On 30th August, 2010

ADARSHA CAMPUS

(TRIBHUWAN UNIVERSITY)

(FROM MARKETING PERSPECTIVES)

SUBMITTED BY

ASTHA PANDEY

BBS 3RD YEAR

SYMBOL NO: …………………………….

T.U REGD NO: …………………………….

Submitted To:

Adarsha Campus

Faculty of Management, T.U

In the partial fulfillment for the degree of

Bachelor in Business Studies (BBS)

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A PROJECT REPORT ON KFC

ACKNOWLEDGEMENT

I would like to express my hearty gratitude to all the people, who extended their help

by providing their invaluable views and opinions, which formed an integral part of

this study.

First of all, I take this opportunity to express my sincere thanks to my teachers for

helping me to get through this report. It would not have been possible for me to

complete this project without his unflagging supervision, advices and directions. So,

mine great debt of gratitude to him. It is my immense pleasure to submit research

report on “KFC” to Adarsha Campus. It enabled me to learn more about marketing,

which helped in gratitude study for imparting practical knowledge to the bachelor’s

students which is a useful resource in stepping towards the practical world.

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TABLE OF CONTENTS

TOPIC PAGE.NO.

1. INTRODUCTION

a. BACKGROUND 5

b. OBJECTIVES 6

c. LIMITATIONS 7

2. LITERATURE REVIEWS 8

3. METHODOLOGY

a. INTRODUCTION 16

b. DATA COLLECTION METHOD 16

4. FINDINGS 17

5. RECOMMENDATION 22

6. BIBLIOGRAPHY 24

ANNEX

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INTRODUCTION

a. BACKGROUND:

KFC Corporation (KFC, founded and also known as Kentucky Fried Chicken) is a

chain of fast food restaurants based in Louisville, Kentucky in the United States.

KFC has been a brand and operating segment, termed a concept of Yum! Brands

since 1997 when that company was spun off from PepsiCo as Tricon Global

Restaurants Inc.

KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its

primary focus is fried chicken, KFC also offers a line of roasted chicken products,

side dishes and desserts. Outside North America, KFC offers beef based products

such as hamburgers or kebabs, pork based products such as ribs and other

regional fare.

The company was founded as Kentucky Fried Chicken by Colonel Harland

Sanders in 1952, though the idea of KFC's fried chicken actually goes back to

1930. The company adopted the abbreviated form of its name in 1991. Starting

in April 2007, the company began using its original name, Kentucky Fried

Chicken, for its signage, packaging and advertisements in the U.S. as part of a new

corporate re-branding program; newer and remodeled restaurants will have the

new logo and name while older stores will continue to use the 1980s signage.

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b. OBJECTIVES:

1. To assess the KFC itself and the present status and condition about it.

2. To add the knowledge of marketing by supporting some theories.

3. To enable and to enhance knowledge about how changing environment

effects marketing in an organization.

4. To provide link between academic training and the world of work,

thereby enhancing the future employability.

5. To improve the presentation skills, communication skills, research skills,

Managerial & marketing skill.

6. To enable us in understanding how theoretical knowledge differs from

practical life thus enabling us to understand the complexity and

unforeseen nature of problem and opportunity that exist in the

organization.

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c. LIMITATIONS:

As this study intends to put the theoretical knowledge into real life situation as a

small research work, it has been completed with the following limitations:

1. It was to be completed in a very short period of time. Therefore, it

could not take into account all the environmental factors which are

equally responsible in affecting the organization.

2. Study based on management aspect only , doesn’t contain study of

financial aspects

3. Due to time and budget constraints, the reliability and validity of the

interview have not been confirmed.

4. As the research model applied was not standardized; the findings of

the study cannot be generalized set of the organization in the study.

5. Due to single respondent or qualitative approach of research, no

analysis has been made with advance statistical tool.

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LITERATURE REVIEWS

Marketing?

Marketing is the process by which companies determine what products or services may

be of interest to customers, and the strategy to use in sales, communications and

business development. It is an integrated process through which companies create

value for customers and build strong customer relationships in order to capture value

from customers in return.

The term marketing has changed and evolved over a period of time, today marketing is

based around providing continual benefits to the customer, these benefits will be

provided and a transactional exchange will take place.

The Chartered Institute of Marketing defines marketing as 'The management process

responsible for identifying, anticipating and satisfying customer requirements profitably'.

Philip Kotler defines marketing as 'satisfying needs and wants through an exchange

process'.

Marketing is used to identify the customer, to keep the customer, and to satisfy the

customer. With the customer as the focus of its activities, it can be concluded that

marketing management is one of the major components of business management. The

evolution of marketing was caused due to mature markets and overcapacities in the last

2-3 centuries. Companies then shifted the focus from production to the customer in

order to stay profitable.

The term marketing concept holds that achieving organizational goals depends on

knowing the needs and wants of target markets and delivering the desired satisfactions.

It proposes that in order to satisfy its organizational objectives, an organization should

anticipate the needs and wants of consumers and satisfy these more effectively than

competitors

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Evolution of marketing:

Earlier approaches:

The marketing orientation evolved from earlier orientations namely the production orientation, the product orientation and the selling orientation.

Orientation Profit driver

Western European timeframe

Description

Production Production methods

until the 1950s

A firm focusing on a production orientation specializes in producing as much as possible of a given product or service. Thus, this signifies a firm exploiting economies of scale, until the minimum efficient scale is reached. A production orientation may be deployed when a high demand for a product or service exists, coupled with a good certainty that consumer tastes do not rapidly alter.

Product Quality of the

product

until the 1960s

A firm employing a product orientation is chiefly concerned with the quality of its own product. A firm would also assume that as long as its product was of a high standard, people would buy and consume the product.

Selling Selling methods

1950s and 1960s

A firm using a sales orientation focuses primarily on the selling/promotion of a particular product, and not determining new consumer desires as such. Consequently, this entails simply selling an already existing product, and using promotion techniques to attain the highest sales possible.

Marketing Needs and wants of

customers

1970 to present

day

The 'marketing orientation' is perhaps the most common orientation used in contemporary marketing. It involves a firm essentially basing its marketing plans around the marketing concept, and thus supplying products to suit new consumer tastes. As an example, a firm would employ market research to gauge consumer desires, use R&D to develop a product attuned to the revealed information, and then utilize promotion techniques to ensure persons know the product exists.

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Contemporary approaches:

Recent approaches in marketing is the relationship marketing with focus on the

customer, the business marketing or industrial marketing with focus on an organization

or institution and the social marketing with focus on benefits to the society. New forms

of marketing also uses the internet and are therefore called internet marketing or more

generally e-marketing, online marketing, search engine marketing, desktop advertising

or affiliate marketing. It tries to perfect the segmentation strategy used in traditional

marketing. It targets its audience more precisely, and is sometimes called personalized

marketing or one-to-one marketing.

Orientation Profit driver Western European timeframe

Description

Relationship marketing / Relationship managemen

t

Building and keeping good

customer relations

1960s to present

day

Emphasis is placed on the whole relationship between suppliers and customers. The aim is to give the best possible attention, customer services and therefore build customer loyalty.

Business marketing /

Industrial marketing

Building and keeping

relationships between

organizations

1980s to present

day

In this context marketing takes place between businesses or organizations. The product focus lies on industrial goods or capital goods than consumer products or end products. A different form of marketing activities like promotion, advertising and communication to the customer is used.

Social marketing

Benefit to society

1990s to present

day

Similar characteristics as marketing orientation but with the added proviso that there will be a curtailment on any harmful activities to society, in product, production, or selling methods.

Micro Environmental Factors:

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These are internal factors close to the company that have a direct impact on the

organizations strategy. These factors include:

Customers: Organizations survive on the basis of meeting the needs, wants and

providing benefits for their customers. Failure to do so will result in a failed business

strategy.

Employees: Employing the correct staff and keeping these staff motivated is an

essential part of the strategic planning process of an organization. Training and

development plays an essential role particular in service sector marketing in-order to

gain a competitive edge.  This is clearly apparent in the airline industry.

Suppliers: Increase in raw material prices will have a knock on affect on the marketing

mix strategy of an organization. Prices may be forced up as a result. Closer supplier

relationships are one way of ensuring competitive and quality products for an

organization. 

Shareholders: As organization requires greater inward investment for growth they

face increasing pressure to move from private ownership to public.  However this

movement unleashes the forces of shareholder pressure on the strategy of

organizations. Satisfying shareholder needs may result in a change in tactics employed

by an organization. Many internet companies who share prices rocketed in 1999 and

early 2000 have seen the share price tumble as they face pressures from shareholders

to turn in a profit. In a market which has very quickly become overcrowded many have

failed.

Media: Positive or adverse media attention on an organizations product or service can

in some cases make or break an organization. Consumer programs with a wider and

more direct audience can also have a very powerful and positive impact, forcing

organizations to change their tactics.

Competitors: The name of the game in marketing is: differentiation. What benefit can

the organization offer which is better than their competitors? Can they sustain this

differentiation over a period of time from their competitors? Competitor analysis and

monitoring is crucial if an organization is to maintain its position within the market. 

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Micro Environmental Factor

PEST analysis:

A PEST analysis is used to identify the external forces affecting an organization .This is a

simple analysis of an organization’s Political, Economical, Social and Technological

environment.

Political and legal: The first element of a PEST analysis is a study of political factors.

Political factors influence organizations in many ways. Political factors can create

advantages and opportunities for organizations. Conversely they can place obligations

and duties on organizations. Political factors include the following types of instrument:

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- Legislation such as the minimum wage or anti discrimination laws.

-Voluntary codes and practices

- Market regulations

- Trade agreements, tariffs or restrictions

- Tax levies and tax breaks

- Type of government regime e.g. communist, democratic, dictatorship

Non conformance with legislative obligations can lead to sanctions such as fines,

adverse publicity and imprisonment. Ineffective voluntary codes and practices will

often lead to governments introducing legislation to regulate the activities covered by

the codes and practices.

Economical: The second element of a PEST analysis involves a study of economic

factors. All businesses are affected by national and global economic factors. National

and global interest rate and fiscal policy will be set around economic conditions. The

climate of the economy dictates how consumers, suppliers and other organizational

stakeholders such as suppliers and creditors behave within society.

An economy undergoing recession will have high unemployment, low spending power

and low stakeholder confidence. Conversely a “booming” or growing economy will have

low unemployment, high spending power and high stakeholder confidence.

A successful organization will respond to economic conditions and stakeholder

behavior. Furthermore organizations will need to review the impact economic

conditions are having on their competitors and respond accordingly.

A truly global player has to be aware of economic conditions across all borders and

needs to ensure that it employs strategies that protect and promote its business

through economic conditions throughout the world such as:

- GDP or per capita income

- Inflation rate

- Importance of tariffs and quota

- Economic growth

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Social: The third aspect of PEST focuses its attention on forces within society such as

family, friends, colleagues, neighbors and the media. Social forces affect our attitudes,

interest s and opinions. These forces shape who we are as people, the way we behave

and ultimately what we purchase.

Population changes also have a direct impact on organizations. Changes in the structure

of a population will affect the supply and demand of goods and services within an

economy. Falling birth rates will result in decreased demand and greater competition as

the number of consumers fall. Conversely an increase in the global population and

world food shortage predictions are currently leading to calls for greater investment in

food production.

In summary organizations must be able to offer products and services that aim to

complement and benefit people’s lifestyle, gender, age, education, ethnicity and religion,

role of family, materialisms and behavior. If organizations do not respond to changes in

society they will lose market share and demand for their product or service.

Technological: Unsurprisingly the fourth element of PEST is technology, as you are

probably aware technological advances have greatly changed the manner in which

businesses operate. Organizations use technology in many ways, they have

1. Technology infrastructure such as the internet and other information exchange

systems including telephone

2. Technology systems incorporating a multitude of software which help them manage

their business.

3. Technology hardware such as mobile phones, Blackberries, laptops, desktops,

Bluetooth devices, photocopiers and fax machines which transmit and record

information.

Technology has created a society which expects instant results. This technological

revolution has increased the rate at which information is exchanged betmyen

stakeholders. A faster exchange of information can benefit businesses as they are able to

react quickly to changes within their operating environment.

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However an ability to react quickly also creates extra pressure as businesses are

expected to deliver on their promises within ever decreasing timescales.

For example the Internet is having a profound impact on the marketing mix strategy of

organizations. Consumers can now shop 24 hours a day from their homes, work, and

Internet cafés and via 3G phones and 3G cards. Some employees have instant access to

e-mails through Blackberries but this can be a double edged sword, as studies have

shown that this access can cause work to encroach on their personal time outside work.

The pace of technological change is so fast that the average life of a computer chip is

approximately 6 months. Technology is utilized by all age groups, children are exposed

to technology from birth and a new generation of technology savvy pensioners known

as “silver surfers” has emerged. Technology will continue to evolve and impact on

consumer habits and expectations, organizations that ignore this fact face extinction.

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METHODOLOGY

a. INTRODUCTION:

Research methodology is the way to solve systematically about research

problem. (Kothari, 1990, pg.39) research methodology describes the method

and process applied in the entire study. It sequentially refers to the various steps

to be adopted by a researcher.

b. DATA COLLECTION METHOD:

Primary data collection :

Under this method, the researcher directly received the necessary information

with the help of questionnaire and its response. Moreover a brief face to face

interview was done with Mr. Roshan Adiga, General Manager of Devyani

international (Nepal) Limited, with a view to explain more knowledge regarding

marketing in the organization as myll as about the KFC .

Secondary data collection:

Secondary data are those data which are pre - collected by other researcher or

which are secondhand data. So, process of collecting these types of data are

secondary data collection so, I collected different research projects, and collected

different data from books, other reports, web sites and etc. Being a secondary

data I did not find it to be as liable as primary data.

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FINDINGS

Devyani International, under the umbrella of Ravi Kant Jaipuria’s RJ Corp, here

introduced Pizza Hut & KFC restaurants, marking the first multinational chain of

restaurants in Nepal. World’s famous fast food chain KFC started serving Nepalese

people with their lip smacking menu of Hot & Crispy chicken, Twister roll and Zinger

burger around October 2009 right from Annapurna Complex, Durbar Marg. The opening

of these two outlets would give Nepali consumers the first local experience of an

international food chain. They have promised an upcoming rush of announcements and

product that will make this an exciting time for consumers.

- Plus 3 new stores in the next 6 months. Proposed locations @ Jawalakhel, New

Baneshwor & Maharajganj

- Chicken served in recipes is imported all the way from Brazil.

- Daily Chicken consumption @ KFC – 800 kg

- Number of Crew hired – 100

- Operating Hours: 11 am to 11 pm/7 days

Mr. Roshan Adiga is the General Manager in KFC. He has completed his Bachelors and is

36 years old now. He has working experience for more than 10 years. His main

activities/ responsibilities is overall operation including training, inventory

management, hiring e.t.c . He follows a special formula called CHAMPS as main objective

of KFC which refers to Cleanliness, Hospitality, and Accuracy, Maintenances, Product

quality and Speed of service. During the survey he laid down his experiences,

knowledge, ideas, views, opinions in the questionnaire provided to him.

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Some of the general findings are as follows:

1. KFC Restaurant is a fast food restaurant which is popularly known as Quick

Service Restaurant (QSR) these days. [QSR is a specific type of restaurant

characterized by fast food cuisine, self service and by minimal table service].

2. There are 125 covers (chairs) in KFC

3. It has not taken into consideration the exact method to check the occupancy rate.

However, it inspects the number of bills on transaction basis to check the

customer flow. Weekly calculation of bills turns out to be around 700 bills and it

is calculated as 1 bill = 3 people approx where Daily Sales Exceeds Rs. 7 Lakhs +

4. KFC is a fresh brand in Nepal. It has just been six months since KFC started it

business in Nepal. So, it is difficult to analyze the occupancy rate seasonally,

although it was comparatively found increasing in February & March due to

number of increasing tourist.

5. Since KFC is an international brand the brand itself has been running the

restaurant so far in terms of popularity, because of which KFC has not introduced

any kind of customized items. So far the name itself has been enough to attract

customers.

6. Basically family, teenagers, corporates come to the restaurant and talking about

the people in terms of nationality, people from various countries step in to the

restaurant but the flow has been highly dominated by the domestic customers.

Since KFC is new to Nepalese people but quite popular to others comparatively

because KFC has its business running in many parts of the world. So it seemed to

us that though tourists did visit KFC but it is highly popular among the local

people.

7. There is no system/ facility of bookings or reservations in KFC.

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8. No particular promotion technique is applied except for few hoarding boards

and few posters behind the Pepsi cola vehicle as direct market advertising and

publicity.

9. KFC brings chicken from Brazil, the variable and other costs are too high for the

KFC so no such thing as discount is provided in KFC.

10. Hot wings, Bucket hot and crispy, crushers, Burgers are highly popular food in

KFC apart from Cold drink (Pepsi) and deserts.

11. In an average a customer stays in KFC for about 15 -20 min where food is

delivered within a min.

Conceptual Findings:

1. What are your basic functions of Marketing?

The brand itself has promoted the KFC so there is no much more to do regarding

the marketing where as concerned with the basic functions is to assure the

people are getting the quality service, fast service, clean and hygienic food,

unique taste, smooth running of the restaurant, hiring and Training.

2. What type of methods is followed for hiring High level peoples?

Generally consists of 4 levels i.e. written exam, interview, role play, and final

interview. But on the recommendations also my hire the employee (when my

need people my first tell staff if any of them know the person qualified and

interested for the job). Apart from this many people have dropped their C.V. in

our office and when my need my call them and go through our four levels.

3. Has the office conducted the regular training programs to employees?

Yes, the office regularly carries out the training programs. Initially all the staff

has been to India for training before I had started. Now I provide the training for

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lower level and my also learn frequently from the higher level. And I have also

frequent visit from India who provides and guides.

4. How does the pay scale increases?

The pay scale increases as per the company rule but I think our staffs are happy

with their salary.

5. Does the organization give pay on leave holidays?

Employees have to work as per company’s 6 Month provision period n then

leaves are provided as per governmental rules.

6. What is the major promotion methods used (based on company expenditure)?

My have not done any promotion now. When I were first launching in Nepal my

had a tool on the Pepsi’s vehicle and Iy have informed people through net and

media about the opening date

7. How do you know (evaluate) about the customer’s satisfaction?

On the opening day I have conducted the survey by giving written questions and

options about the quality, service and price of KFC. After that I have not done any

survey but the smiling and happy face leaving the KFC tells us about the

customer satisfaction.

8. What are the qualities to be competitive in market?

Well, I believe in quality, hygienic and cleanliness, maintenance (AC, tables and

chairs conditions), consistency, hospitality (feel good environment) and there

are so on…….which I believe are necessary to be competent in the market.

9. Do you know about PEST analysis?

Taking about PEST analysis (Political, Technological, Economical, Social); it does

play an important role in business. For better business:

Political – It must be stable

Technology – One needs to be faster, to cope up with the technology is must.

Economical – It must also be stable so that living standards are maintained and

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tourists will spend more and all…….

Social - One should also remember its responsibilities towards the society.

10. Lastly, what do you suggest us to become tomorrow’s marketing manager or be

success in this field?

First of all education is needed which is a permit or license to become the

manager to any other higher post.

Then it depends on your hard work, labor, creativity, desire and passion

for work.

You should have basic qualities such as willingness to learn, hard

working, team working, friendliness, disciplined, quick , and so on…….

Don’t hesitate, try to learn everything, ask questions, or no one will

bother, be at your best!!

And most importantly you have to start from the root level because every

level is important, it gives an idea about the every field and all levels and

desire and hunger to learn.

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RECOMMENDATION

KFC restaurant is the first multinational chain of restaurants in Nepal and is one of the

best restaurants in Nepal. Since, there is always a place for improvement; my have given

some recommendations that should be fulfilled seriously to remain best.

1. The turnover rate of employees has been zero. This type of tendency is regarded

good for the upliftment of the organization. But the KFC is suggested to adopt the

techniques of motivation that can maintain the present turnover of employees.

2. Rate of varieties of the restaurant seems to be higher in comparisons to other

restaurant. The restaurant is still in the stage of infancy. So, I recommend the

restaurant to lower its cost and provide discount during off- season and discount

to the local or internal tourists as to be more competitive in near future.

3. KFC has lots of varieties of food items. But also, they should be attentive towards

tourist from which country they belong to and they should be serving with lots of

varieties of food to satisfy them with good quality. So different types of food of

different cuisines should be added in menu to satisfy different type of tourist.

4. There should be better communication channels or medium between and among

the employees and customers to reduce conflict and carry out work efficiently.

For e.g. employees must be aware of the cross culture communication to reduce

misunderstanding, be more cultural and respectful to the feelings of customers.

5. Adequate number of staffs should be recruited to handle the respective activities

in more effective and efficient way.

This is an environment of strict competition even in tourism and hotel sectors. In this

context, the KFC is suggested to formulate and implement some sound and efficient

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marketing strategies to meet the required level of profitability as well as social

responsibility.

Thus, organization should have subsequent consultation and participation in better

problem solving to reduce the effect of different trends that affects marketing.

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BIBLIOGRAPHY Kothari, C.R. “Research Methodology: methods and techniques “, Tata Mc Graw Hill

Publishing Company Ltd, New Delhi, 1990.

http://en.wikipedia.org/wiki/KFC

http://www.learnmarketing.net/

http://www.ktm2day.com/2009/04/26/kfc-pizza-hut-opening-stores-in-nepal/

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