1. Superior University Lahore
Assignment Of
Economics
BBA - 3B
Group Member
M.Usman 11461
M.Irfan 11442
Junaid 11478
Arslan 11480
Rameez 11443
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2. Acknowledgement
In the name of Allah, the most beneficent & the Merciful.
Firstly, we all likely to thank mighty Allah who provides us knowledge, energy & skills to get
opportunities & to increase our knowledge & experience by completing this project.
Secondly, we especially thank to our instructor Ms. Zaara who guides us at every step & every
aspect of this report, so that’s competed successfully.
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4. EXECUTIVE SUMMARY
The information used in the analysis of KFC came from variety of resources, including the
internet & different KFC’c outlets. The combination of these resources provides the basic for a
valid current analysis of KFC.
The major findings of KFC are as under
KFC competing the competitors & maintaining strong relationship with customers by taking
under consideration its Macro & Micro environment very efficiently.
KFC has segmented its market on the basis of segmentation variables like demographic,
psychographic, geographic & behavioral.
KFC is showing certain buying behavior. KFC is following of market penetration, market
development & product development for increase its customers. IT is following production,
marketing & social marketing strategies for increasing its market share and growth.
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5. 1) HISTORY
KFC (formerly known as Kentucky Fried Chicken) is the project of Gray Mackenzie
Restaurants International Ltd. Founded first by Col Harland Sanders; KFC is known for
its fried chicken.
More than 10,000 outlets in the world.
It was launched in 1997, Gulshan-E-Iqbal, Karachi.
Presently in Pakistan, it is been operated by Cupola, a Dubai based multinational
company involved in several business.
In Pakistan, currently it has 43 branches.
2) KFC VISION STATEMENT
Food, Fun & Festival, this is what KFC is all about. Leading the market since its
inception, KFC provides the ultimate chicken meals for a Chicken Loving Nation. Be it Colonel
Sanders secret original Recipe Chicken or the Hot & Spicy Version, every bite brings a YUM on
our face. At KFC we can proudly say, “We Do Chicken right”.
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6. 3) KFC MISSION STATEMENT
We are committed to customer satisfaction through offering high quality with excellent
services and good value.
We take great pride in serving each other, our customer and our communities.
We seek continuous improvement in all that we do.
Objectives of KFC
Every organization and company has some certain goals laid down by them to achieve to make
it renown and have value added services to satisfy customers.
Build an organization dedicated to excellence.
Consistently deliver superior quality and value in our products and services.
Maintain a commitment to innovation for continuous improvement and grow, striving
always to be the leader in the market place changes.
Generate consistently superior financial returns and benefits our owner and employees.
To establish a position in Pakistan as a leading WQSR (Western Quick Service Restaurant)
chain, serving good value added services and Innovative chicken based products. KFC is
consistently providing a pleasant dining experience, with fast friendly, in a clean and convenient
location. Every moment dedicated to providing excellent and delighting customers.
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7. Values of KFC
Focusing all resources to the restaurants operation because that is where we serve our
customers.
Reward and respect the contributions of each individual at KFC.
Expand and update training with time and be the best we can be and more.
Be open, honest and direct in our dealings with one and other.
Commit ourselves to the highest standard to the personal and professional integrity at all
times.
Encourage new and innovative ideas because these are the key to our competitive growth.
Reward result and not simple efforts.
Dedicate ourselves to continuous growth in sales, profit and size of organization.
Work as a team.
4) KFC’s PRODUCTS
a) Core Benefit
The core benefit is “To Kill hunger”.
b) Products of KFC
KFC have three main product lines. The burgers, chicken meals and the snacks.
The category of chicken is relatively static.
c) Burgers
The category of burgers is
1. Zinger
2. Chicken Burger
3. Zinger Xtreme
4. Fish Zinger
5. SUB (60,80)
6. *Col. Filled Burger
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8. d) Snacks
Snack family has been various products.
1. Arabic Rice
2. Fruit Salad
3. *Corn on the cob
4. *Scoop of Walls
5. Fries
6. HOT SHOTS
7. Rice Spice
(*) These items are not available at a few restaurants.
e) Chicken Meals
Chicken meals include the different combinations of fried drum sticks.
Features
Different and better taste
Hot and Spicy version of chicken
Superior Quality
KFC SWOT Analysis
Strengths
Brand Equity
KFC secret recipe of 11 herbs and species
Very strong internationally
Strong Franchises all over the world
Interactive relationship marketing
Strong trademarks recipes
Ranks highest among all chicken restaurants
Chains for its convenience and menu variety
Largest multi-branded restaurant in the world
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9. Weaknesses
Lack of knowledge about their customers
Lack of relationship building with employees, customers and suppliers
Lack of focus on Research &Development
KFC desserts portion is not as better as should be
They only focus higher income level people
Opportunities
They have the opportunity to expand their sweet products
They can open more outlets to get maximum market share
They can open temporary outlets in peak season in the hill stations like Narran, kaghan,
swat etc.
They can capture more customers by decreasing the price of their products
Updating their restaurants, Balanced menu, customer focus and Increase delivery service
Threats
Rated 83 out of 100 in terms of competitiveness
Increasing inflation rates directly affect menu prices
Supermarkets and new competitors
Health Trend away from fried foods
Changing customer demands
Some international events badly affected the market of KFC in Pakistan like IRAQ and
AFGHAN war and we know KFC is American based. Therefore, it creates a great impact
on the performance of KFC. During the war the sale of sale KFC decrease more than
25%
Current political situation is a big threat for KFC
Diseases like bird flu is the big threat for KFC
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10. Marketing Strategy
Segmentation
KFC has divided the market of Pakistan into distinct groups of customers with different
demands, tastes and behavior who require separate products or marketing mix.
In Pakistan the niche marketing is being used for particular classes of people.
They have made segments of the market on the following bases.
Demographical
Behavior
Geographical
Analysis & Recommendations
Analysis:
KFCis market leader in providing Fried Chicken. As KFC is addressing Fast Food, so it is
competing with the prominent market signs, like Pizza Hut and McDonalds.
Product:KFC is doing well so far. It needs improvement in their Hot-Menu. They
Should make their menu dynamic, by introducing new meals ____after certain period of
Time. New items should be introduced, by varying the taste. Like, pizza hut has come up
With "Chapli Kebab Pizza" ___ addressing the local taste; KFC should go for such
Innovation, in order to increase their market share.
Price _ of KFC is reasonable, if compared with other fast food restaurants. But as, price
is always the primary concern for consumers; so KFC should adopt certain strategy to attract the
consumers. Its not only by lowering their prices. It could be by, introducing discount packages, for
families, employees, students and regular customers. The membership cards can be used to,
provide certain extra value to the consumers.
Placementis very important factor, for a company to increase its market share, by targeting the
right consumers. KFC need to have more outlets, at commercial areas. It will help in targeting the
actual customers and potential customers as well. Mobile outlets can be effective addition as well.
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11. Promotion:KFC has large customer equity, but being a market symbol, a company should strive
for having more actual customers. KFC should work for, having a solid marketing department.
They should organize and run advertisement campaigns. It would certainly be incremental factor
for their sale. Different modes of advertisements can be used for, triggering the community. KFC
could use brand promoters. KFC can setup, promotional campaigns. All what is needed is a well
established marketing department, in order to facilitate effective, promotions.
Conclusion
KFC is providing employment to 1200 Pakistanis which adds up to 6000 Pakistanis directly
dependant on KFC.
KFC paying Rs.10 million to Govt. of Pakistan as direct taxes.
95% of its food and packing material is used in KFC Pakistan is produced locally which sums
up to purchase of 35 million per month.
Each new outlet developed by KFC Pakistan spends 40 million rupees that’s a massive
amount for this industry.
From above analysis, it’s clear that KFC and Pakistan are growing together. So KFC is doing
well at Pakistan. KFC is also following marketing strategies, segmenting the market to
segmentation variables and increasing their market share. KFC is leading in Fried Chicken. It
gives quality, variety and fresh meal as of its competitors.
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12. Suggestion
There are some suggestions for kfc e.g.
1) Should work for vegetarian like Hindus.
2) Must focus on the poor people and should make some products for those. Which should
be cheap in price?
3) Even think about innovation in the business e.g. they can make motels and hotels.
But even though
About kfc I must quote a proverb:
Even if you are on the right track you can get run over if you just
sit there.
Kfc was the person who had in his mind that someday he will succeed. So he started his journey.
He starts his business when no one wants to purchase his product. But even though through his
determine power he succeeded and now we see that all over the world kfc is working. Here we
got the message that a will power of any person man can get everything.
References
1. WWW.KFC.COM
2. WWW.KFCPAKISTAN.COM
NAVEED IQBAL, BUSINESS UNIT MANAGER, KFC, MALL ROAD, LAHORE
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