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KFC history

Known as Kentucky Fried Chicken

It is a chain of fast food restaurants

Founded by Colonel Harland Sanders Wholly owned subsidiary of Tricon from

1997-2002

Wholly owned subsidiary of Yum!brandssince 2002.


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Evolution of KFC

1939-Colonel Sanders develops his

original recipe chicken.

1952-Kentucky Fried Chicken formed. 1997-KFC grows into national restaurant

chain.

1986-Pepsico acquisition of KFC.


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Mission

To sell food in a fast, friendly environment

that appeals to pride conscious, health

minded consumers


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KFC

Worlds most popular chicken restaurant

chain.

Over 14000 KFC outlets. More than 12 million customers enjoy their

finger lickin good chicken each day.


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KFC in India

Foreign fast food companies were allowed to enter Indiaduring the early 1990s.

1st fast food multinationals to set foot in India was KFC,owned by PepsiCo.

KFC received permission to open 30 new outlets acrossthe country.

It chose Bangalore as its launch pad bcoz city had asubstantial upper middle class population, with a trend offamilies eating out.

Also, it was considered Indias fast growing metropolis inthe 1990 .

Bangalore outlet was opened in June 1995. Apart fromBangalore, PepsiCo planned to open 60.


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PROBLEMS FACEDBY KFC IN

IND

IA KFC entered India in 95 & has been in midst of controversies sincethen.

Regulatory authorities found that KFC's chickens did not adhere toPrevention of Food Adulteration Act, 1954.

Chickens contained nearly 3 times more monosodium glutamate

(popularly known as MSG, a flavor enhancing ingredient) as allowedby the Act.

Since late 1990s, KFC faced severe protests by People forEthicalTreatment of Animals (PETA), an animal rights protectionorganization.

PETA accused KFC of cruelty towards chickens & released a video

tape showing the ill-treatment of birds in KFC's poultry farms. Undeterred by protests by PETA & other animal rights organizations,KFC planned a massive expansion program in India.


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INTERVIEW OF TRANEE AT

KFC,SE

C.18,NOIDA TRANEES NAME:- MR. DEBASHISH

He said that when KFC entered in India in 1995 it was notsuccessful because they have not added the flavours &spices in KFC menu which Indian people like.

Main reason of its failure was that it was targetting higherclass income group in India to have the competitiveadvantage with the local Chicken Dhaba Walas.

But due to protest of Indain farmers and govt. pressure ithad to leave India.

But again in 03 it came back into India with strategies likehigh income group level but at same time providingmenu which can be afforded by middle income grouplevel and added Indian spices in chicken.


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RE-ENTRY OF KFC INTO INDIAN

MARK

ET KFC entered India in 1995, but a controversy

surrounding levels ofMSG in its preparations &subsequent protests from farmers' groups andanimal rights activists spelt trouble for company.

Ultimately,company had to shut all but one outletin the country.

Only recently in 2003 it made a quiet re-entryinto Indian market.

Then came up with the strategies & menu that isdesirable by Indian consumers.

And since 2003 it is expanding successfully itsbusiness in India.


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Organization structure

Area manager

Restaurant general manager

Assistant manager Trainee manager


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Regional manager (main reporting

authority)


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Training & Development

At KFC "Customer Service Workers"&"Food Service Workers" have extensivetraining in Customer Service, Health &

Safety, Cleaning procedures & Foodpreparation.

All training is completed within specific

time requirements using a module basedtraining program with a strong emphasison practical hands on learning.


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Problems with KFC

KFC has not understood the significance ofcultural, economic, regulatory and ecologicalissues while establishing business in a countrylike India .

KFC has not Appreciated the need for protectinganimal rights in developed & developingcountries like India.

They have not understood the importance ofethics in doing business.

They have not examine the reasons for protestsof PETA.


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Ambitious plan

KFC is now raring to put more stores on

the ground.

They have been adding 10 stores a yearsince the re-launch, and have grown 100

by 2010.


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KFC way

Changes in positioning

Localizing its menu

Offers as chicken and vegetable burgers During navratris new range of nine

vegetarian products offered.


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Contd

Product

-variation

-differentiation

-innovation-elimination

Price

-cost recovering pricing

-penetration pricing

-price skimmimg

Place

-distribution channel

-direct sales

-indirect sales-e-commerce

Promotion

-individual communication

-mass communication

-brand management

-corporate identity


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Segmentation

Geographic segmentation: KFC sells its

products according to geographic needs of

customers.

In India KFC focuses how geographically

its customer demands differ. In north India

chicken is the main selling products, while

in the south the veg. items sell more thanchicken.


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Demographic segmentation

Market divides into groups based on

age,gender,family size, income,

occupation, religion based, nationality.

KFC divides:

-age b/w 6to65

-gender both male & female-family size is 1-2,3-4,5+

-income 10,000 or above


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In the light of cut throat competition, the co.

should give importance to ethics rather then

making profit.

-Profit comes from customers.

-Customers have ethics.

-Customers are always right.

It is being rightly said that customers are alwaysright & if at any point of time you feel that

customer is wrong and then you are wrong.


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Conclusion

Finally, we can understand from the case

that every business organization should

understand the importance of ethics by

understanding the culture, regulatory, and

ecological issues in different countries.


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References

www.kfc.com