1. IN INDIA
ETHICAL ISSUES
Presented By-
Kalyani Singh
Neha Singh
Shahbaz Khan
Shakshi Gupta
Surendra Singh Bisht

2. BACKGROUND OF KFC
 KFC is based in Corbin, Kentucky, U.S. and is the
world’s most popular chicken restaurant chain.
 Founded by Colonel Harland Sanders in in the early
1930s by cooking & serving food for hungry travellers.
 In 1952 Sanders started franchising his chicken
business & named it as KENTUCKY FRIED
CHICKEN.
 KFC is part of Yum! Brands, Inc., the world's largest
restaurant company in terms of system restaurants, with
more than 36,000 locations around the world.
 KFC operates more than 15,000 units in 109 countries
and territories around the world.

3. CONTINUE…..
 Every day, more than 12 million customers are
served at KFC restaurants.
 KFC is world famous for its Original Recipe
fried chicken -- made with the same secret blend
of 11 herbs and spices
 Customers around the globe also enjoy more than
300 other products -- from KFC
 The company is ranked #239 on the Fortune 500
List, with revenues in excess of $11 billion in
2008.

4. KFC’s Entry in INDIA
 KFC was the first fast food multinational to enter
INDIA , after the economic liberalization policy
of the Indian Govt. in early 1990s.
 KFC received permission to open 30 new outlets
across the country
 KFC opened first fast food outlet in Bangalore in
June 1995 by targeting upper middle class
population.
 PepsiCo planned to open 60 KFC and Pizza Hut
outlets in next 7 yrs in the country.

5. ISSUES
Govt. was criticized for granting permission to
multinational food giant
Threat to domestic business
Nationalists feared a cultural invasion
Nutritionists highlighted the high rates of
obesity, hypertension, heart disease and
cancers
Monosodium Glutamate (MSG) controversy

6. PROBLEM for KFC
Protests by angry farmers led by the Karnataka
Rajya Ryota Sangha (KRRS).
Protests by Ecologist
Protests by PETA . Support of celebrities in
against of KFC
Non-Conformity with food products
regulations

7. SWOT ANALYSIS

8. STRENGTH
 World’s largest restaurant company in terms of
system restaurants, operates more than 15,000
units in 109 countries and territories around the
world.
 KFC is world famous for its Original Recipe fried
chicken -- made with the same secret blend of 11
herbs and spices
 Ranks highest among all chicken restaurant
chains for its convenience and menu variety.
 Generate $1B each year

9. WEAKNESS
 LACK OF KNOWLEDGE ABOUT THEIR CUSTOMERS.
 LACK OF FOCUS ON R&D.
 MSG FLAVOUR IN CHICKEN

10. OPPORTUNITY
RETAIL BOOM IN INDIA
INDIANS YOUTH ARE ADOPTING WESTERN
CULTURE
INDIAN ECONOMY
METROPOLITAN RAPID DEVELOPMENT

11. THREATS
INDIAN RECIPIES LIKE TANDOORI CHICKEN
PETA AND KRRS LIKE ORGANIZATIONS
POLITICAL PARTIES PROTESTING FOR JUNK FOOD
PROTEST SUPPORT FROM FAMOUS PERSONALITIES
LIKE ANIL KUMBLE,ADITI GOVITHRIKAR,JOHN
ABRAHAM ETC

12. PESTEL ANALYSIS
POLITICAL
ECONOMIC
SOCIAL
TECHNOLOGICAL
ENVIRONMENTAL
LEGAL

13. MARKETING CONCEPTS
NEEDS – a consumer needs food
WANTS – they want chicken or other non-veg
DEMANDS – but they demands KFC’s fried
chicken

14. TARGET MARKETS
As the outlets of KFC are in posh area and
prices are too high (overhead expenses-
rent, air-conditioning, employees),
KFC targets upper and middle classes, youth
Target market depends upon size and growth
rate of population,

15. MARKET SEGMENTATION
 Geographic segmentation : In India KFC focuses
how geographically its customers demand
different products.
 Demographic Segmentation: In demographic
segmentation, the market is divided into groups
based on an age, gender, family
size, income, occupation, religion, race and
nationality.
 Psychographic segmentation: in this
segmentation ,the market is divided into middle
class & upper class

16. PRICING STRATAGY
 Their products are priced high and target the
middle to upper class people
 KFC adopt the cost base price strategy.
 Pricing of the product includes the govt. tax and
excise duty
 The products are bit high priced according the
market segment and it is also comparable to the
standard of their product.
 In the cost based method we include the variable
and fixed cost.

17. PROMOTION
Advertising
Sales Promotion
Public Relations
Events and Experiences
Coupons, Discounts and Bundled packages

18. COMPETITION
 We can compare the price of their products with
mcdonald, dominoes and pizza hut.
 If the competitor provides the same product at a
lower price then the organization usually lowers the
price of its product too.
 In the case of kfc, fried chicken is its main selling
point and controls a monopoly over the indian fast
food market (only with fried chicken).
 It prices its burgers, french fries and soft beverages
with relation to its competitors.

19. SOCIAL MARKETING
Facebook
Twitter
Google+

20. RECOMMENDATIONS
 the company should be able to use an ethical
management strategy that will uplift the image of
the company.
 uses of marketing knowledge, concepts, and
techniques as well as with the social
consequences of marketing
policies, decisions, and actions
 every business organization should understand the
importance the culture, regulatory & ecological
issues in different countries.

21. THANK YOU