Issue in Pakistan free essay sample

Project Report On Kentucky Fried Chicken From Supervised by : Prof. Dr. Zain Yousafzai Submitted by : Siawoosh Wared ( BBA Hons ) Registration # 1711-306055 ( BBA 11th ) Preston University Peshawar Session 2006 – 2010 Project Report Marketing Strategies With Reference To Kentucky Fried Chicken A Project report submitted to the Preston University in partial fulfillment of the requirement for the Degree of Bachelor of Business Administration. Supervised by : Prof. Dr. Zain Yousafzai Submitted by : Siawoosh Wared ( BBA Hons ) Registration # 1711 – 306055 ( BBA 11th ) Preston University Peshawar Session : 2006 – 2010 Project Report cities, KFC is teaming up with other restaurants, Taco Bell and Pizza Hut, selling nearly fifty years ago; Colonel Sanders invented what is now called â€Å"home meal replacement† – selling complete meals to harried, time-strapped families. He called it, â€Å"Sunday Dinner, Seven Days a Week. † Today, the Colonel’s spirit and heritage are reflected in KFC’s brand identity – the logo features Colonel Harland Sanders, one of the best recognized icons in the world. KFC KFC specialized in chicken and they says, â€Å"No body’s cooking like KFC today and we are the chicken experts† â€Å"There is no competitor for spicy chicken which is made by KFC† Introducing New Product Now enjoy T2O Cricket festivity with KFCs exciting new offer; Get a complete T20 Meal Box which includes; 1 Zinger Burger, 3 pcs. Hot Wings, 1 regular Drink, 1 Fries and 1 Dinner Roll ! in only Rs 320/- only Pricing Issues Pricing Policy for â€Å"Zinger Burger† new product from KFC Manufacturing cost RS. 180/- 5% marketing cost ( Per. Unit ) RS. 50/- Total cost RS. 230/- 15% G. S. T +15% RETAIL MARGIN RS. 90/- Total retail Price RS. 320/- Pricing Strategy for â€Å"Deal 6† From KFC Manufacturing cost RS. 140/- 5% marketing cost ( Per. Unit ) RS. 25/- Total cost RS. 165/- 15% G. S. T +15% RETAIL MARGIN RS. 45/- Total retail Price RS. 210/- Project Report On Chapter No # 2nd Situation Analysis Department of Business Administration Preston University Peshawar KFC History KFC is an internationally renowned fast food industry in the world. They have the main ambition to increase maintain the quality in fast food industry. Their aim is to capture the fast food market. Basically they want to provide their products to anyone that is why they expanding their branches in all over the world. They want to increase their profit through giving maximum satisfaction other better facilities to people that they want. Now after catching such a marvelous position in the International Market, KFC is introducing a new item â€Å"Boneless Fried Chicken†, with even more attractive and charming taste. Company’s Overview Colonel Harland sanders, born September 9, 1890, actively began franchising his chicken business at the age of 65. Now, the Kentucky fried chicken business he started has grown to be one of the largest retail food service systems in the world. And colonel sanders, a quick service restaurant pioneer, have become a symbol of entrepreneurial spirit. More than two billion of the colonel’s â€Å"finger lickin’ good† chicken dinners are served annually. And not just in America. The colonel’s cooking is available in more then 82 countries around the world. When the colonel was six, his father died. His mother was forced to go to work, and young Harland had to take care of his three year old brother and baby sister. This meant doing much of the family cooking. By the age of seven, he was a master of a score of regional dishes. Ate age 10, his first job working on a nearby farm for $2 a month. When he was 12, his mother remarried and he left his home near Henryville, Ind. , for a job on a farm in Greenwood, Ind. He held a series of jobs over the next few years, first as a 15-year-old streetcar conductor in New Albany, Ind. , and then as a 16-yearold private, soldiering for six months in Cuba. After that he was a railroad fireman, studied law by correspondence, practiced in ustice of the peace court, sold insurance, operated an Ohio River steamboat ferry, sold tires, and Operated service station. When he was 40, the colonel began cooking for hungry ravelers who stopped at his service station in Corbin, KY. He didn’t have a restaurant then, but served folks on his own dining table in the living quarters of his service station. As more people started coming just for food, he moved across the street to a motel and restaurant that seated 142 people. Over the next nine year, he perfected his secret blend of 11 herbs and spices and the basic cooking technique that is still used today. KFC Pakistan KFC is the world’s No. 1 Chicken QSR and has industry leading stature across many countries like UK, Australia, South Africa, China,USA, Malaysia and many more. KFC is the largest brand of Yum Restaurants, a company that owns other leading brands like Pizza Hut, Taco Bell, AW and Long John Silver. Renowned worldwide for it’s finger licking good food, KFC offers its signature products in Pakistan too! KFC has introduced many offerings for its growing customer base in Pakistan while staying rooted in the taste legacy of Colonel Harland Sander’s secret recipe. Its signature dishes include the â€Å"crispy outside, juicy inside† Hot and Crispy Chicken, flavorful and juicy Original Recipe chicken, the spicy, juicy crunchy Zinger Burger, Toasted Twister, Chicken Bucket and a host of beverages and desserts. KFC also has great tasting vegetarian offerings that include the Veggie Burger, Veggie Snacker and Veg Rice meals. In Pakistan, KFC is growing rapidly and today has presence in 10 cities with close to 60 restaurants. Values of KFC Focus all our resources to our 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. Project Report On Chapter No # 3rd Company Branches Department of Business Administration Preston University Peshawar Situational Analysis Current Products Kentucky fried chicken  · Zinger burger  · Krushers  · GameBox  · Twister  · Boxmaster  · Chicken Bucket  · Hot wings  · Fries  · Corn on the cob  · Zing Kong  · Snacker(chicken veggie)  · Veggie Feast  · Soft Drink  · Coleslaw  · Chicken Thali  · Veg Finger  · Snack Box  · Sundae  · Soft Twirl  · Brownie Sundae KFC Original Recipe 6 cups Crisco Shortening 1 eggs well beaten 2 cups Milk 2 cups Flour 2 teaspoons ground pepper 3 tablespoons salt 1 teaspoon MSG 1/8 teaspoon Garlic Powder 1 dash paprika 2 Frying Chickens cut into 6 pieces Place shortening into the pressure cooker and heat over medium heat to the shortening reaches 400F. In a small bowl, combine the egg and milk. In a separate bowl, combine the remaining six dry ingredients. Dip each piece of chicken into the milk until fully moistened. Roll the moistened chicken in the flour mixture until well coated. In groups of four or five, drop the covered chicken pieces into the shortening and lock the lid. When pressure builds up cook for 10 minutes. KFC Outlets in Pakistan Islamabad . 11 United Bakery Building, F-6/2, Super Market, Islamabad. For Delivery: Ph: 111-532-532 Chicky Fun Area Karachi †¦ SA-2, See Breeze Centre, F1-17, Block 5, Kh-e-Roomi, Clifton, Karachi. For Delivery: Ph: 111-KFC-KFC (111-532-532) Chicky Fun Area Peshawar . University Road, Burjaman Plaza Near Shadman Chowk, Peshawar. For Delivery: Ph: 111-532-532 Chicky Fun Area Lahore †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 160/2, Block 2, Phase-1 LCCHS, Lahore For Delivery: Ph: 111-532-532 Chicky Fun Area Hyderabad . Unit No. 1, Shah Latifabad, Thandi Sarak, Hayderabad. For Delivery: Ph: 111-532-532 Chicky Fun Area Project Report On Chapter No # 4th KFC’s Mession Philosophy Department of Business Administration Preston University Peshawar Philosophy of KFC 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. The CHAMPS These are: Cleanliness Hospitality Accuracy Maintenance of Facilities Product Quality Speed 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. Mission of Statement â€Å" To be the leader in western style restaurants through friendly service, good quality food and clean atmosphere â€Å" Goals of KFC 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 in Pakistan our position as leading WQSR (Western Quick Service Restaurant) chain, serving good value. Innovative chicken-based products. Consistently, providing a pleasant dining experience, with fast friendly, in a clean and convenient location. At all times we must be dedicated to providing excellent and delighting customers. Project Report On Chapter No # 5th Product Issues Department of Business Administration Preston University Peshawar Product Issues General description: Features: Quality Control Over Ingredients 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 Director General ( Research ) has issued quality assurance certificate for the chicken used by KFC. Packaging We are asked as many questions on our packaging as our products by our customers. The packaging for KFC products is chosen according to performance against three key criteria: Heat Retention Moisture removal Grease absorption The packaging material and carton design are all adapted to maximize performance against these three criteria. Recycled Paper All our clamshells and chicken boxes contain as much recycled material as it is legally allowed. By law we are required to have virgin fibre board in any part of the packaging that is in contact with food. Any virgin fibre comes from board suppliers who use pulp bought from managed forest in Scandinavia. This ensures that any wood cut for paper production is replaced with new plantings. Environmental Concerns Over and above ensuring our packaging is supplied via recycled or renewable resources; KFC are enthusiastically complying with the new environmental directives on recovery and recycling of packaging waste. Litter We at KFC UKI are aware of our responsibilities to the Management of Litter and all our packaging carries the ‘Keep your Country Tidy’ signs. Branding This research measured and compared the brand identity of Kentucky Fried Chicken (KFC) in Pakistan. Brand identity was defined as the customer impressions of four different KFC identity elements properties, products, presentations, and publications. A survey of young consumers in the countries (n = 795), showed that the respondents were more apt to eat within KFC restaurants, and spend more time doing so, than the Americans. The Chinese also had much more positive impressions of KFC. Brand identity impressions were correlated with overall customer satisfaction and with future patronage intentions for both groups. These findings support a model where differences in cultural frames of reference lead consumers to actively localize the brand identity of this nominally globalized product. Four Forces-Analysis Entry For the current Pakistan market for fast food, it is not difficult for a fast food restaurant to enter the market. However, it would be extremely difficult to take over already running major fast food chains dominancy in Pakistan or even make a significant amount of profit. While there are enough people in urban Pakistan for any restaurant to survive, KFC holds the first-mover advantage into the non-veg food specialty food segment that gives them free reputation. Customers, especially children who are used to going to KFC as a treat or reward from their parents or grandparents, are not going to want to go to other restaurants they’ve never heard of. The brand name is already established. Also, there is already a large variety in the numerous western-style dining places in Pakistan , such as McDonald’s, Pizza Hut, Dominos and Subway, and any new fast-food entrants would just be presenting something very similar to what’s already there. While small Neighborhood restaurants generally have low barriers to entry, these are the barriers to entry for similar restaurant businesses to enter the fast-food chain market. Buyer/Supplier Bargaining Power The customers of KFC, especially as individual buyers, have almost no bargaining power because if only one customer threatens to no longer eat at KFC, the store is not going to lower its price because the cost of losing one customer is not very great. The suppliers, like the buyers, have very little bargaining power. In terms of food, KFC, upon its move into Pakistan, urged many of its U. S. suppliers to also extend branches into Pakistan. KFC also began helping local suppliers by giving them technological support to improve their products. This is a brilliant strategy because the supplies that KFC would otherwise need to import from the U. S. can now be obtained domestically, and if the U. S. suppliers decide to raise their prices, KFC can easily switch to the local suppliers. This gives us a brilliant strategy. With this strategy, KFC created competition among its suppliers, lowering the supplier bargaining power. In terms of human resources, labor cost is extremely low because the supply of non-skilled workers great exceeds the demand for them. With so little buyer and supplier bargaining powers, KFC is able to have a very tight control over its prices and expenditures. Substitutes and Complements As mentioned above, there are a few major competitors in the fast-food industry in Pakistan for KFC, namely McDonald’s, Pizza Hut, Dominos and Subway. The substitute products, in this case, would be burgers, pizza, and sandwiches. Though they are competitors, their primary products differ greatly from each other, in that they sell, chicken, burgers and fries, pizzas, and sandwiches, respectively. Traditional Pakistan dining, home-cooked meals, and grocery stores with ready-to-eat foods are also substitutes, as families could choose any one of these over fast food for a meal. These substitutes are definitely considered healthy as compared to the fast food chains. Even foods from street vendors count as substitute goods. While other fast foods serve as substitute to KFC, they can also serve as complements for fast foods as a whole. If the general price of fast foods goes up,KFC’s price rises as well, and the same can be said of the quantity sold of these products, which make them complements to each other. KFC also sets up stores located near popular tourist attractions, so tickets to these tourist spots are also complementary goods because the more people tour these attractions, the more customers KFC will get. Rivalry Unlike what one would expect, KFC has little rivalry with similar fast-food chains in Pakistan. The primary reason is that their core products are different, as in they sell different kinds of fast foods with very different tastes and styles. For example, if KFC raised its price for chicken by a small amount, Pakistan chicken lovers who may not be as accepting to pizzas (many Pakistani people strongly dislike the taste of cheese) are not going to switch to Pizza Hut just because the price for KFC increased. In addition to that, these restaurants have such different target customers that the fluctuation of price for one restaurant is not going to affect the others. For example, a full meal at KFC ranges about Rs. 100, whereas a full meal at Pizza Hut can cost over Rs. 300. The drastic difference in price assures no price competition between these restaurants. Project Report On Chapter No # 6th Current Target Market Department of Business Administration Preston University Peshawar Current Target Market 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. They promote there products through billboard, pamphlets and through other promotion strategies. 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 By using these three bases they segmented the market as under. 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 On the basis of the geographical factor we have divided our market in three main segments. Urban areas Sub urban areas Profile criteria: 1. Gender: KFC is for each gender both male and female. 2. Income: Everyone can use the KFC service upper and middle class . 3. Age: age limitation for using this product above 15 4. Occupation: By profession also everyone can use this product means businessman student workers and other peoples. 5. Education: It has no need more education that why the person who know something can easily enjoy with this product. 6. Family life cycle: KFC is suitable in every stage of life like single married couple and also those who have children can use this product. 7. Lifestyle: This product is used in every level of social class like upper, middle class. 8. Attitude : When the customers once buy this product after that they can use the product continuously. 9. Purchasing decision: Often KFC changes the purchasing decision of customers because of its good attributes. 10. Geographic region: Geographically KFC is used in every part of the country as well as all over the world. Product positioning Customer perceive this product as a unique product that other are not giving . Attitudes The attitudes of the public is very good people like our this new product like others. Purchasing process: Many people come from home to eat this , and some make impulse decision as they saw it . Market Coverage Strategy KFC will be using differentiated market coverage strategy. It means that different marketing mix will be used for different age groups. 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. Product usage 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. 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 number of customers are more in Urban Areas. Economic Analysis of Market A market in this context refers to a number of all actual and potential buyers of a product (Kotler et al 2003). These buyers have a need to satisfy their needs through exchange . These needs make up the demand for particular products and services. Several components must be considered, as all these components have a direct or indirect impact on KFC’s success. Changes in the below described components over the last couple of years have led to big changes in people’s attitudes towards healthy food. It explains why Australians today want to eat healthy and nutritious-rich food in order to keep themselves healthy and that KFC must adjust their range of product and their company image to appeal to these new expectations, people have . Macro environment KFC operates in a larger macro environment of forces that creates opportunities, but also threats. (Kotler et al 2003). A company such as KFC usually cannot influence trends in the macro environment, as they affect people and organisations on a larger scale. However, KFC has to carefully examine macro environmental trends and must create competitive responses to such trends. There are six major macro environmental forces KFC has to take into account. Micro environment The microenvironment consists of all forces that are close to KFC, and on which KFC has an impact. They directly affect KFC’s ability to serve its customers. (Kotler et al 2003). Three major components influence KFC’s micro environment: Competitors Because the fast food market in India is highly competitive, KFC faces a wide number of direct and indirect competitors. KFC’s main competitors are fast food chains such as McDonald’s and Domino’s, which are already well established throughout Pakistan . McDonalds’s in particular is a direct competitor, as they have already successfully introduced their Salads plus line , which directly targets ‘healthy food’ conscious Pakistanis. But, there are a number of other competitors that is also focusing on ‘chicken’ types products. All this competition makes it quite difficult for KFC to maintain or even broaden their customer base. However, with the introduction of a new and healthy product range, KFC can differentiate itself from most competitors and will gain a competitive advantage. Customers KFC’s customer market consists solely of the consumer market (Kotler et al 2003). KFC’s products are bought by individuals (males, females, singles, and families). Therefore, the product range KFC offer should appe