Presented By- Kalyani Singh

Neha Singh Shahbaz Khan Shakshi Gupta Surendra Singh Bisht

KFC IN INDIA ETHICAL ISSUES

BACKGROUND OF KFC

KFC is based in Corbin, Kentucky, U.S. and is the world’s most popular chicken restaurant chain.

Founded by Colonel Harland Sanders in in the early 1930s by cooking & serving food for hungry travellers.

In 1952 Sanders started franchising his chicken business & named it as KENTUCKY FRIED CHICKEN.

KFC is part of Yum! Brands, Inc., the world's largest restaurant company in terms of system restaurants, with more than 36,000 locations around the world.

KFC operates more than 15,000 units in 109 countries and territories around the world.

CONTINUE…..

Every day, more than 12 million customers are served at KFC restaurants.

KFC is world famous for its Original Recipe fried chicken -- made with the same secret blend of 11 herbs and spices

Customers around the globe also enjoy more than 300 other products -- from KFC

The company is ranked #239 on the Fortune 500 List, with revenues in excess of $11 billion in 2008.

KFC’s Entry in INDIAKFC was the first fast food multinational to enter

INDIA , after the economic liberalization policy of the Indian Govt. in early 1990s.

KFC received permission to open 30 new outlets across the country

KFC opened first fast food outlet in Bangalore in June 1995 by targeting upper middle class population.

PepsiCo planned to open 60 KFC and Pizza Hut outlets in next 7 yrs in the country.

ISSUESGovt. was criticized for granting permission to

multinational food giant Threat to domestic businessNationalists feared a cultural invasionNutritionists highlighted the high rates of

obesity, hypertension, heart disease and cancers

Monosodium Glutamate (MSG) controversy

PROBLEM for KFC

Protests by angry farmers led by the Karnataka Rajya Ryota Sangha (KRRS).

Protests by Ecologist Protests by PETA . Support of celebrities in

against of KFCNon-Conformity with food products

regulations

KFC

SWOT ANALYSIS

STRENGTH

World’s largest restaurant company in terms of system restaurants, operates more than 15,000 units in 109 countries and territories around the world.

KFC is world famous for its Original Recipe fried chicken -- made with the same secret blend of 11 herbs and spices

Ranks highest among all chicken restaurant chains for its convenience and menu variety.

Generate $1B each year

WEAKNESS

LACK OF KNOWLEDGE ABOUT THEIR CUSTOMERS.

LACK OF FOCUS ON R&D.

MSG FLAVOUR IN CHICKEN

OPPORTUNITY

RETAIL BOOM IN INDIA

INDIANS YOUTH ARE ADOPTING WESTERN CULTURE

INDIAN ECONOMY

METROPOLITAN RAPID DEVELOPMENT

THREATS

INDIAN RECIPIES LIKE TANDOORI CHICKEN

PETA AND KRRS LIKE ORGANIZATIONS

POLITICAL PARTIES PROTESTING FOR JUNK FOOD

PROTEST SUPPORT FROM FAMOUS PERSONALITIES LIKE ANIL KUMBLE,ADITI GOVITHRIKAR,JOHN ABRAHAM ETC

PESTEL ANALYSIS

POLITICALECONOMIC SOCIALTECHNOLOGICAL ENVIRONMENTAL LEGAL

MARKETING CONCEPTS

NEEDS – a consumer needs foodWANTS – they want chicken or other non-vegDEMANDS – but they demands KFC’s fried

chicken

TARGET MARKETS

As the outlets of KFC are in posh area and prices are too high (overhead expenses-rent, air-conditioning, employees),

KFC targets upper and middle classes, youth Target market depends upon size and growth

rate of population,

MARKET SEGMENTATION

Geographic segmentation : In India KFC focuses how geographically its customers demand different products.

Demographic Segmentation: In demographic segmentation, the market is divided into groups based on an age, gender, family size, income, occupation, religion, race and nationality.

Psychographic segmentation: in this segmentation ,the market is divided into middle class & upper class

PRICING STRATAGY

Their products are priced high and target the middle to upper class people

KFC adopt the cost base price strategy. Pricing of the product includes the govt. tax and

excise duty The products are bit high priced according the

market segment and it is also comparable to the standard of their product.

In the cost based method we include the variable and fixed cost. 

PROMOTION

AdvertisingSales PromotionPublic RelationsEvents and ExperiencesCoupons, Discounts and Bundled packages

COMPETITION

We can compare the price of their products with mcdonald, dominoes and pizza hut.

If the competitor provides the same product at a lower price then the organization usually lowers the price of its product too.

In the case of kfc, fried chicken is its main selling point and controls a monopoly over the indian fast food market (only with fried chicken).

It prices its burgers, french fries and soft beverages with relation to its competitors.

SOCIAL MARKETING

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RECOMMENDATIONS

the company should be able to use an ethical management strategy that will uplift the image of the company.

uses of marketing knowledge, concepts, and techniques as well as with the social consequences of marketing policies, decisions, and actions

every business organization should understand the importance the culture, regulatory & ecological issues in different countries.

THANK YOU