MINOR PROJECT REPORT

ON

MARKETING STRATEGIES OF KFC

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE

REQUIREMENT

FOR THE AWARD OF THE DEGREE OF

BACHELOR OF COMMERCE (HONOURS) {B.COM (H)}

SUBMITTED BY: ARYAN SEHGAL

ENROLLMENT NO. : 35690288822

UNDER THE GUIDANCE: Ms MANDEEP KAUR

SRI GURU TEGH BAHADUR INSTITUTE OF MANAGEMENT

AND INFORMATION TECHNOLOGY

(Affiliated to GGSIP University Delhi)

(2022-2025)
 DECLARATION
I, hereby declare that the project work entitled “MARKETING STRATEGIES OF
KFC’S submitted to GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY is a
record of an original word done by me under the guidance of Ms Mandeep Kaur,
faculty member of Sri Guru Tegh Bahadur Institute of Management and
Information Technology.

Place: Delhi Signature of the scholar:

ARYAN SEHGAL

Date: Enrollment Number: 35690288822

 CERTIFICATE

This is to certify that I, Aryan Sehgal , enrollment no. 35690288822 Bachelor of

Commerce [Honours] student of Shri Guru Tegh Bahadur Institute of Management
and Information Technology has done project work on “ Marketing Strategy of
KFCs ” under the guidance of Ms. Mandeep Kaur.

…………………

[Signature of Guide]

Ms.Mandeep Kaur

…………………

Place: Delhi [Signature of the Scholar ]

Date : Name : Aryan Sehgal

Enrollment No. : 35690288822

 ACKNOWLEDGEMENT

A lot of effort has gone into this minor project report and for that I would like to thank all
those who have contributed in completing this project. Also, I am highly indebted and
extremely thankful to Ms. Mandeep kaur, Faculty Member who was my guide. The strong
interest evinced by her has helped me in dealing with the problems I faced during the course
of project work. I express my profound sense of gratitude to them for their timely help and
coorperation in completing the project. Lastly, I would like to thank my entire beloved
family and friends for providing me monetary as well as non-monetary support, as and when
required without which this project would not have completed on time. Their trust and .
patience is now coming out in the form of the project

Place: Delhi Signature of the scholar

Date: Name: Aryan Sehgal

Enrollment number: 35690288822

 TABLE OF CONTENTS

S.NO.

1. DECLARATION

2. Chapter- 1 Introduction To Industry

1.1 Introduction To Food Industry
1.2 Overview
1.3 Industry Size
1.4 Agriculture
1.5 Food Processing
1.6 Marketing
1.7 Regulation
1.8 Labor& Education
1.9 Research & Development
1.10 Criticisms
1.11 Prominent Food Companies
2.

Chapter-2 Introduction of Topic

2.1 Introduction
2.2 KFC’s Marketing Mix
2.3 KFC’s History in India
2.4 SWOT Analysis
2.5 KFC Vision And Mission
2.6 Goals of KFC
2.7 Unique Selling Positing (USP)
2.8 STP of KFC
2.9 KFC’s: Competitors
 2.10 Marketing Strategy: KFC
2.11 Problems Faced by KFC in India
2.12 SWOT Analysis: KFC Competitor’s
2.13 MICROENVIRONMENTAL ISSUES:
POTER’S FIVE FORCE MODEL
2.14 ANALYSING MACRO VARIABLE
2.15 Major Reasons for KFC’s Success
3. Chapter-3 Research And Methodology
3.1 Objective of the study
3.2 Types of Data
3.3 Limitation of the study

4. Chapter-4 Finding and Discussion

5. Chapter-5 Conclusion

6. Chapter-6
Suggestions and Recommendations

7. Bibliography
 CHAPTER 1

INTRODUCTION OF THE INDUSTRY

1.1 Introduction to food industry

The food industry is the complex network of farmers and diverse businesses that
together supply much of the food consumed by the world population. Although
there is no formal definition for the term, the food industry covers all aspects of
food production and sale. It includes such areas as the raising of crops and
livestock, manufacture of farm equipment and agrochemicals, food processing,
packaging and labelling, storage, distribution, regulatory frameworks, financing,
marketing, retailing, catering, research and development, and education. The
Economic Research Services of the U.S. Department of Agriculture uses the
term food system to describe this entire enterprise. Subsistence farmers, those
who survive on what they grow, can be considered outside the scope of the
modern food industry.

1.2 Overview
The food industry covers a wide range of areas including those listed below.

• Agriculture- Crop farming, livestock raising, and fishing (or fish farming).
• Manufacturing- Agrochemicals, seed, farm machinery and supplies, and
agricultural construction.
• Food Processing- Preparation of fresh products for market, manufacture of
prepared food products.
 • Marketing- Promotions of generic products, new products, public opinion,
advertising, packaging, and public relations.
• Wholesale and distribution- Warehousing, transportation, logistics.

• Retail- Supermarket chains and independent food stores, direct- to-

consumer, restaurant and food services.
• Education- Academic, vocal, consultancy.

• Research and development- Food technology.

• Financial Services- Insurance, credit.

1.3 Industry size

In the U.S., consumers spend approximately US $1trillion annually for
food, or nearly 10 percent of the Gross Domestic Product (GDP). Over
16.5 million people are employed in the food industry. The worldwide
sales of processed foods were estimated to be approximately US $3.2
trillion in 2004.

1.4 Agriculture
Agriculture is the process of producing food, feed, fibre and other desired
products by the cultivation of certain plants and the raising of
domesticated animals (livestock).The practice of agriculture is also known
as “farming”. In addition, scientists, engineers, inventors, and others
devoted to improving farming methods and implements are also said to be
engaged in agriculture. More people in the world are involved in
agriculture as their primary economic activity than in any other, yet it only
accounts for four percent of the world’s GDP.

1.5 Food processing

Sophisticated technologies define modern food production. They include
many areas. Agricultural machinery, originally led by the tractor, has
 practically eliminated human labour in many areas of production.
Biotechnology is driving much change, in areas as diverse as
agrichemicals, plant breeding, and food processing. Many other areas of
technology are also involved, to the point where it is hard to find an area
that does not have a direct impact on the food industry. Computer
technology is also a central force, with computer networks and specialized
software providing the support infrastructure to allow global movement of
the myriad components involved.

1.6 Marketing
As consumers grow increasingly removed from food production, the role
of product creation, advertising, publicity become the primary vehicles for
information about food. With processed food as the dominant category,
marketers have almost infinite possibilities in product creation.

1.7 Regulation
Regulation corresponds to the legal terms and restrictions imposed by
government authority. Examples of regulation in the food industry include
attempts to control such aspects as; standard of production, storage, and
distribution; prices; wages; pollution effects; and qualifications and
guarantees of employment.

1.8 Labour and education

Until the last 100 years, agriculture was labour intensive. Farming was a
common occupation. Food production flowed from millions of farms.
Farmers, largely trained from generation to generation, carried on the
family business. In North America, over 50 percent of the population were
farm families only few decades ago; now that figure is around 1-2 percent,
and some 80 percent of the population lives in cities. The food industry as
 a complex whole requires an incredibly wide range of skills. Several
hundred occupation types exist within the food industry.

1.9 Research and development

Research in agriculture and food processing technologies happens in great
part in university research environments. Projects are often funded by
companies from the food industry. There is therefore a direct relationship
between the academic and commercial sectors, as far as scientific research.

1.10 Criticism
Various areas of the food industry have come under criticism. For
example, the excessive use of fertilizers and pesticides adversely affect the
environment and human health. Likewise, a number of food additives in
processed food be harmful to health.

1.11 Prominent food companies

The Food World is the biggest directory for food, beverage and agriculture
industries, worldwide. DuPont and Monsanto are the leading producers of
pesticide, seeds, and other farming products. Both Archer Daniels Midland and
Cargill process grain into animal feed and a diverse group of products. ADM also
provide agricultural storage and transportation services, while Cargill operates a
finance wing. Bunge is a global soybean exporter and is also involved in food
processing, grain trading, and fertilizer. Tyson Food is the world’s largest
processor and marketer of chicken and the largest best exporter from the United
States. Smithfield is the world’s largest pork processor and hog producer. Dole
Food Company is the world’s largest fruit company. Chiquita Brands
International, another U.S. based fruit company, is the leading distributor of
bananas in the United States. Sunkist Growers, Incorporated is a U.S. based
grower’s cooperative.
 CHAPTER-2
INTRODUCTION OF THE COMPANY

2.1 Introduction

The marketing mix refers to the set of action , or tactics, that a company uses to
promote its brand or product in the market. The 4Ps, makes up a typical
marketing mix- Price, Product, Promotion and Place. However, nowdays, the
marketing mix increasingly includes several other Ps like Packaging ,
Positioning , People and even Policies as vital mix elements.

 Product- A product is anything that can be offered to a market for

attention , acquision, use or consumption
 Promotion- refers to all such activities which intend to inform customer
about the product.
 Price- refers to the value that is put for a product. It depends on costs of
production, segment targeted, ability of the market to pay, supply –
demand and a host of other direct and indirect factors. There can be
several types of pricing strategies, each tied in with an overall busines
plan. Pricing can also be used an demarcation, to differentiate and
enhance the image of a product.
 Place-refers to the geographical location in which the company sells its
products and provides its services. It said that location is one of the most
important part of marketing mix.
 Marketing Mix of KFC

1. Product Strategy of KFC

A product strategy is a brief outline of the list of the products a firm needs to sell and
deliver to its customers

KFC is famous for its world-class chicken and sandwiches, but the list does’nt
end here. KFC keeps on introducing new items in their menu and fullfils the
deed of keeping the customers always on their toes. The fact that KFC keeps on
introducing new items in their menu, helps it to build a strong product strategy
and hence supports the marketing.

Some of the well known and asked for products of KFC are:

• Chicken and Veg Zinger Burgers

• Rice bowls

• Fiery Chicken wings

• Boneless chicken wings

• Veg Strips

• Veg longers

• French fries
2. Promotional strategy of KFC

Promotion strategy is concerned with the ways by which the products of a firm
can be promoted in the market.

KFC being one of the biggest food giants promotes itself vigorously. The
promotion mainly takes place through television ads, newspapers, magazines and
commercial hoardings. KFC has sponsored the Big Bash League(BBL) of
Australia and also many cricket games.

KFC goes by the slogan of ‘Its Finger-Lickin’ Good’ to remind its audience
about its lip-smacking food products and delicacies.
 .
3. Price Strategy of KFC

Price Strategy is the strategy used by firms to set the price of their goods so
they can capture the attention of the market effectively and efficiently.

KFC uses a discriminating pricing policy with all its products. The products are
of different pricing and ratings. The products sold in India are affordable and
highly bought by the Indian audience.

Though KFC indulges in promoting itself through mass media, television and
newspapers, it is still short on sponsoring the big events and products sold in
different countries have different pricing. KFC used the price skimming
technique and the market penetration technique of marketing, this means that
when the competitors entered the market, KFC lowered down its prices to a huge
extent and while introducing new products, KFC keeps its prices bare minimum
compared to the later stages to grab attention respectively.
 Place Strategy of KFC

This strategy is concerned with tracking down the places the firm can find the
potential buyers for its products.

KFC’s marketing team is highly conventional in chalking out the grounds of their
restaurants all over the country. Their audience winning tactics are the result of
KFC being such a big giant today. It has 15000+ outlets in 100+ different
countries and KFC and its outlets.

All the outlets of KFC have been strategically opened in areas where schools,
colleges, offices or any other educational institution lie. This is because the youth
is far more indulgent in these fast-food products than the country’s much-aged
population.
2.3 KFC History in India
KFC was taken over by the R.J. Reynolds food and tobacco conglomerate;
that company sold the chain to PepsiCo. The chain continued to expand
overseas, however, and in 1987, it became the first Western restaurant
chain to open in KFC was the first foreign fast food restaurant chain to
enter India in 1990s after the Indian government implemented the
economic liberalisation policy. At that time, KFC received permission
from the Indian government to open 30 outlets across the country. The first
KFC outlet in India was opened in Bangalore in June 1995 and from 30
outlets, the number has grown to 296 today. Fast food restaurants have
gained popularity in India because of their customised menus that suit the
taste buds of the citizens. Many people have the misconception that KFC
only sells fried chicken; this is not at all true. In India, KFC has added a
number of vegetarian items on its menu – Veg Zinger, Veg Rice Bowlz,
and Veg
Strips.

When KFC first entered the Indian market, there were a lot of protests, and
the Bangalore outlet was repeatedly ransacked. Many Indians were
worried that the Western culture would seep into the Indian roots, leading
to the dilution of indigenous traditions. To prevent further onslaughts on
the KFC outlet, the management of the KFC outlet demanded a police van
to be permanently parked outside for almost a year. Another KFC outlet
was opened in Delhi in the same year but the combined revenue of both
the Bangalore and Delhi outlets was not sufficient to continue the KFC
business in India. The reason why KFC did not gain popularity is because
of antiKFC movements that accused KFC of using illegally high amounts
of monosodium glutamate, which are harmful to health. Also, the anti-
KFC movements claimed that KFC sold food that was cooked and fried in
pork fat. Given all these accusations against KFC, the fast food restaurant
did not reap sufficient revenue to continue its operations in India. As a
result, KFC had to abandon the Indian market.

Once the Indian market cooled down, KFC returned to the country in 1999
and set up an outlet in Bangalore. Until 2004, KFC only operated one
outlet in India. As the sole outlet started making money, KFC expanded its
operations throughout India and today, KFC outlets can be found in a
number of cities. KFC has come a long way since its establishment in
India in 1995. Despite facing a rejection from consumers, KFC did not
lose hope in the Indian market. Instead of eliminating India from its
venues of operation, it analysed the problems faced by KFC in India and
worked hard to resolve them. It is this tenacity that won the hearts and
stomachs of millions of Indians, who finally decided to embrace KFC’s
dishes and give KFC a second chance.

KFC (short for Kentucky Fried Chicken) is an American fast food

restaurant chain headquartered in Louisville, Kentucky, that specializes in
fried chicken. It is the world’s second-largest restaurant chain (as
measured by sales) after
McDonald’s, with 22,621 locations globally in 150 countries as of
December 2019. The chain is a subsidiary of Yum ! Brands, a restaurant
company that also owns the Pizza Hut, Taco Bell, and WingStreet chains.
KFC was founded by Colonel 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 to this day. However, the
company’s rapid expansion overwhelmed the aging Sanders, and he sold it
to a group of investors led by John Y. Brown Jr. and Jack C. Massey in
1964.

KFC was one of the first American fast-food chains to expand

internationally, opening outlets in Canada, the United Kingdom, Mexico,
and Jamaica by the mid-1960s. Throughout the 1970s and 1980s, it
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, which China. It 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 are a
trade secret. Larger portions of fried chicken are served in a cardboard
“bucket”, which has become a 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 sandwiches 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.

2.4 SWOT Analysis

• Strength
• KFC is a hugely popular brand name in fast food and has high brand
loyality across the world.
• KFC offer a high number of products like burgers, chicken wings etc.
along with signature menu.
• Hygine food, clean stores, and quick service are strong points for the brand
across all its location.
• KFC has presence in more than 150 countries through 20,000 plus stores.
• KFC is the 2nd largest food seller next to McDonald.
• Generate $1B revenue each year.
• It has been recognized by several awards for its business operations
worldwide.
• Very strong Internationally:UK, Middle East Thailand, China, Japan,
Korea, Mexico.
 • Ranks highest among all chicken restaurant chains for its convinence and
menu variety.

• Weakness

• Intense competition from other global food chain brands means limited
market share growth.
• KFC has been criticized for allegedly causing harms to animals and
environment, which hurt the brand image.
• Rapidly increase of food prices are unaffordable for middle class people.
• Lack of focus on R&D.

• Opportunity

• Introduce more localized food like vegetarian products to tap the market in
some countries.
• KFC can introduce home delivery as a regular service as during pandemic
people didn’t go outside as before.
• Venture into newer markets and offer slightly budget friendly snacks.
• More spending on the resources and development as well as introducing
new food items and products can boost KFC.
• Chicken is more reliable and healthy as compare with cow meats.
• Increase in U.Smedian model.

 Threats
  Threats from otheer eating joints/ restaurants can affect KFC’S
business.
 With the life style of people changing due to growing awareness
about healthier food peoplee now look for something healthy, low
calorie and delicious at the same time.
 Globally, KFC can face issues like fluctuating economies,
recession, rising food prices etcGlobally, KFC can face issues like
fluctuating economies, recession, rising food prices etc.
 Increase wage rate directly affect menu prices.
 Changing customer demands.
 Quality of service focus.
 Local fast food restaurant chains.
 New technologies developed by the competitor or market disruptor
could be a serious threat to industry in medium to long term future

2.5 KFC Vision And Mission

• Vision
To be leading integrated food services group in ASEAN region delivering
consestent quality products and excellent customer focused.

• Mission
To sell food in a fast, friendly environment that appeals to pride conscious,
health minded consumers.
2.6 Goals of KFC

• Build an organization dedicated to excellence.

• Deliver superior quality and value in our products and services.
• Maintain a commitment to innovation.
• Generate consistently superior financial returns and benefits our owner and
employees.
• Establish in India our position as leading WQSR (Western Quick Service
Restaurant) chain, serving good value.

2.7 Unique Selling Positing (USP)

The USP of KFC is Life tastes better with KFC. Positioning of KFC is the unique
taste of product that it isn’t only fried chicken but it sell service and satisfaction
of customer. For example KFC design consumer insight . KFC adjusted new
store for the higher expectation of consumer because they don’t want to be only
quick and delicious but they want to get experience; part from, Brand as a
product as a person but including the Brand as an experience together. Such as
the KFC restaurant on Floor 6 of Central World was revolted a new store and
image that it is modern and friendly with opening music of Beyonce which was
purchased copyright from the music camp. That it show global Brand’s KFC.
Design for various groups of customers. 4-seat, approximately 160-180 seats
emphasize of the diverse group of clients. That it can be calm zone for customer.
Dining Zone is a zone for customers who require a formal dining. Dining zone
consist of a square table, a white lounge chair that it is benefit for family group.
Snacking Zone is a zone for customers who want a light Meal or sit waiting for
an appointment to taste water, the French fried. This zone is the chair form of the
Red Lounge Chair that feels relaxed and comfortable.
Big Group Dining Zone divided 2 type to support clients with fellow teen
favorite, designed by students at Consumer Insight behavior often land a seat
with table book bag sack. First, it designed a table and chairs Satun high white to
feel like a table in Canton here. Another option is a small table and Satun. Brown
placed beside the counter. Outdoor Zone is a zone that is not in the Global
Manual but created a need to own in Thailand by the nature of the Cafe Outdoor;
Stainlessframe chair, backrest and seat on a wooden table. In addition, combining
with wood floors that feel all the warm comfortable when we look with potted
tree hazel. He set a high bell square can be found outside. Booth Zone seats as
the train bogie for Teen group and students who would like to Private Space.
However, materials made using both a table and chairs, beautiful floors will also
focus on the be market nefits of durability and wear care.
2.8 STP of KFC
• Segmentation

Market Segmentation is a marketing strategy which involve dividing a

broad target market in to subsets of consumers. It is also known as
marketing term referring to the aggregating of prospective buyers into
groups (segments) that have comman needs and will respond similarly to a
market action. Market segmentation enables companies to target different
categories of consumers who perceive the full of certain products and
services differently from one another.
KFC uses the Demographic Segmentation, Geographic segmentation, and
Psyschographhic segmentation.

• Demographic Segmentation:In demographic segmentation, the market is

divided into group based on a age, family size, income, occupation,
religion, race and nationality. KFC divides the market on demographic
basis in this way:
• Age is between 6-65.
• Gender in both males and females
• Family size is1-2,3-4,5+
• Income is Rs 10,000 n above
• Family lifestyle is almost all.
• Geographic Segmentation: KFC has outlets internationally and
sells its products according to geographic needs of the customers. In
Pakistan KFC focuses how geographicallty its customers demand
 different products. In Pakistan Fried Chicken and Zinger is the main
selling product, while in other countries other sea food and beef
variety items are also sold.

• Psychographic Segmentation: Dividing market into different

groups based on social class, lifestyle, or personslity characterstics
is called Pschographic Segmentation. KFC divides market on the
basis of psychographic variables likes:
• Social Class- Upper and Middle class.

• Lifestyle is not specific.

• Personality is ambitious and authoritarian

 Target Marketing

A target market is a group of customers a business has decide to aim

its marketing efforts and ultimately its merchandise towards. A well
define target market is the first element of a marketing strategy.
As the outlets of KFC are in posh area and prices are nearly high
(overhead expenses- rent, air- conditioning, employeess), so KFC
targets upper and middle classes. Target market depends upon size
and growth rate of population, Company resources and strutural
attrativeness of market segment. They are expanding there market
size by focusing on sub urban areas and targeting middle class
people by providing them differtiated products at a fair price.
 Market Positing:
An effort to influence consumer perception of a brand or product
releative to the perception of competing brands or products. Its
 objective Is to occupy a clear, unique and advantageous position in
the consumer’s mind.
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 products.

2.9 KFC’s: Competitors

. 1) McDonalds

McDonald’s is perhaps the most potent competitor in the fast food restaurant
chain business. It is often ranked as number one in most of the aspects revolving
around this particular industry including, sales volume; customers served in a
month, number of stores globally as well as the total revenue generated.

It serves an array of food products including sandwiches, burger, and beverages

and baking goods among others. Currently, it is the quick service restaurant chain
that operates in almost all the major cities in as many countries as possible.
McDonald’s is indeed a competitor to beat in this industry and continues to
expand by trying to reach out to the untapped markets. Because of sheer
distribution power, McDonald’s is probably the strongest KFC Competitors in
the market.

2. Burger King

Burger King became a force to reckon in the fast food industry ever since it
started its operation in this sector. Its main specialty in serving burgers strictly
gave it an edge since it was able to specialize and offer the highest quality
possible. Burger King provides stiff competition in the market and has stood out
as one of the major players in this industry.

Its continued expansion in both the local and overseas markets is a sign that it is
indeed growing to match other players in this particular industry. Furthermore, it
has been able to add more food products on its menu as a way of satisfying the
needs of different clients who would necessarily prefer to supplement their
burgers. Burger king is one of the trio of the widest distributed burger chains
across the globe and hence it is the second highest KFC competitors.

3. Subway
Subwayhas now been in the fast food business for half a decade, a clear sign that
is a brand you can disregard at your own peril. All this time it has expanded both
locally and globally with the aim of reaching out to as many customers as
possible. The fact that it established its trademark by coining its specialty in
serving marine sandwiches also enabled it to find grounds to operate in.

The continuous trend that this particular brand portrays is a clear indication that it
is not a one to rule out as a minor competitor. Its expansion and increased
number of customer all over the world instead makes it among the top players in
this industry.
4) Dunkin Donuts

Dunkin Donutscomes out as one of the leading fast-food restaurant chains with
the most franchised stores all over the world. When it was initially established,
its primary focus was to serve coffee and donuts to its customers. However,
along with the line, demand for more products came up, and it decided to add
soft drinks, hot and cold beverages as well as breakfast menu on its
predominantly coffee menu.

Its expansion in most of the American and European markets is also a revelation
that it has established itself as an active player in the market hence its operations
can never be disregarded at any given time in the near future.
 5.
Starbucks

Starbucks main competitor in the market happens to be Dunkin Donuts. It is also

a fast food restaurant chain that all along has been known for serving coffee.
Starbucks style of operation is just unique making it among the top-ranked quick
service joints in the world. It has also continued to expand its stores in major
markets including Middle East, Europe, Asia, Latin America as well as most
parts of Africa.

It has become apparent that Starbucks is not only generating more revenue both
operating and net but also establishing a brand value that will probably remain
among the top players in this market. Although Starbucks is mostly known for
coffee, it has several other fast food offerings and hence is considered as one of
KFC Competitors.
6. Pizza Hut

Pizza Hut became among the leading quick service restaurant chain players after
realizing that it can also fill the gap that other service providers had not
exploited. Ever since it started operating, it has remained steadfast in offering
best service possible as well as meeting the specific needs of its customer base as
efficient as it can.

Its ability to provide pizza delivery and takeaway services as appropriate as

needed has also boosted its profile in becoming among the highly ranked fast
food outlet in the world. Pizza Hut has in the recent years, record highest sales
volume and customer satisfaction levels, which has also made its operations in
newer markets relatively easy. Although it is an indirect competitor, it has a
strong influence on consumer purchasing and hence is considered as one of the
KFC Competitors
7. Dominos

Domino’s Pizza also offers more or less similar services like Pizza Hut. It
majors in providing pizza delivery as well as takeaway services in its various
joints located in different parts of the world.

Domino’s Pizza’s expansion to relatively newer markets and continuously

succeeding in making high sales and consequent profits have shown that
indeed it is not a brand that has plans to exit the market anytime soon. It has
mastered the art of satisfying the customers both at the outlets as well as
delivery points hence making it easy for as many customers to relate to the
brand.
8. Taco Bell

Taco Bell specializes in serving Mexican foods and has also been in the
industry for relatively a considerable time. It is this specialty that has given it
an advantage to even rank among the top players since it makes it easy for a
customer to identify with it especially when looking for a joint to have
Mexican cuisine.

Taco Bell might be serving Mexican foods, but it should be noted that it is
American-owned although it has outlets in Mexico and other countries where
residents enjoy Mexican cuisines. Its commitment to providing quality
service illustrates its dominance in the quick service busin
 Wendy’s

Wendy’s became a household name in the fast food service business way back in
1969 when its first store opened doors and 1976 when it opened its 500 th store. It
majored in serving burger, but along the way, upon realization of its potential in
becoming a top brand in this industry, it added more food on its menu including
soft drinks, beverages, and fries.

Wendy’s has been involved a fair share of business dealing with other partners in
the industry all along in bid some experts view as an advantage to its operations
since such deals allow it to expand and maximize its potency in the market. It
thus implies that Wendy’s is also an active competitor in this industry that can
never be overlooked. Wendy’s has a strong market share in US and its social
media marketing is top notch and hence it is one of the top KFC competitors in
US.
10.Chipotle

Just like Taco Bell, Chipotle also specializes in serving Mexican foods to its
clientele. It has been a significant player in this particular industry since it
opened its first doors and has continued to command a fair share of the market
ever since. It has several outlets both in the US and also in other different towns
and cities, especially in Europe.

The fact that Chipotle has been in business for about 25 years but is ranked
among the leading brand in the fast food service industry is a clear indication of
its potency. Its revenue is also increasing alluding to the fact that its brand
awareness is also becoming stronger day by day.

11. Tim Horton’s

Tim Horton’s has grown to arguably become one of the leading players in the
fastfood restaurant business. It is a Canadian brand that was established by a
former hockey player. Tim Horton’s is currently the leading coffee shop in
Canada and has also continuously expanded in other areas within America and a
few parts of Europe.

In the interest of making it a more prominent brand, it merged with Burger King
but has however remained steadfast in offering its services as an independent
business. Tim Horton’s is apparently not an ordinary player in this particular
industry, and since its expanding in other unexploited markets, it shows it’s here
to stay and offer the best the industry canprovide.

12. Papa John’s Pizza

Papa John’s Pizza offers pizza delivery and readymade services to its customers.
It started as small start-up business but has over the years expanded to become
one of the key brands in the quick-service industry. Papa John’s Pizza
commitment to making sure that customers are satisfied with the service they
obtain is among some of the aspects that have made it possible to establish itself
as a strong brand in this industry.
Mr service, it also makes efforts to expand to other parts of the country (USA) as
well as finding a way of reaching out to the untapped markets especially in
Europe where there is a fanatical liking of pizza. It is thus a critical brand in this
particular market to watch.

2.10 Marketing Strategy: KFC

KFC uses different ways to market the brand among the customers. Let’s know
about the different strategies it follows-

1. Email Marketing-

KFC uses AMP technology to send emails in bulk. These emails are hard to lose
in a customer’s inbox since they are a bit different from regular emails. Well,
how? So, they contain synergic elements like order buttons, product carousels,
sliders, animations, subscription forms, interactive meal showcases, etc. They
segregate the audience via this strategy. After knowing the targeted audience,
they customize the email campaigns as per their needs. The awareness they
create leads to conversions increasing the profit margin of the brand.

2. Content Marketing-

KFC relies on two content marketing tactics. The first one is to make uncommon
chicken stuff and earn attention from the media. Secondly, make real & engaging
content on free platforms like YouTube. They go for both of them. On their
various social media platforms, they post short, crispy, informative content in
order to grab the audience’s attention. What is applaud able is the way they have
dubbed a single video in different languages for the audience’s sake. Their
content takes the form of pictures, videos, and even stories! Yes, you heard that
right! If you go to global.kfc.com, you’ll find various stories related to festivals
like Eid, Diwali, etc. Not only this, they even provide recipes for some of their
famous dishes.

3. Offline and Online presence-

There is no denying the fact that KFC has set its foot across online and offline
mediums. Talking about their offline presence. KFC is serving 150+ countries
and territories with an availability of more than 22,000 outlets. They have
reached every single corner of the world. It is evident from the fact that apart
from the metropolitan areas, KFC has reached the sub-urban areas of countries
like India

Coming to its online presence, KFC has its own website where customers can
make online purchases. With the introduction of the website, their profits have
drastically increased. Plus, it offers amazingly fast delivery by itself. Other than
this, it is also present on Zomato and Swiggy for the same purpose.

4. Social Media Marketing-

They are active on Twitter, Facebook, and Instagram to increase brand awareness
and deliver the latest updates. Let’s know about their social media handles in
detail-
a) Facebook
They keep their Facebook handle up-to-date by continue posting engaging
content. If you go through the posts, you will know how they engage the
audience by organizing contests and rewarding the winners. They even
share product-related memes to stay in trend. Moreover, they provide the
latest information regarding offers and keep posting pictures and videos
with short, crispy, and eye-catching captions that act as a hook factor that
lures them to order one!

b) Instagram
Just like Facebook, they keep on posting palatable stuff here. These visuals
of fried chicken lure the customers to a great extent. They even share
information regarding the availability of specific meals. Their Instagram
shows how heavily they are inclined towards memes to click on young
adults minds. They organize various challenges and give away free meals.

c) Twitter-
On their Twitter handle, they post interactive tweets and try to keep the
conservation going on. They keep on asking questions like Hi Genz. Who
here likes Chicken? Their tweets are way humorous and sarcastic making
the followers either retweet or land in the comment section and reciprocate
the some. What interesting is the way they reply to some of the comments.

d) Celebrity Endorsement-
Celebrity Endorsement is probably the best way to market the brand. It
works wonders when the actor has recently garnered massive fame from
the audience. The more the fame, the more the influence! Recently, KFC
collaborated with All Arjun for one of its campaigns. The ad features
Colonel Sanders opposite All Arjun. What is great is that they have dubbed
the same advertisement in different languages as per the audience.

The ad shows All Arjun eating the news KFC’s ‘Peri Peri Chicken’. The
audience is treated with the macro shot of Peri Per flavour over a crispy
piece of chicken, he declares (in his premium style) “Apun ko aansu acha
nahi lagta hai, na Mirchi wala”. Then ask for the Colonel and he wake up
to him. Answering the curiosity of Colonel, All Arjun utter ‘spice’. After
taking a short pause, he brings a smile to Colonil’s face as he said,
"“Correct hai boss”. The moment deserved celebration as All Arjun loved
the ‘Peri Peri Chicken’. The ad ends with the colonel imitating Arjun’s
Pushpa step.

5. Incentives-
Incentives are a great way to earn as well as retain customers. KFC too
acknowledged the need and throws them from time to time. For example,
they give away free meals to their loyal customers after they have spent a
certain amount on buying KFC products. The customer gets the coupon
which is redeemed to get free meals. Plus, they even post free meal
vouchers via newspaper where you get to collect them to a certain limit
and then approach their store to get a free meal. However, they provide
discounts time-to-time on the occasion of festivals or special events.
 2.11 Problems Faced by KFC in India

There were numerous protests when KFC launched in the India market.
The first outlet, in Bangalore, was ransacked multiple times by angry
protestors.

• Indians were concerned that the western influence their roots, and
dilute their indigenous customs.
• In the same year, a second KFC outlet was opened in the capital
city- Delhi, but the combined earnings of both locations were
insufficient to sustain in the business in India.
• Anti-KFC movement accused KFC of using illegal amounts of
monosodium glutamate, a harmful product, due to which KFC did
not gain popularity. As a result, KFC was forced to exit the Indian
market even before KFC started in India.
• KFC returned to India in 1999, after the India market had calmed
down, and another outlet was opened in Bangalore.
• Until 2004, KFC operated a single restaurant in India.

2.12 SWOT Analysis: KFC Competitor’s

1. Burger King

Strength
 Burger King is a hugely popular brand name in the fast food
industry with huge brand loyalty.
  Burger King is a hugely popular brand name in the fast food
industry with huge brand loyalty.
 Product differentiation is focused of the brand based on geography
and demographics.
 Burger King has a strong brand equity in fast food segment world
over.

Weakness
 Alleged high fat and high calorie food not good health conscious
people.
 Intense competition means limited market share growth for Burger
King.

Opportunities
 Expanding home delivery options customers can really boost
 Burger King’s sales.
 Open new branches and outlets at new locations can help the
 brand grow geographically.
 The company can advertise more and give discounts to capture new
market.
Threats
 Threat from other eating joints & restaurants, which can impact
 Burger King’ Health concerns among general public regarding
fast food.
  Food costs are raising higher than standard inflation which lead to
decline in

2. Subway
Strength
 Largest fast food restaurant chain in the world by the number of
outlets.
 Marketing and promotional strategies.
 Low start-up costs.
 All restaurants are owned by franchises.
 Choice of healthier meals.

Weakness
 Interior design of the outlets often looks cheap. Services are not
consistent from store to store High employee turnover.
 Too much control over franchises.

Opportunities
 Increasing demand for healthier food.
 Home meal delivery.
 Changing customer’s habits and new customer groups.

Threats
 Threats from other eating joints and restaurants, as they may decline
Subway’s market share.
  Health conscious people avoiding eating fast food.
 Economic recessions and pandemic can led to loss of customers and
thus impact business operations.

3. Mc Donald’s
Strengths
• Largest fast food market share in the world.

• Brand recognition valued at $ 40 billion.

• Locally adopted food menu.

• Partnerships with best brands.

• More than 80% of restaurants are owned by independent franchises.

• Children targeting.

Weakness
• Negative publicity.

• Unhealthy food menu.

• Low differentiate.

Opportunities
• Increasing demand for healthier food.

• Home meal delivery.

• Full adaption of its new practices.

 • Changing customer’s habits and new customer groups.

Threats
 Saturated fast food markets in the developed economics.

 Trend towards healthy eating.

4. Wendy’s
Strengths
• Wendy’s is one of the most popular fast food chain brands with a
strong legacy and experience since it was formed in 1969.
• Wendy’s has a strong global presence with restaurants in around 50
countries.
• It is one of the largest burger chain with more than 6000 stores
globally.

• Wendy’s employee strength is more than 10,000 people working

with the company

• Wendy’s is a globally recognized brand owing to its strong brand

awareness.

Weakness
• Operation of franchises is difficult to manage to maintain similar
experience across all Wendy’s stores.
• Less number of locations as compared to its competitors globally.

Opportunities
 Global expansion of Wendy’s stores can help increase the business.
  Introduce the breakfast menu and other meals in all locations after
making the menu as per customers demand.
 Acquisitions of smaller restaurants can further strength its market
position.

Threats
 Tough competition from other globally recognized fast food joints
can reduce its market share.
 Increase in price of raw materials can reduce margins of
 Wendy’s company.
 People are getting conscious about their health and avoiding
unhealthy fast food.

5. Starbucks

Strengths

 Leading retailers and roaster for brand specially coffee in

the world.
 Known for providing superior products and services.
 Number7 on Fortune Magazine’s “100 Best Companies to
Work For” for 2008.
Weakness

 High pricing because of the quality ingredients used.

  Starbucks refuses to guarantee that milk, beverage,
chocolate, ice cream, and baked goods sold in the
company’s stores are free genetically- modified
ingredients.
 In order to reduce business risk, expansion is needed.

Opportunities

 High growth of economy and market in Indonesia,

especially in Strong financial support.
 Could diverse their product not only in coffee

Threats

 Competition from other coffee chains and independent coffee

shops.
 Changes in consumer preferences or trends.
 Economic downturns or market instability.

6. Tim Horton’s

Strengths
 Tim Horton’s has over2, 500 restaurants across Canada and over 280 in
US, making it the largest quick service restaurant chains in Canada.
 Because quick- service chains constantly compete on service, location,
price, and food. Tim Horton’s is one of the successful of chains as it excels
 all of these demands by providing a variety of food and beverages, and
locations.

Weakness
 On the Eastern Seaboard, Tim Horton’s failed to compete with Duckin
Donuts.
 The U.S. locations of Tim Horton’s are not as profitable as the Canadian
counter parts, thus there is a difficulty to retain quality franchisees.

Opportunities
 International expansion is readily an option in areas such as Middle East
and Asia.
 New products such as a variety of iced coffee can increase sales, customer
interest, and overthrow competition.
Threats
 The main threat to Tim Horton’s are American quick-service restaurant
chain/fast food chains, such as Starbucks and Duckin

2.13 MICROENVIRONMENTAL ISSUES: POTER’S FIVE FORCE

MODEl

Threat of New Entrance:

  Entry to a restaurant Business is very difficult. It is hard to make a
prominent brand name.
 There is high research and development costs and high cost of entry.
 Strong brands already in competition make it more difficult such as
Domino’s, Pizza Hut and Mc Donald’s.

Threats of Substitute:
 The subsitutes is this industry are very high.
 People can choose Burger King, Domino’s
 Indian Cuisine, Indian local shops, Indian restaurants etc.

Rivalry:
 Fast food restaurants industry is very competitive.
 The competition is so high as all the organizations wants to get hods of
customers.
 KFC’s knows about the customers taste and preference all over the world

Bargining power of the customers:

 Bargaining power of the customers refers to pressure a customer can exert
on a business to get good quality of food, good customer service and l ow
price.
 Bargining power of the customer in this indusry is low. As McDonald’s
provide a standard service, one price strategy and quality of food.

2.14 ANALYSING MACRO VARIABLE

Political Factors o The operations of KFC are affected the government ver on
the regulations of fast food operation.
 KFC has handled this situation very tactfully and has obeyed the policies
of the government in order to run this kind of business.
 Change of taxation, import regulations and employment policies, animal
rights campaign.
 The political factor s include the government policies as KFC being a
foreign company to many countries so they have to obey the policies of
the government of a particular country where the business activities are
being carried out.

Economic Factors
 An ever growing middle class with increasing purchasing power.
 The benefits of economical that changes the strategy of international
business of KFC and they can grow up with the lower price and the
satisfying services. o Purchasing capacity of customers that affect the
spending on fast food products and eating out.
 The consumption behaviour the people plays an important role.

Socio-cultural Factor

 KFC, along with other popular fast food brands struggle with many social
issues and problems.
 They adapt the culture of the country where they are located.
 Farms mistreat animals by packing them in unhygienic environments and
facilities.
  A lot of Indians are veggies, So KFC had to change their menu.Then they
removed beef from their men

Technological Factors
 KFC has also increased its digital presence through better social media
management and promotions.
 By using advance technology they are minimizing cost of production,
increase quality of production and satisfy their customers
 KFC always support the work of research and development in order to
introduce the new technology.
 Investment in technological innovation computer ordering.

Ecological Factor

 Being a giant in the fast-food restaurant industry with over 22,000

locations, it is no surprise that KFC is a major contributor to the
environment. KFC’s paper supplier is linked in many cases with
deforestation, destruction of wildlife, and endangering the environment.
 Again, an increasing number of heath- conscious individuals opt to turns
away from KFC due to reason like this. The restaurant needs to adopt
more environmentally friendly pratices to reduce waste and consumption.
 They just invite the environment to come to the restaurant to enjoy their
food.

Legal Factors
 As KFC operates in over 140 countries, complying with the local laws and
regulations is one of the key factors in continous success and operation.
  They have to adhere to the food and health quality guidelines and laws in
order to to avoid lawsuits and penalities.
 KFC also can hold their recipe because it has been legality so oncan steal,
 It use franchising models and it available and working successfully in
India.

2.15Major Reasons for KFC’s Success

The first Indian KFC outlet opened in Banglore in June 1995, and the number of
outlets has grown to 300 plus today.
 The Indian government enforced the LPG policy in the 1990s, and KFC
became the first foreign fast food chain to enter India.
 Fast food restaurant s have grown in popularity in India over the years due
to their customised, ready-to-eat menus for people on the go.
 KFC eventually managed to get a foothold in the country as it targeted
metropolitan cities with malls flourishing on every corner.
 After Banglore, the company aimed to target cities like Chandigarh, Pune,
Kolkata, Chennai, and Hyderabad.
 PepsiCo too decide to focus on KFC’s expansion, because its other brand,
‘Pizza Hut’, had established a strong foothold in India.
 The tagline ‘the urge for chicken can only be satisfied with the
irresistible,indefinable taste of KFC was used for all communications with
the public, with no attention paid to loud voices that condemned the brand.
 This was a daring move, going against compititors and widly accepted
consumer trends.
 CHAPTER 3
RESEARCH METHODOLOGY

3.1 Objectives of study

 To study the marketing strategies of KFC’s.

 To study SWOT Analyze KFC’s and their competitors.
 To study SWOT Analyze KFC’s and their competitors.

3.2 Type of Data Research

includes gathering both primary and secondary data.

 Primary Data- is the first-hand data, which are selected a fresh and thus
happen to be original in character. There was no primary data collected.
 Secondary Data- are those which has been collected by someone else and
which already have been passed through statistical process. Secondary
data has been taken from internet, library, newspapers, magazines, and
companies web sit

3.3 Limitation of the Study

 Lack of previous research studies on the

topic
 Limited access to data.
 Method / Instruments /Techniques used to collect data
 Time constraint
 Chapter 4
Findings and Discussions

 Most of the consumers are willing to try new products being launched by
KFC after watching the advertisement Easy to remember and recognise
KFC’s.
 Consumers are satisfied with the variety offered in the vegetarian food
section of the menu of KFC’s.
 Quantity of food being offered by KFC’s.
 CHAPTER – 5
CONCLUSION
In conclusion, each company should use a suitable on marketing mix in terms of
products, place, price and promotion to develop a successful marketing strategy.
KFC has shown the effectiveness of the marketing mix in contributing to their
brands and business leading performance in the international fast food industry.
Implementing the 4Ps in the marketing strategy can meet the company’s
marketing objectives by satisfying customers needs and wants.

KFC can continue to grow and expand its business and remain the top selection
of quality fast food KFC needs to revisit its marketing strategy over time. If KFC
is developing a 4Ps strategy for their business, they must comprehend that the
elements in the previous marketing mix are not supposed to be permanent. It
should need to be updated and adjusted as the products grow and their buyers
preferances change.
 CHAPTER- 6
SUGGESTIONS AND
RECOMMENDATIONS

 KFC can go for more promotional activities to attract more

customers in India.
 KFC should open the road street wheel based vehicle van
restaurants in India.
 If KFC expands their business, it will create employment
opportunities for the local people in India.
 KFC can arrange technical and effective assistant to the people who
want to do job in this fast foods industry.
 As KFC has a costlier brand, KFC may consider the price in terms
of targeting more consumers in India.
 BIBLOGRAPHY

• https://www.slideshare.net/gulam21gaus/kfc-marketingstrategies
• https://online.kfc.co.in
• https://en.wikipedia.org/wiki/Food_industry
• https://www.slideshare.net/AyubMukhtar/kfc-swot-analysis
• https://www.slideshare.net/LakshiSathsarani/kfc-243619078