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Presented By-

Kalyani Singh

Neha Singh

Shahbaz Khan

Shakshi Gupta

Surendra Singh Bisht

IN INDIAETHICAL ISSUES

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BACKGROUND OF KFC

KFC is based in Corbin, Kentucky, U.S. and is theworlds most popular chicken restaurant chain.

Founded by Colonel Harland Sanders in in the early1930s by cooking & serving food for hungry travellers.

In 1952 Sanders started franchising his chickenbusiness & named it as KENTUCKY FRIEDCHICKEN.

KFC is part of Yum! Brands, Inc., the world's largest

restaurant company in terms of system restaurants, withmore than 36,000 locations around the world.

KFC operates more than 15,000 units in 109 countriesand territories around the world.

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CONTINUE..

Every day, more than 12 million customers areserved at KFC restaurants.

KFC is world famous for its Original Recipe

fried chicken -- made with the same secret blendof 11 herbs and spices

Customers around the globe also enjoy more than300 other products -- from KFC

The company is ranked #239 on the Fortune 500List, with revenues in excess of $11 billion in2008.

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KFCs Entry in INDIA

KFC was the first fast food multinational to enterINDIA , after the economic liberalization policyof the Indian Govt. in early 1990s.

KFC received permission to open 30 new outletsacross the country

KFC opened first fast food outlet in Bangalore inJune 1995 by targeting upper middle class

population.PepsiCo planned to open 60 KFC and Pizza Hut

outlets in next 7 yrs in the country.

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ISSUES

Govt. was criticized for granting permission tomultinational food giant

Threat to domestic business

Nationalists feared a cultural invasionNutritionists highlighted the high rates of

obesity, hypertension, heart disease and

cancersMonosodium Glutamate (MSG) controversy

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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 productsregulations

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SWOT ANALYSIS

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STRENGTH

Worlds largest restaurant company in terms ofsystem restaurants, operates more than 15,000units 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 11herbs and spices

Ranks highest among all chicken restaurantchains for its convenience and menu variety.

Generate $1B each year

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WEAKNESS

LACK OF KNOWLEDGE ABOUT THEIR CUSTOMERS.

LACK OF FOCUS ON R&D.

MSG FLAVOUR IN CHICKEN

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OPPORTUNITY

RETAIL BOOM IN INDIA

INDIANS YOUTH ARE ADOPTING WESTERN

CULTURE

INDIAN ECONOMY

METROPOLITAN RAPID DEVELOPMENT

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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,JOHNABRAHAM ETC

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PESTEL ANALYSIS

POLITICAL

ECONOMIC

SOCIAL

TECHNOLOGICAL

ENVIRONMENTAL

LEGAL

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MARKETING CONCEPTS

NEEDSa consumer needs food

WANTSthey want chicken or other non-veg

DEMANDSbut they demands KFCs fried

chicken

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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,

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MARKET SEGMENTATION

Geographic segmentation : In India KFC focuseshow geographically its customers demanddifferent products.

Demographic Segmentation: In demographicsegmentation, the market is divided into groupsbased on an age, gender, family size, income,occupation, religion, race and nationality.

Psychographic segmentation: in thissegmentation ,the market is divided into middleclass & upper class

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PRICING STRATAGY

Their products are priced high and target themiddle to upper class people

KFC adopt the cost base price strategy.

Pricing of the product includes the govt. tax andexcise duty

The products are bit high priced according themarket segment and it is also comparable to thestandard of their product.

In the cost based method we include the variableand fixed cost.

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PROMOTION

Advertising

Sales Promotion

Public Relations

Events and Experiences

Coupons, Discounts and Bundled packages

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COMPETITION

We can compare the price of their products withmcdonald, dominoes and pizza hut.

If the competitor provides the same product at a

lower price then the organization usually lowers theprice of its product too.

In the case of kfc, fried chicken is its main sellingpoint 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.

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RECOMMENDATIONS

the company should be able to use an ethicalmanagement strategy that will uplift the image ofthe company.

uses of marketing knowledge, concepts, andtechniques as well as with the socialconsequences of marketing policies, decisions,and actions

every business organization should understand theimportance the culture, regulatory & ecologicalissues in different countries.

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THANK YOU