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“A project submitted in partial fulfillment of the requirements of the ICM Diploma of Business”
11
Quantitative analysis - to
identify areas of improvement
in KFC by using mix of
quantitative techniques.
Coma
1 | P a g e
Table of Contents Executive Summary .................................................................................................................... 2
Introduction ................................................................................................................................ 3
Aim and Objectives ..................................................................................................................... 4
Methodology .............................................................................................................................. 5
Main chapter/Analysis ............................................................................................................... 6
Comparison of business data from Year 2011 and Year 2010 ............................................... 6
1st Week in October ............................................................................................................ 6
2nd Week in October ......................................................................................................... 10
3rd week in October ........................................................................................................... 13
4th week in October ........................................................................................................... 16
1st week in November ....................................................................................................... 19
2nd week in November....................................................................................................... 22
3rd week in November ....................................................................................................... 25
4th week in November ....................................................................................................... 28
Questionnaire ....................................................................................................................... 31
Questionnaire design ........................................................................................................ 31
Original questionnaire ...................................................................................................... 33
Improved questionnaire ................................................................................................... 34
Questionnaire results ........................................................................................................ 35
SWOT analysis ................................................................................................................... 36
Promotional sale compare to non-promotional item .......................................................... 37
Conclusion ................................................................................................................................ 38
2 | P a g e
Executive Summary
During my primary internal research where I collected data from tills, it
become evident that there is an increasing trend of customer loss in KFC
Jervis Centre. In this report we will investigate the cause of these losses and
attempt to rectify them.
In October 2011 KFC where the sales/transaction was almost level with
2010, KFC didn’t need to provide any action. But November 2011 was
catastrophic. The sales and transactions went down sloping. During these
two months we lost -€5,659.57 and 1 942 paying customers.
In order to establish exactly what was causing this customer loss I decided
to issue a Questionnaire in which customers had to answer a variety of
questions relating to the Products, Service, and Quality etc. It was evident
from the results of this Questionnaire that the speed of service is critical
issue for the majority of customers who were purchasing food from our store.
Some of our customer had issues with range of our soft drinks and sauces.
This report is going to be handled to senior management to reform their look
on tills and services part of business to re-attracting lost of customers.
3 | P a g e
Introduction
My observed fast food store is KFC in Jervis Shopping Centre Dublin. It’s
based in Dublin city Centre.
KFC is world’s most popular chicken restaurant chain. It is part of Yum!
Restaurants Inc. from 1997. First franchisee was set up in 1959. And from
1969 is Kentucky Fried Chicken Corporation listed on The New York Stock
Exchange. Today the company owns and franchises more than 14800
outlets in more than 100 countries.
These restaurants offer items such as their trademark fried chicken in
original recipe and extra crispy, chicken sandwiches, crispy chicken strips
etc. KFC is daily serving around 8 million people!
I am observing months October and November. These two months are tense
for customer because we are talking about great shopping season-Christmas
specially November.
KFC Jervis Centre is located on Food Court level where is also Harry
Ramsden (fish & chips), La Croisanterie (sandwiches & cakes), The Bagel
factory, Maud’s Creeps Factory and Costa Coffee. In Jervis Centre there are
also Burger King (one level lower) and McDonald’s (two levels lower).
This is a: ‘Strategic positioning company attempts to achieve sustainable
competitive advantage by preserving what is distinctive about a company. It
means performing different activities from rival, or performing similar
activities in different ways.’ 1
1 Michael E. Porter, What Is Strategy?, Harvard business school publishing
corporation, 2000, p3.
4 | P a g e
Aim and Objectives
1. My aim is to compare two different time periods – October 2010
compare to October 2011 and November 2010 to November 2011. I am
using “live” data from cashier tills. In tables and charts I will show
sales/transaction from 2010 and 2011 and their variances. I would
like to find out what differences KFC have. Are these plus or minus
variations? I would like to find out which year was better for sales and
how many customers KFC served in 2011 compare to 2010.
2. My object in customer research section is design a questionnaire. To
find out what type of customers we have, what make customers to
choose KFC restaurant and what type of promotional or non
promotional meal they purchased. Also to ask why they make this
decision and if they are happy with KFC customer service and quality.
3. Find out if KFC Jervis Centre is able to sale more promotional meals
compare to non-promotional.
5 | P a g e
Methodology
I would like to do an analysis. First one is quantitative. Second one is
customer research. Third one is about promotional and non-promotional
items.
1. My aim is to compare business data (such as sales and transactions)
from year 2010 with year 2011. I am going to observe two months in
operation. I would like to divide each month into four weeks. In those
four weeks I would like to show different segments of this store business
i.e. what we sold, how many items and how many transactions were
obtained and then compare them with year 2010. My sources are data
which comes from counters tills. We can call these data “live”. I am going
to use these data such as sales, units sold and transactions and compare
them with data from previous year.
2. My second aim is to find out what type of customers we have, what is
their experience with KFC and what their buying behaviour is. I design
questionnaire for this research. I am going to ask our customers strategic
questions. On behalves of replied answers, I will build up analysis and
then tie them together with my quantitative research and try to find out
facts about KFC business and bases of customers behaviours.
3. I am taking October as a non promotional season, when our fast food
store provides standard meals and food and November as a promotional
time period where we are serving our customers with standard meals and
food + promotional item which in this case is NEW ZINGER BURGER.
6 | P a g e
Main chapter/Analysis
Comparison of business data from Year 2011 and Year
2010
Quantitative research is based on data from tills and every transaction going
through the till. In this till KFC keep information on what we have sold, how
many items and in what cost. At the end of the day all these data going out
as a strip of information put together. So we can easily recognise what items
we sell and in what quantities.
1st Week in October
For example we have sales or sales
In first week in October 2010: in October 2011:
In these two tables we recognise week started on Sunday (that is the specific
of this KFC). Sale was €4,352.82 in 2010 and €4,063.01 in 2010. We can
continue up to Saturday when this week ends. Sale was €5,963.69 in 2010
against €6,401.86 in 2011.
Date Sales 2010
Date Sales 2011
2.10 4 352,82
2.10 4 063,01
3.10 3 158,79
3.10 3 426,18
4.10 4 024,24
4.10 3 875,23
5.10 3 899,60
5.10 3 542,84
6.10 5 184,36
6.10 5 054,93
7.10 3 988,27
7.10 4 192,56
8.10 5 963,69
8.10 6 401,86
7 | P a g e
So then we can compare sales in first week in October 2010 and 2011:
Date Sales 2011 Sales 2010 Variances %
Variances in sales
2.10 4 063,01 4 352,82 -289,81 -6,66%
3.10 3 426,18 3 158,79 267,39 8,46%
4.10 3 875,23 4 024,24 -149,01 -3,70%
5.10 3 542,84 3 899,60 -356,76 -9,15%
6.10 5 054,93 5 184,36 -129,43 -2,50%
7.10 4 192,56 3 988,27 204,29 5,12%
8.10 6 401,86 5 963,69 438,17 7,35%
The sales during the week are lower than during the weekend except
Thursdays when the KFC is open longer-until 21,00 PM.
KFC have good sales during the weekends. Friday sales are up 5,12%
(€204,28) compare Friday 2010 and Saturday is up 7,35% (€438,17)
compare to Saturday 2010. If we compare sales on Sundays we sold less -
6,66% (€289,81) than 2010. Monday sales are going always down compare
to weekend but in 2011 we sold 8,46% (€267,39) more than 2010. But
Tuesday, Wednesday and Thursday have lower sales than 2010.
0,00
1 000,00
2 000,00
3 000,00
4 000,00
5 000,00
6 000,00
7 000,00
1.10 2.10 3.10 4.10 5.10 6.10 7.10 8.10 9.10
Sale
s in
€
Date
Sales 1st week October 2010/2011
Sales 2011
Sales 2010
8 | P a g e
Total sales this week is €30,556.61 (2011). Last Year was €30,571.77
variation is -€15,16.
Than I am going to compare transactions and average sale per item.
Transactions 2011
Transactions 2010
Variances
% Variances
in transaction
Avrg sale per
customer 2011
Avrg sale per
customer 2010
Variances
450 523 -73 -13,96% 9,03 8,32 0,71
374 408 -34 -8,33% 9,16 7,74 1,42
457 489 -32 -6,54% 8,48 8,23 0,25
456 501 -45 -8,98% 7,77 7,78 -0,01
619 643 -24 -3,73% 8,17 8,06 0,10
530 518 12 2,32% 7,91 7,70 0,21
737 758 -21 -2,77% 8,69 7,87 0,82
As we see in the chart above, KFC Jervis Centre has less transactions during
1st week in October but their average sale per customer is slightly higher.
The conclusion from this leads to fact that if we serve less customers, the
average spent per customer is still higher than in 2010.
The same till can provide information about sold items and how many
quantities:
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
Date: 2.10.2011 3.10.2011 4.10.2011 5.10.2011 6.10.2011 7.10.2011 8.10.2011
Chixs pcs 690 577 540 571 776 705 908
Brazer 12 11 21 9 12 10 21
Fillet 59 50 70 56 96 73 83
Mini Fillet 392 292 371 338 502 443 667
Zinger 35 43 43 32 48 39 53
Hot Wings 580 418 434 398 649 554 826
Strips 90 104 146 150 151 191 314
Popcorn 2505 2163 2510 2249 2780 2875 5733
9 | P a g e
Weak days such as Monday, Tuesday, Wednesday and Thursday we sold
average 563 pieces of chicken a day. On the other hand strong days as
Friday, Saturday and Sunday we can sell average 678 pieces of chicken a
day. This figure shows us that during the strong days we can sell 17% more
pieces of chicken in this particular week.
In this particular week we sold 293 pieces of Zingers which is average 42
pieces a day.
0
200
400
600
800
1000
Items sold 1st week in October 2011
Brazer
Zinger
Fillet
Strips
Mini Fillet
Hot Wings
Chixs pcs
10 | P a g e
2nd Week in October
Date Sales 2011 Sales 2010 Variances
% Variances
in sales
9.10 3 953,02 3 945,34 7,68 0,19%
10.10 3 195,48 3 351,33 -155,85 -4,65%
11.10 3 342,00 3 248,21 93,79 2,89%
12.10 3 784,77 3 578,34 206,43 5,77%
13.10 4 831,79 5 062,92 -231,13 -4,57%
14.10 4 325,23 3 648,62 676,61 18,54%
15.10 6 720,23 5 754,82 965,41 16,78%
In this week we can see, that Monday is slightly weaker as well as Thursday.
But again the weekend is strong for sales. Average sales on weekend are
17,66% up then in 2010. Total sales in 2011 is €30,152.52 and 2010
€28,589.58 so the difference is €1,562.94 more than 2010. As we see in
2011 sale almost copy the sales from 2010, but Friday and Saturday was
better for sales.
0,00
1 000,00
2 000,00
3 000,00
4 000,00
5 000,00
6 000,00
7 000,00
8 000,00
8.10 9.10 10.10 11.10 12.10 13.10 14.10 15.10 16.10
Sale
s in
€
Date
Sales 2nd week October 2010/2011
Sales 2011
Sales 2010
11 | P a g e
Transactions 2011
Transactions 2010
Variances
% Variances
in transaction
Avrg sale per
customer 2011
Avrg sale per
customer 2010
Variances
403 424 -21 -4,95% 9,81 9,31 0,50
391 424 -33 -7,78% 8,17 7,90 0,27
425 421 4 0,95% 7,86 7,72 0,15
480 462 18 3,90% 7,88 7,75 0,14
600 639 -39 -6,10% 8,05 7,92 0,13
525 503 22 4,37% 8,24 7,25 0,98
798 701 97 13,84% 8,42 8,21 0,21
In this week we have more days with more transactions than 1st week in
October and average sale per customer is slightly higher.
Date: 9.10.2011 10.10.2011 11.10.2011 12.10.2011 13.10.2011 14.10.2011 15.10.2011
Chixs pcs 680 560 611 635 765 691 983
Brazer 13 12 12 14 20 19 27
Fillet 58 49 53 68 81 54 94
Mini Fillet 390 274 348 354 498 375 679
Zinger 37 36 23 30 46 61 57
Hot Wings 589 437 442 458 655 558 805
Strips 92 125 128 201 207 145 233
Popcorn 2453 1526 1780 2426 2784 2543 5446
12 | P a g e
Monday to Thursday we sold 2571 pieces of chicken = 643 pieces a day. On
the weekend we sold 2354 pieces = 785 pieces a day. That is 22% more
pieces than during the week.
Second week in October we sold 290 pieces of Zingers and it is average 41
pieces a day.
0
200
400
600
800
1000
Items sold 2nd week in October 2011
Brazer
Zinger
Fillet
Strips
Mini Fillet
Hot Wings
Chixs pcs
13 | P a g e
3rd week in October
Date Sales 2011 Sales 2010 Variances % Variances
in sales
16.10 4 358,61 3 794,21 564,40 14,88%
17.10 3 285,50 3 313,46 -27,96 -0,84%
18.10 2 989,48 3 388,59 -399,11 -11,78%
19.10 3 531,26 3 794,18 -262,92 -6,93%
20.10 5 656,79 4 897,73 759,06 15,50%
21.10 4 365,19 4 641,08 -275,89 -5,94%
22.10 6 496,15 5 820,68 675,47 11,60%
In this week we are 4 days from 7 in red. We did not sell enough even on
Friday which is usually a strong day. Strong days are Thursday, Saturday
and Sunday. This week we sold €30,682.98 in 2011 and €29,649.93 in
2010. Total difference is €1,033.05, even if we were 4 days in red numbers.
0,00
1 000,00
2 000,00
3 000,00
4 000,00
5 000,00
6 000,00
7 000,00
15.10 16.10 17.10 18.10 19.10 20.10 21.10 22.10 23.10
Sale
s in
€
Date
Sales 3rd week October 2010/2011
Sales 2011
Sales 2010
14 | P a g e
Transactions 2011
Transactions 2010
Variances
% Variances
in transaction
Avrg sale per
customer 2011
Avrg sale per
customer 2010
Variances
475 450 25 5,56% 9,18 8,43 0,74
385 425 -40 -9,41% 8,53 7,80 0,74
354 441 -87 -19,73% 8,44 7,68 0,76
466 495 -29 -5,86% 7,58 7,67 -0,09
660 596 64 10,74% 8,57 8,22 0,35
521 605 -84 -13,88% 8,38 7,67 0,71
702 701 1 0,14% 9,25 8,30 0,95
Transactions are
And again less transaction which we can call served customers for four days,
but again more average sale per customer than in 2010.
Date: 16.10.2011 17.10.2011 18.10.2011 19.10.2011 20.10.2011 21.10.2011 22.10.2011
Chixs pcs 814 568 476 602 1029 671 1016
Brazer 10 17 25 14 14 17 13
Fillet 52 52 54 64 125 97 113
Mini Fillet 369 323 229 322 414 363 425
Zinger 35 34 37 42 54 36 55
Hot Wings 649 449 433 522 812 575 810
Strips 150 96 101 100 164 179 230
Popcorn 2379 1566 1687 2010 2353 1802 4005
15 | P a g e
Between Monday to Thursday we sold 2675 pieces of chicken. That is an
average 669 pieces of chicken sold a day. On the weekend we sold 2501
pieces and that is 834 pieces of chicken a day. This is approximately 25%
more than the week days.
Third week in October we sold 293 pieces of Zingers and it is an average 42
pieces a day.
0
200
400
600
800
1000
1200
Items sold 3rd week in October 2011
Brazer
Zinger
Fillet
Strips
Mini Fillet
Hot Wings
Chixs pcs
16 | P a g e
4th week in October
Date Sales 2011 Sales 2010 Variances % Variances
in sales
23.10 3 746,37 3 929,18 -182,81 -4,65%
24.10 3 119,98 4 760,35 -1 640,37 -34,46%
25.10 3 440,94 5 389,00 -1 948,06 -36,15%
26.10 4 480,13 5 564,59 -1 084,46 -19,49%
27.10 7 420,34 6 743,03 677,31 10,04%
28.10 5 509,29 4 662,58 846,71 18,16%
29.10 5 542,32 5 514,88 27,44 0,50%
This week didn’t start positively. We are in red numbers from Sunday to
Wednesday. Only Thursday and Friday are good for sales because Saturday
evens the sale.
This week we made €33,259.37 in 2011 compare to 2010 when we made
€36,563.61 which is -€36,563.61 less than in 2010.
0,00
1 000,00
2 000,00
3 000,00
4 000,00
5 000,00
6 000,00
7 000,00
8 000,00
22.10 23.10 24.10 25.10 26.10 27.10 28.10 29.10 30.10
Sale
s in
€
Date
Sales 4th week October 2010/2011
Sales 2011
Sales 2010
17 | P a g e
Transactions 2011
Transactions 2010
Variances
% Variances
in transaction
Avrg sale per
customer 2011
Avrg sale per
customer 2010
Variances
406 421 -15 -3,56% 9,23 9,33 -0,11
371 541 -170 -31,42% 8,41 8,80 -0,39
411 623 -212 -34,03% 8,37 8,65 -0,28
536 619 -83 -13,41% 8,36 8,99 -0,63
859 758 101 13,32% 8,64 8,90 -0,26
650 599 51 8,51% 8,48 7,78 0,69
657 653 4 0,61% 8,44 8,45 -0,01
In this week we have less served customers and also less average sale per
customer almost all week. We had -59,98% less transaction than in 2010!
Date: 23.10.2011 24.10.2011 25.10.2011 26.10.2011 27.10.2011 28.10.2011 29.10.2011
Chixs pcs 801 543 579 794 1213 934 1185
Brazer 15 24 12 17 18 21 16
Fillet 70 75 79 101 166 126 101
Mini Fillet 244 207 262 283 522 396 457
Zinger 40 26 45 37 71 39 51
Hot Wings 436 429 514 674 951 697 760
Strips 140 135 100 201 335 181 218
Popcorn 1803 1099 1650 2000 4519 2467 3838
18 | P a g e
We sold 3129 pieces of chicken during Monday to Thursday. And it is 782
pieces a day. Then during the weekend we sold 2920 pieces so we can take it
as 973 pieces a day. It is approximately 24% more than during a week days.
Zinger pieces we sold 309 which is approximately 44 pieces a day.
0
200
400
600
800
1000
1200
1400
Items sold 4th week in October 2011
Brazer
Zinger
Fillet
Strips
Mini Fillet
Hot Wings
Chixs pcs
19 | P a g e
1st week in November
This week we started a new promotion for a Zinger burger. This burger we
have all the time in KFC. We made new promo for Zinger because KFC
delivered new way of preparing and cooking the Zinger. It is healthier and it
has less fat.
Date Sales 2011 Sales 2010 Variances % Variances
in sales
30.10 4 876,15 2 918,45 1 957,70 67,08%
31.10 3 710,98 3 254,64 456,34 14,02%
1.11 5 612,11 3 385,41 2 226,70 65,77%
2.11 5 383,05 4 356,76 1 026,29 23,56%
3.11 6 889,15 5 324,47 1 564,68 29,39%
4.11 6 049,44 4 576,64 1 472,80 32,18%
5.11 7 278,92 6 824,22 454,70 6,66%
0,00
1 000,00
2 000,00
3 000,00
4 000,00
5 000,00
6 000,00
7 000,00
8 000,00
29.10 30.10 31.10 1.11 2.11 3.11 4.11 5.11 6.11
Sale
s in
€
Date
Sales 1st week November 2010/2011
Sales 2011
Sales 2010
20 | P a g e
This week was very successful. All week we were in good numbers. We sold
€39,799.80 in 2011 and €30,640.59 in 2010. The difference is €9,159.21. It
is very good start of the new promotional campaign for Zinger.
Transactions 2011
Transactions 2010
Variances
% Variances
in transaction
Avrg sale per
customer 2011
Avrg sale per
customer 2010
Variances
493 352 141 40,06% 9,89 8,29 1,60
398 432 -34 -7,87% 9,32 7,53 1,79
584 421 163 38,72% 9,61 8,04 1,57
592 582 10 1,72% 9,09 7,49 1,61
757 654 103 15,75% 9,10 8,14 0,96
589 560 29 5,18% 10,27 8,17 2,10
772 823 -51 -6,20% 9,43 8,29 1,14
If we compare transactions in 1st week in November, we can see that we have
less served customers on Monday and Saturday, but on the another hand we
have higher average sale per customer and this time average sale per
customer is mostly over 1€.
Date: 30.10.2011 31.10.2011 1.11.2011 2.11.2011 3.11.2011 4.11.2011 5.11.2011
Chixs pcs 1051 737 1041 969 1174 1062 1422
Brazer 19 15 15 13 31 16 21
Fillet 76 80 86 94 116 100 125
Mini Fillet 327 242 395 403 511 430 508
Zinger 41 34 59 31 68 49 47
Hot Wings 570 489 785 674 971 717 955
Strips 171 132 213 182 252 234 251
Popcorn 2572 1671 2890 3699 3929 3811 3872
21 | P a g e
After the new promotion started, we sold 3921 pieces of chicken (980 pieces
a day) between Monday to Thursday. On the weekend, we sold 3535 pieces
of chicken and that is 1178 pieces sold a day. The difference is 20% more
during the weekend.
First week in November we sold 329 pieces of Zingers and it is average 47
pieces a day. It is 3 pieces a day more than last week in October. That is
increase of 7%.
0 200 400 600 800
1000 1200
1400
1600
Items sold 1st week in November 2011
Brazer
Zinger
Fillet
Strips
Mini Fillet
Hot Wings
Chixs pcs
22 | P a g e
2nd week in November
Date Sales 2011 Sales 2010 Variances % Variances
in sales
6.11 5 081,75 5 782,29 -700,54 -12,12%
7.11 3 847,82 4 507,51 -659,69 -14,64%
8.11 3 644,82 4 706,09 -1 061,27 -22,55%
9.11 4 306,54 5 143,44 -836,90 -16,27%
10.11 5 843,25 7 469,34 -1 626,09 -21,77%
11.11 4 827,74 5 587,51 -759,77 -13,60%
12.11 7 764,91 8 172,60 -407,69 -4,99%
This week shows very negative figures. From Sunday to Saturday we are in
red numbers. Both curves in the chart copy each other and it points out that
sales in 2011 are lower than in 2010. In 2011 we sold €35,316.83 and in
2010 we sold €41,368.78. The difference is very immense. It is -€6,051.95.
0,00
1 000,00
2 000,00
3 000,00
4 000,00
5 000,00
6 000,00
7 000,00
8 000,00
9 000,00
5.11 6.11 7.11 8.11 9.11 10.11 11.11 12.11 13.11
Sale
s in
€
Date
Sales 2nd week November 2010/2011
Sales 2011
Sales 2010
23 | P a g e
Transactions 2011
Transactions 2010
Variances
% Variances
in transaction
Avrg sale per
customer 2011
Avrg sale per
customer 2010
Variances
547 575 -28 -4,87% 9,29 10,06 -0,77
454 586 -132 -22,53% 8,48 7,69 0,78
476 580 -104 -17,93% 7,66 8,11 -0,46
591 625 -34 -5,44% 7,29 8,23 -0,94
716 853 -137 -16,06% 8,16 8,76 -0,60
581 690 -109 -15,80% 8,31 8,10 0,21
853 914 -61 -6,67% 9,10 8,94 0,16
Our ratio of served customers is red again all week. And the average sale per
customer is 4 day of 7 in minus values. This week we lost 605 transactions.
Does it mean that KFC is losing customers? Is it a temporary trend? What
about shopping season for Christmas?
Date: 6.11.2011 7.11.2011 8.11.2011 9.11.2011 10.11.2011 11.11.2011 12.11.2011
Chixs pcs 904 677 664 585 989 729 1332
Brazer 10 15 16 12 19 18 13
Fillet 95 76 109 88 119 97 129
Mini Fillet 363 205 250 215 405 337 628
Zinger 32 39 37 37 56 34 44
Hot Wings 629 491 543 458 807 556 1038
Strips 165 166 135 149 195 178 294
Popcorn 2141 1525 1998 1261 4438 2585 4511
24 | P a g e
Monday to Thursday KFC sold 2915 piece of chicken = average 729 pieces a
day. On the weekend KFC sold 2965 pieces and that is 988 pieces a day.
KFC sold 36% more pieces of chicken on the weekend.
Zinger sales should be higher than in October because of the promotion. In
this particular week we sold just 279 pieces of Zinger. This is approximately
40 pieces a day. We sold 7 pieces less than the week before.
0
200
400
600
800
1000
1200
1400
Items sold 2nd week in November 2011
Brazer
Zinger
Fillet
Strips
Mini Fillet
Hot Wings
Chixs pcs
25 | P a g e
3rd week in November
Date Sales 2011 Sales 2010 Variances % Variances
in sales
13.11 4 575,75 4 905,86 -330,11 -6,73%
14.11 3 696,45 3 795,27 -98,82 -2,60%
15.11 3 939,93 3 725,46 214,47 5,76%
16.11 3 253,28 4 342,60 -1 089,32 -25,08%
17.11 5 470,68 5 909,26 -438,58 -7,42%
18.11 4 454,94 4 811,05 -356,11 -7,40%
19.11 7 548,70 7 781,88 -233,18 -3,00%
This week’s sale shows very negative figures again. We are in minus values
all week except Tuesday, where we are €214.47 above sales in 2010. KFC
sales during the 3rd week in 2011 are €32,939.73€ and €35,271.38 in 2010.
The difference is -€2,331.65 compare to 2010.
0,00
1 000,00
2 000,00
3 000,00
4 000,00
5 000,00
6 000,00
7 000,00
8 000,00
9 000,00
12.11 13.11 14.11 15.11 16.11 17.11 18.11 19.11 20.11
Sale
s in
€
Date
Sales 3rd week November 2010/2011
Sales 2011
Sales 2010
26 | P a g e
Transactions 2011
Transactions 2010
Variances
% Variances
in transaction
Avrg sale per
customer 2011
Avrg sale per
customer 2010
Variances
487 521 -34 -6,53% 9,40 9,42 -0,02
448 488 -40 -8,20% 8,25 7,78 0,47
513 498 15 3,01% 7,68 7,48 0,20
421 560 -139 -24,82% 7,73 7,75 -0,03
676 715 -39 -5,45% 8,09 8,26 -0,17
556 607 -51 -8,40% 8,01 7,93 0,09
790 911 -121 -13,28% 9,56 8,54 1,01
Transactions in 3rd week in November are not any better either. We served
409 customers less than in 3rd week in November 2010. Loss of customers
again. Why is KFC serving less customers?
Date: 13.11.2011 14.11.2011 15.11.2011 16.11.2011 17.11.2011 18.11.2011 19.11.2011
Chixs pcs 1038 740 676 746 950 702 1385
Brazer 13 9 6 15 28 20 31
Fillet 106 82 78 104 133 89 141
Mini Fillet 385 278 254 325 483 321 548
Zinger 40 32 35 43 65 55 66
Hot Wings 640 508 460 637 860 524 917
Strips 166 167 147 163 264 185 293
Popcorn 2382 1557 1754 2117 2500 2351 5576
27 | P a g e
Monday, Tuesday, Wednesday and Thursday we sold average 778 pieces of
chicken a day. On the other hand strong days as Friday, Saturday and
Sunday we can sell average 1042 pieces of chicken a day. This figure shows
us that during the strong days we can sell 34% more pieces of chicken in
this particular week.
In this particular week we sold 336 pieces of Zingers which is average 48
pieces a day. This week`s sale has growth in sold numbers of Zingers.
0
200
400
600
800
1000
1200
1400
Items sold 3rd week in November 2011
Brazer
Zinger
Fillet
Strips
Mini Fillet
Hot Wings
Chixs pcs
28 | P a g e
4th week in November
Date Sales 2011 Sales 2010 Variances % Variances
in sales
20.11 5 661,74 6 330,35 -668,61 -10,56%
21.11 3 537,08 4 085,78 -548,70 -13,43%
22.11 3 546,28 4 385,90 -839,62 -19,14%
23.11 3 865,51 5 319,80 -1 454,29 -27,34%
24.11 7 036,23 8 039,80 -1 003,57 -12,48%
25.11 5 321,50 6 609,88 -1 288,38 -19,49%
26.11 8 420,32 8 328,92 91,40 1,10%
This table shows that this is a third week in a row when KFC is losing sales.
The sales curve is below 2010 sales again. Even when a “magic limit” of eight
thousand euro was reached on Saturday, this week KFC sales are still lower
than in 2010. In 2011 KFC sales was €37,388.66 compare to €43,100.43 in
2010. The difference is -€5,711.77.
0,00
1 000,00
2 000,00
3 000,00
4 000,00
5 000,00
6 000,00
7 000,00
8 000,00
9 000,00
19.11 20.11 21.11 22.11 23.11 24.11 25.11 26.11 27.11
Sale
s in
€
Date
Sales 4th week November 2010/2011
Sales 2011
Sales 2010
29 | P a g e
Transactions 2011
Transactions 2010
Variances
% Variances
in transaction
Avrg sale per
customer 2011
Avrg sale per
customer 2010
Variances
590 653 -63 -9,65% 9,60 9,69 -0,10
411 519 -108 -20,81% 8,61 7,87 0,73
426 563 -137 -24,33% 8,32 7,79 0,53
460 704 -244 -34,66% 8,40 7,56 0,85
854 932 -78 -8,37% 8,24 8,63 -0,39
753 786 -33 -4,20% 7,07 8,41 -1,34
1 001 984 17 1,73% 8,41 8,46 -0,05
This week we served 646 less customers than in 2010. And that is very
disappointing. Even with upcoming Christmas season which is usually a
very busy season of the whole year, we can notice that KFC has less
customers than in 2010. Customers may spend more on each order, but it is
not a very significant figure, it is just few cents.
Date: 20.11.2011 21.11.2011 22.11.2011 23.11.2011 24.11.2011 25.11.2011 26.11.2011
Chixs pcs 1332 580 676 746 950 1385 1502
Brazer 19 11 6 15 28 31 32
Fillet 95 88 78 104 133 141 150
Mini Fillet 379 218 254 325 483 548 603
Zinger 37 46 35 43 65 66 75
Hot Wings 699 442 460 637 860 917 920
Strips 189 176 147 163 264 293 303
Popcorn 2725 1252 1754 2117 2500 5576 5987
30 | P a g e
Monday to Thursday we sold 2952 pieces of chicken that is average 738
pieces a day. On the weekend we sold 4219 pieces and that is 1406 pieces of
chicken a day. This is approximately 91% more than the week days.
In final week of my research in November we sold 367 pieces of Zingers and
that is average 52 pieces a day. That is immense increase for Zingers.
During of all eight weeks KFC Jervis Centre sale was €270,096.50 in 2011.
In 2010 the sale was €275,756.07.
Total difference is -€5,659.57. Variances of customers served during years
2011 and 2010 are -1 942 paying customers.
That means that KFC is losing customers. That is disappointing. Let’s find
out what is the reason.
0
200
400
600
800
1000
1200
1400
1600
Items sold 4th week in November 2011
Brazer
Zinger
Fillet
Strips
Mini Fillet
Hot Wings
Chixs pcs
31 | P a g e
Questionnaire
Questionnaire design
I designed a simple questionnaire. Then I got it filled in by 30 customers.
Then I did improve the questionnaire which should help KFC to find their
SWOT points. And as I hope, help KFC to improve their sales and
transaction outputs. I asked another 200 customers in KFC Jervis Centre to
fill out for me the questionnaire.
Questions number 1 and 2 are to find out what are the demographic
segmentations. Demographic segmentation consists of dividing the market
into groups based on variables such as age, occupation, gender, family size
etc.
Questions number 3 to 8 are from Marketing mix range. ‘The marketing mix
is the combination of techniques used to market a brand. The techniques are often called the Ps.’ 2 Question number 3 – Product & Brand to get an idea of customer values.
Question number 4 – Product & Brand to get an idea of the brand equity.
Question number 5 – Product to get an idea of customer choices.
Question number 6 – Product to get an idea of customer taste/choices.
Deeper understanding of customers tastes.
Question number 7 and 8– Price. Does the customer perceive the cost of the product as fair, or is it too expensive? Question number 9 – Place. How convenient is it to find the product? Is it
easy, or does the customer have to make an effort?
Question number 10 – Frequency. To establish customer loyalty. It is one of the behavioural variable segmentation.
Question number 11 – Quality. Is the customer satisfied with KFC product quality? ‘If a product fulfils the customer’s expectations, the customer will be pleased
and consider that the product is of acceptable or even high quality. If his or
2 Cate Farrall and Marianne Lindsley, Professional English in Use- Marketing, Cambridge University Press, 2008, p8.
32 | P a g e
her expectations are not fulfilled, the customer will consider that the product
is of low quality. This means that the quality of a product may be defined as “its ability to
fulfil the customer’s needs and expectations”.’3 Question number 12 – Speed of service. Are the customers satisfied by speed
of service from KFC tills? Question number 13 and 14 – Suggestions. Can KFC improve speed of
service and quality of product and services?
These last two questions are the most important because KFC is losing customers in November. On behalf of these two answers KFC can improve their sales.
What did I find out the answers from the questionnaire?
3 S. C. Arora, Product quality, UNITED NATIONS INDUSTRIAL DEVELOPMENT
ORGANIZATION, 2006, p1.
33 | P a g e
Original questionnaire
KFC Questionnaire
1) Age...................................
2) Your occupation...............
3) Why do You choose KFC but another restaurant? ...............................................
4) What meal/food did You purchase this visit? ...................................................... 5) Why do You choose this meal/food? ................................................................... 6) How much You pay for Your meal/food? ............................................................. 7) In terms of location, why do You go to this KFC? ................................................ 8) How does the KFC brand affect Your decision?
Very much
Normal
Very little 9) How often do You come to KFC?
Every 3 days
Once a week
Once a month
Other option........... 10) What do You thing about the price?
Very expensive
Expensive but still payable
Reasonable
Cheap 11) How do You feel about KFC food?
Delicious
Good
Normal
Not good 12) Are You happy with speed of service?
Yes
No...................Why? .......................... 13) What are Your suggestions for improving KFC service quality? (If any)
...........................................................................................................................
...........................................................................................................................
34 | P a g e
Improved questionnaire
KFC Questionnaire
1) Age...................................
2) Your occupation...............
3) Why did You choose KFC rather than another restaurant? ..................................
4) How does the KFC brand affect Your decision to dine here?
Very much
Normal
Very little 5) What meal/food did You purchase this visit? ......................................................
6) Why do You choose this meal/food? ................................................................... 7) How much You pay for Your meal/food? ............................................................. 8) What do You thing about the price?
Very expensive
Expensive but still payable
Reasonable
Cheap 9) In terms of location, why do You go to this KFC? ................................................ 10) How often do You come to KFC?
Every 3 days
Once a week
Once a month
Other option........................ 11) How do You feel about KFC food?
Delicious
Good
Normal
Not good 12) Are You happy with speed of service?
Yes
No...................Why? .......................... 13) What would You suggest to improve the service at KFC? ..................................... 14) What would You suggest to improve the quality at KFC? .....................................
Thank you very much for your cooperation!
35 | P a g e
Questionnaire results
Age group 18-24 which is 37% of my answered questionnaire. I found out
that 65% of them are students and the rest is mostly employees of some
other retail shops.
Students are mostly happy about the meal and the price. They spend €7.10
in average. They are happy about the location in the city Centre because it is
close to their colleges and schools. Most of the students do not have any
comments or suggestions.
The other group of age group 18-24 are professionals. They spend €7,70 in
average. This group is happy that KFC Jervis Centre is close to their work.
They have a few comments like more side orders with each meal and wider
range of soft drinks. 40% of them have problem with queues. Problem for
them is that they have 30-45 minutes for breaks and they do not want to
waste their lunch break waiting in the line.
Age group 25-40, that is 43% of my answered questionnaires. This group are
professionals, university students, unemployed and families. They spend
€11.74 average. Most of them are working in the city Centre or close to
shopping Centre. 38% from this group have problem with waiting too long in
the queues and having not enough serving tills. They would like to see more
tills open to serve them more quickly. Almost 8% would like to have wider
range of healthier food. Only 38% of this responding group does not have
any comments or suggestions...
Age group 25-40, last group mostly retired people or housewives. This group
is 20% of responding of my questionnaire. They spend €10.25 in average.
They are usually town visiting or shopping. This group pointed out one issue
which is to offer a wider range of healthier food available.
36 | P a g e
SWOT analysis
Strengths – What do we do well?
Strong brand name Perceived quality for price Strong trademarks recipes
Long market history and fanatic followers
Weaknesses – What can we improve?
Long queues Limited menu Lack of knowledge about their customers
Opportunities – What opportunities for improvement are open to KFC Jervis
Centre?
Now that it is clear that customer loss is directly linked to long queues
and speed of service we have a chance to rectify this.
How can we turn our strengths into opportunities? Guarantees to
customers that we recognise the problem in service and that a solution
is being found.
Threats – What threats could harm us?
The trend of losing customers to competing restaurants.
This restaurant could be possibly closed down!!!
37 | P a g e
Promotional sale compare to non-promotional item
During first four weeks in October we sold 1185 pieces of Zingers. This is an
average 296,25 pieces per week. This period of time we are taking as non-
promotional item.
In November we sold 1311 pieces. That is 327,75 pieces per week. So there
is growth in sold Zingers 11%.
38 | P a g e
Conclusion
The issue of a customer loss in KFC Jervis Centre are addressed in this
report.
It establishes one of the main reasons for customer loss as not adequate
speed of service.
The use of the questionnaire in this case was very relevant to establish first
of all the main reason for customer loss but also to establish how to improve
the problem.
Evidently, in this report, was that KFC Jervis Centre did not take into
account or acknowledge that services threat could give opportunities to other
restaurants on the floor to give them bigger “share of market”.
Although work is needed to address the problem of poor speed of service and
customer loss, a solution is at hand and with some simple improvements
can quickly be enforced.
Overall KFC Jervis Centre is in a healthy position and with a few simple
changes it can regain its lost customers.
