s From $105 to 9.7 Billion $ in 58 years
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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
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.
s From $105 to 9.7 Billion $ in 58 years
’
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
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.
CONTENTS :
INTRODUCTION HISTORY MISSION & VISION PHILOSOPHY OF KFC COMPETITORS COMPET ITORS & ANALYSIS ANALYSIS COMPANY STRATEGY SEGMENTATION SWOT ANAL ANALYSIS 4P s PESTLE ANAL ANALYSIS YSIS RECOMMENDATIONS & FINDINGS ’
INTRODUCTION :
KFC is the world s largest and most well known chicken restaurant with chains in more than 10,000 locations and worldwide in 80 countries. ’
KFC is part of YUM Brands Inc. In 1997, KFC franchised with Gray Mecanza International.
HISTORY :
At the age of 40 as an operator of a service station in Corbin, Kentucky Colonel returned to his love of cooking and began to cook and serve food to hungry travelers from his own living quarters. Since 1950 KFC has grown at a remarkable pace from one roadside restaurant into an internationally renowned restaurant chain and one of the largest chain of chicken restaurants in the world.
HISTORY :
The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952. The company adopted the abbreviated form of its name in 1991. Business grew larger than Colonel could handle,so he sold it to a group of people who formed the Kentucky Fried Chicken Corporation. KFC Corporation is a chain of fast food restaurants based in Louisville, Kentucky in the
MISSION :
To be the leader in western style quick service restaurants through friendly service, good quality food and clean atmosphere.
VISION :
Food, Fun and Festival ,this is what KFC is all about. KFC provides the ultimate chicken meals for a Chicken Loving Nation. Be it Colonel Sanders secret original Recipie Chicken or the Hot & Spicy Version, every bite brings a yum on our face.
KFC PHILOSOPHY:
Philosophy of KFC stands on the Champs Program.
CHAMPS PROGRAM : CHAMPS stands for the six universal areas of customer expectation common to all cultures and all restaurants concepts. These are : Cleanliness Hospitality Accuracy Maintenance of Facilities Product quality Speed of Service
COMPETITORS :
COMPETITIVE ANALYSIS :
KFC adopted such a strategy that there is no competitor for its Spicy Chicken. KFC beats its competitors through the revising marketing strategy.
COMPANY STRATEGY :
Primary advantage is to take advantage of the potential growth in other countries, to establish a strong position and to develop their image. Key success factors are ever continuing cost saving through R&D, innovation and use of new technology to work efficiently. These success techniques will lower the cost and increase the profit in the industry.
SEGMENTATION :
They have made segments of the market on the following bases :
Demographical Behavioral Geographical.
DEMOGRAPHICS : In demographics their first segment is considered of the income factor : High income Average income Low income
BEHAVIOURIAL: They segmented the market on the basis of quality,taste and price. Following are the different possible segments in this regard : Taste conscious Quality conscious Class conscious Combination of price and quality.
GEOGRAPHIC : Market is divided into two segmaents : Urban areas Sub urban areas
SWOT ANALYSIS : •
STRENGTHS :
KFC secret recipe of 11 herbs and spices. Strong Franchises all over the world. Interactive relationship marketing. Chains for its convenience and menu variety.
SWOT ANALYSIS :
WEAKNESS :
Lack of focus on Research & Development Lack of knowledge about their customers. They only focus on higher income level people. KFC s desserts are not as good as it should be.
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SWOT ANALYSIS :
OPPORTUNITIES :
They have the opportunity to expand their deserts menu. They can open temporary outlets in peak season in the hill stations. They can capture more customers by decreasing the prices of their products. Updating the restaurants and balancing the menu. Changing customer lifestyle and taste.
SWOT ANALYSIS :
THREATS :
Diseases like birdflu is a big threat for KFC. Change of customer demands Existing and new competitors. Frozen food is not good for health and despite the standard they maintain.
4 P s of MARKETING:
PRODUCT
PRICE
PLACE
PROMOTION
PRODUCT :
Their all products are different and the packaging and other product features are different from other products. They change their products by introducing new products but their main product the Kentucky fried chicken is the same.
PRICE :
The price is not affordable by all the persons round the globe. Due to its large setup the price selecting is very challenging for the new product of KFC.
PLACE:
They provide free home deliveries for some specific areas. They open their outlets in those places in the cities where people can buy products easily and without difficulties. They also introduce mobile units for delivery of their products.
PROMOTION :
They promote their products through billboards , pamplets and through other promotion strategies. Also they have introduced goods like watches, keychains, coffee cups, T-shirts, toys, etc to the customers (part of sales promotion). Promotion is also done via press advertising, hoardings, commercials, etc.
PESTLE ANALYSIS
FINDINGS
KFC was trying to increase market share in other regions of South America beside Mexico & Caribbean. But financial constraints restricted KFC from doing so. KFC focus on strengthening its position in Mexico & Caribbean Only. New Competitors like Habib ’s and Wendy’s were establishing new restaurants in Mexico. KFC had largest market share of fast food chains in Mexico. Devaluation of Pesos did not effected KFC, because their production plants in Mexico were utilizing local resources.
RECOMMENDATIONS
If KFC could increase company own restaurants, which enables it to control quality, services and restaurant cleanliness. Therefore more capital is needed. On the other hand if company operated franchise based restaurants throughout Latin America, its brand image could be build and its competitors will be loosing first more advantage. Latin American markets is developing markets, so its growth is high and entry barriers are low.
RECOMMENDATIONS
KFC could make strategic alliances with key suppliers to gain advantage over competitors in the market.
An a peeling business model and good strategy has golden opportunity to shape the rules and establish itself as the recognize market leader.
CONCLUSION
FOCUS OF THEIR STRATEGY SHOULD BE ON THE COUNTRIES LIKE CHINA, AND INDIA ETC BECAUSE THEY PROVIDE MARKETS WHICH HAVE HIGH GROWTH RATE
