PROJECT REPORT ON KFC

UNDER THE GUIDANCE OF:

SUBMITTED BY:-

SIR QAMAR.

HASSAN (BBA) 2ND.

ILSA MUSHTAQ (MBA) 4TH.

GLOBAL INSTITUTE FAISAL TOWN LAHORE

CERTIFICATE
This is to certify that the research project initiated to certify that is the
innovative effort of Hassan & Ilsa and it has been accomplished under
my guidance.
Certified that this project report KFC Is the bonafide work of "SIR
QAMAR who carried out the project work under my supervision.

ACKNOWLEDGEMENT
A project could never get success with efforts of only an 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 SIR QAMAR.

I convey my heartfelt thanks to all those people who helped and

supported me during the completion of course of my Project Report.
ILSA MUSHTAQ (MBA.4TH).
HASSAN (BBA 2ND).

KFC (Kentucky Fried Chicken)

Type

Subsidiary

Industry

Restaurant

Genre

Fast food

Founded

Sanders Court & Cafe

1930 in North Corbin, Kentucky

First franchise

1952 in Salt Lake City, Utah

Founders

Harland Sanders

Headquarters
:
Kentucky,United States

1441 Gardiner Lane, Louisville,

Number of locations :

18,875 (2013)

Key people
and CEO)

David C. Novak (Yum! Brands Chairman

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 mid-1960s.
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 Heinlein, 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 nontraditional 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 were $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 CocaCola 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 co-founder" 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, drive-through 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 illconceived 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 Pressure-Cooked 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 country-specific 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 2008-09, KFC operated 34 outlets in India.

In 2014, KFC launched the "So Veg, So Good" menu as part of an India-specific
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 expansio

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