mkt201 (kfc)

Marketing Management

Executive Summary

The paper is entitled “Factors Influencing Consumers’ Buying Pattern toward Fast Foods in

Bangladesh, A Study on Kentucky Fried Chicken (KFC)”covering the short history of KFC.

And it is focusing on the basic factors that influence consumers’ buying pattern to the fast

foods industry.

It starts with the introductory terms of this report including objective and methodology of the

study. In the profile of the company, it contains short history and information about basic

strategy, technology, ownership as well as the foreign and native share holders of the

company.

Then accordingly in situation analysis, it refers a short circumstance analysis of the brand

“KFC” strengths and weaknesses from an image perspective followed by the strength and

weaknesses of product/service of KFC After it comes up with the concern factors influence

consumers’ buying pattern. This paper focuses how cultural, social, personal, psychological

factors bias the purchase decision of the consumer. The paper is also contains the buying

East West University 1


decision process of KFC. In addition, the paper will define the marketing mix

of the KFC. Lastly, the paper comes up with necessary recommendations and conclusion.

List of sources of information is also attached at the bottom.

Introduction

This report is assigned by Mr. Mahmud Zubayer, Assistant Professor, Department of

Business Administration as a mandatory requirement of the Marketing Management [MKT-

201] course. The report has to be prepared based on the knowledge and experience gained

from our MKT-201 course.

Objective of the study:

Since this is a formal study, the scope of the study was not so detail. We just tried to give

overall scenarios of the KFC.

Primary Object: We try to gather information which will give primary ideas about KFC

as a fast food company. It includes the history of the company. Besides, we also try to focus

on KFC as a Brand. We also cover strengths and weakness of the product and service of

KFC.

Secondary/Specific Object: The specific object of this paper to understand the

influencing factors of consumers’ buying pattern towards the fast foods in Bangladesh.

Specifically, KFC, one of the largest fast foods company in the world, how consumer take



buying decision and by which factors they influence towards KFC in

Bangladesh is the main objective of this term paper. Besides, another important object is to

define the marketing mix of the KFC.

Methodology OF the Study:

Methodology is the process or purpose of collecting of data and information which are

required in connecting with finding tools for best possible situation of problem.

Research method: We try to collect accurate and recent information that will

help to understand the topic. Firstly, we gather every relevant data about the topic.

Secondly, we convert the data into useful information for the paper. After that we

try our level best to arrange the information according to the sample term paper.

Finally, it may not be a full package rather we can assume it a best try to write this

term paper.

Primary sources: The sources we use to get information basically to make this

paper.



Text books of Marketing Management

Internet & websites

Journals

Term Paper

Secondary sources: Alongside Primary sources, some other secondary sources

we take help.

University Library

Graduate Teaching Assistant(GTA)

Senior Students

Limitation of the study:

Not enough information

Difficult to collect accurate and useful information

Limitation to get internal information of the company

Limitation of time

Lack of in depth knowledge towards the concept and topic

Not to make comparative analysis with other company

Company Profile OF KFC

Kentucky Fried Chicken (KFC) stands for high-quality fast food in a popular array of

complete meals to enrich the consumer’s everyday life. KFC strives to serve great-tasting,

“finger licking’ good” chicken meals that enable the whole family to share a fun, uninhibited


http://www.kfcbd.com/


and thoroughly satisfying eating experience, with the same convenience and

affordability of an ordinary Quick Service Restaurant.

Kentucky Fried Chicken (KFC) one of the most known fast food chains in the world started

in the early 1930's by Kernel Sanders in the Southern USA as a small franchise operation.

Colonel Sanders has become a well known personality throughout thousands of KFC

restaurants Worldwide. Quality, service and cleanliness (QSC) represents the most critical

success factors to KFC's global success.

Food, Fun & Festivity, this is what KFC is all about. Leading the market since its inception,

KFC provides the ultimate chicken meals for the Chicken Loving Nation. Be it Colonel

Sanders secret Original Recipe Chicken or the Hot & Spicy version, every bite brings a

YUM on the face. At KFC we proudly say:

KFC has more than 11,000 restaurants in more than 80 countries and territories around the

World. In 1971, Heublein, Inc. acquired KFC, soon after, conflicts erupted between the

Colonel (which was working as a public relations and goodwill ambassador) and Heublein

management over quality control issues and restaurant.

KFC is part of Yum! Brands, Inc., however in the case of Bangladesh KFC build the relation

of Quality Service and cleanliness for Customer.



KFC was acquired by PepsiCo in 1986, it had grown to approximately 6,600

units in 55 countries and territories. Due to strategic reasons, in 1997 PepsiCo spun off its

restaurant businesses (Pizza Hut, Taco Bell and KFC).

Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has come a long way, with

over 10,000 outlets in the world; KFC has maintained its title, for the last 60 years, of being

“The Chicken Experts”. Kentucky Fried Chicken has become KFC. Does anybody know

why? We thought the real reason was because of the "FRIED" food issue. It's not. The reason

why they call it KFC is because they cannot use the word chicken anymore. Why? KFC does

not use real chickens. They actually use genetically manipulated organisms.

These so called "chickens" are kept alive by tubes inserted into their bodies to pump blood

and nutrients throughout their structure. They have no beaks, no feathers, and no feet. Their

bone structure is dramatically shrunk to get more meat out of them. This is great for KFC

because they do not have to pay so much for their production costs. There is no more

plucking of the feathers or the removal of the beaks and feet.

In Bangladesh totally Chicken buy from Bangladeshi Poultry Firms, and also this Chicken is

100% Halal.

KFC in Bangladesh:



Transcom Foods Limited (TFL) started its journey in 2003 as a franchisee of

Pizza Hut, the first International Chain Restaurant in Bangladesh, and went on to sign the

contract to become the franchisee of Kentucky Fried Chicken (KFC) in the year 2006. Both

Pizza Hut and KFC are subsidiaries of the world’s largest restaurant company Yum!

Restaurants International. In a span of seven years, TFL has opened 4 Pizza Hut and 7 KFC

outlets so far throughout the country

.

Figure: Consumer from different area in Dhaka city

TFL successfully launched the flagship KFC on South Avenue, Gulshan in September 2006.

It has already won over the heart of the Dhaka crowd with its great tasting food, high

standard of hygiene, cleanliness, terrific interior and of course excellent and affordable



pricing. Following its enormous success in Gulshan, the second outlet was

opened in Dhanmondi in November 2008, and yet another in Banani in December 2008.

Most recently TFL has opened two outlets at Eskaton on February 2010 and another one is in

Paltan.In 2011,TFL has open another two new outlets in Uttara and sea beach city of

Bangladesh “Cox’sbazar”.

Strengths and Weaknesses of the brand from an image perspective:

Strengths:

Oldest and Finest: Kentucky Fried Chicken Ltd is the oldest and finest fast foods

provider restaurant by maintaining high goodwill of their brand image.

Company reputation: Kentucky Fried Chicken Ltd. has earned the status of a

reliable fast foods service provider with the promise of serving quality fast foods to

the consumer.



Brand: the brand KFC reflects the image of high class and status.

Market Share: KFC currently has the outstanding market share of BD among the

fast foods industry.

Satisfaction: KFC stays high as a satisfactory brand in most consumers’ mind

through high quality service, innovative ideas and other benefits in affordable

expense.

Promotion effectiveness: Attractive promotional activities that reflects persuasive,

informative and entertaining messages.

Innovation effectiveness: KFC introduces innovative recipes and menus from time

to time according to customers’ needs.

Geographical Advantage: One of KFC’s competitive advantages is international

brand image. It considers as significant and prestigious to the customers, which is

assured the business and ensures services to every outlets in Bangladesh.

Culture: through its name it express that they come to provide quality fast Foods to

all over the country to a specific level of people. Through this Kentucky Fried

Chicken secure the perspective of culture.

Multinational Organization: KFC Faces numerous advantages of being a

Multinational Organization e.g. economies of scale, government incentives etc.

Leverage Secondary Brand Association: KFC maintains a useful and efficient

leverage secondary brand association.

Loyal Customer: KFC creates a strong loyal relationship to the customer, through

which they get a full bundle of customer satisfaction which results them high profit.



Weaknesses:

KFC has an image of costlier services.

KFC has specific target customers, cannot reach to any target market because of an

image which belongs to quality, prestige, status.

It is very expensive and difficult to maintain the image of the brand.

Whatever the situation or environment, KFC cannot compromise with their quality

because of brand image.

Because of leveraging secondary brand association, sometimes unwanted events can

occur which may be creates negative image.

Strengths and weakness of the product or services

Strengths:

Ensure Quality product

Ideal product offering considering number of people like menu for one person as well

as for several persons.

Provides world class Service to customer

Innovative and effective service delivery to the customer

Does not have any Core competitor In chicken serving

Large Number of Outlets at prime locations

Serves variety of items under single menu



Weaknesses:

Presence of Multinational competitors in the market e.g. McDonalds(specialized not

in chicken serving but in burgers)

Imported raw material rise their prime cost

Sometime unable to provide novelty into recipes

The many sales of KFC lead to a confusing corporate direction.

Conflicting cultures of KFC and Pepsi Co.

Factors Influencing Consumer Buying Pattern:

Cultural Factor:

Culture, subculture, and social class are particularly important influences on consumer

buying behavior.

Culture:

Culture is the most fundamental determinant of a person’s wants and behavior. However it is

exposed to these broad cultural values: achievement and success, activity, efficiency and

practicality, progress, material comfort, individualism, freedom, external comfort,

humanitarianism, and youthfulness.

Different cultures have different beliefs: for some cultures Non -Veg is completely prohibited,

whereas chicken is the main food item. Different cultures permit different beliefs and norms.



This reflects the consumption patterns of an individual Culture is a very

important factor from the view of a marketer.

As KFC entered Bangladesh, they studied the Bangladesh culture, the norms followed here,

as in Bangladesh pork is not consumed, so they did not include the pork food items in their

menu.

Only adopt the Bangladeshi culture but also the Religion as well. They offer Halal foods to

the customers, which is the symbol that they adopted the Muslim religion.

Subculture:

Each culture consists of smaller subcultures that provide more specific identification and

socialization for their members. Subcultures include nationalities, religions, racial groups,

and geographic regions.

Social class:

Social classes are relatively homogeneous and enduring divisions in a society. They are

hierarchically ordered and their members share similar values, interests, and behavior.

As we discuss earlier that KFC target all the class including the upper class, upper middle

and lower middle class etc. For middle classes they have launched a segment of products at

cheaper rates.

Social class is determined by

Income

Occupation

Education



Balanced level of all three creates awareness of new products and income

gives the purchasing power. So, social class forms an important part of external influence on

consumers buying behavior.

Social Factors

In addition to cultural factors, a consumer’s behavior is influenced by such social factors

as reference groups, family, and social roles and statuses.

Reference groups:

Consist of all of the groups that have a direct (face-to-face) or indirect influence on a

person’s attitudes or behavior.

Reference group is the one to which an individual refers. An individual adapts its self to the

group he is in. His consumption patterns, taste, beliefs, behavior etc changes according to

the group. Reference groups expose new behaviors and lifestyles, influence attitudes and

self-concept.

As the consumption pattern changes, person who was not fond of KFC may change

according to eating habits of his group members. Even an individual develops a taste of his

referent group. So the group has influenced people.

Membership groups:

Groups that have a direct influence, Some primary membership groups are family, friends,

neighbors, and co-workers, with whom individuals interact fairly continuously and

informally.

Secondary groups:



Such as professional and trade-union groups, tend to be more formal and

require less continuous interaction.

Family

The family is the most important consumer-buying organization in society. The traditions

followed by family are carried forward in children. Family consuming non-vegetarian food

passes this attitude to their children also.

Many respondents told us that they are non-veg because of their family. So people developed

their interest of going to KFC because they are non vegetarians. Small children go to KFC

with their parent, which reflects that family plays an important role in decision making.

Roles and Statuses

A person participates in many groups, such as family, clubs, or organizations. The person’s

position in each group can be defined in terms of role and status. A role consists of the

activities that a person is expected to perform. Each role carries a status.

Personal Factors

Cultural and social factors are just two of the four major factors that influence consumers’

buying behavior. The third factor is personal characteristics, including the buyer’s age,

stage in the life cycle, occupation, economic circumstances, lifestyle, personality, and self-

concept.



Figure: Model of Consumer Behavior

Age and Stage in the Life Cycle:

People buy different goods and services over a lifetime.

Occupation and Economic Circumstances:

Occupation also influences a person’s consumption pattern. In addition, product choice is

greatly affected by a consumer’s economic circumstances:

spendable income (level, stability, and time pattern),

savings and assets (including the percentage that is liquid)

debts

borrowing power and



attitude toward spending versus saving.

Lifestyle:

People from the same subculture, social class, and occupation may actually lead quite

different lifestyles.

Actualizers

Fulfilled

Achievers

Experiencers

Believers

Strivers

Makers:

Strugglers

As the internal factors are considered, the change is food pattern are affected by attitudes

and beliefs, but there is an important factor that has constantly changed many life’s of many

people.

People are now oriented towards

Principles

Status

Action

These are governed by income, education, intelligence, energy level etc.

Personality and Self-Concept



Each person has a distinct personality that influences buying behavior.

Personality is usually described in terms of such traits as self-confidence, dominance,

autonomy, deference, sociability, defensiveness, and adaptability.

Self-concept (or self-image) is related to personality. Marketers often try to develop brand

images that match the target market’s self-image. Consumer responses to brand images.

Psychological Factors

Psychological factors are the fourth major influence on consumer buying behavior (in

addition to cultural, social, and personal factors). In general, a person’s buying choices are

influenced by the psychological factors of motivation, perception, learning, beliefs, and

attitudes.

Motivation:

For some, good food is one of the most important need because of this reason people like to

try and experiment with their taste. Any new food joint is first visited by people who are

internally motivated.

Perception:

A motivated person is ready to act, yet how that person actually acts is influenced by his or

her perception of the situation. Individuals can have different perceptions of the same object

because of three perceptual processes:

selective attention,

selective distortion, and

selective retention.

The people perceived KFC of international standards and created a mindset that KFC would

serve food of good quality and taste.



Beliefs and Attitudes

Through doing and learning, people acquire beliefs and attitudes that, in turn, influence

buying behavior.

ATTITUDE FORMATION:

For years people in Bangladesh have followed the same Traditional food habits. Emphasis

has always been given on the nutrition content of the food. Our values and beliefs have been

carried forward from ages.

ATTITUDE CHANGE:

Now the emphasis is more on the taste than the Traditional nutrient values. With large no of

entrants in Bangladesh, the consumption pattern of people has completely changed.With

addition of good quality food in market, the mind set of people are changing and they accept

these fast food joints a good place to enjoy their meal

LEARNING

Behavior that results from Repeated experience Thinking.

Over years people have learnt about KFC from their advertisements, their print media

promotions. As KFC’s tagline “finger licking good” has made people lean that it related to

good taste.

DRIVE: for good food

CUES: advertising symbols, established KFC as one of food leaders.



RESPONSE: purchasing products at KFC

REINFORCEMENT: repeat purchase.

THE CONSUMER BUYING DECISION PROCESS

Marketers have to go beyond the various influences on buyers and develop an in depth

understanding of how consumers actually make their buying decisions. Specifically,

marketers must identify who makes the buying decision, the types of buying decisions, and

the stages in the buying process.

Buying Roles:

Marketers can identify the buyer for many products easily. We can distinguish five roles that

people might play in a buying decision. An initiator first suggests the idea of buying the

product or service. An influencer is the person whose view or advice influences the decision.

A decider actually decides whether to buy, what to buy, how to buy, or where to buy. A buyer

makes the actual purchase, while a user consumes or uses the product or service.

Buying Behavior:

Marketers also need to be aware that consumer decision making varies with the type of

buying decision.

Complex buying behavior

Dissonance-reducing buyer behavior

Habitual buying behavior

Variety-seeking buying behavior

THE PROCESS OF CONSUMER DECISION MAKING



Marketing scholars have developed a “stage model” of the buying decision

process. However, we use this model because it captures the full range of considerations that

arise when a consumer faces a highly involving new purchase.

Stage 1: Problem Recognition

The buying process starts when the buyer recognizes a problem or need.

The need was hunger and the immediate satisfaction of hunger through fast food.

Mainly targeted at chicken lovers.

The traditional eating habits in Bangladesh have changed.

Youngsters, now days want a hanging joint with good food.

Growing fast food market: KFC came up as a ‘Burger king’.

Stage 2: Information Search

An aroused consumer who recognizes a problem will be inclined to search for more

information.

The Internal factors of Information Search by consumers are:

Recall of advertisements/Print media.

Some perceived KFC as high price, high quality.

The External factors of Information Search are:

Friends and Family. Public sources, including various product-rating organizations such as

Consumer Reports.

Stage 3: Evaluation of Alternatives



Once the consumer has conducted an information search, how does he or she

process competitive brand information and make a final judgment? There are several

evaluation processes; the most current models view the process as being cognitively

oriented, meaning that consumers form judgments largely on a conscious and rational basis.

Comparing the food joints-Mc Donald, Wimpy’s and KFC.

RATIONAL CHOICE : For burger or Non-Veg lovers.

ATTITUDE CHOICE: Some people perceived it as high price, high quality products

at KFC

ATTRIBUTE CHOICE THEORY: By knowing the product well, as in the ingredients,

hygiene factors, ambience etc.

AWARENESS SET: Mc Donalds, KFC ,pizza hut, Nirulas, Wimpy’s, Subway.

EVOKED SET:KFC, Pizza Hut, Mc Donalds.

INEPT SET: Nirulas, Subway.

INERT SET: Wimpy’s.



THE PROCESS OF CONSUMER DECISION MAKING

Stage 4: Purchase Decision

In the evaluation stage, the consumer forms preferences among the brands in the choice set

and may also form an intention to buy the most preferred brand. However, two factors can

intervene between the purchase intention and the purchase decision.

The decision of buying a product at KFC was backed by many factors (as known by

consumer survey)

SOCIAL SURROUNDINGS: The kind of people around i.e. including others present when a

purchase is made.

PHYSICAL SURROUNDINGS: Such as decor, music, and ambience, cleanliness etc

ANTECEDENT STATES: Which include the consumer’s mood or amount of cash on hand?

Stage 5: Post purchase Behavior

After purchasing the product, the consumer moves into the final stage of the consumer

buying process, in which he or she will experience some level of satisfaction or

dissatisfaction.

Post purchase Satisfaction:

The buyer’s satisfaction with a purchase is a function of the closeness between the buyer’s

expectations and the product’s perceived performance. If performance falls short of

expectations, the customer is disappointed; if it meets expectations, the customer is satisfied;

if it exceeds expectations, the customer is delighted.

Post purchase Actions:



The consumer’s satisfaction or dissatisfaction with the product after purchase

will influence subsequent behavior. Satisfied consumers will be more likely to purchase the

product again. A high correlation between satisfaction with the last brand bought and

intention to re buy the brand. Dissatisfied consumers, on the other hand, may abandon or

return the product;

Post purchase Use and Disposal:

Marketers should also monitor how buyers use and dispose of the product after purchase.

POST PURCHASE BEHAVIOUR

POSITIVE FEEDBACK

Consumers were satisfied with the taste and quality of the food.

Some people were even satisfied with the environment and the friendly attitude of

people at cash counters.

NEGATIVE FEEDBACK

Some consumers found food as bland and oily.

They found the chicken has been cooked earlier and kept it in warm environment.

One of the respondent renamed KFC as BFC(badly fried chicken).

MARKETING MIX:

Marketing mix consists of 4P’s. It contains everything a firm can do to influence the demand for its product. The 4P’s are:

PRODUCT PRICE PLACE



PROMOTION

PRODUCT:

Anything that can be offered to a market to satisfy a want or need.

KFC's specialty is fried chicken served in various forms. KFC's primary product is pressure-

fried pieces of chicken made with the original recipe. The other chicken offering, extra

crispy, is made using a garlic marinade and double dipping the chicken in flour before deep

frying in a standard industrial kitchen type machine.

(i) Product Planning:

Their product is classified as consumer product as it has no intermediates.

KFC offers specialty goods.

The stock turnover of KFC is high.

Price and quality of the product is always compared.

Their product includes

Goods (Burgers, Chicky Meals etc)

Services (cleanliness, quick service, parties, and meetings).

(ii) Product Strategy:

It was launched here as an innovative product. KFC has got one product line but later they

introduced products in the same line to protect their market share. New product ideas are

generated from:

Customer services (comments cards)

Gallops survey (mystery shoppers)

They have a Quality Assurance department that decides the new product innovation. Q.A.

department prepares screening of new ideas and product’s feasibility report. This



department does the technical evaluation (whether it is practical to produce

the new product or not). The products are tested externally by offering trials to customers by

giving them free samples. KFC uses telemarketing, print media, billboards and most recently

televised marketing for promotion. KFC adds a new product in its present assortment based

on

Their competitors

Product’s adequate demand

The satisfaction of key financial criteria

Its compatibility with environmental standards

(iii) Product Line:

KFC product line includes all chicken based products.

(iv) Burgers:

Zinger Burger

Colonel’s Chicken Burger

Colonel’s Fillet Burger

SUB60

Zinger Jr.

(v) Chicken:

1 piece


http://www.tcl.com.bd/index.php?option=com_content&view=article&id=5:joomla-license-guidelines&catid=30:concern&Itemid=2&lang=en


2 pieces

5 pieces

10 pieces

(vi) Combos:

Chicken Meals

Sandwich Meals

Family Meals

(vii) Desserts & Beverages:

Fruit Salad

Regular & Large Drink

Regular & Large Mineral Water

Tea

Scoop of Walls Ice cream

Coffee

(viii) Snacks & Side Orders:

5 & 20 Pieces Nuggets

Arabian Rice

5 & 10 Pieces Hot wings

Dinner Roll

Regular & Large Fries

Hot Shots

Corn on the Cob

Hot & Crispy Soup



Cole Slaw

(ix) Product Mix Strategy:

The product mix strategies are in relation to:

(a) Competitors: KFC has a head-on competition with McDonalds so wherever they

place their products; KFC goes there as well. Locally in Bangladesh KFC face a close

competition with the local brands like AFC (Al-Baik Fried Chicken), Fried Chicks, Dixy

Chicks etc which are producing more or less the same product as KFC.

(b) Attributes: The brand KFC is so strong that it is the attribute itself.

(c) Place and Quantity: KFC products are based on high quality and prices.

(x) Product Mix Expansion:

(a) Line Extension: Through introducing new meals offers.

(b) Alteration of existing products: Quality Assurance department does it. The

department decides which product should be sold and when (seasonal products as rice and

soups offered in winters).

(c) Functional modification: It is also decided by the Q.A. department to introduce new

recipes.

(d) Quality modification: KFC has moved to masses rather than the original recipe.

(xi) Contraction:

When the new deals or offers are not sold as expected, Q.A. department contracts the previous offers and introduces new offers.

(xii) Change in Product Positioning:

KFC products were first offered to upper socio-economic group. Later, introducing discounted and lower price deals, they are now dealing in masses. So, KFC has traded down.



In doing so KFC has used the same brand name and same high quality product.

(xiii) Product Life Cycle:

KFC introduced itself, has grown and now it is at maturity stage for the last ten years in Bangladesh.

(xiv) Product, Brand, Packaging and Labeling:

(a) Brand Name: KFC.(b) Color: Red, white.(c) Symbol: Colonel Harland Sander’s picture and KFC written with it.(d) Master Brand: The brand itself is so dominant, that it immediately comes in mind.

(xv) KFC Brand:

KFC's brand identity, the logo features Colonel Harland Sanders, one of the best-recognized icons in the world.

KFC is trademarked registered brand. It is distinctive, adaptable to addition to product line. It suggests something about product. It is legally protected and registered.

(xvi) Brands Equity:

The brand equity is very high as the value added by brand to the product effects the product selling.

(xvii) Brand Strategy:

KFC is marketing the entire output under products own brand.

(xviii) Complimentary branding:

Pepsi & Nescafe.



(xix) Packaging Strategy:

KFC makes its own disposable packaging. If they need promotion Pepsi contributes in improving the packaging quality. KFC does family packaging. They use paper material for packaging to avoid health hazards and environmental pollution.

(xx) Labeling:

KFC does brand labeling. Some of its products also have informational labels such as Halal, Veggi Burgers and Chicky Meals.

PRICE:

Price is the any amount of money that customers have to pay while purchasing the product. More broadly, price is the sum of all the values that consumers exchange for benefits of having or using the product or services

KFC Pricing Strategy:

In introduction stage KFC entered the market using market-skimming strategy. Their products were high price and targeted only upper class. Gradually they trickle down focusing on the middle class to penetrate the market. Also KFC follows one price strategy. Price is determined according to the rates of the raw materials and policies of the Govt. The political and legal forces often affect the policies of KFC and eventually results in change of prices that is due to imposing of taxes.PLACE:

(i) Distribution Channel:

KFC has only one channel of distribution i.e. direct where the goods are transferred to the consumer directly. KFC has no middlemen.

(ii) Distribution of Customer Goods and Services:

KFC does distribution of consumer goods directly to the consumer.



KFC also does distribution of services to the consumer like parking, sitting, home delivery, etc.

KFC intends to further develop its mobile network nationwide through more such units

(iii) Intensity Of Distribution:KFC does intensive distribution on its outlets. (All and everything on every outlet).(iv) Vertical Marketing System:

KFC has corporate vertical marketing system because it is centrally owned by its subsidiary Yum Brands. KFC is affected by the geographic distribution (they have few outlets then its competitor McDonald’s). The unit value of the items is comparatively lower then McDonald’s. KFC has a well-equipped sitting area for the customers and a Chicky play area for the kids.



PROMOTION: Promotion is the method used to inform and educate the chosen target audience about the organization and its products. Using all the resources of promotion:

• Advertising• Sales Promotion• Public Relations• Events and Experiences• Coupons, Discounts and Bundled packages• An organization finds most of its meanings and survival through promotion.

At KFC, Promotion is the main tool to bring all chicken lovers attention towards its delicious one-of-a-kind product, the Fried Chicken.



The logo features Colonel Harland Sanders that is one of the best logo in the world has created its name as a standard in the market. Today the Colonel’s Spirit and heritage are reflected in KFC’s brand identity.

KFC by its advertisements derives the desire in the customer to come and enjoy healthy food in their favorite restaurant. They spend 2% of its profits on advertisement. They use print media and most recently doing televised marketing to promote it products. Their advertising media involve: Newspapers, Pamphlets, Billboards and Television. KFC does both the



primary demand advertising (“Become a Chicken Fanatic”) and the selective demand advertising (e.g. “Zinger Meal”). In its advertising it gives informative messages KFC does institutional advertising to stimulate demand. When KFC offers new products then it does product advertising. KFC’s ad’s act as counteracts which means to drive the customer to KFC i.e. it uses pull advertising strategy.KFC have joint sale promotions with different companies like HP, Philips, Value Meals, Pepsi-Cola.

Recommendation:

Some recommendations for the KFC senior executives are as given below:

As KFC has a costlier brand, KFC may consider the price in terms of targeting more consumers in Bangladesh.

KFC can launch more outlets not only in Dhaka as well as the other mega cities in Bangladesh.

KFC can go for more promotional activities to attract more customers in Bangladesh. KFC should open the road street wheel based vehicle van restaurants in Bangladesh. If KFC expands their business, it will create more employment opportunities for the

local people in Bangladesh. KFC can arrange technical and effective assistant to the people who want todo job in

this fast foods industry.

CONCLUSION:

KFC is a very strong chain of fast food restaurants with more than 10,000 restaurants all over the world. Being in “Maturity Stage” it has high opportunities of introducing its new products and deals. In Future it will be expanding its chain by introducing more outlets in Bangladesh as well as in other countries

Perception:

Believe in value creation. Provide ultimate choice of quick service restaurants for consumers. Won the hearts of millions of Bangladeshis.



Sources:

Official web site of KFC :www.kfc.com Official website of Transcom Food Limited:www.tfl.com Text book: Marketing Management(13th Edition) by Philip Kotler East West University Library: On line Journal On KFC Information KFC outlet in Gulshan,Dhaka,Bangladesh.


http://www.kfc.com/

mkt201 (kfc)

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