Marketing startegies of kfc Essay

Harland Sanders was born in 1890 and raised on a put up outside Henryville, Indiana. His father died when he was five forms old, forcing his m other to work at a canning plant, and leaving her eldest son to care for his two junior siblings. After he reached seven years of age, his mother taught him how to cook. After leaving the family home at the age of 12, Sanders passed through several professions, with mixed success. In 1930, he took over a Shell filling station on U.S. Route 25 just outside North Corbin, a small city on the edge of the Appalachian Mountains.It was here that he prototypic served to travelers the recipes that he had learned as a boy fried scandalmongering and other dishes such as steaks, country ham, and pancakes. Originally using his own dining room table, in 1934, he purchased the larger filling station on the other side of the course and covered to six tables By 1936, this had proved successful enough for Sanders to be given the honorary title of Kentuck y colonel by Governor Ruby Laffoon. The ascertaining year he expanded his eatery to 142 seats, and added a motel he purchased across the street, naming it Sanders Court & Caf.Sanders was dissatisfied with the 30-minute duration it took to prepare his squawker in an iron sauteing pan, but he refused to sacrifice quality by deep frying the product. If he pre-prepared the red jungle fowl in advance of an order, there was inevitably wastage. In 1939, the first commercial pressure cookers were released onto the market, predominantly designed for steaming vegetables. Sanders bought one, and modified it into a pressure fryer, which he then used to fry chicken. As well as reducing production time to be comparable with deep frying, the new method produced flakier, moister chicken. In 1940, Sanders finalized what came to be known as his Original Recipe of 11 herbs and spices.Although he never publicly revea take the recipe, he admitted to the use of salt and pepper, and claimed that the i ngredients stand on everybodys shelf. After being recommissioned as a Kentucky colonel in 1950 by Governor Lawrence Wetherby, Sanders began to dress the part, growing a goatee and wearing a black frock coat (later switched to a white suit), a string tie, and referring to himself as Colonel. His associates went along with the title change, jokingly at first and then in earnest, according to biographer Josh Ozersky.HistoryKFC (Kentucky Fried Chicken) is a fast nutrient restaurant chain which specializes in fried chicken and is headquartered in Louisville, Kentucky. It is the worlds second largest restaurant chain overall (as measured by sales) later on McDonalds, with over 18,000 outlets in 120 countries and territories as of December 2012.The order is a subsidiary of Yum Brands, a restaurant company which also owns the Pizza Hut and greaser Bell restaurant chains. KFC was founded by Harland Sanders, a colorful figure who began selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified the potentiality of the restaurant franchising concept, and the first Kentucky Fried Chicken franchise opened in Utah in 1952. KFC popularized chicken in the fast food industry, diversifying the market by challenging the established dominance of the hamburger. By branding himself as Colonel Sanders, Harland became a legendary figure of American cultural history, and his image remains prominent in KFC advertising. However, the companys rapid expansion saw it grow too large for Sanders to manage, and in 1964 he sold the company to a group of investors led by John Y. Brown, Jr. and Jack C. Massey.KFC was one of the first fast food chains to expand internationally, opening outlets in England, Mexico and Jamaica by the mid-1960s. Throughout the mid-seventies and 1980s, KFC experienced mixed fortunes domestically, as it went through a series of changes in corporate ownership with little or no experience in the restaurant air. In the early 1970s, KFC was sold to the spirits distributor Heublein, who were taken over by the R.J. Reynolds food and tobacco conglomerate, who sold the chain to PepsiCo. The chain continued to expand overseas however, and in 1987KFC became the first Western restaurant chain to open in China. The chain has since expanded rapidly in China, and the country is now the companys most profitable market. PepsiCo spun off its restaurants division as Tricon Global Restaurants, which later changed its name to Yum Brands. KFC primarily sells fried chicken pieces and variations such as chicken fillet burgers (chicken sandwiches US) and wraps, salads and side dishes such as French fries and coleslaw, desserts and soft drinks, often supplied byPepsiCo.Its most famous product is pressure fried chicken pieces, seasoned with Sanders Original Recipe of 11 herbs and spices. The exact nature of these ingredients is unknown, and represents a notable trade secret. Larger portions of fried chicke n are served in a distinctive cardboard bucket, which has become a signature product of the chain since being introduced by franchisee Pete Harman in 1957. KFC is known for the slogan finger lickin impregnable, which has since been replaced by Nobody does chicken like KFC and So good. merchandiseMarketing is the process of communicating the value of a product or supporter to customers, for the purpose of selling the product or service. It is a critical business function for attracting customers. From a societal point of view, marketing is the link between a societys material requirements and its economic patterns of response. Marketing satisfies these needs and wants through exchange processes and building long term relationships. It is the process of communicating the value of a product or service through positioning to customers. Marketing can be looked at as an organizational function and a set of processes for creating, delivering and communicating value to customers, and mana ging customer relationships in ways that also benefit the organization and its shareholders.Marketing is the science of choosing designate markets through market analysis and market segmentation, as well as understanding consumer buying behavior and providing superior customer value. There are five competing concepts under which organizations can choose to operate their business the production concept, the product concept, the selling concept, the marketing concept, and the holistic marketing concept. The four components of holistic marketing are relationship marketing, internal marketing, integrated marketing, and socially reactive marketing. The set of engagements necessary for successful marketing management includes, capturing marketing insights, connecting with customers, building strong brands, shaping the market offerings, delivering and communicating value, creating long-term growth, and developing marketing strategies and plans.Marketing StrategiesMarketing strategy is de fined by David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives.Marketing Strategies of KFCKFC IS synonymous with chicken. It has to be because chicken is its flagship product. The latest they adjudge on offer is the marinated hot and crispy chicken that is crrrrisp and crunchy on the outside, and soft and juicy on the inside. It gives you a regular Pepsi with this at nothing more than than just Rs. 39. But make no mistake, while this is a rage across the world, and in our very own Bangalore, KFC has made sure one other thing it doesnt want to alienate the vegetarian community that gave birth to the vegetarian computer menu. It means you can be veg and yet be at KFC.KFC offers a astray range of vegetarian products such as the sourish, lip-smacking paneer tikka wrap n roll, the veg de-lite burger, and the veg crispy burger. There are munchies such as the crisp golden veg fingers and crunchy golden fries served with tangy sauces.If you are veg and looking for a meal, you can combine the veg fingers with steaming, peppery rice and a spice curry. The mayonnaise and sauces dont have egg in them.Sharanita Keswani, Director, KFC Marketing, says the vegetarian menu in India came about when KFC found the country had about 35 per cent vegetarians, and in metros such as Delhi and Mumbai, more or less 50 per cent.The non-vegetarian is the obvious target customer because, as Ms. Sharanita points out, Bangalore and the rest of south India have over 70 per centnon-vegetarians. But she also observes that chick en is KFCs strength.KFCs vegetarian menu is almost exclusive to India and is the most extensive. Most countries either do not have a vegetarian menu, and some which do, have a burger at the most. Contrary to affecting chicken sales, the presence of a vegetarian menu has made the brand more relevant to a wider cross-section of the consumer society. This is essential as we grow the brand across the country, says Ms. Sharanita.The KFC menu strategy is to balance threadbareisation and localisation. The localisation works in two ways to modify a standard chicken product with a different topping or sauce and to have a vegetarian menu, where necessary, along with the flagship product, chicken. The localisation exercise is undertaken in every country. The U.S. and European markets have a traditional KFC menu based on chicken burgers and wraps, while Asian markets like India have been more experimental and adventurous. Here, they have rice meals, wraps, and sides. The change is imperative a s Asian tastes can be very different from Western ones, Ms. Sharanita observes, adding that KFC learnt very early the high demand for vegetarian products in India.KFC has taken care to maintain safeguards on the production of its non-vegetarian products in response to observations by People For Ethical Treatment of Animals that chicken were not being treated humanely by suppliers. The debate has been on for years now and animal rights activists have prompted companies to adopt stringent measures.Pankaj Batra, Director, Marketing, Indian Sub-Continent, Yum Restaurants International, observes KFC is committed to the well being and humane treatment of chickens. We require all our suppliers to follow welfare guidelines developed by Yum Restaurants International, U.S.A., with leading experts on their Animal Welfare Advisory Council. In India, we source chicken from Venkateshwara Hatcheries Limited (Venkys), which is one of the leading and reckon organised players in the poultry farming business. They also supply chicken to several reputed hotel and restaurant chains in the country. We respect the Indian law and our guidelines on the whole adhereto them.Ms. Sharanita points out that while KFCs brand standard products are their strength throughout the world, KFC works around the core and gives consumers products with a familiar taste, oddly important in a country like India that is home to such distinct and different food habits.All KFC outlets offer its customers with various forms of incentives to buy its Chicken. utilize coupons that one can acquire after spending a particular amount over a period of fixed time, customers can enjoy the benefits of relax meals or free add-ons. Additionally they provide meal vouchers and exciting offers in their print ads, which the customer must cut and bring along.KFC in IndiaThe first Indian KFC opened in Bangalore in June 1995.198 Protests ensued from left wing, anti-globalisation and environmental campaigners, as well as l ocal farmers, who objected to the chain bypassing local producers.199 Many Indians were concerned about the assault of consumerism, the loss of national self-sufficiency, and the disruption of indigenous traditions.200 The protests came to a head in August 1995, when the Bangalore outlet was repeatedly ransacked.198 KFC Bangalore demanded, and received, a police van permanently pose outside for a year.199 Rural activist M. D. Nanjundaswamy subsequently claimed KFC would adversely affect the health of the impoverished, by diverting grain from poor people to make the more profitable animal feed.201Former environment minister Maneka Gandhi joined the anti-KFC movement.201 KFC was also accused of using illegally high amounts of monosodium glutamate (MSG) and frying its food in porc fat.202 A second store opened in Delhi, but was closed by the authorities soon afterwards, purportedly for health reasons, but more promising to avoid a repetition of the Bangalore incident. The two store s only managed to attract a limited, affluent clientele, and KFC decided to abandon the Indian market. KFC returned to India in 1999, with a new Bangalore outlet. This was the repair KFC in India until 2004, when the chain began to expand, albeit with a makeover and a range of new vegetarian dishes. As of December 2012, there were 280 KFCs in the Indian market. As well as the standard KFC offerings, the chain sells a chickpea burger and hot wings with chilli lemon sprinkles.