Table of Contents

Executive Summary ..........................................................................................................2

Introduction of Company....................................................................................................3
History of KFC ...................................................................................................................3
Philosophy of KFC..............................................................................................................5
The CHAMPS Program...................................................................................................5
Current Market Situation ....................................................................................................6
Market Share....................................................................................................................6
Current Products Review.................................................................................................6
Competitive Analysis.......................................................................................................8
KFC SWOT Aanalysis.........................................................................................................8
Objectives of KFC.............................................................................................................10
Values of KFC...............................................................................................................10
Issues of KFC.....................................................................................................................11
Every Chicken Tested....................................................................................................11
Every Chicken Certified................................................................................................11
Marketing Strategy.............................................................................................................12
Segmentation..................................................................................................................12
TARGET MARKET FOR FAST FOOD......................................................................13
4P’s Of Marketing..........................................................................................................14
Services..........................................................................................................................14
Environmental factors........................................................................................................15
Socio-Cultural Element..................................................................................................15
Technological Elements.................................................................................................16
Economic Elements.......................................................................................................16
SalesPromotion .................................................................................................................16
Advertisment......................................................................................................................17
Price...................................................................................................................................18
Budget analysis..................................................................................................................18
Executive Summary
The following marketing plan of the KFC (Kentucky Fried Chicken)
describes as a major Quick Service Restaurant (QSR) operator in
Pakistan, which has been established for just over 10 years. It serves
mainly chicken related items and also offers add ups to its consumers
as well. More and more Pakistanis have been opting for a healthier
eating diet as a large number of them have become more health
conscious. This has opened the door for KFC’s main competitors, such
as McDonald’s, to come out with a new range of healthier products,
allowing them to mount a greater challenge on KFC’s position as
Pakistan’s leading fast food operator. As a response to the
advancement made by KFC’s competitors in providing healthier fast
food, KFC to introduce a new set of healthier products that would be
mainly targeted at health conscious people. Its target market would
largely be based on segmentation of age, where it would be focused on
customers in the age group of between 4 to 40 years old. The pricing
and promotion strategies would also be looked into as KFC prepares to
battle with its rivals.

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 Introduction of Company
KFC is the world largest and most well known chicken restaurant,
with chains in more then 10 thousand locations and worldwide in 80
countries. KFC and its franchised employees are more than 200
thousand in all over the world.
John Y Brown and Jerry Messy purchased KFC for USA for $2 million in
1964 that time KFC become a corporation. After five years, Colonel
buys first 100 shares of KFC. In 1986, Pepsi Company purchased KFC.
Pepsi company changed the logo from Kentucky fried chicken to KFC in
1991 and then in 1992 KFC 1000th restaurant opened in Japan and in
1994 9000th restaurant in china.
KFC is the part of Tricon global restaurant. Tricon global restaurant is
the world largest restaurant group, with in nearly 100 countries around
the world, which in turn was spun off in 1997, and has now been
renamed to Yum! Brands. In 1997, KFC franchised with Gray Mecanza
International and started work in Pakistan. Rawalpindi branch started
work in 1999 and in Islamabad in August 2002 and now in Pakistan;
there are 45 outlets nation-wide.

History of KFC
Since 1950’s KFC has grown at a remarkable pace from one road side
restaurant into an internationally renowned restaurant chain and one
of the largest chain of chicken restaurants in the world. But none of
this would have happened if it would not been the hard working and
persistence of one man Colonel Harland D. Sanders. The Colonel
was born in 1890 and was only six when his father died and his mother
had to go out to work to support the family.

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But it was 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. After a
short span of time, customers were turning up for food alone so he
moved across the street to a motel and 142-seater restaurant which he
named “Sander’s Court” it was during this time that the Colonel
devised his recipe for fried chicken using a secret blend of 11 herbs
and spices the same blend of recipe is still used in KFC all over the
world and is called the “Original Recipe”. His restaurant became so
popular the state governor made Harland Sanders a Kentucky
“Colonel” in honor of his fine contribution to state cuisine.
The Colonel often visited small independent restaurants to teach the
owners how to prepare his unique chicken. After the cooking was
complete the Colonel would go into the restaurant’s dining room and
do what he called Coloneling, making sure that customers were happy
with the chicken and the service they were receiving.

KFC
Eventually, the business grew larger than the Colonel could handle, so
he sold it to a group of people who formed the Kentucky Fried Chicken
Corporation. The Colonel remained KFC’s Goodwill Ambassador.
The Colonel died in 1980, at the age of 90. Although the Colonel is no
longer with us, but his philosophies of hard working and excellent
service to be the number one priority of KFC, will always be a part of
KFC tradition.

KFC specialized in chicken and they says,

“No body’s cooking like KFC today and we are

the chicken experts”

“There is no competitor for spicy chicken which

is made by KFC”

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“To be the leader in western style quick service restaurants through
friendly service, good quality food and clean atmosphere”

Philosophy of KFC
Philosophy of KFC stands on “the Champs Program” whereas the philosophy of
McDonald is on “People”.

THE CHAMPS PROGRAM

Champs stands for our belief that the most important thing each of us
can do is to focus on the customer. It stands for our commitment to
provide the best food and best experience for the best value.
CHAMPS stand for the six universal areas of customer expectation
common to all cultures and all restaurants concepts. These are:
C leanliness
H ospitality
A ccuracy
M aintenance of Facilities
P roduct Quality
S peed of Service
CHAMPS is the philosophy to ensure that the customer has the
consistent quality experience in every restaurant, everyday, on every
occasions and you will be playing role in delivering CHAMPS to our
customers.

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Current Market Situation
Customers generally choose the restaurant they will eat at based on
quality, rapidity, and variety of items. KFC’s customers are also really
price sensitive and will go elsewhere if they find that the value is not
worth the price. They can also be characterized by being people that
want to be served fast and be out of the restaurant in no time.

MARKET SHARE
KFC has a very long history and has the most recognize able brand in
chicken with over 50% of the market share. It becomes difficult for the
companies like Sub way, Mc Donald’s, Chicken planet, Dixie or those
who may want to enter in the market of fast food restaurants.
Due to over 50% of the market share in fast food industry KFC has
recognition around the world and has been globally positioned for
many years in Pakistan and to capture the market share in Pakistan
adopts champs philosophy.

CURRENT PRODUCTS REVIEW

•Mighty Zinger •Arabian spice
•Zinger burger •Chicken mania
•Fish zinger burger •Dinner rolls
•Col. Fillet burger •Crispy chicken chunks
•Salsa twister •Hot and crispy soup
•Macho’s burger •Soft Drink
•Chicken burger •Cola slaw
•Cheese •Scope of wall
•Sub 60 •Fruit salad
•twister •Mineral /water
•Nuggets •Espresso
•Hot wings •Cappuccino
•Fries •Milo
•Corn on the cob •Frothe

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7
COMPETITIVE ANALYSIS
Any Organization cannot enjoy the business without competitors. No
organization can afford to ignore there competitors. It is very important
for a marketing managers to monitor the activities of there
competitors, what they are doing? KFC adopted such sort of strategy
that there is no competitor for spicy chicken, which is made by KFC.
KFC beats its competitors through the revising marketing strategy at
every movement but the main competitor of KFC is Mc Donald’s.

KFC McDonalds
Spicy Products Burger and French Fries
Pakistani people like spicy products
instead of boiled food

Arabian Rice and Zinger Burger Big Mac

Free Delivery Free delivery

Chicken is eaten by every community Beef is banned in some community

Its Staff consist of simple Graduates and
Local Staff and Highly Qualified because give them training
local staff can better deal
with the customers
McDonalds Uses Top To Bottom
KFC uses Top to Bottom and Bottom to Approach.
Top Approach in
Management.
No such Case.
KFC is Co branding with Walls

KFC SWOT Aanalysis

Strengths
• Brand Equity
• KFC secret recipe of 11 herbs and species
• Very strong internationally
• Strong Franchises all over the world

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 • 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

Weaknesses
• Lack of knowledge abut 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 naran, 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

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 • 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 then 25%
• Current political situation is a big threat for KFC
• Diseases like bird flu is the big threat for KFC

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.

Values of KFC
 Focusing all resources to the restaurants operation because that
is where we serve our customers.

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  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.

Issues of KFC
EVERY CHICKEN TESTED
K & N’s state-of-the-art Quality Assurance Lab
monitors the entire integration process from
livestock to feed and on to preparation of ready-
to-cook and cooked products.

EVERY CHICKEN CERTIFIED

HACCP – K & N’s ensures food safety by
implementing the international HACP (Food
Safety System) and enjoy the unique privilege of
being the first and only HACCP certified
company is Pakistan producing chicken and chicken products. Free
from diseases and bacteria, drug residues and other contaminants.

Quality Assurance Certificate

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Director General (Research) has issued quality assurance certificate for
the chicken used by KFC.

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

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DEMOGRAPHICAL BASIS
In demographics their first segment is consisted of the income factor
i.e. high income, average income and low income.

BEHAVIOR
In behavioral aspect 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

GEOGRAPHICAL BASIS
In the basis of the geographical factor we have divided our market in
three main segments.

 Urban areas
 Sub urban areas

TARGET MARKET FOR FAST FOOD

After evaluation of various segments, KFC has decided to target the
market of Urban and Sub-urban Areas of Pakistan.

 People are educated and they want variety in their diet.

 Normally people of rural areas don’t take fast food. On the other
hand people of urban areas take fast food.
 Income of the people of urban areas is normally high and they
can afford to purchase such products, which are slightly higher in
price as compared to prevailing prices of local food in the
market.
 People of Urban Areas are more quality conscious than the
people of Rural Areas.

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  In Urban Area there lived people from every walk of life and
profit generation is easier than in Rural Areas.
 Population density is higher in Urban Areas as compared to Rural
Areas, so the numbers of customers are more in Urban Areas.

4P’S OF MARKETING
Product
Their all products are different from every product and the packaging
and other products feature are different form other they change there
products by introducing new products but their main product the
Kentucky fried chicken is the same

Price
The price is not affordable by all persons in Pakistan. Due to its large
setup the price selecting are very challenging for the new product of
KFC

Place
They provide free home deliveries for some specific cities. 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

Promotions
In Pakistan KFC not advertise there products too much because people
KFC due to its reputation in other countries. They promote their
products through special packages like Ramadan packages, mid night
package. They promote there products through billboard, pamphlets
and through other promotion strategies.

SERVICES
KFC offered free home delivery service at specific branches in specifics
cities. They take at 30 min for delivery and the minimum delivery order
should Rs.250.

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They also provided services to celebrate the birthdays of kids at there
home or in KFC restaurants. Now recently KFC also provide services of
mobile unit of KFC.

Environmental factors
SOCIO-CULTURAL ELEMENT
Culture element includes the attitudes, values, norms, beliefs,
behaviors and associated demographic trends that are features of a
given geographic area.
Multinational company faces the challenge to understand about the
culture of that country where they work. To solve these problems KFC
hire all employees of local area and now it is easy for them to
understand about the culture of Pakistan. KFC management knows
about that Pakistan is a Muslim country; therefore they use 100%
Halaal (Zibiha) chicken.
KFC start their branches in those cities which are famous for food
eating. Pakistani people like spicy foods, therefore KFC also provide
spicy foods in Pakistan. KFC open its branches in advance cities of
Pakistan like Lahore, Karachi, and Islamabad/Rawalpindi etc. In these

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cities mostly come out with their family because KFC mainly focus
family.

TECHNOLOGICAL ELEMENTS
New techniques affect the quality of products and services in better
way. Technology is very important in order to compete with the
competitors. Organizations have an eye on their competitors and also
new techniques which their competitors used. Today the world going
fast and market is globalize, new techniques comes in production and
services departments.
Although KFC and McDonald’s has same cooking machinery but KFC
has efficient delivery system; they provide home delivery so quickly.
KFC purchase machinery from Hanney Penny company, they are main
suppliers of machinery through out the world.

ECONOMIC ELEMENTS
In Pakistan there is a mixed economy so private organization easily
perform their tasks within any given economic system of course,
organization are influenced by a variety of economic features over
which they have little independent control, such as inflation, interest
rates and recession
Another important input to the enterprise is the nature of government
fiscal and policies. KFC paid tax properly.

SalesPromotion
For sales promotion KFC has introduced different strategies such
Ramadan Package, Birthday Package, Midnight Package and many
other. Also they have introduced goods like watches, keychain, coffe
cup, T-shirt, toys e.t.c to the customers

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Advertisment
Press advertising
• Jang (Karachi, Lahore & Rawalpindi):
• The news (Karachi, Lahore & Rawalpindi):
• Dawn (Karachi, Lahore, Rawalpindi):
• Magazines

Hoardings
In addition to regular hoardings, temporary hoardings for 2-3 months
have also been taken.

Commercials
Advertising on different Cable channels like Geo, Ary World, Ten
Sports, Music channels, etc and also advertising on world call Cable
advertising

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Price
Samples of some products that KFC offers, how they set the price of a
product

PRICING STRATEGY FOR TWISTER

Manufacturing cost RS. 225/-
5% marketing cost (PER UNIT) RS. 5/-
Total cost RS.230/-
15% G.S.T +15% RETAIL MARGIN RS.69/-
Total retail Price RS.300/-

PRICING STRATEGY FOR HOT SHOTS

Manufacturing cost RS. 117/-
5% marketing cost (PER UNIT) RS. 5/-
Total cost RS.122/-
15% G.S.T +15% RETAIL MARGIN RS.53/-
Total retail Price RS.175/-

Budget analysis
Sales Forecast.
Estimated sales should be around Rs: 200,000 to 3,00,0000
Projected Balance Sheet.
Assets Rs. Liabilities Rs.

Loan from Bank 1120,000

Machinery 1200,00
10,00,0000 + interest
0
Cash in hand 00 120,000
Furniture & 400000
Capital
Fixture 1000000
8800000
Equipment 100,000
Security deposit 0
20,0000
0
20,00,0 20,00,00
00
000

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