Kentucky Fried Chicken

INTRODUCTION OF KFC:

Kentucky Fried Chicken, better known as KFC, is the largest chicken

restaurant chain worldwide with almost 1000, outlets located in well
over 70 countries. CEO, David Rodgers, heads it, it is part of the
tricon restaurants internationals which is one of the most leading
multinational organizations in the world. Said to be the second most
famous and largest fast food franchise in the World, No. 1 brand in
Asia with the market leader ship in Japan, China, Malaysia,
Indonesia, and Korea.

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History of KFC:

1939
Colonel Harland D. Sanders perfects secret blend of 11 herbs and
spices in Corbin, Ky., and restaurant.

1952
Pete Harman insalt Lake City becomes the first Kentucky Fried
Chicken franchises.

1956
colonel Sanders sells Corbin, Ky., restaurant and goes on the road to
enlist new franchisees. The Colonel signs his first international
franchisee in Canada.

1964
Kentucky Fried Chicken sold to the group of investors including
John Y. Brown Jr., and Jack Massy for $2 million.

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1969
Kentucky Fried Chicken listed on New York Stock Exchange. Colonel
Sanders buys first 100 shares.

1971
Kentucky Fried Chicken acquired by the Hwublien Inc.

1980
colonel Sanders dies and is buried in Louisville’s Cave Hill cemetery.

1982
Kentucky Fried Chicken has becomes a of R.J.Reynolds industries
when Heublein Inc. is acquired by RJR (now RJR Nabisco, Inc.).

1986
Kentucky Fried Chicken becomes a subsidiary of PepsiCo, Inc. for
$840 million. Grand opening of Colonel Sanders Technical Center in
the Louisville, KY.

1987
Kentucky Fried Chicken opens first Western style quick service
restaurant in China.

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1991
a new logo is introduced to emphasize chicken variety – replacing
“Kentucky Fried Chicken”with “ KFC”.

1993
KFC adds non-fried chicken to menus in the U.S. and Australia.

1994
KFC officially opens its 9,000th restaurants in the world – in
Shanghai, China – and announces a $200 million investment over the
next four years for the 200 restaurants in 48 Chinese cities.

1995
KFC introduce Colonel’s Cristy Strips® and smashes Guinness
record with “ World Largest Pot Pie” in New York city to introduce
Chinky Chicken Pot Pie. Opens first restaurant in Moscow.

1996
KFC introduces Tender Roast® chicken pieces and brings back one
of the world most recognized packages -- the bucket.

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1997
Kentucky Fried Chicken introduce Honey BBQ- flavored Tender
Roast® Spicy Buffalo Crispy Strips TM and chicken TwisterTM –
chicken and veggies “ like a meal all wrapped up and ready to go”.

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KFC in Pakistan:

1n 1997, Kentucky Fried Chicken entered the market under the

banner of Artal, a European food conglomerate which has invested
heavily in the food sector in the Pakistan. It goes credit to KFC that it
was the first franchise to begin its operations from the densely
populated area of Gulshan-e- Iqbal. This unique step was taken out
of the special concern for the middle and lower middle class incomes
groups who has so for being neglected by brand name franchises in
their areas. The first KFC restaurant opened its door in January 1997,
drawing thousand of the eager customers to enjoy quality food and
friendly service in clean surrounding.

Boosted by the huge success of the first restaurant, new

outlets mushroomed at prime location in both Karachi and Lahore
that continue to attract a record number of quality food lovers.
Entrance of Kentucky Fried Chicken in the food industry has resulted
in numerous positive developments in various areas. One of the
major ones beings its contribution to the Pakistan economy by
generating revenue and creating employment. Each Kentucky Fried
Chicken restaurant employ roughly 50 local people which would total
to near about one thousand direct employs in all- taking in all 18

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restaurants in Pakistan. Other than these there are number of indirect

employs, for example, construction workers who build the restaurant
and suppliers. All direct employs have to undergo mandatory training
through extensive programs and a series of workshops in order to
ensure efficient management and services.

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MISSION STATEMENT:

To maintain and enhance our position as the leading WQSR chain

serving good value, innovative chicken based products through
consistently providing a pleasant dinning experience with fast, friendly
service at clean and convenient locations. At all times, we must be
dedicating to providing excellent service and delighting customers.

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DEPARTMENTS:

There are five departments in the company.

 Marketing Department
 Finance Department
 Operation Department
 HRM Department
 Quality Control Department

FUNCTIONS OF DEPARTMENTS:

Marketing department:

Marketing is the delivery of the right product to the

right customer, at the right place, at the right time and at the right
price through right communication and promotion. Marketing is often
dynamic, challenging, and rewarding it can also be frustrating and
even disappointing. But it is never dull.

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In KFC all the Marketing efforts (Product Planning, Pricing,

Distribution and Promotion) are designed and combined in a coherent
and consistent way. They have the updated knowledge of market
situation. They keep eye on actions of the competitors. They
consider that all employees are potentially good, responsible, helpful
and trustworthy and they have given them opportunity for growth,
self-control and personal responsibility. They know that teamwork
and collaboration generate a greater volume of production than does
destructive interpersonal competition. Now Kentucky Fried Chicken
captures a maximum market share. This is only due to excellent
marketing strategies adopted by the organization.
Marketing department is the main and most active department of the
Kentucky Fried Chicken it perform all the key activities of the
business. The basic purpose of the marketing department is to
advertise its products in the market and keep eye on the competitors
that what they are doing. The department introduces the new policies
and satisfying the customers.
The body of the department is comprised of Marketing Manager,
Assistant Marketing Manager and Planning Manager.

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FINANCE DEPARTMENT:

The finance department provides close support the

business manager on the financial implication of business strategies
that are formulated. Regular feedback is also given to Departmental
Heads to facilitate monitoring of cost at the department level.
The finance department prepares statutory accounts and
management accounts of the business.
The statutory accounts comprise of all the final accounts of business
transactions, Profit and Loss accounts, COGS (cost of good sold),
Balance Sheet and Cash Flow Statement etc. which, by law, the
business has to prepare. The Finance Department analysis the
business results and prepare the monthly and quartly review of
business operations. The Cashier handles routine day to day cash
transactions.
This Department is also responsible for maintaining fixed assets
listening and arranging insurance cover on the assets of the business
the tax related issues of the Business and all the transactions
processing’s, e.g. recording of sales and payments etc, are also
handle by the Finance Department. Finally the Finance Department
liaises with internal and external auditors, product margins, variable
cost and fixed assets within the business as well.

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OPERATION DEPARTMENT:

It is very important department in the Kentucky Fried

Chicken. The incharge of the operation department is operation
manager. This operation manager is responsible for the following
operations and functions.

• Cooking

• Cleanliness

• Administration of restaurant.

• Complaint handling of the customers

• Daily order to procurement Department

• Day to day demand forecasting

• Daily lectures to crew people

• Trained the employees

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HRM DEPARTMENT:

According to the marketing manager of KFC that

HRM Department play a very important role in the organization.
The aim of this department to provide a highly qualified and
competent employees to the organization. The HRM Department
performs the following functions:

• Reviewing application form

• Interviewing applicants

• Inducting new employees

• Appraising employees performance

• Make a decision about the employees training

• Provide a career advice to subordinates

QUALITY QONTROL DEPARTMENT:

Quality control means monitoring the quality weight,

strength, consistency, color, taste, reliability, finish, or any one of

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myriad of characteristics to ensure that the products meet the

international standard.
For this purpose there is separate department in Kentucky Fried
Chicken which is responsible for the quality control. This department
satisfying the customers needs for the quality, and differentiate the
organization from the competitors and attract the large number of
customers.

The duty of this department is check the raw material that whether it
is according to the standard or not. Department check the quality
each and every step till the final product. Because according to the
Marketing Manager of KFC the early detection of defective part of
process can save the cost of further work on the product.

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ROLE OF MARKETING DEPARTMENT

IN KFC:

Marketing department of Kentucky Fried Chicken play a very

important role in the organization.

 The first and basic function of this department is to promote its

products in the market in different ways. According to the
marketing manager of KFC we advertise our products on
international television channels, print media, banners, etc.
 This department creates the awareness among the people
about the packages, which are given on the special events like
Eid, Basant, etc.
 Marketing Manager of KFC says that it is the world of
competition, therefore to survive in the market we work for the
future. So the third function of marketing department of KFC is to
make plans to achieve the objective of organization in future.
 Marketing department of KFC also analyses to increase or
decrease the sale.
 When the sale of KFC is going to decrease, the marketing
department of KFC conducts a proper marketing research to find
out the problems, basic reason behind the problem and try to
solve it and to save the organization from this type of faults in
future.

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OBJECTIVE OF MARKETING
DEPARTMENT IN KFC:

According to the marketing manager of KFC that marketing

department have two objectives.

 The first department of KFC is to create the awareness and

provide the following information to the higher authorities of KFC.

 This department shows the marketing position of the organization.

 This department shows the market share of KFC.
 This department gives the suggestion to the higher authorities for
the future improvement.
 This department provides the information about their competitors
to the higher authorities of KFC.

 The second basic objective of Marketing Department is that it

meets the budget in the required time span. The marketing
department of KFC is to promote its products and make the future
plan to live in the budget.

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TARGET MARKET

Target market is the group of people to whom an organization wants

to communicate its message and to generate some positive attitude,
behavior and action toward the organization offerings. So while
preparing or developing the promotional strategy, the organization
need to clearly define their target market.
According to the marketing manager of KFC the target market is

 Upper upper class

 Upper middle class

 Lower upper class

 Highly paid professionals

 Youngsters

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COMPETITORS

Competitors are the elements of paramount important in the

business world. The analysis of the competitors activity is and
important to do as to know the need and wants of the customers. The
competitors are the force, which shape the activities of any
organization.

The statement of marketing manager of KFC is that at this time we

have two strong competitors:

 Macdonald’s

 Subway

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PRODUCTS OFFERED BY THE KFC

 FRENCH FRIES
 ZINGER BURGER
 COLONEL’S CHICKEN BURGER
 NUGGETS
 TWISTER
 HOT WINGS
 ARABIC RICE
 CORN OF THE COB
 DINNER ROLL
 FRUIT SALAD
 CHOCOLATE MOUSSE
 CHICKEN PCs.-ORIGINIONAL RECIPE/ HOT & CRISPY
 COLD DRINKS
 MINERAL WATER
 COLONEL’S SUNDAE
 COLONEL’S PREMIUM CONE
 RASS BHARA
 TEA
 COFFEE

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KFC will position itself in local market as a

bright, pleasant, air conditioned restaurants and “casual atmosphere”
and will target families and young consumers which can be termed as
“three generation from middle and upper middle income segments”.
KFC stands for high quality products, hygienic and affordable fast
food in an array of complete meals. The chicken is prepared with
unique secrets recipes in variety of ways to suit different taste and
eating occasions. The meals are made more appetizing by
supplementing with fresh, tasty side dishes and rich home style
dessert.

Another aspect of KFC franchise is its demand for

distinguished standards in quality, efficiency, hygienic, and sanitation.
Hence the level of efficiency has subsequently risen amongst its
competitors, which has resulted in an improvement in the overall food
market.

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MARKETING MIX

As we know that the marketing mix is the combination of four things.

KFC blends all these four P’s of marketing mix in a very organized
manners, which helps the organization in satisfying the customers
demand as well as achieving the mission of the organization.

Combinations of that marketing mix are:

 Product.
 Pricing Structure.
 Place / Distribution system.
 Promotional activities.

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SELECTED PRODUCT

We select the product (Chicken PCs.) for the explanation. As we

know that this product match the taste level of Pakistani people. KFC
introduced this product first time in Pakistan in 1997, when they
opened first restaurant in Karachi. This product breaks all the record
of sale.
According to the marketing manager of KFC that we prepare chicken
PCs. And mostly all the other products on the automatic plants and
we deliver the product (Chicken PCs.) after the proper examination
by the quality control department.
Raw material used in this product like meat, etc. is purchased from
the big Supplier Company, which supply the meat at a same time to
all the stores.

PRICE:
Prices of Chicken PCs. and all the other products of KFC are
set by the Head Office by adopting the proper method. According to
Marketing Manager price of any product is equal to the cost plus
desirable profit. According to the marketing manager of KFC that the
pricing strategies of organization are different in the different
countries due to different exchange rate, inflation, and different tax
polices in the different countries.

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But in Pakistan KFC main concern is to sell in volume and maintain it

on long term basis. They are charging a price which they think fair to
customers.
The policy of KFC is that they do not set the prices on the basis of
competitors. The aim of KFC is to satisfy the customers in low prices.
In economics we can say that when the prices are constant, the
demand of product increase, volume of sale is increase, and revenue
is also increase, as a result of this circle the profit of the organization
is increase but the prices remains constant. So selling on low prices
has a valid justification.

PLACEMENT:
The Chicken PCs. and all the other products of KFC are available at
all the 18 restaurants in Pakistan.

DISTRIBUTION OF RESTAURANTS:

The first restaurant of KFC was opened in Karachi. After this KFC
opened its restaurants in Lahore at Defense, Cavalry Ground, and
Barket Market. At this time there are 18 restaurants in all the
Pakistan. But the question is that why the KFC chose Defence area
for opening the restaurant. The Marketing Manger of KFC gives us
answer that before opening a new restaurant in any where our
organization conduct a research to evaluate customers need, people
buying power and customer expectations from KFC and to find out
what current and potential competitors are doing in that area.

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You can say that Defence is the area of the upper upper and upper
middle class. In this area there are many up standard private
universities like LUMS, ILM, etc. and collages, offices, posh shopping
centers and the population itself is a good market for the fast food.
Therefore KFC Defence attracts the students, children, families and
visitors of that area.
On the other hand KFC in Karachi too has strong reason and
argument about slecting the site of Nipa, Churungi, Gulshan Karachi.
It is a strong education and family oriented middle class area. Most of
families living are joint family system. Therefor this restaurant attracts
the large number of the customers. The area is inhibited by the
several million peaceful people who want to take their children out but
there are not place this purpose. KFC provide this facility in that area
and people are pleasure with us.

PROMOTION:

The element in an organization’s marketing mix that

serves to inform, persuade and remind the market of a product and/or
the organization selling it in the hope of influencing the recipients
feelings, beliefs, or behavior. The policy of KFC is that to adopt the
same methods to promote all its products including the Chicken PCs.
According the marketing manager of KFC that they use the following
promotional methods:

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ADVERTISING:
Advertising is non-personal communication of information usually
for a persuasive in nature about product services or ideas through the
identified sponsors through the various media.
Advertising perform the communication, education and marketing
function it tells people about the benefits of products or services and
educate them how they can make their life and time better off.
In KFC advertising are performed by the marketing department.
The advertising are used by the management of KFC and rational
behind it is that the organization consider that it has a market
segment. So advertisement will have a great waste reach and their
advertising cost per consumer or the customer will high enough. So
advertising is not very appropriate tool of promotion mix for them.
However regardless of heavy or low use of the advertisement, the
advertisement of the organization serves for the two purposes and
various with respect to advertisement conducted by the central body
and that advertisement activities are:
• About the multinational chain of KFC.
• The local body conduct advertisement about some packages
which serves the functions of educating the people how they can
make their time more pleasurable.

TELEVISION ADVERTISEMENT:

Television combine sound, motion and design

special visual effect. But KFC advertises himself on TV in other

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countries. In Pakistan it gives ads on TV very rarely. In 1997, when it

opened its first branch in Karachi at that time it advertised itself on TV
properly. The purpose of this advertisement is just to create the
awernance among the people about their products and packages.

PRINT MEDIA:
They give the desirable information in the print ads to the target
market in order to inform the customers about the benefit of their
products.
Whenever they introduced new products they give ads on print media
at regular intervals. So that the customer is informed about the new
product. For their matured products they give ads with different gaps
in the newspapers. The newspapers they use are:
 The news
 Dawn
 Jung
OUT DOOR ADVERTISEMENT
In order to remain in the mind of customer KFC used out door
advertisement i.e.
 Billboards
 Banners
 Posters

PERSONAL SELLILNG:
Personal selling is the special form of the interpersonal
communication. Their goal is to bring its prospects attention that will

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satisfy a need and that will elicit a response, hopefully in the form of
purchase.
Personal selling is highly effective when target market is narrow one
and you need to convince the prospect in order to induce an action
from him. But this technique demands higher degree of considerbility.
The sales force of KFC needs to know about their products and that
of competitors, must allocate the customers with potential, discover
their needs, developing the sales presentation directly striking at the
needs of the customers, and after close the salesmen the must go for
follow up.
KFC Marketing Management considers it as one of its
most important tool. The management says that it is the tool, which
helped them to develop and persuade their customers at the
beginning of their operation. The Marketing Manager of KFC says
that it’s a very powerful way to promote the products.

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PUBLIC RELATION:
It is communication efforts that are designed to
favorably influence attitudes toward an organization, its products and
policies. KFC is not just a quality food restaurant, but also a socially
conscious corporate citizen. It has been equally involved in promoting
and funding several community welfare projects through aggregate
KFC revenue. TCF (The Citizen Foundation) is a professionally
managed, non-profit organization with the aim to provide
underprivileged children with basic and formal education and to
contribute toward increasing the literacy rate in Pakistan. KFC has
collaboration with the TCF to further the main objectives with
dedication and professionalism by opening school in Pakistan.
Another social venture is the Children’s Hospitals. KFC strongly
believes in humanitarian issues and is devoted to the cause of
helping impoverished children. It has using its increasingly popular
mascot Chichy to provide the children of NICH (National Institute Of
Child Health) and SOS villages of Pakistan with lively entertainment
and toys and contributing toward their development. KFC also helped
the different NGO’s (Non Governmental Organization). According to
the marketing manager of KFC that organization do all this to fulfill
the social responsibility and create a good image in the market.
KFC ensures steady international standards of quality base on the
basic ingredient of perfection in technology, financial acumen, and
trained management – all aimed at making its customers satisfied
and satisfied to the highest degree.

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