4. MICRO ENVIROMENT: The micro enviroment Consist of all the
forces COMPANY COMPETITORS that are close to KFC The three major
KFC Components influence KFC Enviroment are Suppliers Competitors
Market intermediaries MARKET INTERMEDIARIES
5. SUPPLIERS : > Suppliers are those people who are
responsible for supplying necessary inputs to the organization and
ensure the smooth flow of production. COMPETITORS : >
Competitors can be called the close rivals and in order to survive
the competition one has to keep a close look in the market and
formulate its policies and strategies as such to face the
competition
6. MARKETING INTERMEDIARIES : > Marketing intermediaries aid
the company in promoting, selling and distribution of the goods and
services to its final users. Therefore, marketing intermediaries
are vital link between the business and the consumers.
7. MACRO ENVIROMENT ECONOMIC FACTOR SOCIAL FACTOR POLITICAL
FACTOR KFC TECHNOLOGICAL FACTOR
8. ECONOMIC FACTORS : >Economic factors includes economic
conditions and economic policies that together constitutes the
economic environment. These includes growth rate, inflation,
restrictive trade practices etc. Which have a considerable impact
on the business. SOCIAL FACTORS : >Social factors includes the
society as a whole alongside its preferences and priorities like
the buying and consumption pattern, beliefs of people their
purchasing power, educational background etc.
9. POLITICAL FACTORS : >The political factors are related to
the management of public affairs and their impact on the business.
It is important tohave a political stability to maintain stability
in the trade. TECHNOLOGICAL FACTORS : >Latest technologies helps
in improving the marketability of the product plus makes it more
consumer friendly. Therefore, it is important for a business to
keep a pace with the changing technologies in order to survive in
the long run
10. ANSOFFS PRODUCT MARKET EXPANSION GRID
11. KFC SUPPLY CHAIN
12. SUPPLY CHAIN MANAGEMENT KFC has a very simple supply chain.
As theoperations are on a relatively small scale, all theoperations
are performed by the company (i.e. Cupola) itself. The supply chain
process can besummed up as a 3 step process: Step 1: Raw materials
procured from various suppliers and stored at two warehouses; the
normal-storageand the cold-storage. Details are discussed later.
Step 2: All product preparation is done at the branch except for
the marination of chicken and sold tocustomers at the branch itself
or delivered at thedesired locations. Step 3: Warehouses replenish
each branch accordingto their requirement (usually three times a
week)using companys own vehicles and drivers uponthe request of the
branch manage
13. STORAGE AND INVENTORY MANAGEMENT Chicken Inventory of
chicken is for 15 days. The storage area for chicken is not in the
warehouse itselfbut in a separate cold storage area built right
beside the warehouse in each region.Before marinating, the chicken
is stored in an organized form in six separate cold storage rooms
whose area is around 45 to 50 square feet, having a height of
around 7 feet. The chicken is stored in the same baskets which it
comesin and stays there till its turn for marinating . Marination
is done in a separate roomin the same cold storage facility where
thechicken is firstwashed and mixed with the herbs and spices it
needs. The mixture is fed into a machine knownasTumbler which
marinates it. After this is done the chicken is re packed into
labeled clear storage room again in organised form.
14. QUALITY ASSURANCE BY KFC There are multiple ways by which
KFC assures the quality of its products.Some of the oneswhich were
disclosed to us were: Surprise visits to branches Planned visits to
branches Rigorous raw material inspection Customer feedback
15. SEGMENTATION GEOGRAPHIC SEGMENTATION KFC MENU OUTSIDE INDIA
KFC MENU IN INDIA
16. SEGMENTATION DEMOGRAPHIC SEGMENTATION:
17. SEGMENTATION PSYCHOGRAPHIC SEGMENTATION 1. Social class-
Upper and Middle class. 2. Lifestyle is not specific. 3.
Personality .
18. SEGMENTATION BEHAVIORAL SEGMENTATION Taste Conscious
Quality Conscious Class Combination of Product and Quality
19. TARGET MARKET 1. LOCATION HECTIC LIFESTYLE OF INDIVIDUALS
COMMERCIALISATION MID-SECTOR PEOPLE URBAN AREAS ARE MORE
POPULATED
20. TARGET MARKET 2. PLACEMENT OF OUTLETS KFC placed itself
close to schools, colleges, cinemas as a result KFC enjoys a large
number of footfalls everyday. In addition, they have outlets close
to nonvegetarians .for ex saket outlet (Muslim populated areas).
SAKET STORE
21. INDIAN MARKET An important thing to note is that Indian
Fast food market is Fundamentally different. Fast food joints:
considered as cheap sources of taking break from home cooked food .
Favourable factors: Increasing nuclear families,particularly in
urban India Exposure to global media and Western cuisine
;increasing number of women joining the workforce
22. POSITIONING The KFC LOGO Providing quality products with
distinct taste at the possible lowest price. Leading player in the
Fried Chicken. Use of Red color in its Arena. Tag Line I AM A
STUDENT OF LICKONOMICS
23. POINT OF PARITY V/S POINT OF DIFFERENCE POINT OF PARITY It
is a food joint similar to Mc Donalds, provides almost the same
product as that of Mc Donalds. It provides product at just Rs. 25 ,
just like Mc Donalds. POINT OF DIFFERENCE Its distinct taste.
Provides variety of non-veg & veg products. For ex : bucket
chicken, rice bowl etc. It provides non-veg burger @ just Rs. 35
unlike Mc Donalds BRAND MANTRA: ITS FINGER LICKING GOOD
24. IMPACT OF CONSUMER BEHAVIOUR ON BRANDS STRATEGY Social
Factors: FAMILY KFC have made its ambience fit for family outings
REFERENCE GROUPS Primary, secondary groups influence ROLE &
STATUS KFC is generally for upper & middle class
25. IMPACT OF CONSUMER BEHAVIOUR ON BRANDS STRATEGY Cultural
Factors: FUNDAMENTAL DETERMINANTS Wants & behaviour SUBCULTURES
Nationalities, religions, racial groups
26. IMPACT OF CONSUMER BEHAVIOUR ON BRANDS STRATEGY Personal
Factors: AGE & LIFE CYCLE OCCUPATION & CIRCUMSTANCES
27. PRODUCT STRATEGY Competes on several basis
incl.product,cost,franchising. Secret recipe of 11 herbs &
spices. Hire professionals for product development. 100% pure pcs
of chicken Trained cooks prepare it fresh throughout the day at
every restaurant.
28. Use of sunflower oil. Successful salt reduction programme
Provide quality assurance
29. POSITIONING OF KFC USP of kfc is life tastes better with
kfc. Unique taste of product. It isnt only fried chicken but also
self service & customer satisfaction. Designed for various
groups of customers . New menu is focusing on taste &
health.
32. INTRODUCTION : > A period of slow sales growth as the
product is introduced in the market. Profits are non-existent
because of the heavy expenses of product introduction. GROWTH :
> A period of rapid market acceptance and substantial profit
improvement.
33. MATURITY : a slowdown in sales growth because the product
has achieved acceptance by most potential buyers. Profits stabilize
or decline because of increased competition DECLINE : > Sales
show a downward drift and profit erode.
