PRESENTED BY,

NEELAM
KUMARI
PGPM(1017)

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 Kentucky Fried Chicken is one of the largest fast food
Franchise concepts of today; it is present in various countries
around the world and it has been able to establish a renowned
International reputation in multiple continents. Starting in the
United States in the 1930s, it has grown to become a true
multi-domestic company.
KFC has focused on foreign markets since the 1960s and
has found a new challenge today in conquering Asia.

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 The Kentucky Fried Chicken was founded by Colonel
Harland Sanders (born on September 9, 1890) at the
age of sixty-five. KFC is currently one of the
largest businesses of the global food service
industry and is widely known around the world as
the face of Colonel Sanders.

 Everyyear, over a billion KFC chicken dinners are

served featuring the Colonel‟s “finger licking‟ good”
special recipe. The Colonel had spread his industry
to more than 80 countries and territories globally.

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 1952,Col. Sanders started franchising his
recipe door to door financed by $105.00
 1964,Col Sanders had more than 600
franchised outlets in the US and Canada.
 1964, Sold his interest to Massey & Brown for
$2 million.
 1966, KFC went public
 1969, Listed on the NYSE

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 1971, KFC was acquired by Heublein Inc. for
$285 million.
 1982, Heublein & KFC Inc. was acquired by RJ
Reynolds
 1986, RJ Reynolds & KFC, was acquired by
PepsiCo, Inc. $840 million.
 1997, PepsiCo, Inc. spined-off it to Tricon
Global Restaurants.
 2002, Tricon changed it's corporation name to
Yum! Brands, Inc. .
 NOW:

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 KFC'sexpansion
plans into China
started in the early
'80s,
By 2001, there were
more than 500 KFC
outlets all over
China, so many that
its stores couldn't
get enough
imported potatoes
for mashing.

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 Marketing campaigns may have convinced
people that KFC is more healthy in China
than America – Their message is that China.
KFC in China is the “new fast food” –
healthier than other fast food options
abroad and in
 More Chinese people like fried chicken
more than hamburgers –
AlthoughMcDonald’s rolled out a new
marketing plan aiming at young adult
Chinese consumers last year.

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 KFC has more China-specific choices than
McDonald’s – by far. They have a much more
China specific menu.
 KFC has better coupon deals than
McDonald’s – which is very important to most
Chinese consumers. About half of customers
of either restaurant use coupons – but the
best tasting stuff at McDonald‟s, the beef,
rarely has good coupon deals.

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 Before enter in the China there was some
problems in front of KFC:-
 To expand or not in China,

 How to enter in the market

 Franchising/Licensing
 Wholly owned subsidiary
 Joint venture

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 KFC used Exploratory Research.
 They had no any knowledge of China so KFC
so they appoint a person named „Tony Wang‟
who was born in China, educated in Taiwan
and in the USA, and now living in Singapore
was appointed manager for KFC's SEA region.
He investigate about China‟s market and
then KFC entered in China.

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 After plan to expend there was two major
problems:-
 Franchising/Licensing:-
which is emphasizing standardization and
reducing financial risk.
 Wholly owned subsidiary:-
It also involves high investment expenses
with no financial risk sharing.

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 Exploratory Focus Group Interviews:-
 One who used to eat fast food.
 Who like chicken very much.

 Target
They target college students in this
campaign, specifically for events like sports
games and social events.

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o Also take experertise opinion regarding this
problem.

o They also conduct group interviews,they

were not related to each-other.

o Discussion between some experts.

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 KFC also uses this research because this
research tells that :-
 Who will come to resturant?
 How to expand it?
 When it should promote in the market?
 Where to open(place).

 This
research also tells about Brand loyality
and Brand switching.

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, the high cost of doing business in China at
that time meant KFC's products were
expensive. But high costs soon became
associated with high quality and being
American, so KFC became popular in China.
 In addition, fried chicken is simply more
acceptable to the Chinese palate than other
American food, such as hamburgers.

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1. As a research analyst at KFC, formulate a
research problem.

2.What kind of research would you

undertake. Elaborate.

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