COMPARISON BETWEEN KFC, MCDONALD AND STARBUCKS
SUBMITTED TO: SIR UMER FAROOQ SUBMITTED BY: HAMID KHURSHID SHUJA IQBAL USAMA AHMED
Introduction of Company KFC Corporation, based in Louisville, Kentucky, is the worlds most popular chicken restaurant chain, specializing in Original Recipe , Extra Crispy TM, and Colonels Crispy Strips chicken with home style sides and five new freshly made sandwiches. Every day, nearly eight million customers are served around the world. KFCs menu everywhere includes Original Recipe chickenmade with the same great taste Colonel Harland Sanders created more than a half-century ago. Customers around the globe also enjoy more than 300 other productsfrom a Chunky Chicken Pot Pie in the United States to a salmon sandwich in Japan. KFC continues reaching out to customers with home delivery in more than 300 restaurants in the United States and several other countries. And in quite a few U.S. 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 home meal replacement selling complete meals to harried, time-strapped families. He called it, Sunday Dinner, Seven Days a Week. Today, the Colonels spirit and heritage are reflected in KFCs brand identity the logo features Colonel Harland Sanders, one of the bestrecognized icons in the world
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 India 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. 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 Boneless Fried Chicken, with even more attractive and charming taste. Company 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 colonels finger lickin good chicken dinners are served annually. And not just in America. The colonels 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 justice 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 travelers who stopped at his service station in Corbin, KY. He didnt 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. CURRENT PRODUCTS: 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
COMPETITIVE ANALYSIS: You cannot enjoy the business without competitors. No organization can afford to ignore there competitors. It is very important for a marketing managers to monitor the activities of there competitors, what they are doing? KFC adopted such sort of strategy that there is no competitor for spicy chicken, which is made by KFC. KFC beats its competitors through the revising marketing strategy at every movement but the main competitor of KFC are Mc Donald MARKET SHARE:
KFC has a very long history and has the most recognize able brand in chicken with over 50% of the market share. It becomes difficult for the companies like Sub way, Mc Donalds, Chicken planet, Dixie or those who may want to enter in the market of fast food restaurants. Due to with over 50% of the market share in fast food industry KFC has recognition around the world and has been globally positioned for many years in India and to capture the market share in India adopts champs philosophy SWOT ANALYSIS: STRENGTHS Goodwill and reputation: The company certainly has earned a good name and reputation by its previous products and services in the market. It is even more recognised in other markets where the company is among the leading fast food giants. The brand is recognised and trusted in India for its quality products, price, and customer service. It therefore has a good head start and enjoys a good chance of becoming a leader in Indian fast food industry. Employee Loyalty: Employee Loyalty is one of the major strengths of KFC. The turnover rate in the company is amongst the lowest in the industry. Customer Loyalty: Despite gain by Boston Market and Chick-fill A, KFC customer base remained loyal to the KFC brand because of its unique taste. KFC has continued to dominate the dinner and take out segment of the Industry.Ranks highest among all chicken restaurant chains for its convenience and menu variety. It generates $1B revenue each year.
WEAKNESSES KFC was losing market share as other Chicken chain increased sales at a faster rate. KFC share of Chicken Segment sales fell from 71 percent 1999 , to less than 56 percent in 2009 , a 10 -years drop of 15 percent. Huge competition in this segment. KFC has not yet invested much on R&D, and innovating new OPPURTUNITIES New Markets: Globalisation has opened doors for new markets for the company. As the developed markets are mostly saturated, the developing countries like India and China promises a good market and generation of demand in the future. With more than 70% of the markets in india being unexplored and un organised, KFC has a good scope of expanding its operations in the country. New variety: Company can also come up with new variety in the menu like Pizzas, garlic breads to attract more customers.
THREATS Competition: Competitor companies like McDonalds are fast catching up with the market.McDonalds with sales of more than 19 billion in 1999, accounted for 15 percent of the sales of the nations top 100 restaurant chains. Organisations like PETA People for Ethnic Treatment for Animals have given a bad name to the company which may prove disastrous to the image of the firm. Currently, KFC is undermassive attacks from animal organisations, questioning the way KFCs suppliers are threatening the chicken, before they got slaughtered. AntiKFC campaigns, such as the one from PETA are affecting KFCs brand image in a negative way and result in direct dollar losses, as less people are consuming KFC chicken Saturated US Market: Now KFC cannot rely on just its home market to generate sales. As the US markets are already saturated and leave no or little scope for growth, company necessarily needs to look at offshore foreign markets to generate sales
MARKETING STRATEGIES OF KFC: There are different strategies adopted by KFC for different events. They market their products on different events and in different activities as they are helping SOS village. According to KFC, kids become the future permanents customers and we know very well that without any marketing strategy no marketing program and no product is successful because we depend upon customers, customer not depend on us. KFC is following Niche Marketing and Societal Marketing techniques. KFC are moving from Divisional Level to the District level by opening branches KFC also offer free home delivery. KFC open their outlets on reachable places. KFC menu consists of more than 30 products. KFC gives more priority to Family.
One world, One Burger
Ray Kroc, at 52 years old, invested his entire life savings to become the exclusive distributor of a milk shake maker called the Multimixer. Hearing about the McDonald's hamburger stand in California owned by Dick & Mac McDonald running eight Multimixers at a time, he packed up his car and headed West. It was 1954. Ray Kroc had never seen so many people served so quickly. He pitched the idea of opening up several restaurants to the