DISSERTATION DISSERTATION REPORT ON
MARKETING
&
BRANDING
STRATEGIES OF KFC’S IN INDIA
Submitted in partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION
JAMIA HAMDARD UNIVERSITY HAMDARD NAGAR, NEW DELHI
Submitted B!" MD SHADAB KHAN ENROLLMENT NO 20155020!2
Under The #uidan$e of !" D"# N$%"' M()*) R+* - A..(/)' P"(..("
1
ACKNOWLEDGEMENT
It i% a plea%ure and m pri&ilege to re$ogni'e the indi&idual% who helped me in &ariou% pha%e% of m pro(e$t wor)* +ithout their $o"operation it would ha&e been impo%%ible to $omplete or e&en embar) on thi% pro(e$t* I e,pre%% m deep %en%e of gratitude JAMIA HAMDARD, NEW DELHI that pro&ide me an opportunit in in fulfilling m mo%t $heri%hed de%ire of rea$hing m goal**I am than)ful to D"# N$%"' M()*) R+* -A%%o$iate .rofe%%or/ for her $on%tant en$ouragement and e&in$ing )een intere%t in m pro(e$t and under her guidan$e thi% pro(e$t %een the da of light*I am al%o than)ful to the %taff member% both tea$hing and non tea$hing of the department for their &aluable a%%i%tan$e throughout m entire pro(e$t* 0a%t but not the lea%t m %in$ere than)% to m parent%1 famil member% and friend% for their $ontinuou% %upport1 in%piration and en$ouragement1 without whom thi% pro(e$t would not ha&e been a %u$$e%%*
CONTENTS
2hapter
.age No*
2
ACKNOWLEDGEMENT
It i% a plea%ure and m pri&ilege to re$ogni'e the indi&idual% who helped me in &ariou% pha%e% of m pro(e$t wor)* +ithout their $o"operation it would ha&e been impo%%ible to $omplete or e&en embar) on thi% pro(e$t* I e,pre%% m deep %en%e of gratitude JAMIA HAMDARD, NEW DELHI that pro&ide me an opportunit in in fulfilling m mo%t $heri%hed de%ire of rea$hing m goal**I am than)ful to D"# N$%"' M()*) R+* -A%%o$iate .rofe%%or/ for her $on%tant en$ouragement and e&in$ing )een intere%t in m pro(e$t and under her guidan$e thi% pro(e$t %een the da of light*I am al%o than)ful to the %taff member% both tea$hing and non tea$hing of the department for their &aluable a%%i%tan$e throughout m entire pro(e$t* 0a%t but not the lea%t m %in$ere than)% to m parent%1 famil member% and friend% for their $ontinuou% %upport1 in%piration and en$ouragement1 without whom thi% pro(e$t would not ha&e been a %u$$e%%*
CONTENTS
2hapter
.age No*
2
1# INTRODUCTION
3
3*3* Introdu$tion of 2ompan 3*4* 2ompan5% o&er&iew 3*6* 7F2 8i%tor 3*9* 7F2 in India 3*:* ;alue% of 7F2
2# SITUATION ANALYSIS ANALYSIS
15
4*3* 2ompan < Bran$he% 4*4* 7F2 Original Re$ipe 4*6* 7F25% outlet% in India
4# KFC’. MISSION *% PHILOSOPHY
21
6*3* 7F2 The =28AM.S> .rogram 6*4* Mi%%ion of 2ompan 6*6* #oal of 7F2
# PRODUCT ISSUES
24
9*3?ualit 2ontrol o&er Ingredient% a/ E&er 2hi$)en Ta%ted b/ E&er $hi$)en 2ertified $/ ?ualit a%%uran$e 2ertifi$ate 9*4/ .a$)aging a/ Re$$led .aper b/ En&ironment 2on$ern% $/ 0itter 9*6* Branding 9*9* Four For$e% Anal%i% a/* Entr b/ Bu%@Suppl Bargaining Bargaining .ower $/ Sub%titute and 2ompliment% d/ Ri&alr C+6'"
P7 *(#
5# CURRENT TARGET TARGET MARGET
23
:*3/ Segmentation% a/ Demographi$al Ba%i% 3
b/ Beha&ioral Ba%i% $/ #eographi$al Ba%i% d/ .%$hographi$ Ba%i% :*4/ .rofile 2riteria :*6/ Mar)et $o&erage :*9/ E$onomi$ Anal%i% a/ Ma$ro Ma$ro En&ironment En&ironment b/ Mi$ro En&ironment En&ironment $/ 2ompetition d/ 2u%tomer :*:/ 2URRENT SA0ES ANA0SIS :*/ EN;IRONMENTA0 EN;IRONME NTA0 ANA0SIS ANA0SIS a/ .oliti$al fa$tor% < opportunitie% b/ E$onomi$ $/ So$io" 2ultural d/ Te$hnologi$al e/ En&ironmental f/ 0egal Fa$tor%
!# SWOT ANALYSIS 4 3# MARKETING STRATEGIES STRATEGIES
4!
C*3/ Mar)eting C*4/ 9 .% of Mar)eting C*6/ 2ompetiti&e Anal%i% Anal%i% 8 #BRANDING STRATEGIES
!
C+6'"
P7 *(#
9# CONCLUSION
54
10* BIBLIOGRAPHY
5
4
TABLE TABLE OF GRAPHS
1# MACR MACRO O ENVI ENVIRO RONM NMEN ENT T
2
2# COMPET COMPETITI ITIVE VE ADV ADVANTAG NTAGES ES
9
INTRODUCTION 1#1# I*'"(%$/')(* I*'"(%$/')(*
7F2 wa% the fir%t fa%t food multinational to enter India1 after the e$onomi$ liberali'ation poli$ of the Indian #o&t* in earl 3%*7F2 re$ei&ed permi%%ion to open 6 new outlet% a$ro%% the $ountr < Opened fir%t food outlet in Bangalore in une 3: b targeting targeting upper middle $la%% population* Under%tanding the %ignifi$an$e of $ultural1 $ultural1 e$onomi$1 regulator and e$ologi$al i%%ue% while e%tabli%hing bu%ine%% in India1 under%tanding the importan$e of ethi$% while doing bu%ine%%1 appre$iate the need for prote$ting animal right% in de&eloping $ountr li)e India1 e,amining the rea%on% for prote%t% of .ETA and identifing the %olution% for 7F25% problem in India et$ were the %ome of the ma(or i%%ue% in front of 7F2* 5
At pre%ent 7F2 ran) 6rd among the top ten fa%t food $hain in India* The main purpo%e of thi% pro(e$t i% to identif ":')*7 *% ;"*%)*7 .'"'7). adopted b KFC in I*%) whi$h made 7F2 to %tand at 6rd po%ition in India and
al%o to pro&ide %ome re$ommendation for further impro&ement* 7F2 2orporation1 ba%ed in 0oui%&ille1 7entu$)1 i% the world5% mo%t popular $hi$)en re%taurant $hain1 %pe$iali'ing in Original Re$ipe1 E,tra 2ri%p TM1 and 2olonel5% 2ri%p Strip% $hi$)en with home %tle %ide% and fi&e new fre%hl made %andwi$he%* E&er da1 nearl eight million $u%tomer% are %er&ed around the world* 7F25% menu e&erwhere in$lude% Original Re$ipe $hi$)enGmade with the %ame great ta%te 2olonel 8arland Sander% $reated more than a half"$entur ago* 2u%tomer% around the globe al%o en(o more than 6 other produ$t%Gfrom a 2hun) 2hi$)en .ot .ie in the United State% to a %almon %andwi$h in apan*7F2 $ontinue rea$hing out to $u%tomer% with home deli&er in more than 6 re%taurant% in the United State% and %e&eral other $ountrie%* And in Huite a few U*S* $itie%1 7F2 i% teaming up with other re%taurant%1 Ta$o Bell and .i''a 8ut1 %elling nearl fift ear% ago 2olonel Sander% in&ented what i% now $alled =home meal repla$ement> J %elling $omplete meal% to harried1 time"%trapped familie%* 8e $alled it1 =Sunda Dinner1 Se&en Da% a +ee)*> Toda1 the 2olonel5% %pirit and heritage are refle$ted in 7F25% brand identit J the logo feature% 2olonel 8arland Sander%1 one of the be%t re$ogni'ed i$on% in the world* 7F2 %pe$iali'ed in $hi$)en and the %a%1 ): KFC '(%= *% ? " '+ /+)/:* @6"'.
1#2# C(6*= O")?
7 F2 i% an internationall renowned fa%t food indu%tr in the world* The ha&e the main ambition to in$rea%e < maintain the be%t Hualit in fa%t food indu%tr* Their aim i% to $apture the fa%t food mar)et* Ba%i$all the want to pro&ide their produ$t% to anone that i% wh the e,panding their bran$he% in all o&er the world* The want to in$rea%e their profit through gi&ing ma,imum %ati%fa$tion < other better fa$ilitie% to people that the want* Now after $at$hing %u$h a mar&elou% po%ition in the International Mar)et1 7F2 i% introdu$ing a new item =B(*>.. F")% C+)/:* >1 with e&en more attra$ti&e and $harming ta%te*
1#4#
KFC )* I*%)
6
In De$ember 4361 there are 63 7F2 outlet% in India* A% well a% the %tandard 7F2 offering%1 the $hain %ell% a $hi$)pea burger1 a paneer burger1 hot wing% with $hill lemon %prin)le% and other $ountr"%pe$ified produ$t%* A ma(or fran$hi%e holder i% ?SR Brand% -M/ 8olding% whi$h operate% 4 outlet% a% of 434* The fir%t Indian 7F2 wa% two"%tore outlet% on the fa%hionable B")7% R(% in B*7>(" in une 3:* A$$ording to (ournali%t Mi$hael +hite1 =the $ompan $ould n ot ha&e $ho%en a more diffi$ult &enue for it% maiden entr into $ountr>* Bangalore hou%ed the headHuarter of the 7arnata)a Ra(a Raitha Sangha1 one of the mo%t influential1 &o$al and anti"foreign in&e%tment farmer%5 a%%o$iation in the $ountr* The fir%t outlet %uffered prote%t from >7?)*7, *')7>(;>)')(* *% *)"(**'> /6)7*"., a% well a% lo$al farmer%1 who ob(e$ted to the $hain bpa%%ing lo$al produ$er%* Man Indian were di%ruption of indigenou% tradition* The prote%t $ame to a head in Augu%t 3:1 when the Bangalore outlet wa% repeatedl ran%a$)ed* The 7F2 outlet in Bangalore demanded and re$ei&ed a poli$e &an permanentl par)ed out%ide for a ear* The outlet wa% $lo%ed on 36 September 3: b lo$al authoritie%1 who $laimed that $ompan u%e% illegall high amount of (*(.(%)$ 7>$'' -MSG in it% food* 8owe&er1 the outlet reopened for bu%ine%% within %i, hour% of it% $lo%ure1 after
the K"*': H)7+ C($"' blo$)ed lo$al authoritie%5 order on an appeal b 7F2* The $ompan had argued that it prepare food in India u%ing %ame formula a% in CC other $ountrie%* Rural a$ti&i%t1 M* D* Narunda%wam %ub%eHuentl $laimed 7F2 that would ad&er%el affe$t the health of the impro&i%ed 1 b di&erting grain from poor people to ma)e the more profitable animal feed* Former en&ironment mini%ter Mene)a #andhi (oined the anti 7F2 mo&ement* A %e$ond outlet opened in Delhi1 but wa% $lo%ed b the authoritie% throughout No&ember1 purportedl for health rea%on%1 but more li)el to a&oid a repetition of the Bangalore in$ident1 the Delhi outlet wa% %oon $lo%ed permanentl* 7F2 began to e,pand out%ide Bangalore in 491 with a lo$ali'ed menu that wa% the mo%t e,ten%i&e meat free menu a$ro%% the $hain5% worldwide operation%* It introdu$ed a wrap% and %ide di%he% and li)e M$ Donald5% %er&ed eggle%% maonnai%e and %au$e%* Unnat ;erma1 Mar)eting Dire$tor of 7F2 India %tate% =The &egetarian offering% ha&e made the brand more rele&ant to a larger %e$tion of $on%umer% and that i% ne$e%%ar for 7F25% growth>* 7F2 ha% al%o begun u%ing Indian %pi$e% and $oo)ing te$hniHue% to lo$ali'e it% $hi$)en di%he%* B
7
4K"1 7F2 operated 69 outlet% in India* In 4391 7F2 laun$hed =So ;eg1 So #ood> menu a% a part of an India %pe$ifi$ promotional %trateg fo$u%ed on enhan$ing their &egetarian range*
1## V>$. ( KFC
L
Fo$u% all our re%our$e% to our re%taurant% operation be$au%e that i% where we %er&e our $u%tomer%*
L
Reward and re%pe$t the $ontribution% of ea$h indi&idual at 7F2
L
E,pand and update training with time and be the be%t we $an be and more*
L
Be open1 hone%t and dire$t in our dealing% with one and other*
L
2ommit our%el&e% to the highe%t %tandard to the per%onal and profe%%ional integrit at all time%*
L
En$ourage new and inno&ati&e idea% be$au%e the%e are the )e to our $ompetiti&e growth*
L
Reward re%ult and not %imple effort%
L
Dedi$ate our%el&e% to $ontinuou% growth in %ale%1 profit and %i'e of organi'ation*
L
+or) a% a team* 1##
KFC H).'("=
2olonel 8arland %ander%1 born September 1 3K1 a$ti&el began fran$hi%ing hi% $hi$)en bu%ine%% at the age of :* Now1 the 7entu$) fried $hi$)en bu%ine%% he %tarted ha% grown to be one of the large%t retail food %er&i$e %%tem% in the world* And $olonel %ander%1 a Hui$) %er&i$e re%taurant pioneer1 ha&e be$ome a %mbol of entrepreneurial %pirit* More than two billion of the $olonel5% =finger li$)in5 good> $hi$)en dinner% are %er&ed annuall* And not (u%t in Ameri$a1 The $olonel5% $oo)ing i% a&ailable in more than K4$ountrie% around the world* +hen the $olonel wa% %i,1 hi% father died* 8i% mother wa% for$ed to go to wor)1 and oung 8arland had to ta)e $are of hi% three ear old brother and bab %i%ter* Thi% meant doing mu$h of the famil $oo)ing* B the age of %e&en1 he wa% a ma%ter of a %$ore of regional di%he%* A teage 31 hi% fir%t (ob wor)ing on a nearb farm for 4 a month* +hen
8
he wa% 341 hi% mother remarried and he left hi% home near 8enr&ille1 Ind*1 for a (ob on a farm in #reenwood1 Ind* 8e held a %erie% of (ob% o&er the ne,t few ear%1 fir%t a% a 3:"ear"old %treet$ar $ondu$tor in New Alban1 Ind*1 and then a% a 3"earold pri&ate1 %oldiering for %i, month% in 2uba* After that he wa% a railroad fireman1 %tudied law b $orre%ponden$e1 pra$ti$ed in (u%ti$e of the pea$e $ourt1 %old in%uran$e1 operated an Ohio Ri&er %teamboat ferr1 %old tire%1 and Operated %er&i$e %tation* +hen he wa% 91 the $olonel began $oo)ing for hungr re&eler% who %topped at hi% %er&i$e %tation in 2orbin1 7* 8e didn5t ha&e a re%taurant then1 but %er&ed fol)% on hi% own dining table in the li&ing Huarter% of hi% %er&i$e %tation* A% more people %tarted $oming (u%t for food1 he mo&ed a$ro%% the %treet to a motel and re%taurant that %eated 394 people* O&er the ne,t nine ear1 he perfe$ted hi% %e$ret blend of 33 herb% and %pi$e% and the ba%i$ $oo)ing te$hniHue that i% %till u%ed toda* 7 F2 i% the world5% No*3 2hi$)en ?SR and ha% indu%tr leading %tature a$ro%% man $ountrie% li)e U71 Au%tralia1 South Afri$a1 2hina1 USA1 Mala%ia and man more*7F2 i% the large%t brand of um Re%taurant%1 a $ompan that own% other leading brand% li)e .i''a 8ut1 Ta$o Bell1 A<+ and 0ong ohn Sil&er* Renowned worldwide for it% finger li$)ing good food1 7F2 offer% it% %ignature produ$t% in India too 7F2 ha% introdu$ed man offering% for it% growing $u%tomer ba%e in India while %taing rooted in the ta%te lega$ of 2olonel 8arland Sander5% %e$ret re$ipe* It% %ignature di%he% in$lude the =$ri%p out%ide1 (ui$ in%ide> 8ot and 2ri%p 2hi$)en1 fla&orful and (ui$ Original Re$ipe $hi$)en1 the %pi$1 (ui$ < $run$h inger Burger1 Toa%ted Twi%ter1 2hi$)en Bu$)et and a ho%t of be&erage% and de%%ert%* 7F2 al%o ha% great ta%ting &egetarian offering% that in$lude the ;eggie Burger1 ;eggie Sna$)er and ;eg Ri$e meal% and )eep% the %logan =So ;eg So #ood>!* In India1 7F2 i% growing rapidl and b De$ember 4361 there were 63*
T+ /'(". '+' *;>% '+ ;"*% '( >($").+ "( >$*/+ '( '+ /$""*' 6")(% *% ;$)>% ;"*% $)'=
The 7F2 brand5% mo%t di%tingui%hing $hara$teri%ti$ i% the '.' J the deli$iou%1 %ati%fing1 and one"of"a")ind ta%te of their $hi$)en* +hether it5% Original Re$ipe or 8ot < Spi$ Fried 2hi$)en1 inger or .op$orn 2hi$)en1 it delight% the $u%tomer% b their %ignature fla&or% and menu item% that $annot be found anwhere el%e* The heart of 7F2 i% the great ta%ting uniHue produ$t% the offer to the $on%umer* 7F2 $laim% that their food e,$ite% the %en%e% with the golden glow of the breading1 the appeti'ing aroma%1 and the fla&or% that ma)e the ta%te bud% dan$e in anti$ipation of that fir%t bite* 0ife (u%t ta%te% better with 7F2* M*$ V).)(* •
0e&erage heritage in ta%te
•
Strengthen abilit to offer meal% that %ati%f both indi&idual% and familie%
9
•
Spread the %u$$e%% of our branded &alue menu%
T+)"%R*:% KFC ). W)**)*7 '+ F.' F((% B''> )* I*%)
India ha% been %teadil $laiming a larger %hare of the attention of leading operator% loo)ing to e,pan d abroad1 and %ome ha&e e&en gone a% far a% $alling India1 =2hina 4*>* +ithin the pa%t ear1 um Brand%1 M$Donald5% and mo%t re$entl1 Burger 7ing1 ha&e all pledged to ma)e India a $entral fo$u% of their future e,pan%ion %trateg1 a te%tament to the le&el of opportunit pre%ent in the %i'able mar)et* But while brand% from all o&er the world ha&e alread ru%hed to $ar&e out a pre%en$e in India1 the mar)et i% %till ear% awa from %eeing anwhere $lo%e to the )ind of $hained food%er&i$e penetration alread a$hie&ed in 2hina* And a% e,$itement about future potential in India ha% grown1 %o too ha% the $ompetition1 ta)ing with it an $han$e of finding an %ort of fir%t"mo&er ad&antage* Thi% ha% re%ulted in a mar)et that5% relati&el underde&eloped in term% of outlet% per"$apita1 and et one that i% alread $rowded with $ompetitor% all &ing for $u%tomer% in the %ame $on$entrated area%*+ithin the%e $ondition%1 man $hain% are ha&ing trouble finding wa% to %tand out1 and the window for e%tabli%hing one%elf a% a leader in the lu$rati&e mar)et ma %oon be $lo%ing* +ith the hope% of di%$o&ering what5% a$tuall wor)ing in India %o farGand what i%n5tGEuromonitor too) a loo) at three $urrent winner% and do&e a little deeper into the lo$ali'ation %trateg1 pri$ing %tru$ture1 and outh appeal that are helping to dri&e their %u$$e%%* +e5ll %tart with the third"ran)ed brand in the mar)et1 um Brand%5 7F2* A S>(? S'"', ?)'+ B$)>%)*7 M(*'$
7F2 wa% the fa%te%t"growing ma(or $hain in India in 4341 re$ording 9:P &alue growth ear"o&er"ear ba%ed on a 93P in$rea%e in outlet% -a net addition of 4/* Thi% le&el of growth ha% helped 7F2 be$ome the third"ran)ed brand in India1 a fa$t that i% parti$ularl notable $on%idering the were a relati&el late entrant in term% of wide%pread e,pan%ion* In 461 7F2 had (u%t 6 lo$al outlet%1 putting them well behind Ba%)in"Robbin%1 Domino5%1 .i''a 8ut1 and M$Donald5%1 all of whi$h had o&er : outlet% alread in operation1 and were growing Hui$)l* 7F25% %u$$e%% ha% $ome a% a $ombination of $le&er lo$ali'ation1 %a&& pri$ing %trategie%1 %u$$e%%ful $on%umer edu$ation1 and a menu that appeal% well to the $hanging preferen$e% of %ophi%ti$ated1 urban Indian $on%umer%* 7F25% entr into the mar)et wa% %low1 and de%pite opening three initial outlet% a% earl a% 3:1 the $hain had rea$hed (u%t fi&e unit% nearl a de$ade later* At that time1 the mar)et po%ed %ignifi$ant logi%ti$al i%%ue%1 and %our$ing enough poultr1 beef and other produ$t% $ontinue% to be a $hallenge e&en in 434* Ba$) in the Q%1 lo$al leader M$Donald5% famou%l %pent ear% building it% own India %uppl $hain from %$rat$h1 training lo$al farmer% and de%igning a $old $hain that would be robu%t enough to handle it% need%1 while um Brand%5 fo$u% wa% firml on building it% now"dominant pre%en$e in 2hina* The $hain5% in&e%tment in the latter mar)et ha% paid off hand%omel1 but it al%o left the brand with %ome $at$hing up to do* 10
Meanwhile1 Indian $on%umer preferen$e% were $hanging* 2hi$)en $on%umption in India ma be more $ommon than beef1 but meal% are tpi$all $arbohdrate"hea&1 and man lo$al $on%umer% prefer a &egetarian diet* Further1 the $hi$)en that i% eaten i% traditionall ta)en in the form of tandoori1 a fier"red1 %pi$ grilled di%h that5% eaten along%ide ri$e and &egetable%* +hen the time wa% finall right for e,pa n%ion1 and Indian $on%umer% were broadening their food%er&i$e hori'on% through tra&el1 the internet1 and generall greater e,po%ure to global $ui%ine1 7F2 began e,panding aggre%%i&el and adapting their menu% to bridge the gap between familiar and inno&ati&e* B 4341 the $hain had rea$hed 44 outlet% and added %pi$ier &er%ion% of their $hi$)en1 in$luding a Fier #rill fla&or that mimi$% the red hue and hot %pi$e of traditional tandoori1 and 2urr 2hi$)en1 modeled after popular lo$al $urrie%* In addition to promoting it% $hi$)en item%1 7F2 al%o added plent of &egetarian option%* The $hain now %er&e% fried &egetable %trip% and burger pattie% made of either potato or &egetable%1 and man new menu laun$he% ha&e been a$$ompanied b a %imilar &egetarian item1 %u$h a% the ing 7ong beef burger meal $ombo and ;eg ing 7ong $ombo1 both laun$hed in mid"434* Finall1 7F2 ha% al%o a$hie&ed %u$$e%% through the u%e of it% pri$ing %trateg1 whi$h wa% de%igned to help turn what appeared to man a% a %pe$ial"o$$a%ion no&elt re%taurant into an e&erda option* In re$ent ear%1 7F2 ha% ta)en %tep% to dra%ti$all redu$e it% pri$e%1 laun$hing a Streetwi%e branded menu targeted to %tudent% who ha&e &er little in$ome but tend to be willing to %pend on food%er&i$e at the right pri$e* The menu %tart% with item% a% low a% R%4: -US*9/1 and wa% mar)eted with a outhful $ampaign that promoted the range a% a better alternati&e to the uni&er%it dining hall at %imilar pri$e%* In 4361 7F2 followed up with a =+ow4:> mar)eting $ampaign and augmented realit %mart phone app* 2a%h"%trapped %tudent% $an %$an an %mall bill with their phone%1 and the app %ugge%t% low"pri$ed item% off of a new 7F2 +ow menu that fit% within their budget* T+ R(% A+%
Thi% budding %u$$e%% in India $ouldn5t $ome at a better time for um Brand%1 whi$h ha% been fa$ing dire re%ult% from 2hina1 u%uall it% %tronge%t mar)et* The $ompan ha% been battling $on$ern% about it% poultr Hualit1 a&ian flu %$are%1 and &ariou% food %afet %$andal% that ha&e $au%ed $omparable"%tore %ale% to plummet a% mu$h a% 33P in the mo%t re$ent Huarter* In India1 third"Huarter re%ult% were better1 with outlet %ale% %urging 49P de%pite flat $omparable" %tore %ale%* Some of thi% relati&e %lowdown in India i% due to ri%ing $ompetition1 e%pe$iall in fried $hi$)en fa%t food* Now that lo$al $on%umer% are more willing to %ee fried $hi$)en a% a meal1 $ountle%% imitator% ha&e entered the mar)et1 man of whi$h are ba$)ed b deep"po$)eted operator% and1 in %ome $a%e%1 po%%ibl e&en better %uited to Indian palate%* Thai %treet %tall $on$ept Fi&e Star Fried 2hi$)en1 for e,ample1 laun$hed in India in 4361 targeting oung profe%%ional% and $ollege %tudent% b opening in mall% and bu%ine%% par)%* The $hain5% &er %pi$ Thai"%tle fried 11
$hi$)en appeal% well to Indian preferen$e%1 and parent $ompan 2haroen .o)phand5% holding% in the lo$al $hi$)en pro$e%%ing indu%tr enable% the $hain to %ell item% at pri$e% that %tart e&en lower than 7F25% Streetwi%e menu* To battle thi% $ompetition1 7F2 i% ramping up e,pan%ion e&en further1 aiming to double it% lo$al outlet pre%en$e b 43:* The $hain will al%o be mo&ing into %maller $itie% and %e$ond"tier area%1 gaining a$$e%% to new $u%tomer group% in area% le%% %aturated with $hained food%er&i$e option%* In an e&en more intere%ting mo&e1 7F25% parent $ompan i% betting on Ta$o Bell for future growth in India1 a $on$ept that ha% %o far remained mo%tl $onfined to the US* De%pite thi%1 the $on$ept5% menu i% ea%il tran%latable into &egetarian fare and ha% high potential appeal for oung people1 the %ame group um Brand% ha% wor)ed %o hard to target with 7F2* K= T:?=. "( KFC
Mo&ing forward1 there are a few )e le%%on% other brand% $an ta)e from 7F25% %u$$e%%* Fir%t1 the importan$e of menu lo$ali'ation $annot be o&er%tated1 e%pe$iall in a mar)et with a well"de&eloped dining $ulture of it% own* Indian $on%umer% li)e &er %pi$ food1 and the are a% di&er%e in their dietar preferen$e%Gmu$h of whi$h %tem% from lo$al religiou% and $ultural tradition%Ga% the are in term% of in$ome %tratifi$ation* Su$$e%%ful brand% will need to ta)e %ignifi$ant %tep% to bridge the gap between offering a new1 e,$iting dining e,perien$e and one that will be familiar enough1 and attainable enough1 to enti$e $on%umer% to dine out%ide of the home* Se$ond1 operational $hallenge% in India are (u%t a% important a% $u%tomer a$Hui%ition1 and operator% who aren5t proa$ti&e about building their %uppl $hain will li)el find %u$$e%% impo%%ible* Finall1 in a $ountr with o&er a billion people1 targeting a $on$ept5% appeal to the right $u%tomer ba%e i% %till important* 7F2 ha% had %u$$e%% u%ing pri$ing1 produ$t mi,1 and branding to target oung people1 a $u%tomer ba%e that $an e,pand with the $hain in the future a% the demographi$ grow% both in %i'e and in pur$ha%ing power* B 461 India i% e,pe$ted to %urpa%% both the US and 2hina to be$ome the home of the large%t $on%uming population in the world1 and while the =right> $on%umer ba%e will $ontinue to grow larger1 the importan$e of $arefull targeting tho%e $on%umer% and fo%tering their future brand loalt will be no le%% paramount*
SITUATION ANALYSIS 2#1# C(6*= & B"*/+. 12
Thi% i% a >).')*7 ( /($*'"). ?)'+ KFC "*/+).. * A% of earend 4361 there are 3K1KC: KFC
outlet% in 33K
$ountrie% and territorie% lo$ated a$ro%% the world* The fir%t 7F2 fran$hi%e opened in the United State% in 3:4 and in 2anada a ear later* The fir%t o&er%ea% fran$hi%e wa% e%tabli%hed in the United 7ingdom in 39* A large number of 2aribbean and de&eloped +e%tern mar)et% had been entered b the earl 3C%* Thi% wa% followed b e,pan%ion throughout the Middle Ea%t and de&eloped A%ian mar)et% from the mid"3C% and into the 3K%* 2hina wa% entered in 3KC* E,pan%ion% were made into Ea%tern Europe and South Ameri$a in the earl 3%* The mo%t re$ent area of e,pan%ion i% Afri$a1 where the $ompan i% targeting that $ontinent% growing )%%> />..# The ma(or mar)et% for 7F2 in$lude C+)* -91:6 unit%/1 '+ U*)'% S''. -9193 unit%/1 J6* -313K3 unit%/1 the U*)'% K)*7%( -CK9 unit%/1 S($'+ A")/ -C6 unit%/1 C*% -6 unit%/1 A$.'">) -3K unit%/1 M>=.) -:C
unit%/1 T+)>*% -94 unit%/ and I*%(*.) -9: unit%/* The global operation% are o&er%een b um International1 whi$h i% headHuartered in L($).)>>, K*'$/:= * um Tpi$all grant a ma%ter fran$hi%e to a lo$al operator1 or ta)e a %ta)e in ()*' *'$" between %u$h a $ompan and it%elf* In 33 lo$ation%1 um International manage% 7F2 dire$tl1 in$luding 2hina1 Ru%%ia and India* +orldwide1 ma(or fran$hi%e holder% range from large lo$al /(*7>("'. %u$h a% J"%)* M'+.(* and D((.* G"($6 1 to $ompanie% %pe$ifi$all e%tabli%hed to run re%taurant% fran$hi%e%1 %u$h a% AR.'* In apan1 Mala%ia and Indone%ia1 the ma(or fran$hi%e holder% are 6$;>)/>= >).'% /(6*). * On the other hand1 in %maller mar)et% %u$h a% %ome 2aribbean i%land%1 the fran$hi%e% ma be operated b a %ingle indi&idual*
C$""*' ":'. )* A.)
C($*'"=
Y"
O?*"(" (6"'(" 13
N('.
*'"%
Banglade%h
4
Tran%$om #roup
The fir%t 7F2 outlet wa% opened at G$>.+* and the %e$ond one in S=>+'* 36 outlet%*
Brune
34
7F2 -B/ Sdn Bhd
Fir%t outlet opened at .la'a Athirah 39 outlet% in 434* 7F2 Brunei fall% under the global brand% ma%ter fran$hi%e in Mala%ia
2ambodia
4K
It wa% the fir%t international fa%t food outlet in 2ambodia1 and fir%t opened on M(*)(*7 B($>"% )* P+*( P*+# 3 outlet% in 436
The Roal #roup
.eople% Republi$ 2hina
3KC
7F2 2hina
The fir%t 7entu$) Fried 2hi$)en outlet opened on ?ianmen Street in downtown Bei(ing in 3KC* 9:6 outlet%
3K:
Birdland 0td
7F2 wa% the fir%t Ameri$an fa%t food $hain to enter 8ong 7ong in 3C61 with an outlet in M) F(( S$* C+$* * There were 33 outlet% b mid"3C91 but b September 3C9 man outlet% had $lo%ed* The remaining 9 outlet% were $lo%ed in Februar 3C:* 7F2 mi%(udged the lo$al mar)et and failed to de&elop a %uitable bu%ine%% model1 with it% ta)eout onl %tore% failing to $at$h on*
of
8ong 7ong
14
India
3:
Indone%ia
3C
apan
3C
7F2 India
.T Fa%tfood Indone%ia
7F2 8olding% apan1 0td Ameri$ana #roup
7a'a)h%tan Mala%ia
3C6
Mongolia
436
Nepal
4
2hi$)en% imported from 2hina were fed fi%hmeal1 whi$h ruined the ta%te* The $hain wa% reintrodu$ed b S?)" G"($6 in September 3K:1 with an outlet opened on J("%* R(%1 at a $o%t of 6 million* A %e$ond outlet wa% opened on C$.?= B= in 3K* B 3: there were 3C outlet%* Sold to Birdland in 3C* 39 outlet% a% of 439* 7F2 opened a two"%tore outlet on B")7% R(% in B*7>(" in une* 4 outlet%* Fir%t outlet in alan Melawai1 J:"'# 0i%ted on the J:"' S'(/: E@/+*7e* Fir%t outlet opened in K(;* 33K3 outlet%* 3: outlet%*
The fir%t 7F2 outlet wa% opened in 3C6 on J>* T$*:$ A;%$> R+*# Toda there are :C outlet% 7entu$) Nugget% wa% $on$ei&ed in Mala%ia and ?SR Brand% -M/ 8olding% then found it% wa to 7F2 Sdn Bhd worldwide* Toda1 7entu$) Nugget% i% one of 7F2% %u$$e%%e%* 7F2 led the $hained fa%t food mar)et in 4331 with 93 per$ent of &alue %ale%* Ta&an Bogd #roup
Two outlet%*
De&ani International
Two outlet%*
15
.a)i%tan
3C
.hilippine%
3C
Singapore
3CC
South 7orea
3K9
Sri 0an)a
3:
Taiwan
3K:
Thailand
3K9
Fir%t entered .a)i%tan in the late % to earl 3C% but %ub%eHuentl $lo%ed down* 2upola #roup Started again in G$>.+* I;l in K"/+) in 3C* :K outlet% 46C outlet%* On une 391 Manuel U* Agu%tine% obtained the %ole fran$hi%e o&er the %ale and +hole%ome Food% In$ di%tribution of 7F2 produ$t% in the .hilippine%1 under the $orporate name of ?ui$) Ser&i$e Re%taurant% -?SR/ 2orporation* Fir%t outlet opened on Somer%et Road in 3CC* 9 %tore% b 341 when it wa% a$Huired b 7F2 ?SR Brand% -M/ 8olding% International* In 441 Sdn Bhd 7F2 Singapore wa% a$Huired b 7F2 -Mala%ia/ 8olding% Bhd* K outlet% in 434* Fir%t 7F2 outlet in ongno1 Doo%an #roup S($>* 3: outlet%* 2argill% 2elon .02 4C outlet%* Taiwan5% fir%t 7F2 outlet wa% opened in the di%tri$t of )*%)*7 T)6)* It wa% initiall a ()*' *'$" between 7F2 and U*)P".)%*' E*'"6").. C("6("')(* 1 ardine Mathe%on Taiwan% large%t food $ompan1 until .re%ident %old it% %ta)e in 3C* ardine% a$Huired full $ontrol of the poorl performing 7F2 Taiwan from um in 43* 36: outlet%* um Re%taurant% Originall opened in 3C 16
;ietnam
3C
but $lo%ed down after the end of the V)'* W" in 3C:* 7F2 reopened in Thailand at C*'">P> International -Thailand/ and L"%6"( in B*7:(: # In 2entral Re%taurant% #roup 436 there were 96 outlet%1 per$ent were $ompan owned and 9 per$ent were owned b 2R#* Fir%t outlet opened in H( C+) M)*+ C)'=* J"%)* M'+.(* a$Huired a 4:P %ta)e in the $ompan in 433* 36C outlet% * 7F2 ;ietnam e%timated E$"((*)'(" that 7F2 ha% 3:P of the fa%t food mar)et b &alue in 4331 ma)ing it the leading $ompan*
2#2# KFC O")7)*> R/)6
$up% 2ri%$o Shortening3 egg% well beaten4 $up% Mil)4 $up% Flour4 tea%poon% ground pepper6 table%poon% %alt3 tea%poon MS#3@K tea%poon #arli$ .owder3 da%h papri)a4 Fring 2hi$)en% $ut into pie$e% .la$e %hortening into the pre%%ure $oo)er and heat o&er medium heat to the %hortening rea$he% 9F* In a %mall bowl1 $ombine the egg and mil)* In a %eparate bowl1 $ombine there maining %i, dr ingredient%* Dip ea$h pie$e of $hi$)en into the mil) until full moi%tened* Roll the moi%tened $hi$)en in the flour mi,ture until well $oated* In group% of four or fi&e1 drop the $o&ered $hi$)en pie$e% into the %hortening and lo$) the lid* +hen pre%%ure build% up $oo) for 3 minute%*
2#4# KFC’. ($'>'. )* I*%)
17
S># *( 3
N ( '+ C)'=
N(# ( L(/')(*.
Bangalore
93
4
7ol)ata
3
6
Mumbai
9
0udhiana
6
:
#ha'iabad
4
Amrit%ar
C
alandhar
3
K
0u$)now
3
2hennai
4C
3
#urgaon
33
.une
:
36
.atna
4
39
8derabad
K
3:
2handigarh
6
3
2oimbatore
4
3C
Ahmadabad
3
3K
Faridabad
3
3
Noida
6
4
#oa
4
43
2o$hin
3
18
44
Delhi
44
KFC M)..)(* & P+)>(.(6+=
4#1# P+)>(.(6+= ( KFC '+ CHAMPS P"(7"
2hamp% %tand% for our belief that the mo%t important thing ea$h of u% $an do i% to fo$u% on the $u%tomer* It %tand% for our $ommitment to pro&ide the be%t food and be%t e,perien$e for the be%t &alue* 28AM.S %tand for the %i, uni&er%al area% of $u%tomer e,pe$tation $ommon to all $ulture% and all re%taurant% $on$ept%* T+ CHAMPS
The%e are!
19
L
2leanline%%
L
8o%pitalit
L
A$$ura$
L
Maintenan$e of Fa$ilitie%
L
.rodu$t ?ualit
L
Speed of Ser&i$e
CHAMPS i% the philo%oph to en%ure that the $u%tomer ha% the $on%i%tent Hualit e,perien$e in e&er re%taurant1
e&erda1 on e&er o$$a%ion% and ou will be plaing role in deli&ering 28AM.S to our $u%tomer%*
4#2# M)..)(* ( '+ S''*'
=To be the leader in western style restaurants through friendly service, good quality food and clean atmosphere=
4#4# G(>. ( KFC
Build an organi'ation dedi$ated to e,$ellen$e*
L
2on%i%tentl deli&er %uperior Hualit and &alue in our produ$t% and %er&i$e%*
L
Maintain a $ommitment to inno&ation for $ontinuou% impro&ement and grow1 %tri&ing alwa% to be the leader in the mar)et pla$e $hange%*
L
#enerate $on%i%tentl %uperior finan$ial return% and benefit% our owner and emploee%*
L
To e%tabli%h in .a)i%tan our po%ition a% leading +?SR -+e%tern ?ui$) Ser&i$e Re%taurant/ $hain1 %er&ing good &alue* Inno&ati&e $hi$)en"ba%ed produ$t%*
L
2on%i%tentl1 pro&iding a plea%ant dining e,perien$e1 with fa%t friendl1 in a $lean and $on&enient lo$ation* At all time% we mu%t be dedi$ated to pro&iding e,$ellent and delighting $u%tomer%*
Current Products
7entu$) fried $hi$)en L inger burger L 7ru%her% L#ame Bo, L Twi%ter LBo, ma%ter L2hi$)en Bu$)et L 8ot wing% L Frie% L 2orn on the $ob 20
L ing 7ong LSna$)er -$hi$)en < &eggie/ L ;eggie Fea%t L Soft Drin) L2ole%law L 2hi$)en Thali L;eg Finger L Sna$) Bo, L Sundae L Soft Twirl L Brownie Sundae
PRODUCT ISSUES
#1 $>)'= C(*'"(> (" I*7"%)*'.
a/ E&er 2hi$)en Te%ted 7 < N5% %tate"of"the"art ?ualit A%%uran$e 0ab monitor% the entire integration pro$e%% from li&e%to$) to feed and on to preparation of read"to"$oo) and $oo)ed produ$t%* b/ E&er 2hi$)en 2ertified 8A22. J 7 < N5% en%ure% food %afet b implementing the international 8A2. -Food Safet S%tem/ and en(o the uniHue pri&ilege of being the fir%t and onl 8A22. $ertified $ompan i% India produ$ing $hi$)en and $hi$)en produ$t%* Free from di%ea%e% and ba$teria1 drug re%idue% and other $ontaminant%* $/ ?ualit A%%uran$e 2ertifi$ate Dire$tor #eneral -Re%ear$h/ ha% i%%ued Hualit a%%uran$e $ertifi$ate for the $hi$)en u%ed b 7F2* #2# P/:7)*7
+e are a%)ed a% man Hue%tion% on our pa$)aging a% our produ$t% b our $u%tomer%* The pa$)aging for 7F2 produ$t% i% $ho%en a$$ording to performan$e again%t three )e $riteria! L8eat Retention LMoi%ture remo&al L#rea%e ab%orption The pa$)aging material and $arton de%ign are all adapted to ma,imi'e performan$e again%t the%e three $riteria* a/ Re$$led .aper 21
All our $lam%hell% and $hi$)en bo,e% $ontain a% mu$h re$$led material a% it i% legall allowed* B law we are reHuired to ha&e &irgin fiber board in an part of the pa$)aging that i% in $onta$t with food* An &irgin fiber $ome% from board %upplier% who u%e pulp bought from managed fore%t in S$andina&ia* Thi% en%ure% that an wood $ut for paper produ$tion i% repla$ed with new planting%* b/ En&ironmental 2on$ern% O&er and abo&e en%uring our pa$)aging i% %upplied &ia re$$led or renewable re%our$e% 7F2 are enthu%ia%ti$all $ompling with the new en&ironmental dire$ti&e% on re$o&er and re$$ling of pa$)aging wa%te*
$/ 0itter +e at 7F2 U7I are aware of our re%pon%ibilitie% to the Management of 0itter and all our pa$)aging $arrie% the Q7eep our 2ountr Tid5 %ign%* #4# BRANDING
Thi% re%ear$h mea%ured and $ompared the brand identit of 7entu$) Fried 2hi$)en -7F2/ in India* Brand identit wa% defined a% the $u%tomer impre%%ion% of four different 7F2 identit element% " propertie%1 produ$t%1 pre%entation%1 and publi$ation%* A %ur&e of oung $on%umer% in the $ountrie% -n C:/1 %howed that the re%pondent% were more apt to eat within 7F2 re%taurant%1 and %pend more time doing %o1 than the Ameri$an%* The 2hine%e al%o had mu$h more po%iti&e impre%%ion% of 7F2* Brand identit impre%%ion% were $orrelated with o&erall $u%tomer %ati%fa$tion and with future patronage intention% for both group%* The%e finding% %upport a model where differen$e% in $ultural frame% of referen$e lead $on%umer% to a$ti&el lo$ali'e the brand identit of thi% nominall globali'ed produ$t* 2## a/ Entr
F($" F("/ A*>=.).
For the $urrent .a)i%tan mar)et for fa%t food1 it i% not diffi$ult for a fa%t"f o o d re % ta u ra n t to e n te r t h e m a r) e t* 8 o w e & e r1 i t w o u ld b e e , tr e me l diffi$ult to ta)e o&er alread running ma(or fa%t food $hain% dominan$ in India or e&en ma)e a %ignifi$ant amount of profit* +hile there are enough people in urban .a)i%tan for an re%taurant to % u r & i & e1 7 F 2 h o l d % t h e f i r %t " m o &e r a d & a n ta g e i n t o t h e n o n "& e g f o o d %p e$ ia lt foo d %e gme nt th at gi& e% th em fre e re pu ta tio n* 2u %to mer %1 e%pe$iall $hildren who are u%ed to going to 7F2 a% a treat or reward fr om th ei r pa re nt % or gr an dp ar en t% 1 ar e no t go in g to wa nt to go to other r e % t a u r a n t % a lr ea d numerou%
e %t ab li %h ed *
t h e 5 & e
Al %o 1
t he re
n e &e r i%
h e ar d
a lr ea d
of* a
The
l ar ge
b r an d
n a me
& ar ie t
in
we%tern"%tle dining pla$e% in India 1 %u$h a% M$Donald5%1 .i''a 8ut1 D o m i n o %
i% t he and
S u b w a 1 a n d a n n e w f a % t " f o o d e n t r a n t % w o u l d ( u % t b e pre%enting %omething &er %imilar to
22
what5% alread there* +hile %mall Neighborhood re%taurant% generall ha&e low barrier% to entr1 the%e are the barrier% to entr for %imilar re%taurant bu%ine%%e% to enter the fa%t"food $hain mar)et* b/ Buer@Supplier Bargaining .ower The $u%tomer% of 7F21 e%pe$iall a% indi&idual buer%1 ha&e almo%t no bargaining power be$au%e if onl one $u%tomer threaten% to no longer eat at 7F21 the %tore i% not going to lower it% pri$ e be$au%e t h e $ o % t o f l o % i n g o n e $ u % t o m e r i % n o t & e r g r e a t * T h e % u p p l i e r % 1 l i ) e t h e b u e r % 1 ha&e &er little bargaining power* In term% of food 1 7F21 upon it% mo&e into India 1 urged man of it% U*S* %upplier% to al%o e,tend bran$he% into India* 7F2 al%o began helping l o $ a l % u p p l i e r % b g i & i n g t h e m t e $ h n o l o g i $ a l % u p p o r t t o impr o& e
t h e i r p ro du $t %* T hi % i % a b ri ll ia nt % tr at eg b e$ au %e t he % up pl ie % t ha t 7 F2 w ou ld
o t h e r w i % e o b t a i n e d
n e e d
t o
i m p or t
f r o m
t h e
U * S *
$ a n
n o w
b e
dome%ti$all1 and if the U*S* %upplier% de$ide to rai%e their pri$e%1 7F2 $an ea%il %wit$h to the
lo$al %upplier%* Thi% gi&e% u% a brilliant %trateg* + i t h t h i % % t r a t e g 1 7 F 2 $ r e a t e d $ o m p e t i t i o n a m o n g i t % % u p p l i e r % 1 lowering the %upplier bargaining power* In term% of human re%our$e%1 labor $o%t i % e,tremel low be$au%e the %uppl of non"%)illed wor)er% great e,$eed% the demand for them* +ith %o little buer and %upplier ba rg ai nin g pow er% 1 7F 2 i% ab le to ha &e a &er tig ht $o ntr ol o&er it % pr i$e % and e,penditure%*
/ Sub%titute% and 2omplement%
A% mentioned abo&e1 there are a few ma(or $ompetitor% in the fa%t"food indu%tr in India for 7F21 namel M$Donald5%1 .i''a 8ut1 DominoQ% and Subwa* The %ub%titute produ$t%1 in thi% $a%e1 would be burger%1 pi''a1 and %andwi$he%* Though the are $ompetitor%1 their primar produ$t% differ greatl from ea$h other1 in that the %ell1 $hi$)en1 burger% and frie%1 pi''a%1 and %andwi$he%1 re%pe$ti&el* Traditional India dining1 home"$oo)ed meal% and gro$er %tore% with read"to"eat food% are al%o %ub%titute%1 a% familie% $ould $hoo%e an one of the%e o&er fa%t food for a meal* The%e %ub%titute% are definitel $on%idered health a% $ompared to the fa%t food $hain%* E&en food% from %treet &endor% $ount a% %ub%titute good%* +hile other fa%t food% %er&e a% %ub%titute to 7F2 the $an al%o %er&e a% $omplement% for fa%t food% a% a whole* If the general pri$e of fa%t food% goe% up1 7F25% pri$e ri%e% a% well1 and the %ame $an be %aid of the Huantit %old of the%e produ$t%1 whi$h ma)e them $omplement% to ea$h other*7F2 al%o %et% up %tore% lo$ated near popular touri%t attra$tion%1 %o ti$)et% to the%e touri%t %pot% are al%o $omplementar good% be$au%e the more people tour the%e attra$tion%1 the more $u%tomer% 7F2 will get*
$/ Ri&alr 23
Unli)e what one would e,pe$t1 7F2 ha% little ri&alr with %imilar fa%t"food $hain% in India* The primar rea%on i% that their $ore produ$t% are different1 a% in the %ell different )ind% of fa%t food% with &er different ta%te% and %tle%* For e,ample1 if 7F2 rai%ed it% pri$e for $hi$)en b a %mall amount1 Indian $hi$)en lo&er% who ma not be a% a$$epting to pi''a% are not going to %wit$h to .i''a 8ut (u%t be$au%e the pri$e for 7F2 in$rea%ed* In addition to that1 the%e re%taurant% ha&e %u$h different target $u%tomer% that the flu$tuation of pri$e for one re%taurant i% not going to affe$t the other%* For e,ample1 a full meal at 7F2 range% about R%* 31 wherea% a full meal at .i''a 8ut $an $o%t o&er R%* 6* The dra%ti$ differen$e in pri$e a%%ure% no pri$e $ompetition between the%e re%taurant%*
24
CURRENT TARGET MARKET
TAR GE T M ARKET = T h e p r o $ e % % o f e & a l u a t i n g e a $ h m a r ) e t %egment% attra$ti&ene%% and %ele$ting two or more %egment%V
A% the outlet% of 7F2 are in po%h area and pri$e% are too high -o&erhead e,pen%e%"rent1 air"$onditioning1 emploee%/1 %o 7F2 target% upper and middle $la%%e%* Target mar)et depend% upon %i'e and growth rate of population1 2ompan re%our$e% and %tru$tural attra$ti&ene%% of mar)et %egment*
5#1# S7*'')(*
7F2 ha% di&ided the mar)et of India into di%tin$t group% of $u%tomer% with different demand%1 ta%te% and beha&ior who reHuire %eparate produ$t% or mar)eting mi,* In India the ni$he mar)eting i% being u%ed for parti$ular $la%%e% of people* The ha&e made %egment% of the mar)et on the following ba%e%* D(7"6+)/ S7*'')(*
In demographi$ %egmentation1 the mar)et i% di&ided into group% ba%ed on an age1 gender1 famil %i'e1 in$ome1 o$$upation1 religion1 ra$e and nationalit*7F2 di&ide% the mar)et on demographi$ ba%i% in thi% wa! • • • • •
Age i% between ":* #ender i% both male% and female%* Famil %i'e i% 3"41 6"91 :W In$ome i% R% 31 n abo&e* Famil life%tle i% almo%t all*
; G(7"6+)/ .7*'')(* ! 7F2 ha% outlet% internationall and %ell% it% produ$t% a$$ording to geographi$ need%
of the $u%tomer* In India 7F2 fo$u%e% how geographi$all it% $u%tomer% demand different produ$t%* I n north India 2hi$)en i% the main %elling produ$t1 while in the South the ;eg* item% %ell more than the $hi$)en* / B+)(" .7*'')(*
In beha&ioral a%pe$t the %egmented the mar)et on the ba%i% of Hualit1 ta%te and pri$e* Following are the different po%%ible %egment% in thi% regard* • •
Ta%te $on%$iou% ?ualit $on%$iou% 25
• •
2la%% $on%$iou% 2ombination of pri$e and Hualit
% P.=/+(7"6+)/ .7*'')(*
Di&iding a mar)et into different group% ba%ed on %o$ial $la%%1 life %tle1 or per%onalit $hara$teri%ti$% i% $alled p%$hographi$ %egmentation*7F2 di&ide% mar)et on the ba%i% of p%$hographi$ &ariable% li)e
• • •
So$ial $la%%"U p p e r a n d M id d l e $ l a %% * 0ife%tle i% not %pe$ifi$* .er%onalit i% ambitiou% and authoritarian
5#2# P"()> C")'") ofile $riteria!
3* #ender! 7F2 i% for ea$h gender both male and female* 4* In$ome! E&erone $an u%e the 7F2 %er&i$e upper and middle $la%% * 6* Age! age limitation for u%ing thi% produ$t abo&e 3: 9* O$$upation! B profe%%ion al%o e&erone $an u%e thi% produ$t mean% bu%ine%%man %tudent wor)er% and other people%* :* Edu$ation! It ha% no need more edu$ation that wh the per%on who )now %omething $an ea%il en(o with thi% produ$t* * Famil life $$le! 7F2 i% %uitable in e&er %tage of life li)e %ingle married $oup le and al%o tho%e who ha&e $hildren $an u%e thi% produ$t* C* 0ife%tle! Thi% produ$t i% u%ed in e&er le&el of %o$ial $la%% li)e upper1 middle $la%%* K* Attitude! +hen the $u%tomer% on$e bu thi% produ$t after that the $an u%e the produ$t $ontinuou%l* * .ur$ha%ing de$i%ion! Often 7F2 $hange% the pur$ha%ing de$i%ion of $u%tomer% be$au%e of it% good attribute%* 3* #eographi$ region! #eographi$all 7F2 i% u%ed in e&er part of the $ountr a% well a% all o&er the world* 33* .rodu$t po%itioning 2u%tomer per$ei&e% thi% produ$t a% a uniHue produ$t that other i% not gi&ing* 34* Attitude% The attitude% of the publi$ i% &er good people li)e our new produ$t li)e other%* 36* .ur$ha%ing pro$e%%! Man people $ome from home to eat thi%1 and %ome ma)e impul%e de$i%ion a% the %aw it*
26
5#4# MARKET COVERAGE STRATEGY
7F2 will be u%ing differentiated mar)et $o&erage %trateg* It mean% that different mar)eting mi, will be u%ed for different age group* T"7' M":' (" F.' F((%
After e&aluation of &ariou% %egment%1 7F2 ha% de$ided to target the mar)et of Urban and Sub"urban Area% of India .rodu$t u%age L.eople are edu$ated and the want &ariet in their diet* L Normall people of rural area% don5t ta)e fa%t food* On the other hand people of urban area% ta)e fa%t food* LIn$ome of the people of urban area% i% normall high and the $an afford to pur$ha%e %u$h produ$t%1 whi$h are %lightl higher in pri$e a% $ompared to pre&ailing pri$e% of lo$al food in the mar)et* L.eople of Urban Area% are more Hualit $on%$iou% than the people of Rural Area%* LIn Urban Area there li&ed people from e&er wal) of life and profit generation i% ea%ier than in Rural Area%* L.opulation den%it i% higher in Urban Area% a% $ompared to Rural Area%1 %o the number of $u%tomer% i% more in Urban Area%*
5## ECONOMIC ANALYSIS OF MARKET
A mar)et in thi% $onte,t refer% to a number of all a$tual and p otential buer% of a produ$t -7otler et al 46/* The%e buer% ha&e a need to %ati%f their need% through e,$hange* The%e need% ma)e up the demand for parti$ular produ$t% and %er&i$e%* Se&eral $omponent% mu%t be $on%idered1 a% all the%e $omponent% ha&e a dire$t or indire$t impa$t on 7F25% %u$$e%%* 2hange% in the below de%$ribed $omponent% o&er the la%t $ouple of ear% ha&e led to big $hange% in people5% attitude% toward% health food* It e,plain% wh Au%tralian% toda want to eat health and nutritiou%"ri$h food in order to )eep them%el&e% health and that 7F2 mu%t ad(u%t their range of produ$t and their $ompan image to appeal to the%e new e,pe$tation%1 people ha&e* Ma$ro en&ironment 7F2 operate% in a larger ma$ro en&ironment of for$e% that $reate% opportunitie%1 but al%o threat%* -7otler et al 46/* A $ompan %u$h a% 7F2 u%uall $annot influen$e trend% in the ma$ro en&ironment1 a% the affe$t people and organi'ation% on larger %$ale* 8owe&er1 7F2 ha% to $arefull e,amine ma$ro en&ironmental trend% and mu%t $reate $ompetiti&e re%pon%e% to %u$h trend%* There are %i, ma(or ma$ro en&ironmental for$e% 7F 2 ha% to ta)e into a$$ount*
27
a/ Mi$ro en&ironment The mi$roen&ironment $on%i%t% of all for$e% that are $lo%e to 7F21 and on whi$h 7F2 ha% an impa$t* The dire$tl affe$t 7F25% abilit to %er&e it% $u%tomer%* -7otler et al 4 6/* Three ma(or $omponent% influen$e 7F25% mi$roen&ironment! b/ 2ompetitor% Be$au%e the fa%t food mar)et in India i% highl $ompetiti&e1 7F2 fa$e% wide number of dire$t and indire$t $ompetitor%* 7F25% main $ompetitor% are fa%t food $hain% %u$h a% M$Donald5% and Domino5%1 whi$h are alread well e%tabli%hed throughout India *M$Donald%5% in parti$ular i% a dire$t $ompetitor1 a% the ha&e alread %u$$e%%full introdu$ed their Salad% plu% line 1 whi$h dire$tl target% Qhealth food Q$on%$iou% India* But1 there are a number of other $ompetitor% that i% al%o fo$u%ing on Q$hi$)en5 tpe% produ$t%* All thi% $ompetition ma)e% it Huite diffi$ult for 7F2 to maintain or e&en broaden their $u%tomer ba%e* 8owe&er1 with the introdu$tion of a new and health produ$t range1 7F2 $an differentiate it%elf from mo%t $ompetitor% and will gain a $ompetiti&e ad&antage* $/ 2u%tomer% 7F25% $u%tomer mar)et $on%i%t% %olel of the $on%umer mar)et -7otler et al 46/*7F25% produ$t% are bought b indi&idual% -male%1 female%1 %ingle%1 and familie%/* Therefore1 the produ$t range 7F2 offer %hould appeal to a% man people within thi% $on%umer mar)et a% po%%ible1 to en%ure that the ma,imum amount of produ$t% $an be %old* The $hara$teri%ti$% of the%e indi&idual% and %egmentation of them are di%$u%%ed later in thi% report*
5#5# C$""*' S>. A*>=.). M":' S+"
28
7F2 ha% a &er long hi%tor and ha% the mo%t re$ogni'e able brand in $hi$)en with o&er :P of the mar)et %hare* It be$ome% diffi$ult for the $ompanie% li)e Sub wa1 M$ Donald5%1 2hi$)en planet1 Di,ie or tho%e who ma want to enter in the mar)et of fa%t food re%taurant%* Due to with o&er :P of the mar)et %hare in fa%t food indu%tr 7F2 ha% re$ognition around the world and ha% been globall po%itioned for man ear% in India and to $apture the mar)et %hare in India adopt% $hamp% philo%oph* 5#!# E*)"(**'> F/'(". & (66("'$*)').
a/ .oliti$al! The operation% of 7F2 are affe$ted b the go&ernment poli$ie% on the regulation% of fa%t food operation* 2urrentl go&ernment are $ontrolling the mar)eting of fa%t food re%taurant be$au%e of health $on$ern %u$h a% $ardio&a%$ular and $hole%terol i%%ue and obe%it among the oung and $hildren in the $ountr* #o&ernment% al%o $ontrol the li$en%e gi&en for open the fa%t food re%taurant and other bu%ine%% regulation need to follow %u$h a% for a fran$hi%e bu%ine%%* #ood relation%hip with go&ernment in gi&ing mutual benefit% %u$h a% emploment and ta, i% a mu%t for the $ompan to %u$$eed in an foreign mar)et* b/ E$onomi$! Though for la%t 3 ear there wa% e$onomi$ %lowdown all a$ro%% the globe but %ale% of 7F2 and other fa%t food $hain% did not %low down to that e,tent that of other %e$tor% in* The #D. -.ur$ha%ing .ower .arit/ i% e%timated at4*: trillion U*S* dollar% in the ear 43* The #D." per 2apita -.../ wa%4C U*S* dollar% a% e%timated in 4K* The #D." real growth rate in 4Cwa% K*CP** So ta)ing into $on%ideration% the e$onomi$ fa$tor% of India 7F2 i% %afe* a/ So$io $ultural! India5% population i% di&ided in the following age %tru$ture! "3 9 e a r % J 6 3 * K P 1 3 : " 9 e a r % J 6 * 3 P a n d : e a r % a n d a b o & e J :*3P* There ha% al%o been a $ontinuou% in$rea%e in the $on%umption of fa%t food in India* The %o$ial trend toward fa%t good $on%umption i% $hanging and India ha% %een an in$rea%e of Pfa%t food $on%umption from the ear 44" 4C* Thi% in$rea%e i% far greater than the in$rea%e in the BRI2 nation% of Bra'il -4 per $ent/1 Ru%%ia -: per $ent/ and 2hina -almo%t per $ent/* Thu% thi% %how% a po%iti&e trend for fa%t food indu%trie% in India
b/ Te$hnologi$al! The Indian fa%t food Indu%tr i% heating up with a lot of foreign plaer% entering the India mar)et* The te$hnologi$al )nowhow and e,perti%e will al%o enter the Indian mar)et with an in$rea%e in $ompetition* +ith the
29
lower rate% and in$rea%e te$hnolog the fa%t food $ounter% are attra$ting outh b gi&ing them attra$ti&e deal%* For e*g* 7F2 and Domino5% pi''a* For a fa%t food re%taurant1 te$hnolog doe% not gi&e a &er high impa$t on the $ompan and it i% not a %ignifi$ant ma$ro en&ironment &ariable%* 8owe&er 7F2 %hould be loo)ing to $ompetitor% inno&ation and impro&e it%elf in term of integrating te$hnolog in managing it% operation* For e,ample in in&entor %%tem1 %uppl $hain management %%tem to manage it% %uppl1 ea% pament and ordering %%tem% for it% $u%tomer% and wirele%% internet te$hnolog* Implementation of te$hnolog $an ma)e the management more effe$ti&e and $o%t %a&ing in the long term* Thi% will al%o ma)e $u%tomer happ if $o%t %a&ing% re%ult% in pri$e redu$tion or promotional $ampaign di%$ount whi$h will benefit% them from time to time* $/ En&ironmental! A% one of world large%t $on%umer of beef1 potatoe% and $hi$)en1 7F2 alwa% had been $riti$% for world en&ironmentali%t* Thi% i% be$au%e high $on%umption of beef $au%ing the green hou%e effe$t b methane ga%%e% $oming from the $ow5% ran$h* 0arge"%$ale plantation ha% effe$t the en&ironment and lot% of green fore%t opening for plantation a$ti&itie%* ;egetarian en&ironmentali%t $riti$i'e% the fa%t"food giant for $ruelt to animal% and %laughtering* In Ameri$a1 on$e 7F2 want to introdu$e whale burger $au%ing uproar be $au%e whale% are endangered %pe$ie%* Before u%ing paper pa$)aging1 7F2 on$e had been $riti$i'ed for being in%en%iti&e to pollution be$au%e of u%ing ne ba%ed pa$)aging for it% food produ$t%* Imagine million% of people pur$ha%e from fa%t food operator and how i% the impa$t to world en&ironment b throwing awa tho%e hard to re$$le pa$)aging *Our world i% getting $on$ern on en&ironment i%%ue and bu%ine%% operating here %hould not (u%t $are for profit1 but $areful u%age of world re%our$e% for %u%tainable de&elopment and $are for en&ironment %afet and health for our future generation* 2riti$% and $on$ern from all publi$ or a$ti&i%t %hould be re&iew and %upport if ne$e%%ar to en%ure we pla our %o$ial re%pon%ibilit better* d/ 0egal fa$tor%! A% a $ertified fa%t food operator1 there are man regulation% and pro$edure% that 7F2 %hould follow* For e,ample i% the 8ala% $ertifi$ation that be$ome% a $on$ern to Mu%lim $on%umer%* 7F2 %hould prote$t it% integrit and $on%umer $onfiden$e b en%uring all material %and pro$e%% are a% $laimed or mu%t followed* Other legal reHuirement that the bu%ine%% owner %hould follow a% %tipulated in law% are %u$h a% operating hour%1 bu%ine%% regi%tration1 ta, reHuirement1 labor and emploment law% and Hualit
SWOT A*>=.). 30
SWOT analysis mean strength, weakness, opportunities and threats and the SWOT analysis of KF is! )#
S'"*7'+.
L#oodwill and reputation! The 2ompan $ertainl ha% earned a good name and reputation b it% pre&iou% produ$t% and %er&i$e% in the mar)et* It i% e&en more re$ogni'ed in other mar)et% out%ide India1 where the $ompan i% among the leading fa%t food giant%* The brand i% re$ogni'ed and tru%ted in India for it% Hualit produ$t%1 pri$e1 and $u%tomer %er&i$e* It therefore ha% a good head %tart and en(o% a good $han$e of be$oming a leader in India fa%t food indu%tr* LEmploee 0oalt! Emploee 0oalt i% one of the ma(or %trength% of 7F2* The turno&er rate in the $ompan i% among%t the lowe%t in the indu%tr* L2u%tomer 0oalt! De%pite gain b Bo%ton Mar)et and 2hi$)"fill A1 7F2 $u%tomer ba%e remained loal to the 7F2 brand be$au%e of it% uniHue ta%te* 7F2 ha% $ontinued to dominate the dinner and ta)e out %egment of the Indu%tr* LRan)% highe%t among all $hi$)en re%taurant $hain% for it% $on&enien$e and menu &ariet* It generate% 3B re&enue ea$h ear* ))# )#
W:*... 7F2 wa% lo%ing mar)et %hare a% other 2hi$)en $hain in$rea%ed %ale% at a fa%ter rate*
L7F2 %hare of 2hi$)en Segment %ale% fell fromC3 per$ent 31 to le%% than : per$ent in 41 a 3 "ear5% drop of 3: per$ent* L8uge $ompetition in thi% %egment* L7F2 ha% not et in&e%ted mu$h on R
O66("'$*)').
L New Mar)et%! #lobali'ation ha% opened door% for new mar)et% for the $ompan* A% the de&eloped mar)et% are mo%tl %aturated1 the de&eloping $ountrie% li)e 2hina promi%e% a good mar)et and generation of demand in the future* +ith more thanCP of the mar)et% in being une,plored and unorgani'ed and India ha% large%t oung group in the world 7F2 ha% a good %$ope of e,panding it% operation% in the $ountr* L2ro%% 2ulture! #enerall there i% a good a$$eptan$e of Ameri$an $ulture of fa%t food in India* .eople are opening up to fa%t food% more regularl in their dail li&e% and not (u%t )eeping it a on$e in a month affair* Thu% Indian mind%et i% fa%t $hanging* L0arge outh population
31
India ha% a &er large %hare of outh population a% $ompared to other $ountrie%* More than Pof the population i% under the age of 6r%* A% the oung generation i% more open to fa%t food% and demand% it more1 thi% i% good new% for the $ompan* L New &ariet! 2ompan $an al%o $ome up with new &ariet in the menu li)e .i''a%1 garli$ bread% to attra$t more $u%tomer%* )#
T+"'.
L2ompetition! 2ompetitor $ompanie% li)e M$Donald% are fa%t $at$hing up with the mar)et* M$Donald5% with %ale% of more than3 billion in 31 a$$ounted for 3: per$ent of the %ale% of the nation5% top 3 re%taurant $hain%* LOrgani'ation% li)e .ETA .eople for Ethni$ Treatment for Animal% ha&e gi&en a bad name to the $ompan whi$h ma pro&e di%a%trou% to the image of the firm* 2urrentl1 7F2 i% under ma%%i&e atta$)% from animal organi'ation%1 Hue%tioning the wa 7F25% %upplier% are threatening the $hi$)en1 before the got %laughtered* Anti"7F2 $ampaign%1 %u$h a% the one from .ETA are affe$ting 7F25% brand image in a negati&e wa and re%ult in dire$t dollar lo%%e%1 a% le%% people are $on%uming 7F2 $hi$)en LSaturated US Mar)et! Now 7F2 $annot rel on (u%t it% home mar)et to generate %ale%* A% the US mar)et% are alread %aturated and lea&e no or little %$ope for growth1 $ompan ne$e%%aril need% to loo) at off%hore foreign mar)et% to generate %ale% and )eep up the profit%
MARKETING STRATEGIES
M":' S'"'7). ( KFC
There are different %trategie% adopted b 7F2 for different e&ent%* The mar)et their produ$t% on different e&ent% and in different a$ti&itie% a% the are helping SOS &illage* A$$ording to 7F21 )id% be$o me the future permanent% $u%tomer% and we )now &er well that without an mar)eting %trateg no mar)eting program and no produ$t i% %u$$e%%ful be$au%e we depend upon $u%tomer%1 $u%tomer not depend on u%* 7F2 i% following Ni$he Mar)eting and So$ietal Mar)eting te$hniHue%* 7F2 po%%e%% a we%tern $ulture be$au%e %ome of the Indian people are al%o following that $ulture* L7F2 are mo&ing from Di&i%ional 0e&el to the Di%tri$t le&el b opening bran$he% L7F2 al%o offer% free home deli&er*
32
L7F2 open% their outlet% on rea$hable pla$e%* L7F2 menu $on%i%t% of more than 6 produ$t%* L7F2 gi&e% more priorit to Famil
3#1 M":')*7
Sin$e 3K41 7F25% =All"Ameri$an %alute to Mother% =national $ard $onte%t ha% been 7F25% wa of honoring mom% and their familie% for ma)ing mother5% Da 7F25% bigge%t %ale% da of the ear* The $onte%t en$ourage% $hildren to $reati&el e,pre%% their feeling% for their mom% b ma)ing a homemade $ard and gi&e them $han$e to $ompete for more than 31 in $a%h and pri'e%* Edu$ational pa$)et%1 in$luding language1 hi%tor and art e,er$i%e% highlighting Mother5% Da1 were %ent to thou%and% of %$hool% nationwide 3#2# M":')*7 M)@ -P. ( M":')*7 M":')*7 M)@
The mar)eting mi, i% generall a$$epted a% the u%e and %pe$ifi$ation of the four .% de%$ribing the %trategi$ po%ition of a produ$t in the mar)etpla$e* P"(%$/' P")/ P>/ P"((')(*
33
F)7M":')*7 M)@ )
P"(%$/'
Ba%i$all the produ$t i% anthing that be offered to a mar)et for attention1 a$Hui%ition1 u%e1 or $on%umption that might %ati%f a want or need* 7F2 i% %pe$iall dealing in the $hi$)en produ$t% Ba%i$all1 7F2 ha% the %pe$ial ra%p for $hi$)en produ$t% that i% wh1 7F2 )nown a% a $hi$)en %pe$iali%t all o&er the globe* 7F2 target the A%ia and ea%t %ide be$au%e the ob%er&e that there people li)e the $hi$)en produ$t%1 %o the enter in the mar)et due to the demand of their $hi$)en produ$t%* 7F2 produ$t &ariet of produ$t in the $hi$)en1 tho%e produ$t% are! .rodu$t%!X • • • • • • • • • • • • •
Original re$ipe $hi$)enX E,tra Ta%t 2ri%p TM $hi$)enX 8ot +ing% TM pie$e% Tender Roa%t $hi$)enX 2hun) 2hi$)en pot pieX 7entu$) Nugget%X 2olonel5% 2ri%p Strip%X 8one BB? %andwi$hX Original Re$ipe Sandwi$hX Tender Roa%t Sandwi$hX Triple 2run$h Sandwi$hX Triple 2run$h inger Sandwi$h Brand! There are three brand% of the 7F2! 34
3/ Ta$o bell 4/ .i''a 8ut 6/ 0ong (ohn %il&er% KFC /"'. 7 *$ (" I*%)
For the $ountr li)e India1 7F2 7entu$)"ba%ed fa%t"food $hain )nown for it% Yfinger"li$) in goodY range of $hi$)en fillet% and burger%1 ha% al%o laun$hed it% wide &ariet of ;eg .rodu$t with a %logan YSo &eg1 %o goodY to %how it% $ommitment toward% the $ategor* .aneer inger and ;eg Twi%ter1 in addition to the hot"%elling .otato 7ri%per Burger1 ;eg Strip%1 ;eg Ro$) in Burger and ;eg Ri$e Bowl i% now attra$ting $on%umer mind %pa$e along with their popular non"&eg $ounterpart%* A$$ording to the Food and Agri$ultural A%%o$iation of the United Nation%1 around 94P of Indian hou%ehold% are &egetarian and 6:P of wee)da% are &egetarian for re%t of the non"&egetarian population* The apparent %plit i% ba$)ed up b $on%umer $hoi$e at &ariou% fa%t food re%taurant% a$ro%% the $ountr* So it wa% ;eg produ$t% were the demand of ma%%* 7eeping thi% in &iew 7F2 introdu$e% it% ;eg produ$t range along with Non" &eg menu*
The 7F2 menu i% in$rea%ingl throwing up a number of &egetarian item% %u$h a% ;eg inger1 ;eg Sna$)er and ;eg ing7ong* It would appear that 7F21 %nonmou% with $hi$)en a$ro%% the world1 i% turning &egetarian in India* In re$ent month%1 the brand ha% followed the laun$h of a non"&eg produ$t with a &eg eHui&alent -E,ample! ing)ong bo,e%/* 7F2 now plan% to %imultaneou%l unlea%h &eg and non"&eg item% in the Indian eating"out mar)etpla$e1 a$$ording to Tarun 0al1 general manager at 7F2 India* 0i)e %o man other foreign brand%1 7F2 ha% been tailoring it% %trateg to %uit lo$al preferen$e% in India* et1 few rebranding effort% would %urpri%e a% the attempt% of 7entu$) Fried 2hi$)en to wal) the line between &egetarian and non"&egetarian food in India* 7F2 i% to fa%t"food $hi$)en what Ni)e i% to running %hoe% and Boeing i% to plane%* Surel1 2olonel 8arland Sander%1 the founder of the re%taurant $hain1 would ha&e been amu%ed1 e&en a tad mortified1 b 7F2% approa$h in India* Ne&erthele%%1 when the brand wa% relaun$hed in India in 491 um Re%taurant%1 7F2% parent1 hit on the %trateg of offering &egetarian food in the $ountr almo%t immediatel* Truth i% 7F2 had little $hoi$e* 0al %a% in the Indian $onte,t1 the brand had to adapt the menu to en%ure that it wa% deli&ering to the e,pe$tation% of $on%umer%* YThat reali%ation happened &er earl in our (ourne*Y Other ma(or fa%t"food $ompanie% in India ha&e been attempting %imilar rebranding to a$$ommodate &egetarian item% on their menu* 7F2% bigger ri&al M$Donald% i% a notable e,ample of thi% %trateg* u%t a% it too) to baguette% in 35
Fran$e1 M$Donald% ha% been offering &egetarian item% %u$h a% M$Aloo Ti))i Burger1 M$;eggie and ;eg .i''a M$.uff in India* The $ompan i% %tepping up it% &egetarian %trateg b opening it% fir%t full"%$ale &egetarian re%taurant near the ;ai%hno De&i %hrine in ammu < 7a%hmir and another one near the #olden Temple in Amrit%ar ne,t ear* Similarl1 %andwi$h powerhou%e Subwa and pi''a ma(or Domino% too are opening &egetarian"onl outlet% in India* WHATS COOKING
7F2 it%elf ha% a hi%tor of twea)ing it% %trateg periodi$all in man mar)et%* The brand added to the menu a Sna$)er " a% the name %ugge%t%1 a Hui$) and ea%"to"eat patt " radi$all different from it% $ore offering1 the $ri%p bon $hi$)en* In the 3%1 it had withdrawn1 mu$h to the $on%ternation of diehard fan% and than)full onl briefl1 the $ardboard $hi$)en bu$)et%* 7F2 had al%o retooled it% brand image1 reintrodu$ing the whole 7entu$) Fried 2hi$)en name and the image% of 2olonel Sander% at man re%taurant%* In the ba$)drop of the%e $hange%1 7F2% &eg platter %houldnt be entirel %urpri%ing* +h %hould India1 where more and more $on%umer% are dining out and ha&e a$$epted different )ind% of food% from the world1 be an differentZ It repre%ent% the $ompan% attempt to rea$h out to a larger audien$e of Indian $on%umer% who are predominantl &egetarian* Y;egetarian [food i% &er1 &er important to u%1Y %a% 0al* YIt will pla a large role in our %trateg in the $onte,t of &ariet* +e had to broaden the rele&an$e of 7F2 a$ro%% different $on%umer tpe% in the $ountr1Y he %a%* 7F2% ambition% in India are %ignifi$ant be$au%e in all other mar)et%1 &egetarian food pla% a limited role* Shu%hmul Mahe%hwari1 2EO of re%ear$h agen$ RN2OS1 had told ET Maga'ine in an earlier inter&iew that with the in$rea%ing $ompetition in the Indian fa%t food indu%tr1 it will be$ome indi%pen%able for $ompanie% to $u%tomi%e produ$t%* YThat will be one of the )e %trategie% for the %u$$e%% of foreign fa%t"food $hain% in India*Y In thi% re%pe$t1 India ha% no parallel* Thi% i% after all a $ountr of %tri$t &egetarian%* Not %urpri%ingl1 man brand% ha&e been ta)ing aim at thi% %e$tion of $u%tomer%* South"ba%ed $hain% %u$h a% Sara&ana Bha&an and Sagar Ratna ha&e been eHuall %u$$e%%ful in the north* 0u,ur ho%pitalit $hain IT2 8otel% i% laun$hing a &egetarian brand of re%taurant% $alled Roal ;ega* 0al %a% &egetarian food pla% a large role e&en among non"&egetarian% in India* YA non"&eg u%er at a 7F2 will $on%ume a &eg item if there i% a great offering in that $ategor1Y he %a%* GOURMET PRETENSION
At pre%ent1 one in e&er fi&e produ$t% on the 7F2 menu i% &egetarian* et1 gi&en that &egetarian food $ontribute% onl 3P of o&erall re&enue%1 how %eriou% i% 7F2 about it% &eg offering%Z )) P")/ 7F2 during pri$ing their produ$t% )eep the different point% in the mind li)e the adopt the $o%t ba%e pri$e %trateg*
.ri$ing of the produ$t in$lude% the #o&ernment ta,e% and e,$i%e dutie% and then the $ome at final %tage of determine the pri$e of their produ$t%* 7F2 pri$e% of produ$t% are a bit high a$$ording to the mar)et %egment and it i% al%o $ompatible to the %tandard of their produ$t%*
P")/)*7 S'"'7= 36
•
Market skimming ! 7F2 globall enter% the mar)et u%ing mar)et %)imming* Their produ$t% are pri$ed high and
•
target the middle to upper $la%% people* #raduall the tri$)le down the pri$e% fo$u%ing on the middle to lower $la%% people to penetrate both %ide% of the mar)et* Competition
+ e $ a n $ o m p a r e t h e p r i $ e o f t h e i r produ$t% with M$ Donald1 Domino5% and .i''a 8ut* If the $ompetitor pro&ide% the %ame produ$t at a lower pri$e then the organi'ation u%uall lower% the pri$e of it% produ$t too* In the $a%e of 7F21 Fried 2hi$)en i% it% main %elling point and $ontrol% a monopol o&er the Indian fa%t food mar)et -onl with fried $hi$)en/*It pri$e% it% burger%1 Fren$h frie% and %oft be&erage% with relation to it% $ompetitor%
*
Cost Based
7 F 2 p r i $ e t h e i r p r o d u $ t ) e e p i n g different point% in &iew* The adopt the $o%t ba%e pri$e %trateg* .ri$ing of the produ$t in$lude% the go&t* ta, and e,$i%e dut and then $ome% the final %tage of determine the pri$e of their produ$t* The produ$t% are bit high pri$ed a$$ording the mar)et %egment and it i% al%o $omparable to the %tandard of their produ$t* In the $o%t ba%ed method we in$lude the &ariable and fi,ed $o%t* C>/$>')(* ( '+ 6")/ $*%" C(.' B.% Total .ound% of 2hi$)en Ser&ed in 7F2 Re%taurant Annuall 3*39Billion Total 7F2 2hi$)en .ie$e% Sold Annuall :*K Billion Total Retail Sale% K* Billion Sale% .ri$e of per 2hi$)en .ie$e Total Retail Sale% @ 2hi$)en .ie$e% %old K* Billion @ :*K Billion 3*:3 +e a%%ume that Fi,ed 2o%t i% ;ariable 2o%t C: .rofit Margin i% Or Mar) Up 44:-4:P of Sale%/ .er Unit ;ariable 2o%t C: @ :K *33: Unit 2o%t ;ariable 2o%t W Fi,ed 2o%t @ 2hi$)en pie$e% Sold *33: W @ :K *33: W 3*4 3*36: Now %uppo%e manufa$turer want% to earn 4:P mar) up on %ale* The manufa$turer mar) up pri$e i% $al$ulated! Mar) Up .ri$e Unit 2o%t @ -3 J De%ired Return on Sale%/ 3*36: @ -3"*4:/ 3*36: @ *C: 3*:3
)))
P>/
T"# $% T "#%"S •
•
F" +( D>)"= . ' " ' 7 = ! " T h e pro&ide free home deli&er to offi$e% < home% -%ele$t $ountrie%/* A//..);)>)'= Re%ulting in %e&eral outlet% to $ater to the need% of people in < around the $it* H/')/ >).'=> Due to the he $t i$ lif e%tle of offi$e a going% indi&idual the fa%t food $on$ept %a&e% time of
preparing food and gi&e% the $u%tomer a full meal Hui$)l* E/(*()/>>= /(**)*' ! T h e p r i $ i n g appeal% to the man $la%%e% of a %o$iet*
37
T"# $% T & "#K%T 1
L ( / ' ) ( * 8 e $ t i$ l i f e% t le o f i n d i & i d u a l% 1 g i & i n g t h e m m o r e t i m e at
wor) and le%% %tre%% about waiting for food* C ( " / ) > ) ' ) ( * o f u r b a n a n d % u b " u r b a n m a r ) e t % leading to more mid"%e$tor people that find high"end eating (oint% &er to e,pen%i&e* M)%./'(" pe op le are al wa % lo o)i ng fo r $h an ge whi$h 7F2 pro&ide% in their range of fa%t food* $ > ) ' = / ( * . / ) ( $ . ! p e o p l e i n u r b a n a r e a % a r e m o r e $on%$iou% about the Hualit of food than rural area%* U r b a n a r e a % a r e mo r e p o p u l a te d th e re fo re th e h e lp with attra$ting higher re&enue%* 2 P>/*' ( ($'>'. D u e t o 7 F 2 p l a $ i n g i t % e l f $ l o % e t o % $ h o o l % 1 $ o l l e g e % 1 $inema% and mar)et% whi$h are mo%tl populated b the oung and tho%e who are in a hurr1 7F2 en(o% a large number of footfall% e&er da* In addition1 the al%o ha&e outlet% $lo%e to non"&egetarian% -mo%tl Mu%lim populated area%/* )
P"((')(*
.romotion i% one of the ne$e%%ar plate% in an form of bu%ine%% or in other word% ou $an %a that promotion i% the )e of %u$$e%% if ou promote our produ$t at the right time* 7F2 al%o )now the importan$e and %ignifi$an$e of promotion %o the u%e% the bill board% the ma(or %our$e of ad&erti%ement and one of the mo%t important thing that the u%e% media li)e .rint and Ele$troni$ media both to promote their produ$t%* The are al%o $reating awarene%% among the ma%%e% about their e,i%ting produ$t range a% well the tell u% about the future produ$t* .romotion i% the method u%ed to inform and edu$ate the $ho%en target audien$e about the organi'ation and it% produ$t%* U%ing all the re%our$e% of promotion!
Ad&erti%ing Sale% .romotion . u b l i $ R e l a t i o n E&ent% and E,perien$e% 2oupon%1 Di%$ount% and Bundled pa$)age% An organi'ation find% mo%t of it% meaning% and %ur&i&al through promotion*
At 7F21 .romotion i% the main tool to bring all $hi$)en lo&er% attention toward% it% deli$iou% one"of"a")ind produ$t1 the Fried 2hi$)en* A%"').)*7
38
The logo of the %miling 2olonel i% probabl one of the mo%t re$ogni'ed fa$e% in the world and in%tantl bring% the image of fried $hi$)en to one5% mind* 7F 2 a nd it % n ew $o mp an ( in gl e1 Qf in ge r l i$ )i ng fo od V i% fr eH ue nt
announ$ement on
tele&i%ion%1 billboard%1 fler% and radio* The $on$ept of %howing a normal $u%tomer deepl in&ol&ed in de&ouring hi% pie$e of $hi$)en u%uall turn% on the drool fa$tor in e&erbod5% mouth and ma)e% them ru%h to the neare%t 7F2* In India where $hi$)en lo&er% are plent abound the%e ad% featuring normal people $onne$t in%tantl and $reate a ru%h at their outlet%* U%ing the following method% 7F2 %pread% it% me%%age of finger li$)ing good $hi$)en*
A%"').)*7 •
U%ing Reminder ad&erti%ement%
7F2 %timulate% repeat pur$ha%e% of it% produ$t%* The $ompan anthem Q)*7" >)*: )*’ ((% V i% (u%t a wa)eup $all to the $on%umer to remind them how good the felt the la%t time the ate 7F2 $hi$)en* Spon%or%hip i% another tool to %trengthen an organi'ation% image* 7F2 i% $urrentl the %pon%or of the Au%tralian 2ri$)et Team and the $olonel logo $an be %een on their uniform% throughout the mat$he%* S>. P"((')(* • • • •
7F 2 u%e % the fo llo wi ng too l% to fu rth er enhan$e it% %ale%* . r e m i u m % E , h i b i t % 2 o u p o n % E n t e r t a i n m e n t
Sale% .romotion •
All 7F2 outlet% offer it% $u%tomer% with &ariou% form% of in$enti&e% to bu it% 2hi$)en* U%ing $oupon% that one $an a$Huire after %pending a parti$ular amount o&er a period of fi,ed time1 $u%tomer% $an en(o the benefit% of free meal% or free add"on%* Additionall the pro&ide meal &ou$her% and e,$iting offer% in their print ad%1 whi$h the $u%tomer mu%t $ut and bring along*
39
C*6* C(6')') A*>=.). C(6')'("
ou $annot en(o the bu%ine%% without $ompetitor%* No organi'ation $an afford to ignore their $ompetitor%* It i% &er important for mar)eting manager% to monitor the a$ti&itie% of their $ompetitor%1 what the are doingZ 7F2 adopted %u$h %ort of %trateg that there i% no $ompetitor for %pi$ $hi$)en1 whi$h i% made b 7F2* 7F2 beat% it% $ompetitor% through the re&i%ing mar)eting %trateg at e&er mo&ement but the main $ompetitor of 7F2 are M$ Donald5%*
C(6')') A%*'7 KFC Spi$ .rodu$t •
Indian .eople li)e %pi$ food rather than
•
boiled food 2hi$)en < ;eg Ri$e Bowl and inger
MC D(*>%’.
Big Ma$
Burger 40
Free Deli&er 2harger% on 8ome Deli&er 0o$al %tuff and highl Hualified be$au%e It% %tuff i% $on%i%t% of %imple graduate% and gi&e them lo$al %tuff $an better deal with $u%tomer% training 7F2 u%e% Top to Bottom and Bottom to M$ Donald5% u%e Top to Bottom approa$h in their Top approa$h in their Management 2hi$)en i% eaten in &er $ommunit
Management Beef i% banned i% %ome $ommunit
41
BRANDING STRATEGIES of KFC
8.1) Bran R!"onan#! $o!%
B"*% S>)*/
7F2 $reate% awarene%% b mean% of it% brand logo* The logo of the %miling 2olonel i% one of the mo%t re$ogni'ed fa$e% in the world and in%tantl bring% the image of fried $hi$)en to one5% mind* Reminder ad&erti%ing b u%ing the 2ompan (ingle =Finger 0i$)in5 #ood> help% in $reating awarene%% that 7F2 $hi$)en i% %o ta%t that the $u%tomer% would e&en re%ort to li$)ing their finger%* ; P"("*/
7F2 fo$u% lie% on the ta%t food produ$t% the offer to their $on%umer%* 7F2 produ$t% are whole mu%$le $hi$)en1 ha&e %ignature ta%te% and fla&or%* 7F2 %er&i$e i% attenti&e1 prompt1 depi$t% genuine friendline%% and i% dedi$ated to Hualit* Sin$e the are a $u%tomer"$entri$ organi'ation1 the regularl $ome out with new 2ombo meal% that mat$h the need% of the lo$al $u%tomer%*
42
/ I7"= U%er group% ha&e formed a image of the brand a% $u%tomer friendl1 made up of natural ingredient% i*e* the 33
herb% and %pi$e% that the offer in their meal%* 7F2 $ome% a$ro%% a% outhful and outgoing1 high on Energ1 Inno&ati&e and $reati&e* 7F2 i% pri$ed at a premium and the Bu$)et %mboli'e% a %umptuou% meal* % J$%7*'. *% F>)*7. 2u%tomer% regard 7F2 a% a tru%tworth brand* It% $redibilit i% well e%tabli%hed %in$e it ha% garnered re%pe$t %in$e it% in$eption wa ba$) in 3:%* 2u%tomer% regard 7F2 a% being a mar)et leader a% far a% Fried $hi$)en i% $on$erned* The brand e&o)e% feeling% of being upbeat1 fun lo&ing and plaful* B"*% R.(**/
All $hi$)en lo&er% are &er loal to 7F2* The go for repeat pur$ha%e% and don5t %wit$h freHuentl* The ha&e a %en%e of atta$hment with thi% brand %in$e it ha% been pro&iding them with Hualit produ$t% at great pri$e%* T+ '"7' ":' (" '+ ;"*% & +(? ). '+ ;"*% %)"*')'% )* '". ( ;"*% 6(.)')(*)*7, ;"*% 6".(*>)'= *% ;"*% )%*')'=
7F2 %egment% and target% the mar)et on the ba%i% of #eograph1 Demograph and .%$hographi$%* 7F2 ha% outlet% internationall and %ell% it% produ$t% a$$ording to geographi$ n eed% of the $u%tomer* For e,ample1 in north India1 2hi$)en i% the main %elling produ$t while in South India1 ;egetarian item% %ell more than the $hi$)en* 7F2 target% people of age group of 3:"9: r%* It target% both male% and female% ha&ing an in$ome of R%* 3 and abo&e* It target% indi&idual%1 $ouple% a% well a% familie%* Mo%t of it% target $u%tomer% in$lude %$hool and $ollege going people* On the ba%i% of .%$hographi$%1 it target% Middle and Upper $la%% people who ha&e a bu% life%tle and are great lo&er% of fa%t food that a$t% a% a %ub%titute for the home $oo)ed meal* Brand Personality
The 2olonel i% the per%onalit of the 7F2 brand whi$h %ignifie% being ambitiou% and authoritarian* But 7F2 ha% ne&er fallen into the trap of thin)ing it% brand to be of the %ame age a% that of the founder* The per%onalit of 7F2 depi$t% the following! •
outhful and Spontaneou%
•
8igh energ and Outgoing 43
•
Fun lo&ing and So$ial
•
8umorou%
•
Street Smart
•
Inno&ati&e and 2reati&e
•
Real
Brand Identity
The Brand Identit of 7F2 $an be di&ided into the following part%! 3* Brand a% .rodu$t •
=;ow> fla&or that ignite% the %en%e%
•
Signature re$ipe%
•
Fre%hl prepared $hi$)en
•
2ontra%ting te,tural or fla&or element%
•
0eader%hip Hualit
i/ Brand a% .la$e •
2oo)ing and Fre%h $ue%
•
In&iting1 wel$oming1 informal
•
Energeti$1 $ontemporar1 warm
ii/ Brand a% Smbol
44
•
The 2olonel
•
The Bu$)et
•
Red and +hite
•
33 8erb% and Spi$e%
•
Finger 0i$) in5 #ood
iii/ Brand a% Ser&i$e •
#enuine Friendline%%
•
Attenti&e and .rompt
•
Dedi$ated to Hualit
B"*% P(.)')(*)*7
The Brand po%itioning %tatement of 7F2 goe% li)e thi% J =#reat ta%ting1 Finger 0i$)in5 #ood1 #ot to ha&e it>* Thi% $learl %how% that $u%tomer% per$ei&e the 7F2 produ$t% a% po%%e%%ing a different ta%te* The al%o thin) that 7F2 offer% a %umptuou% meal* 7F2 i% per$ei&ed a% being hone%t1 down to earth1 and ea% to tal) to* 7F2 fo$u%e% on pure and fre%h food in order to $reate a di%tin$t and $lear po%ition in the mind% of $u%tomer%* I ">$*/+% ?+' )7+' ; '+ 6(.)')(*)*7 .'"'7=
The $urrent image of the brand i% that of a =Fried 2hi$)en>* 7F2 ha% al%o $ome under the hammer be$au%e %e&eral group% ha&e $laimed that it% produ$t% ha&e fuelled the ri%e of Obe%it in oung%ter%* +ith the $on%umer ta%te% %hifting toward% more and more of health $on%$iou% food%1 the .o%itioning %trateg %hould $hange to =8ealth fa%t food $hain>* The %hould do aggre%%i&e ad&erti%ing and $hange it% produ$t portfolio to %uit the need% of health $on%$iou% indi&idual%* Ad&erti%ing %hould fo$u% on people adopting a health life%tle* The %hould $ome out with a new Fitne%% mantra whi$h would %how the 2alorie $ontent of the food and would tr to do %omething different whi$h will enable them to re&er%e the negati&e per$eption% that $on%umer% ha&e formed of fatt fa%t food*
45
Moreo&er it% name %ignifie% that it ha% a Non";egetarian produ$t portfolio* Therefore1 b mean% of e,ten%i&e ad" $ampaign%1 the %hould di%pla a ho%t of ;egetarian food% that the ha&e on their menu $ard% %o that people gain awarene%% and ;egetarian% ma put 7F2 in their $on%ideration %et of fa%t food re%taurant% a% well* Thi% would al%o help them in differentiating it%elf from it% $ompetitor% and offer them a $ompetiti&e ad&antage* 7F2 will be able to %tand out from the $rowd %o that fitne%% frea) indi&idual% on one hand and ;egetarian% on the other would al%o li)e to a%%o$iate them%el&e% with thi% brand name* B"*% @'*.)(* .'"'7).
+hen a $ompan want% to e,tend it% produ$t% or $ategorie%1 it ma go for line e,ten%ion1 multi brand1 brand e,ten%ion and new brand%* Line Extension:
Thi% i% where the $ompan add% new produ$t% of %ame $ategor@&ariation% to the e,i%ting produ$t% to e,pand the breadth of the produ$t line* Thi% will e,pand the produ$t line@$ategor under the %ame brand name A%*'7. of line e,ten%ion are! •
•
•
Abilit to %pread the total brand management $o%t a$ro%% large produ$t range1 New produ$t% $an be introdu$ed to the mar)et $onfidentl u%ing the e,i%ting brand name 0ife $$le of the brand i% made longer a% new produ$t% are added to the brand*
D).%*'7 of line e,ten%ion %trateg i% that! •
It di%tra$t% the %pe$ifi$ &alue% and a%%o$iation% brand ha% alread built due to large breadth of new produ$t% i*e* e,$e%%i&e dilution of parent brand eHuit $an o$$ur*
KFC in for Line Extension:
Introdu$tion of 7F2 %ubmarine% under the brand name of 7F2 $an be %een a line e,ten%ion a% 7F2 Submarine i% new addition to e,i%ting $ategor of 7F2 $hi$)en burger%*
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In India 7F2 $ame up with the new Ri$e meal% a% an attra$ti&e propo%ition from it% %ide to $on%umer% who lo&e to ha&e a whole %ome meal and i% et to adapt it%elf to ha&e fa%t food for lun$h and dinner* The two &ariant% in the $ategor go down well with the $on%umer and al%o a$t a% a profitable produ$t &ariant for the $ompan* KFC Zinger:
7F2 inger ha% been a %ub"brand of 7F2 fighting it% wa with all other fa%t food $hain% in the popular burger %egment* +ith the pre%en$e of prominent plaer% li)e Burger 7ing1 M$Donald%1 et$* in the burger %egment 7F2 needed to $reate a %ub brand for it%elf in the %ame* inger wa% a %u$$e%% in thi% re%pe$t* Burdened with the name of whi$h hint% of Fried $hi$)en and international lega$ it i% enough to dri&e awa one third of Indian 2on%umer% who happen% to be &egetarian* 7F2 i% de%peratel tring to repo%ition it%elf a% Irre%i%tible food and not (u%t Fried 2hi$)en* For thi% enti$ing $on%umer %egment of India a L)* E@'*.)(* of the e,i%ting inger %ub brand i% re$entl introdu$ed b 7F2 J ;eg inger* Brand Extension
Thi% i% where an e,i%ting brand introdu$e% a new produ$t $ategor to the mar)et under e,i%ting brand name* A%*'7. of Brand e,ten%ion are! •
A$$eptan$e of new produ$t $ategor b loal $u%tomer of the brand1
•
0e%% promotion $o%t i% in$urred a% the e,i%ting brand name will help to $apture mar)et %hare
•
Brand reputation@brand awarene%% $an be in$rea%ed*
D).%*'7. of the brand e,ten%ion are! •
Failure in poor produ$t% $an harm the reputation of entire brand1
•
2ertain produ$t $an fail a% not all produ$t% are %uitable to be introdu$ed under $ertain brand name%
•
Brand dilution $an o$$ur* -o&er e,ten%ion of brand% $an lead to lo%% of original &alue% and a%%o$iation of brand% lo%ing the identit of the brand/ 47
G")>>% C+)/:*
7F2 u%ed thi% %trateg to laun$h #rilled 2hi$)en* The introdu$tion of grilled $hi$)en wa% an unpre$edented %en%ation* 7F2 want% to u%e #rilled 2hi$)en a% an entirel new platform with potential for adding fla&ored &ariation and other produ$t inno&ation* One of %u$h inno&ation i% Fier #rilled +ing%1 a hot wing &er%ion of 7F2 8ot wing% in fried $ategor* Thi% ha% $ome a% a re%ult of $hanging orientation of $u%tomer toward% health $on%$iou% food item%* O&er the la%t two de$ade% $on%umer% ha&e be$ome more $on$erned with their health and more %en%iti&e about the negati&e effe$t% of thi% tpe of fa%t food To promote thi% 7F2 laun$hed Unfr Da on 4Cth of April* Thi% %egment $ater% to tho%e $on%umer% who lo&e $hi$)en but are anti toward% the fried &er%ion of it* Thi% di&er%ifi$ation %trateg gi&e% 7F2 an opportunit to widen their $on%umer ba%e and $reate an entr barrier to an new firm loo)ing to enter thi% new %egment of #rilled 2hi$)en and $reate an anti Fried $hi$)en promotion*
So thi% %trateg $an be %een a% 7F2 loo)ing ahead to tap new $u%tomer%1 and fend off an $ompetitor% that $an harm the parent brand* But from $on%umer point of &iew it wa% bound to $reate $omple,it and $onfu%ion a% 7F2 reminded them of (ui$ fried $hi$)en* Sudden &enture of 7F2 to unthin)ing and pre%ent grilled $hi$)en might ha&e off%et them* The $onfu%ion i% %ame with the di%tributor%1 or fran$hi%ee* Although ad&antage of brand e,ten%ion wa% to in$rea%e the probabilit of gaining di%tribution and trial but the $o nfu%ion with the fran$hi%ee $reate% and ob%ta$le for grilled $hi$)en to ma)e it% wa to $on%umer* Thi% $an be a di%a%ter for the brand* So the awarene%% mu%t be propagated b 7F2 to them a% thi% %trateg will not harm the parent brand but a$t a% a %hield to %ub%titution and attra$t new $u%tomer* R')>
7F2 ha% an opportunit to hit the fa%t growing organi'ed retail mar)et in India b going for Brand E,ten%ion and ma)ing a fora in the fro'en food %egment* It $an go ahead and laun$h fro'en $hi$)en for burger% and et$* whi$h reHuire% minimum $oo)ing* Thi% $an be laun$hed a% (*> )* =($" :)'/+* to gi&e ou the irre%i%tible delight of 7F2* 48
F) (.' )6("'*' 6")(")'= )*)')'). I '+)*: " 7((% '( .'"' '((""(? (" '+ ;"*%#
A$$ording to the pre%ent %ituation the 7F2 brand fa$e% )e $hallenge% in global arena* If we $on$entrate at India the $hallenge% are different* The $hallenge% %hould be the )e priorit area% and %hould be wor)ed upon* +e ha&e identified the following priorit area% and the initiati&e% that %hould be ta)en* a/
6:P of India i% &egetarian* Thi% &egetarian %egment $an be further di&ided into %en%iti&e and non"%en%iti&e
&egetarian* Although $ore of the brand 7F2 %pea)% onl about $hi$)en but in $a%e of India $ertain twea)ing i% reHuired* The%e twea)ing %hould be in term% of menu or produ$t line1 $ommuni$ation and po%itioning* The brand %hould be po%itioned in the mind of $on%umer a% not onl for great $hi$)en but for irre%i%tible and great ta%te* A$ti&itie% %hould be bia%ed toward% ma)ing 7F2 an in$lu%i&e brand1 whi$h mean% that it pro&ide% %omething for e&erone and at the end it %tand% for great irre%i%tible ta%te* ;eg inger1 ;eg Ri$e meal% are %tep% to building the %ame repute for the brand b doing $ertain twea)ing in the menu* b/
2ommuni$ation of 7F2 %hould be dire$ted toward% great irre%i%tible ta%te and promote along with it
0i$)onomi$% or Finger li$)ing i% good* The $ontent of the $ommuni$ation %hould not onl be $hi$)en but fo$u% %hould al%o be on the &egetarian di%he%* $/
2ertain 7e Su$$e%% fa$tor% for 7F2 %hould in$lude number of outlet% and de%ign and ambien$e of outlet%* A%
the Brand want% to portra it%elf a% $ontemporar and modern there %hould be fo$u% on impro&ing the de%ign of %hop%1 introdu$e warm lighting and ma)e it bit more $omfortable with %tli%h de%ign %o that there i% a bu'' of energ that lift% people up* d/
Indian $u%tomer% fa&or% e,ten%i&e menu with &ariet and pri$e option%* So $ertain twea)ing in menu %hould be
done* Old mo&ing menu item% %hould be gi&en %ome pu%h through %pe$ial% of the wee)* e/
A% 7F2 attra$t% lot of $riti$i%m from different N#O and other %o$ial organi'ation% there %hould be an
in$rea%ed fo$u% on the 2SR a$ti&itie% $arried out b 7F2* Initiati&e% li)e #reen Da emploing handi$app ed per%on% and other po%iti&e% mo&e% toward% the lo$alit of ea$h and e&er %hop will help $reate a po%iti&e image of the brand and it% in$rea%e it% a$$eptan$e b the $on%umer and %o$iet* Another mo&e $an be mentioning $alorie $ount on it% food item% whi$h will help pro(e$ting it a% a health $on%$iou% brand*
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CONCLUSION
7F2 2orp1 owned b UM brand% i% one o the olde%t -3:4/ and mo%t popular $hi$)en and food re%taurant n the world*7F2 primaril %ell% $hi$)en pie$e%1 wrap%1 %alad% < %andwi$he% while it% primar fo$u% i% fried $hi$)en* In India the opened in 3: and after entering into the mar)et li)e India it ha% e,tended it% menu with ;eg di%he% e%pe$iall for their &egetarian $u%tomer* Thi% ha% in$rea%ed it% $u%tomer range and thu% helped in in$rea%ing it% %ale* After doing the Strategi$ #roup Data Anal%i% of $ompetitor%1 the re%ult $learl %how that $urrentl 7F2 i% ling in the 6rd po%ition1 being Ma$ Donald at the top follow b Domino% .i''a* Sin$e number of outlet% and good $u%tomer %er&i$e i% a )e fa$tor to in$rea%e it% rea$h and tr to mo&e rightward* To grow in thi% $ompetiti&e mar)et1 7F2 ha% to impro&e it% a$$eptabilit b $u%tomi'ing it% menu to %uit lo$al ta%te and pri$e will be$ome le%% important a% almo%t all plaer% in the indu%tr will be %imilarl pri$ed* A% it i% $lear that the %trength of 7F2 i% it% ta%te1 %o it i% re$o mmended that 7F2 %hould tr to differentiate on thi% ba%i% from it% $ompetitor%*
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