and treated the increasingly
disgruntled Sanders with tact and patience.
KFC was forced to renegotiate with Sanders regarding the Canadian
activities, as he owned $1.5 million worth of stock and was using it to
prevent Massey from listing the company publicly until his points of issue
were addressed.
Brown and Massey claimed that Sanders only had the rights to process
chicken in Canada. After they renegotiated the contract to guarantee
Sanders exclusive rights over Canada, he sold his stock to them, and the
company went public in 1966.
After going public, the company bought out its 600 franchisees, and directly
operated them itself. Later that year, Massey resigned from day-to-day

management of the company (although he remained as chairman), and


Brown announced that headquarters would be moved to Louisville, Kentucky.
By 1967, KFC had become the sixth largest restaurant chain in the US by
sales volume, and 30 per cent of sales were take-out.
Brown felt that the company had to expand quickly, or else emerging rivals
such as Church's Chicken would steal the company's lead; 863 outlets were
opened in 1968. The company's growth pushed its stock value to
"stratospheric" levels, according to Reuters, and in 1969 it was listed on the
New York Stock Exchange.
Meanwhile, KFC entered into ventures with other companies. In 1969, Brown
launched the "Kentucky Roast Beef" restaurant chain, and "Colonel Sanders
Inns" motels.
Brown believed that the Colonel Sanders brand could be used to market
anything, but these two ventures quickly failed.
That same year, KFC entered a joint venture with the California-based fish
and chips chain H. Salt Esquire, which proved more successful, but was sold
off in 1980.
Massey resigned as chairman of the company in March 1970, and Brown
took over his role.
The chain had reached 3,000 outlets in 48 different countries by 1970, but
expansion was often chaotic and poorly executed.
When he was promoted to regional manager, Dave Thomas complained that
the company had become too "corporate", sent him "a lot of Mickey Mouse
memos" and that Brown lacked motivational skill.
A member of KFC senior management described the international strategy as
"throwing some mud against the map on the wall, and hoping some of it
would stick."
The first outlet in Japan was opened after just two weeks preparation, and it
proved to be a costly failure, losing $400,000 during its opening month and
wasting more chicken than it sold.

ACQUISITION BY
PEPSI CO.

In July 1986, Reynolds sold KFC to PepsiCo for a book value of $850 million
(around US$1.8 billion in 2013). At the time, PepsiCo had interests in soft
drinks and snacks, and also owned the restaurant chains Pizza Hut and Taco
Bell. Reynolds divested KFC in order to pay off debt related to its recent
purchase of Nabisco and to concentrate on its tobacco and packaged food
business. It was anticipated that PepsiCo would bring their merchandising
expertise to the company .Dan Koeppel of Ad week believed that the chain
had been suffering from corporate neglect, menu stagnation and mixed
marketing messages; Nancy Giges of Advertising Age felt that the chain had
been "smartly revived" by R. J. Reynolds. KFC chairman Richard Mayer was of
the opinion that Reynolds had treated their restaurants division as a "hobby".
PepsiCo's acquisition was seen by some analysts as a means for the
company to increase its soft drinks sales. Before the takeover, only 1,000 of
the 6,500 KFC outlets sold Pepsi Cola. PepsiCo chairman D. Wayne Calloway
stressed that soft drink preference was not a factor in the KFC takeover .
PepsiCo switched 1,800 company owned stores to their own soft drinks with
immediate effect. KFC management had previously given franchisees the
freedom to sell any soft drinks they wanted, but PepsiCo stated that it hoped
it could convince them to stock Pepsi products. The purchase of KFC by
PepsiCo led to some fast food competitors switching from Pepsi to Coca-Cola.
One of the first to switch was Wendy's, whose chairman, Robert Barney,
stated, "In recent months, Pepsi has acquired another restaurant chain. Their
interests are now in conflict with Wendy's and we will not support a company
that is trying to make our customers its customers."In 1990, Burger King also
switched to Coca-Cola from PepsiCo, citing the growth of PepsiCo as a rival
as a "large factor" in the switch. By July 1987, the "Chicken Little", an
inexpensive chicken slider made from dark meat, was introduced across
KFC's US stores, aimed at capturing the lunchtime market. Sales were

reportedly disappointing, despite a $31 million advertising campaign. In


November 1987, KFC became the first Western restaurant chain in China,
with an outlet in Beijing. In 1989, first quarter sales at KFC rose 30 percent to
US$280 million. In July, president and CEO Richard Meyer left KFC in order to
become the CEO at Kraft Foods, and was replaced by John Cranor
III.International growth and franchisee disputes under John Cranor III.
In August 1989, Cranor proposed amendments to the existing 1976 contract
for US franchisees: PepsiCo could take over weak franchises, existing
restaurants would not be safeguarded against competition from new outlets,
and PepsiCo would have the right to increase royalty fees. The contract
proved controversial amongst franchisees, who countered with a lawsuit, and
the issue was not resolved until 1996. PepsiCo was accused of behaving in
an imperious manner towards franchisees, who it believed were holding back
the firm's growth, while the franchisees believed they had been the
backbone of the company during a succession of indifferent corporate
owners.
Cranor spent $42 million restructuring the company's operations worldwide.
He invested an additional $50 million to refurbish outlets and $20 million on
a new computer system to link outlet cash registers to the kitchen, drivethrough window, manager's office and company headquarters. Cranor also
expanded the chain into non-traditional locations, beginning with a 150 sq ft
kiosk selling seven items at a General Motors assembly plant in Dayton,
Ohio. Between 1986 and 1991, the chain built a further 2,000 outlets to bring
its total number to 8,500, and sales grew from $3.5 to $6.2 billion. The chain
had to contend with the rise of grilled chicken as Americans became
increasingly health conscious. KFC found itself competing against the
growing El Pollo Loco restaurant chain, as well as with Burger King, which
had just introduced the BK Broiler, a grilled chicken burger .
Delays in product development, cramped kitchens and the ongoing
franchisee contract dispute prevented the chain from rolling out a grilled
product of its own. Franchisee relations became tenser still when, in August
1990, PepsiCo announced plans to roll out a home delivery service at all
5,000 US outlets by January 1991, without informing franchisees beforehand.
In March 1991 the KFC name was officially adopted, although the chain was
already widely known by that initialism. The change was advised by the
Schechter Group brand consultancy agency. Research demonstrated that 80
percent of customers already associated the "KFC" initials with Kentucky
Fried Chicken. A spokesman for the chain said that it represented its

diversified menu, which was moving away from solely fried products. Kyle
Craig, president of KFC US, admitted the change was an attempt to distance
the chain from the unhealthy connotations of "fried". In 1994, Milford Prewitt
praised the "crafty and well-timed repositioning" in Nation's Restaurant
News. On the other hand, a 2005 editorial in Advertising Age stated, "the
chain's jettisoning of a venerable nameand distancing from the word fried
was ill-conceived and damaging. It made a clear brand fuzzy."
The early 1990s saw successful major products launched throughout the
chain, including spicy "Hot Wings" (launched in 1990), popcorn chicken
(1992), and, outside the US, the "Zinger", a spicy chicken fillet burger (1993).
In 1993, rotisserie style chicken, under the name "Colonel's Rotisserie Gold",
was introduced at over 30 per cent of US outlets. However, despite a $100
million investment in marketing, the product failed to gain sales traction. The
launch of skinless chicken, designed to appeal to health-conscious
customers, failed; customers disliked the unfamiliar texture, and the product
resulted in increased overheads, which contributed to a 37 percent decline in
operating profits in 1991. In June 1991, Singapore was chosen for the launch
of the first ever KFC breakfast menu. Products included chicken sausage,
omelettes and scrambled eggs, sold under the "Colonel's Country Breakfast"
banner . Singapore was chosen for the launch due to the growth of the
breakfast market in that country. While the US division struggled, becoming
the weakest part of PepsiCo's restaurants division, elsewhere sales boomed,
with particular success in Japan. By 1992, slightly under half of all sales were
outside the US. By 1993, KFC in the Asia Pacific region accounted for 22
percent of all KFC sales. John Cranor announced, "We're looking at almost
unlimited opportunity for growth in Asia". By 1993, KFC was the leading
Western fast food chain in South Korea, China, Thailand, Malaysia and
Indonesia, and was second to McDonald's in most other Asian markets,
including Japan and Singapore. Overseas operations often flourished while
local management ignored or even defied orders from Louisville
headquarters.

10 CRAZY FACTS
ABOUT KFC THAT YOU

MIGHT NOT
KNOW!

1.They Fiercely Guard Their Secret Recipe:


KFC maintains that they use a secret blend of 11 herbs and spices; its been
in their advertising for awhile. The website BuzzFeed.com maintains that the
handwritten recipe for the exact name and amount of each spice is locked in
a vault at the chains corporate location in Louisville,Kentucky.

2. KFC Parent Company Has Many Famous


Kids:
KFC is currently owned by YUM! Brands. They also operate or once owned
Taco Bell, LongJohn Silvers, A&W,Wing Street, and Pizza Hut. The family
reunion must be a fast food fest!

3. They Have a Creepy Reputation in China:


KFC was one of the first franchises to move into Asian markets. The chains
slogan used to be finger-licking good, which was changed in 2011. According
to the BuzzFeed.com article, KFC didnt do such a good job of translating its
slogan when it moved into China. According to the website, that slogan was

erroneously translated into Chinese as eat your fingers off. Doesnt sound
quite as tasty, does it?

4. Theres a Rumor They Stole from Wendys


Founder:
Rumors and hoaxes certainly do abound in the fast food world. Theres one
going around that Wendys Founder Dave Thomas was once a franchisee of
KFC and designed their popular fried chicken bucket; that rumor is
contradicted by attributing the bucket invention to a different man
altogether, Pete Harman, according to Yahoo Voices.

5. They Changed Their Name to KFC to


Downplay Fried:
According to that hoax debunked by Snopes.com, KFC changed its name
from Kentucky Fried Chicken because the U.S. government banned them
from using the word chicken (the chain was using mutant chickens,
remember?). The fact of the matter is KFC just wanted the word fried out of
its title due to the increasingly popular trend of eating healthy food.

6. KFCs Founder was a Troublemaker:


Harland David Sanders, the founder of KFC, certainly wasnt born with a
silver spoon. He moved out of his home at the age of 13 because he didnt
get along with his stepfather, and he lied about his age to enlist in the U.S.
Army at the age of 16. He was also fired two different times for fighting; once
as a railroad worker scrapping with another employee and once as a lawyer
fighting with his own client while in court.

7. KFC Started in a Gas Station:


KFCs founder, Sanders, held many different jobs in his lifetime, according to
KFCs own biography. One of his last jobs before becoming the Colonel was
the owner of a gas station. To increase his income, he started selling fried
chicken out of his own house, feeding customers at his own dinner table. He
did this for four years before opening a venue with tables just for customers.

8. Colonel Sanders Was Not a Real Colonel:


While Sanders did enjoy a brief stint in the U.S. Army, his title of Colonel was
not from the U.S. military. Its a title of honor meant to denote good service
or high accomplishments that benefit the state of Kentucky. Sanders was
awarded the title in 1935 by Gov. Ruby Laffoon, who awarded the title to
more than 5,000 other Kentuckians during his governorship.

9. The Original Fried Chicken Was Done in a


Pressure Cooker:
Pressure cookers were invented right about the same time that Sanderss
chicken restaurant business was starting to really take off. The pressure
cooker reduced the amount of time it took to cook the chicken versus pan
frying it and Sanders didnt want to deep fry it. However Kentucky PressureCooked Chicken doesnt sound quite as good.

10. KFC Is Dragging YUM! down in China:


YUM! Brands is just about killing it on all fronts: Taco Bell has had a few good
years with its Doritos-flavored tacos and revenue is through the roof. Except
in China. KFC is pretty common in the largest Asian country, but it is not
doing so well at the moment. Fears of bird flu are keeping Chinese diners
away from KFC and its chicken meals.

KFCs PLAN
KFC Plans to Expand New Restaurant
Jul 31 14
KFC announced that it plans to expand. In particular, its subsidiary Fast
Foods AKK has opened a new KFC restaurant in Vilnius.
KFC Corporation Announces Availability of Extra Crispy Boneless for Limited
Time

Jan 13 14
KFC Corporation has announced the availability of Extra Crispy Boneless in
restaurants nationwide through February 2, 2014. The Extra Crispy Boneless
Go Cup is available for just $2.49 and the Favorites Bucket is only $12.99 (All
prices at participating locations for a limited time. Tax not included.).
KFC Announces Twist to Boneless Chicken
Jan 2 14
KFC announced twist to its Boneless chicken by offering it for a limited time
in the brand's signature Extra Crispy(TM) recipe. Extra Crispy Boneless will
be available at KFC locations nationwide through February 2. And KFC is
offering more ways than ever for customers to enjoy this crispy, crunchy
variety -- expanding on snack, lunch and dinner options by offering Extra
Crispy Boneless in a Go Cup, 2-piece Combo or as part of a 10-piece
Favorites Bucket.

Training/Support
A complete 8 week KFC training program is required covering basic brand
training, leading a shift and leading a restaurant. The training incorporates
online training modules with hands on practice with a certified training
manager in a training restaurant. YUM! University offers a complete
curriculum of management and leadership courses for you and your team.
Performance Improvement Program and support are offered by each of the
brands.

Qualifications
$1.5 million net worth and $750,000 in liquid assets. Passion for operations
excellence and team building. Must have a vision for multi-unit restaurant
ownership and the financial wherewithal to bring the vision to reality.

PRODUCT:

Product planning:
Their product is classified as consumer product as it has no intermediates. It
also offers specialty goods. The stock turnover of KFC is relatively high. The
prices and quality of the product is always compared. Their product includes
Goods (Burgers, Chicky Meals etc) and Services (cleanliness, quick service,
parties, and meetings).

Product Strategy:
It was launched here as an innovative product. KFC has got one product line
but later they introduced products in the same line to protect their market
share. New product ideas are generated from: Customer services (comments
cards) Gallops survey (mystery shoppers) They have a Quality Assurance
department that decides the new product innovation. Q.A. department
prepares screening of new ideas and products feasibility report. This
department does the technical evaluation (whether it is practical to produce
the new product or not). The products are tested externally by offering trials
to customers by giving them free samples. KFC uses telemarketing, print
media, billboards and most recently televised marketing for promotion.
KFC adds a new product in its present assortment based on their
competitors, products adequate demand, the satisfaction of key financial
criteria and its compatibility with environmental standards.

Product Mix strategies:


The product mix strategies are in relation to:
Competitors:
KFC has a head-on competition with McDonalds so wherever they place their
products; KFC goes there as well. Locally in Pakistan KFC face a close
competition with the local brands like AFC (Al-Baik Fried Chicken), Fried
Chicks, Dixy Chicks etc which are producing more or less the same product
as KFC. Attributes: The brand KFC is so strong that it is the attribute itself.
Quality: KFC products are based on high quality and prices.

Product Mix Expansion and Contraction:


KFC keeps on modifying their product through line extension and other
methodologies. Line Extension is being done through introducing new meals
offers. The alteration of existing products is also done and this function is
performed by the Quality Assurance department. The department decides
which product should be sold and when (seasonal products as rice and soups
offered in winters). Functional modification is also done by the Q.A.
department to introduce new recipes. Other than expansion contraction is
also being dealt with as when the new deals or offers are not sold as
expected, Q.A. department contracts the previous offers and introduces new
offers.

Change in Product Positioning:


KFC products were first offered to upper socio-economic group. Later,
introducing discounted and lower price deals, they are now dealing in
masses. So, KFC has traded down. In doing so KFC has used the same brand
name and same high quality product.
Product Branding, Packaging and Labeling: Brand Name: KFC Color: Red,
white
Symbol: Colonel Harland Sanders picture and KFC written with it. Master
Brand: The brand itself is so dominant, that it immediately comes in mind.

KFC Brand:
KFC's brand identity is the logo featuring Colonel Harland Sanders, one of the
best-recognized icons in the world. It is trademarked registered brand and is
distinctive, adaptable to addition to product line. It suggests something
about product. It is legally protected and registered.

Brand Equity and Strategy:


The brand equity is very high as the value added by brand to the product
effects the product selling. And the Brand strategy followed is that the KFC is
marketing the entire output under products own brand. Pepsi and Nescafe
are the complementary brands associated with KFC.

Packaging Strategy:
KFC makes its own disposable packaging. If they need promotion Pepsi
contributes in improving the packaging quality. KFC does family packaging.
They use paper material for packaging to avoid health hazards and
environmental pollution.

Labeling:
KFC does brand labeling. Some of its products also have informational labels
such as Halal, Veggie Burgers and Chicky Meals.

PRICE:
In introduction stage KFC entered the market using market-skimming
strategy. Their products were high price and targeted only upper class.
Gradually they trickle down focusing on the middle class to penetrate the
market. Also KFC follows one price strategy. Price is determined according to
the rates of the raw materials and policies of the Govt. The political and legal
forces often affect the policies of KFC and eventually results in change of
prices that is due to imposing of taxes.

PLACE:
Distribution Channel: KFC has only one channel of distribution i.e. direct
where the goods are transferred to the consumer directly. KFC has no
middlemen. Distribution of Consumer Goods and Services: KFC does
distribution of consumer goods directly to the consumer. It also does
distribution of services to the consumer like parking, sitting, home delivery,
etc. KFC does intensive distribution on its outlets. (All and everything on
every outlet). KFC gets Wheels! KFC launched its first mobile unit, which took
the streets of Karachi by storm. The mobile unit has been designed to cater
to the needs of those who are on the go, and have little time to stop by at a
restaurant. It also provides a unique convenience of enjoying the delicious
KFC offering anytime, anywhere, thus making fast food truly fast and
convenient. It intends to further develop its mobile network nationwide
through more such units.

PROMOTION:

The logo features Colonel Harland Sanders that is one of the best logo in the
world has created its name as a standard in the market. Today the Colonels
Spirit and heritage are reflected in KFCs brand identity.
KFC by its advertisements derives the desire in the customer to come and
enjoy healthy food in their favorite restaurant. They spend 2% of its profits
on advertisement. They use print media and most recently doing televised
marketing to promote it products. Their advertising media involve:
Newspapers, Pamphlets, Billboards and Television. KFC does both the primary
demand
Advertising (Become a Chicken Fanatic) and the selective demand
advertising (e.g. Zinger Meal). In its advertising it give informative
messages like Keep the city Clean. KFC does institutional advertising to
stimulate demand. When KFC offers new products then it does product
advertising. KFCs ads act as counteracts which means to drive the
customer to KFC i.e. it uses pull advertising strategy. They also provide wit
the key chains, watches, bags, tee-shirts etc. to its customers with the
purchase of different meals as a part of their promotional activities. They
also provide with certain midnight packages, birthday packages and lot
more. KFC has put big hoardings on the busy areas of Pakistan and have an
effective advertisement campaign on the media in order to motivate its
customers. The colors used in advertising are Red, White and blue which
itself is recognition for the brand. KFC have joint sale promotions with
different companies like HP, Philips, Value Meals, Pepsi-Cola. And most
recently with ARY Gold digital and World Call Internet services. Also KFC
Proud Partners are Del Monte, Culligan, Shan and Peek Freans (EBM). PSO
had made a scheme in which PSO had given the coupons of KFC having 10%
off. (1 coupon was given after each purchase of 10 liters of petrol)
KFC in its advertisements says;
Nobody does chicken like KFC
We do chicken right
Hence, focuses on product advertising. KFC does mass selling in order to
reach its target market (as it has trickle down). KFC in its ads try to convert
people to people who eat boring bland fast food over to KFC. The message
conveyed in the ads is recognition for the brand. KFC does competitive
advertisement with its head on competition with McDonalds. Regarding this
KFC uses Pricing below competition strategy.

KFC sponsors many NGOs and other social welfare organizations. They also
offer different deals according to the season and occasions.

KFC as a market leader:


It has covered 80% of the market share in fast food industry KFC has
recognition around the world and has been globally positioned for many
years in Pakistan and to capture the market share in Pakistan adopts champs
philosophy. Strategic Planning is the process of developing and maintaining a
strategic fit between the organizational goals, capabilities and its changing
marketing opportunities and is done by KFC in a well defined manner.
Strategic planning sets the stage for the rest of the planning in the firm. KFC
is looking that how much its current strategies are beneficial for them.
Although these are good and profitable but dynamic changes in environment
are requiring identifying the attractive Opportunities.
That is the reason that they are expanding their market size by focusing on
sub urban areas and targeting middle class people by providing them
differentiated products at a fair price. They are opening their new mobile
outlets in there potent ional markets. KFC is also going to increase its sweet
dishes to avail the opportunity available for them. KFC in a Growing Market:
The market of KFC is increasing day by day. Being a food market it is always
considered in a growing market because it increases continually with the
population. Their growth is continuously increasing and if they want to be a
leader, they have to develop a strategy which is predominantly a market
expansion strategy and in this way they will not lose their leadership. It has
greatly increased their market share in Pakistan by following different
strategies that may be regarding their products, prices, placement or
promotions. They have been following the strategies for market expansion by
targeting the new users of the product, describing the new uses of the
product and by showing them more usage of the product.

S.W.O.T
ANALYSIS

The S.W.O.T analysis includes the strengths, weaknesses, opportunities and


threats faced by KFC . These all are described in detail as under:

Strengths:
It is the oldest and finest in Business having a high Goodwill. It does not have
any Core competitor in chicken serving. They have a large Number of Outlets
at prime locations . They serve variety of items under single menu. They are
successful in maintaining their loyal customers. It has an incentive of being a
Multinational Organization e.g. economies of scale, government incentives
etc.

Weaknesses:
Business activities are being carried out. KFC has handled this situation its
major weakness in the presence of Multinational competitors in the market
e.g. McDonalds (specialized not in chicken serving but in burgers) and the
other weakness faced by KFC is the imported raw material which usually rise
their prime cost.

Opportunities:
The opportunities are the cheap and easy availability of labor. The increase
consumption of fast food has increased the market size of KFC. As the
consumer usually prefer All under one roof, therefore, in order to increase
their sales turnover they can increase or add the served items.

Threats:
The threats faced by KFC are the entrance of many new competitors into the
market that may be local or international brands.

PEST
ANALYSIS

The Pest Analysis includes the political, economical, socio-culture and


technological factors. These are described in detail as under:

Political Factors:
The political factors includes the government policies as KFC being a foreign
company, but they have to obey the policies of the Government laid by the
government of Pakistan, the country where the very tactfully and has obeyed
the policies of the Government as prescribe by the government in order to
run this kind of business. The other major factor is the pricing policies. KFC
maintain & design its price policies keeping in view the income & income
distribution of the people living in the country. Thats why all the classes are
the target market of KFC. And the most important factor is the political
instability. As in Pakistan, there are political crises faced by the government,
these greatly affect the business of KFC.

Economical Factors:

The economic factors includes the income of the people, KFC is going to
target. Income is an important economical factor of the KFC. This factor
decides which class KFC is going to target . In the early time of KFC, they
were focusing on the upper class but they after some time changed their
strategies and started to target the mass market by introducing some
different kinds of meals and offers through which we can say that they target
the middle & the upper level as well. The consumption behavior of the
people plays an important role. KFC also estimated the consumption
behavior of the people, their liking and disliking and make decision
accordingly. Payment method is an important factor in the economical factor
of the KFC. They check the behavior of the regarding the payment methods
of the people. They check whether the gives money in the form of cash or
plastic money.

Technological Factors:
The technological factors include the Pace of change at a fast level. KFC has
strategy to introduce new technology whenever they think that it is a time to
introduce new technology. Research & Development is also an important
factor in the Technological factor. KFC always support the work of research &
development in order to introduce the new technology. Capital formation
means stock of machinery. KFC has a stock of machinery in order to run its
business activities. In other words KFC has a good amount of Capital
Formation.

UNITED STATES

KFC Yum! Center in Louisville, Kentucky

Advertising played a key role at KFC after it was sold by Sanders, and the
company began to advertise on US television with a budget of US$4 million
in 1966.
In order to fund nationwide advertising campaigns, the Kentucky Fried
Chicken Advertising Co-Op was established, giving franchisees ten votes and
the company three when deciding on budgets and campaigns. In 1969, KFC
hired its first national advertising agency, Leo Burnett.
A notable Burnett campaign in 1972 was the "Get a bucket of chicken, have
a barrel of fun" jingle, performed by Barry Manilow.
By 1976 KFC was one of the largest advertisers in the US.
Young & Rubicam (Y&R) was KFC's agency of record in the US from 1976
until December 2000.
From 1978 to 1980 "It's nice to feel so good about a meal" was the slogan.
It was chosen because KFC had identified consumer guilt as its core
marketing obstacle.
Meanwhile, KFC hired the Mingo-Jones agency to target African American
audiences.

Mingo-Jones coined the "We do chicken right" slogan, which was later
adopted across the whole chain from 1981 until 1990.
"Nobody's cooking like today's KFC" was used from December 1990 until
March 1991.
From 1991 to 1994, the television campaign focused on the fictional town of
Lake Edna.
When he took over the CEO role at KFC, David Novak ended the campaign,
which he derided as "hokey."
The campaign was replaced by one with the tagline, "Everybody needs a
little KFC," which Novak credited with helping to boost sales at the company.

CHINA

KFC is the largest restaurant chain in China, with 4,563 outlets. KFC became
the first Western fast food company in China after its first outlet opened in
Qianmen, Beijing, in November 1987.
Local food items include rice congee and tree fungus salad, with an average
of 50 different menu items per store. In December 2012, the chain faced
allegations that some of its suppliers injected antiviral drugs and growth
hormones into poultry in ways that violated food safety regulations. This
resulted in the chain severing its relationship with 100 suppliers, and
agreeing to "actively co-operate" with a government investigation into its
use of antibiotics. KFC China sales in January 2013 were down 41 percent

against the previous year . To counter sluggish sales, the menu was
revamped in 2014.

JAPAN

Japan is the third-largest market for KFC after China and the United States
with 1,200 outlets.
In Japan, 70 percent of sales are takeout, with customers tending to buy
fried chicken for parties and other special occasions and eating it as a side
dish.
KFC Japan was originally formed as a joint venture between the American
parent and the Japanese Mitsubishi Corporation.
After four years of negotiations, Mitsubishi was awarded the franchise rights
to KFC in Japan, and a test store was opened at the Osaka World Expo in
March 1970.

After the dbut proved to be a success, the first store proper was opened in
the suburban location of Nagoya in November 1970.
The American parent wanted suburban locations, whereas Mitsubishi had
argued for city centre locations, as the car had not been widely adopted in
Japan at that time.
Two more locations were opened in Osaka, but the stores struggled, and
after less than a year operations had lost JP 100 million.
As a result of this failure, Mitsubishi's original plan for urban locations was
pursued.
The first new strategy store opened in Kobe in 1972, an up market
residential area with a large Western expatriate community.
The new strategy was a success, and by December 1973, 100 outlets had
been opened.
In December 1974, KFC Japan began to promote fried chicken as a
Christmas meal.
Eating KFC as a Christmas time meal has since become a widely practiced
custom in Japan.
Harland Sanders himself visited the Japanese operations in 1972, 1978 and
1980.
In August 1990, KFC Japan was listed on the Tokyo Stock Exchange.
KFC had benefited from the economic boom in Japan during the 1980s, but a
rapid expansion of outlets saw franchisees taking market share from each
other, and around 100 outlets were closed down in the mid-1990s.
In 2000, KFC Japan reported sales of nearly $598 million.
In December 2007, Mitsubishi assumed majority control of KFC Japan in a
JP 14.83 billion transaction.

UNITED KINGDOM

A KFC Outlet in London


As of December 2013, there were 784 KFC outlets in the United Kingdom.
About 70 percent of outlets are run by franchisees, with the remainder
company owned.
The company employs 24,000 people.
Around 400 sites are drive-through outlets.
Average outlet turnover is between 1 and 1.5 million.
Annual sales amount to 60,000 metric tonnes of chicken, 60 percent of
which is purchased from the four largest suppliers in the UK, including
Faccenda Group
and 2 Sisters Food Group, and delivered fresh to outlets at least three times
a week .
The remaining 40 percent is sourced from companies in Europe, Thailand
(including Charoen Pokphand Foods) and Brazil.
All of the Original Recipe chicken is sourced within the UK .
England had the first overseas branch of KFC which opened in Preston in the
North West in May 1965, and was the first American fast food restaurant
chain in the country, pre-dating the arrival of McDonald's, Burger King and
Pizza Hut by almost a decade.
The first London branch opened in North Finchley in November 1968.
In 1971 there were 31 outlets; by 1975 the chain had grown to 250 outlets.

In the late 1970s and throughout the 1980s, KFCs began to introduce
seating. KFC opened its first drive through restaurant in the UK in 1984.
By 1987 the company had almost 400 outlets.
In 2006, the company stopped pre-salting its fries and removed transfats
from its products.
In 2012 palm oil was replaced by rapeseed oil in the fryers.
Between 2004 and 2014, KFC UK increased its offering of "portable" foods:
burgers, wraps and salads.
During that period, sales rose from around 500 million to almost 1 billion.
In 2012, KFC UK invested 9 million to install ovens in all of its outlets, so
that it could offer griddled chicken.
In 2013, KFC rolled out Lavazza coffee across all of its UK outlets.

AUSTRALIA AND
NEW ZEALAND

There are over 600 KFC outlets in Australia, and around 100 in New Zealand.

KFC was the first American style fast food chain to open in both countries. In
2013, KFC reported an annual turnover of almost A$2 billion for its Australia
and New Zealand operations.
Yum! Directly operates 160 KFC outlets in Australia.
The largest of the 53 independent franchisees in Australia is Collins Foods,
which operates 169 stores. KFC's major poultry suppliers in Australia are
Inghams, Steggles and Turi Foods.
The first Australian KFC was opened in 1968 in Guildford, a suburb of
Sydney.
The franchise was owned by a Canadian entrepreneur called Bob Lapointe.
Between 1970 and 1971, 75 outlets were opened.
This had a major impact on Australian chicken production, which increased
by 38 percent during the period.
By 1995 there were 452 outlets, and the company employed 12,000 staff .
That year, Australia produced 35 percent of KFC's international earnings.
The first KFC opened in New Zealand in 1971 at Royal Oak, a suburb of
Auckland.
In 1989, PepsiCo acquired the 50 percent stake in KFC New Zealand that it
did not already own from the local Goodman Fielder conglomerate.
In 1991 New Zealand turnover topped NZ$100 million for the first time

INDIA

In December 2013, there were 361 KFC outlets in India.


As well as the standard KFC offerings, the chain sells a chickpea burger, a
paneer burger, hot wings with chilli lemon sprinkles and other countryspecific products.
A major franchise holder is QSR Brands (M) Holdings, which operated 26
outlets as of 2012.
The first Indian KFC was a two-storey outlet on the fashionable Brigade Road
in Bangalore in June 1995.
According to journalist Michael White, the company could not have chosen a
"more difficult venue for its maiden entre into the country."
Bangalore housed the headquarters of the Karnataka Rajya Raitha Sangha,
one of the most influential, vocal and anti-foreign investment farmers'
associations in the country.
The first outlet suffered protests from left wing, anti-globalization and
environmental campaigners, as well as local farmers, who objected to the
chain bypassing local producers.
Many Indians were concerned about the onslaught of consumerism, the loss
of national self-sufficiency, and the disruption of indigenous traditions.
The protests came to a head in August 1995, when the Bangalore outlet was
repeatedly ransacked.
The KFC outlet in Bangalore demanded, and received, a police van
permanently parked outside for a year The outlet was closed on September
13, 1995 by local authorities, who claimed the company used illegally high
amounts of monosodium glutamate (MSG) in its food.
However, the outlet reopened for business within six hours of its closure,
after the Karnataka High Court blocked the local authorities' order on an
appeal by KFC. The company had argued that it prepared food in India using
the same formula as in 77 other countries.
A second outlet opened in Delhi, but was closed by the authorities
throughout November, purportedly for health reasons, but more likely to
avoid a repetition of the Bangalore incident.
The Delhi outlet soon closed permanently.

KFC began to expand outside of Bangalore in 2004, with a localized menu


that was the most extensive meat-free menu across the chain's worldwide
operations. It introduced a vegetarian menu that included rice meals, wraps
and side dishes and, like McDonald's, served eggless mayonnaise and
sauces. Unnat Varma, marketing director of KFC India, states "The vegetarian
offerings have made the brand more relevant to a larger section of
consumers and that is necessary for KFC's growth." KFC also began using
Indian spices and cooking techniques to localize its chicken dishes. By 200809, KFC operated 34 outlets in India.
In 2014, KFC launched the "So Veg, So Good" menu as part of an Indiaspecific promotional strategy focused on enhancing their vegetarian range.
Dhruv Kaul, marketing director of KFC India, stated, "The So Veg, So Good
menu launch does not mean that we are moving away from our core chicken
offerings. It enhances and strengthens our existing vegetarian range and
helps broaden the brand's relevance in a diverse country such as India".

INDONESIA

In Indonesia KFC is the largest Western restaurant chain, with 466 outlets as
of December 2013.
The chain has grown to hold an estimated 32 percent market share, and
menu items include spaghetti, wraps and chicken porridge.
The master franchisee is PT Fast-food Indonesia.
The first outlet opened in Jakarta in 1979.
Salim Group, Indonesia's largest conglomerate, became a major
shareholder in 1990, which provided the company with funds for major
expansion.

DEVELOPING MARKETS

KFC continues to grow in Asia. In Malaysia there were 579 outlets as of


December 2013.
KFC first entered the Middle East and North Africa (MENA) market in the
early 1970s. There are over 500 outlets in the MENA region.
It purchases most of its poultry from Sadia of Brazil.
In 2012, KFC operated 577 restaurants across 36 countries in the Caribbean
and Latin America region.
The company hopes to expand its African operations, where it is already the
regional leader among US fast food chains.
The company is slowly expanding across the African continent, opening 70
outlets, but progress has been hampered by sourcing issues, such as a lack
of quality suppliers.

RECCOMENDATIONS
KFC is a market leader in providing Fried chicken. As KFC, so it is competing
with the dominant market signs like pizza hut, McDonalds. N its product
category, it is doing really well but they need improvements in their hot
menu. They should also make their menu dynamic, by introducing new meals
after certain period of time. New items should be introduced by varying the
taste. They should also try the local taste addressing the local food lovers,
thus it will help to increase their market share. The prices of KFC are
reasonable as compared with other fast food restaurants. But as price is
always a primary concern for the customer, therefore, they should adopt
certain strategy to attract the customers. And it can only be done by
lowering the prices. It could be by introducing some discount packages for
families, employees, students or regular customers. The membership card
can be used to provide certain extra value to the customer. AS far as
placement of the products is concerned, it is an important factor, for a
company to increase its market share, by targeting the right customer. KFC
needs to have more outlets, at commercial areas. It will help to target the
actual as well as the potential customers. Mobile outlets may be an effective
addition as well. KFC has large customer equity, but being a market symbol,
a company should strive for having more actual customers. KFC should work
for having more solid marketing departments. They should organize and run
the proper advertisement campaign. It would definitely be an incremental
factor for their sales. They can also use the brand promotions. They can set
up the promotional campaigns. All they need is an effective marketing
department to facilitate the promotional activities.

BIBLIOGRAPHY
Reference Books, Journals, Newspapers,
Websites, Reports,
Examples as how to write are given below:
Books: Kotler Philips,
Marketing Management: Analysis, Planning
Implementation & Control 9th Edition 1998,
Prentice Hall of India Ltd., New Delhi
Magazines, Journals & Newspapers: Name of
article - Business Today,
22 May, 2007 Name of article - The Times of
India, Mumbai,
Internet: www.webindia.com
www.crm.com/papers/php.htm
www.google.com
www.yum.com
www.kfc.co.in