5. MICRO ENVIROMENT:
The micro enviroment
Consist of all the forces
COMPANY
COMPETITORS
that are close to KFC
The three major
KFC
Components influence
KFC Enviroment are
Suppliers
Competitors
Market intermediaries
MARKET
INTERMEDIARIES
6. SUPPLIERS :
> Suppliers are those people who are responsible for
supplying necessary inputs to the organization and ensure the
smooth flow of production.
COMPETITORS :
> Competitors can be called the close rivals and in order to
survive the competition one has to keep a close look in the
market and formulate its policies and strategies as such to face
the competition
7. MARKETING INTERMEDIARIES :
> Marketing intermediaries aid the company in promoting,
selling and distribution of the goods and services to its final
users. Therefore, marketing intermediaries are vital link
between the business and the consumers.
9. ECONOMIC FACTORS :
>Economic factors includes economic conditions and
economic policies that together constitutes the economic
environment. These includes growth rate, inflation, restrictive
trade practices etc. Which have a considerable impact on the
business.
SOCIAL FACTORS :
>Social factors includes the society as a whole alongside its
preferences and priorities like the buying and consumption
pattern, beliefs of people their purchasing power, educational
background etc.
10. POLITICAL FACTORS :
>The political factors are related to the management of
public affairs and their impact on the business. It is important
to have a political stability to maintain stability in the trade.
TECHNOLOGICAL FACTORS :
>Latest technologies helps in improving the marketability
of the product plus makes it more consumer friendly.
Therefore, it is important for a business to keep a pace with
the changing technologies in order to survive in the long run
13.
SUPPLY CHAIN MANAGEMENT
KFC has a very simple supply chain. As the operations are on a relatively small scale, all theoperations are
performed by the company (i.e. Cupola) itself. The supply chain process can besummed up as a 3 step process:
Step 1:
Raw materials procured from various suppliers and stored at two warehouses; the
normal-storageand the cold-storage. Details are discussed later.
Step 2:
All product preparation is done at the branch except for the marination of chicken and sold tocustomers at the
branch itself or delivered at the desired locations.
Step 3:
Warehouses replenish each branch according to their requirement (usually three times a week)using company’s
own vehicles and drivers upon the request of the branch manage
14. STORAGE AND INVENTORY MANAGEMENT
Chicken
Inventory of chicken is for 15 days. The storage area for chicken is not in
the warehouse itself but in a separate cold storage area built right beside
the warehouse in each region.Before marinating, the chicken is stored in an
organized form in six separate cold storage rooms whose area is around 45
to 50 square feet, having a height of around 7 feet. The chicken is stored in
the same baskets which it comes in and stays there till its turn for
marinating . Marination is done in a separate room in the same cold storage
facility where the chicken is firstwashed and mixed with the herbs and
spices it needs. The mixture is fed into a machine knownas‘Tumbler’
which marinates it. After this is done the chicken is re packed into
labeled clear storage room again in organised form.
15. QUALITY ASSURANCE BY KFC
There are multiple ways by which KFC assures the quality of
its products. Some of the oneswhich were disclosed to us were:
Surprise visits to branches
Planned visits to branches
Rigorous raw material inspection
Customer feedback
22. TARGET MARKET
2. PLACEMENT OF OUTLETS
•
•
KFC placed itself close to schools, colleges,
cinemas as a result KFC enjoys a large number
of footfalls everyday.
In addition, they have outlets close to nonvegetarians .for ex saket outlet (Muslim
populated areas).
SAKET STORE
23. INDIAN MARKET
An important thing to note is that
Indian Fast food market is
Fundamentally different.
Fast food joints: considered as cheap sources
of taking break from home cooked food .
Favourable factors:
Increasing nuclear families,particularly in
urban India
Exposure to global media and Western
cuisine ;increasing number of women joining
the workforce
24. POSITIONING
The KFC LOGO
Providing quality products with distinct taste at the possible
lowest price.
Leading player in the Fried Chicken.
Use of Red color in its Arena.
Tag Line – “I AM A STUDENT OF
LICKONOMICS”
25. POINT OF PARITY V/S POINT OF DIFFERENCE
POINT OF PARITY
It is a food joint similar to Mc Donalds, provides almost the same product
as that of Mc Donalds.
It provides product at just Rs. 25 , just like Mc Donalds.
POINT OF DIFFERENCE
Its distinct taste.
Provides variety of non-veg & veg products. For ex : bucket chicken,
rice bowl etc.
It provides non-veg burger @ just Rs. 35 unlike Mc Donalds
BRAND MANTRA: “ ITS FINGER LICKING GOOD”
26. IMPACT OF CONSUMER BEHAVIOUR ON
BRAND’S STRATEGY
Social Factors:
FAMILY
• KFC have made its ambience fit for family outings
REFERENCE GROUPS
• Primary, secondary groups influence
ROLE & STATUS
• KFC is generally for upper & middle class
27. IMPACT OF CONSUMER BEHAVIOUR ON
BRAND’S STRATEGY
Cultural Factors:
FUNDAMENTAL
DETERMINANTS
• Wants & behaviour
SUBCULTURES
• Nationalities, religions, racial
groups
28. IMPACT OF CONSUMER BEHAVIOUR ON
BRAND’S STRATEGY
Personal Factors:
AGE & LIFE CYCLE
OCCUPATION & CIRCUMSTANCES
29. PRODUCT STRATEGY
Competes on several basis incl.product,cost,franchising.
Secret recipe of 11 herbs & spices.
Hire professionals for product development.
100% pure pcs of chicken
Trained cooks prepare it fresh throughout the day at every
restaurant.
30. Use of sunflower oil.
Successful salt reduction programme
Provide quality assurance…
31.
32. POSITIONING OF KFC
USP of kfc is life tastes better with kfc.
Unique taste of product.
It isn’t only fried chicken but also self service & customer
satisfaction.
Designed for various groups of customers .
New menu is focusing on taste & health.
35. INTRODUCTION :
> A period of slow sales growth as the product is introduced in
the market. Profits are non-existent because of the heavy
expenses of product introduction.
GROWTH :
> A period of rapid market acceptance and substantial profit
improvement.
36. MATURITY :
a slowdown in sales growth because the product has
achieved acceptance by most potential buyers. Profits
stabilize or decline because of increased competition
DECLINE :
> Sales show a downward drift and profit erode.
