Executive Summary

Idea is the key of Business. Each business is established to accomplish something, KFC is not any
exception. Starting from 1930 its journey from Colonel Harland Sander’s small kitchen in the small
front room of a gas station in Corbin, Kentucky, U.S.; to 2012 it have been serving complete friends
and family meals at affordable prices. There are over 15000 KFC outlets in 105 countries and
territories around the world. It has several outlets in Bangladesh also.

KFC is an established brand image in our country, but in recent days various local competitors has
been growing as threat to the KFC market share. So here is the solution with fresh new ideas to
market and promote KFC and hold on to its profit share. Market is difficult to understand as it
changes continuously in an un-definable mechanism. Changes in the market are so rapid that
marketers have to keep up refreshing their network to get prepared in advance to beat the
competition.
In this report we have chronologically divided market based on the marketing theories, and then we
prepared a complete set of market plan. Plans are described both theoretically and mathematically,
with budget diagram and financial projection. We defined our plan with description of detailed
activities that we are going to take in order to keep pace with the changing fast food market in
Bangladesh.

Introduction
KFC is the world largest and most well known chicken restaurant, with chains in more than 10
thousand locations and worldwide in 80 countries. KFC and its franchised employees are more than
200 thousand in all over the world.
John Y Brown and Jerry Messy purchased KFC for USA for $2 million in 1964 that time KFC
become a corporation. After five years, Colonel buys first 100 shares of KFC. In 1986, Pepsi
Company purchased KFC. Pepsi company changed the logo from Kentucky fried chicken to KFC in
1991 and then in 1992 KFC 1000th restaurant opened in Japan and in 1994 9000th restaurant in
china.
KFC is the part of Tricon global restaurant. Tricon global restaurant is the world largest restaurant
group, with in nearly 100 countries around the world, which in turn was spun off in 1997, and has
now been renamed to Yum! Brands. In 1997, KFC franchised with Gray Mecanza International and
started work in Pakistan. Rawalpindi branch started work in 1999 and in Islamabad in August 2002
and now in Pakistan; there are 45 outlets nation-wide.

Objective of the study

Followings are the objectives of the study:

Broad Objective
We took try to gather huge practical and realistic knowledge about “Marketing management” of
“KFC” and us familiar with this course.

Specific Objective
• To know briefly about “KFC”
• To find out target customer of “KFC”
• To find out current market position of “KFC”
• To find out target menu items of Bangladeshi people in major cities
• To find out product variation, differentiation, innovation
• To find out what attributes to position its product
• To find out flow of good operation techniques
• To ensure that consumer leave the store with a pleasant smile

Scope of the Report

This report is about marketing plans of “KFC” .This report focus on consumer behaviour, social
class, personality, hectic lifestyle and what consumer perception about “KFC”. We have group
discussion, survey, asking different question from people, visiting different blog sites to collect
information about consumer behaviour, personality, and hectic lifestyle. It also expresses to current
market position and company growth opportunity of the market.

Methodology
We have used different types of method, to prepare this report. From our text book, survey, group
discussion, asking different question from the people, journal, articles, visiting different website,
interviewed some customer to collect information. Also use another method like – objective, swot
analysis, situational analysis, marketing strategy, market segmentation, target market, positioning,
differentiation, marketing mix, financial statement.

Sources of Information
We have used the concept of the course information of the term paper. The sources of data
collection are primary, target population, secondary.

1. Primary Data Source

Usually primary data collected from the survey. We divided our group into some parts and we went
various places and gathered through informal interviews of the employee working over under “KFC”
and gathered more information from group discussion and also used personal observation as
resource.

Target Population
“KFC” target consumers are upper- middle class. The target is on each and every society. Both male
and female customers are focused by “KFC”. Gender does not play any role here.

2. Secondary Data Source

Secondary sources had also used to collect information. We collect information from our text book of
“Marketing Management” by” Philip Kotller”, features and articles published in newspaper and other
journal, visiting website of “KFC” to access their company background, services, marketing strategy
and mix.

Analysis of Information
To prepare this report, we review the question generated before the information gathered. Then
organize the information according to relevant information that has been collected.

Presentation of Information
All relevant information is presented on graphical forms. The results of KFC is concerned they use
different approaches in different perspectives like they are highly committed to customer satisfaction.

Limitations of the Study

This report has many limitations. When we prepared this report we face many problems. If no
problem has seen the report would become more meaningful and well established. The limitations of
our study are given below:
• Time limitation
• Lack of information
• Unavailable resources
• Less experience effort

Company Profile
Type: Wholly owned subsidiary
Industry: Fast food
Genre: Southern fried chicken
Founded: 1930 (original) (North Corbin, Kentucky)
1952 (franchise) (South Salt Lake, Utah)
Founder(s): Harland Sanders
Headquarters: Louisville, Kentucky, U.S.
Key people: Roger Eaton, President
Harvey R. Brownlea, COO
James O'Reilly, VP for Marketing
Products: Fried chicken, grilled chicken, related Southern foods
Revenue: $520.3 million
Employees: 455000
Parent: Yum! Brands
Website: http://www.kfc.com

KFC in Bangladesh
Transcom Foods Limited, a concern of Transcom Group is the franchisee of KFC in Bangladesh.
The first ever KFC restaurant has been opened in 1997,September at Gulshan, Dhaka with a
seating capacity of 178 persons.
KFC restaurant has been opened in 2009 at lalkhan Bazar circle, Chittagong with a seating capacity
of 120 persons.
Till now there are 9 branches of KFC in Bangladesh,8 of them are in Dhaka.
In the coming days, KFC plans roll out more restaurants in Bangladesh

Current Market Situation Analysis

KFC is highly popular international fast food chain restaurant in Bangladesh. 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 and thoroughly satisfying eating experience, with same convenience and
affordability of ordinary Quick Service Restaurants.

Transcom Foods Limited, a concern of Transcom Group is the franchisee of KFC in Bangladesh.
The first ever KFC restaurant has been opened in September at Gulshan, Dhaka with a seating
capacity of 178 persons. In the coming days, KFC plans roll out more restaurants in Banglades

Customer Needs and Demand

The customers of KFC, especially as individual buyers, family, students and kids.The customers can
demand for low prices or demanding higher quality and more incentives. The following factors
determine the bargaining power housed by the buyers and KFC seeks to fulfill the following needs
that are important to consumers:-

Availability
Consumers always purchase those restaurants which are available to them. So if KFC wants to
increase the selling rate of their product, they must have to make their product available to the
customers. In order to that they have to increase the number of outlet they have to develop an
excellent channel of distribution.

Reasonable Price
The price is very sensitive issues; people would rather go for similar product selling for fewer prices
than buying an expensive one. Also, there are lots of alternatives to within and outside the fast food
industry as a whole.. Hence, price sensitivity gives a lot of power in the hands of the buyers

Quality
Consumers always want the best quality product and a justified price to that. 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 and thoroughly satisfying eating experience, with same convenience and
affordability of ordinary Quick Service Restaurants.

• Product & Service Analysis

Current Product
Product is anything is offering in the market for sale. KFC (Kentucky Fried Chicken) is the world's
largest chain of fried chicken fast food restaurants which is offering its special product to their
customer. Kentucky Fried Chicken is famous for its chicken, which is a blend of 11 herbs and
species, which gives it the flavor everyone is crazy about it. KFC offering product are

Cayan Grill
Cayan might be derived from an earlier form of the word "cayanne." Regardless, Cayan Grill
chicken is marinated overnight in "southern" spices (does "southern" in Australia, mean the same as
"southern" here in the States?) and then grilled on a hot plate.

KFC Twister
Two freshly prepared, Extra Crispy white meat chicken strips with shredded iceberg lettuce, fresh
tomatoes, and pepper mayo sauce - all wrapped together in a soft, warm tortilla.

KFC Rice
KFC’s first-ever rice meal, a delectable combination of crispy chicken fillet and fluffy white rice with
Original Recipe sauce or spicy tomato sauce. To make it more refreshing, KFC Rice Meals come
with regular NESTEA® Green Tea. These all new sensations will give everyone the energy to excel!

KFC also offer various items and meal box to their customers those are:
• Krushers
• Game Box
• Box master
• Chicken Bucket
• Fries
• Corn on the cob
• Zing Kong
• Snacker(chicken & veggie)
• Soft Drink
• Coleslaw
• Chicken Thali
• Veg Finger
• Snack Box
• Sundae
• Soft Twirl
• Brownie Sundae

Services of KFC
Service is a very important factor for KFC as its actual product consists of not only quality chicken
but also satisfactory service. KFC is providing excellent product sport services but the range of
services is not complete, as it is a self service restaurant. KFC trains its employees to give quick and
efficient service to the consumers who are standing queues to take their order.

To provide good services they have a philosophy of CHAMPS Program. Champs stands for their
belief that the most important thing each of them can do is to focus on the customer satisfaction.
CHAMPS stand for the six universal areas of customer expectation common to all cultures and all
restaurants concepts.
The CHAMPS these are:
C: Cleanliness
H: Hospitality
A: Accuracy
M: Maintenance of Facilities
P: Product Quality
S: Speed of Service

CHAMPS is the philosophy to ensure that the customer has the consistent quality experience in
every restaurant, everyday, on every occasions and you will be playing role in delivering CHAMPS to
our customers.

Distribution Channel Analysis

A distribution channel consists of set of people and firms involved in the transfer of title to a
producer, as the product moves from producer to ultimate consumer. The type of distribution
channel KFC uses is called middleman involved in it:

KFC is using the service firm sponsored supplier franchise system. This franchise buys all the
ingredients it uses and fulfils all other requirements of the franchiser. This practice is adopted to
have the product up to the standards of international KFC chain.
The Suppliers of KFC include K & Ns, Pepsi Co, Hilal, Nescafe and bread and bunsare produced
internally. Marination is imported from California, India and Dubai. The suppliers within Bangladesh
can compete in the industry by raising prices or reducing quality of produced goods or services.
KFC distribute their products among their customer in South Avenue, Gulshanfrom September 2006,
in Dhanmondifrom November 2008, in Banani from December 2008, in Eskaton from February
2010, in Paltan in 2011,TFL has open another three new outlets in Uttara, Mirpur DOHS and sea
beach city of Bangladesh “Cox ‟sbazar”.

Competitive Analysis
Unlike what one would expect, KFC has many competitor with similar fast-food chains in
Bangladesh. The primary reason is that their core products. For example, if KFC raised its price for
chicken by a small amount, Bangladesh chicken lovers may go in BFC, FFC, A&W and so on. If KFC
rise their price of their regular item people of Bangladesh cannot go there..For example, a full meal
at KFC ranges about TK 200, whereas a full meal at other fast food restaurants can cost over TK.
150. The drastic difference in price assures no price competition between these restaurants Many
fast food restaurants exist in Bangladesh’s, which are continuously satisfying the countrywide
demand. The most preferable brands are:

Current Situation Analysis

1. Copyright
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
Nine years, TFL has opened 6 Pizza Hut and 11 KFC outlets so far throughout the country.

2. 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 BFC, FFC, Nando’s, Chicken King 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 Bangladesh and to capture the market share in Bangladesh adopts champs
philosophy

3. Economic
Though for last 1 year there was economic slowdown all across the globe butte sales of KFC and
other fast food chains did not slow down to that extent that of other sectors in. The GDP (Purchasing
Power Parity) is estimated at2.965 trillion U.S. dollars in the year 2010. The GDP- per Capita (PPP)
was2700 U.S. dollars as estimated in 2008. The GDP- real growth rate in 2007was 6.7%.
Bangladesh has the lowest GDP in terms of purchasing power parity just ahead Japan and behind
U.S. and China. Foreign direct investment rose in the fiscal year ended March 31 2007 to about $16
billion from just $5.5 billion a year earlier. This will lead to higher buying power in the Hands of the
Bangladeshi consumers. So taking into considerations the economic factors of Bangladesh KFC is
safe. The only danger to it will be if there is a terrorist attack in Bangladesh and the victim is KFC.

SWOT Analysis
SWOT analysis is an overall evaluation of the company’s strengths(S), weakness(W), opportunities
(O) and threats(T).The SWOT analysis begins by conducting an inventory of internal strengths and
weaknesses of an organization and the external opportunities and threats that may affect the
organization, based on market and the overall environment
KFC is the strongest brand in the fast food industry in the world. For knowing about situational
market analysis and lacking, getting knowledge about future threats, and evaluating their overall
market growth KFC always make a SWOT analysis.

Strengths
• Strong franchises all over the world.
• Taste and food quality are better than other food corner
• They are successful in maintaining their loyal customers.
• They serve variety of items under single menu.
• Interactive relationship market.
• It doesn’t have any core competition in chicken serving.
• KFC outlets are available.
• KFC secret recipe of herbs and species.
• Large multi brand in the world
• KFC is the market leader in providing different products of chicken
• They are specialized in chickens
• Existing in the local market for years, therefore , knowing people’s tastes and whims
• They are ISO ( International Standard Organization) certified

Weaknesses
• Its major weakness is the presence of multinational competitors in the market like Pizza hut.
• Lack of relationship building with employees customers and suppliers.
• They only focus higher income level people but in our country most of the people are middle class.
• Lack knowledge about their customer.
• Inflexibility of price making.
• Lack of knowledge about their customer.
• They has higher overhead costs, as a result of KFC higher prices must charge
• They are over confident of loyal customer

Weaknesses
• They can include new product in their menu.
• KFC plays an important role in increasing employment in country.
• KFC gives many facilities for part time jobs.
• They can open temporary outlets in university.
• Increased and efficient services specially home delivery and office orders.
• They can open more outlets to get maximum market share.
• They can advertising their product in media.
• Maximum customer are student so they can sale their product in resalable price.
• Give more focus on nutrition.
• Focus on packaging, serving food.

Threats
• Day by day change in food habits
• Diseases like bird flu are the big threat for KFC.
• Lake of promotional advertising.
•High rate on prices as compared to the other brands selling same items may cause the customer’s
shift,
• People become health conscious day by day.
• Changing customer demand.
• The threats faced by KFC are the entering of many new competitors into the market that maybe
local or international brand.
• Less consciousness about packaging.

Mission
Established in 1939, this fast-food restaurant still makes its legendary fried chicken with the closely
guarded blend of 11 herbs and spices originally created by founder Colonel Sanders. Modern
additions to the menu include oven-roasted renditions of its chicken sandwiches, popcorn chicken,
potato wedges and wraps. Classic sides include flaky, oversized biscuits, steaming-hot mashed
potatoes and gravy, smoky-sweet baked beans and crisp, generously dressed coleslaw. Kids and
adults love the "little bucket" parfaits of pudding desserts.
5.2 Financial objective

Every company has some financial objectives for every product. So our KFC has some financial
objectives as well. They are given bellow:
• Their first objective is to increase their sales up to minimum 15% in next 5 years. So that they could
gain more profit.
• To afford well trained and well skilled executives and sales people;
• Hired famous lobbyists for advertizing their product.
• Sometimes give some aggressive sales or advertize to increase their sales

In this certain process there are also some financial characteristics that enable it to accomplish
these objectives. These characteristics include:

Strong Cash Flow

Because of strong margins on most products, stable markets and low capital investment
requirements, KFC generates a strong cash flow from their operations.

Solid Balance Sheet, Attractive Returns

KFC has attractive business and strong financial management which resulted in a solid balance
sheet. This gives KFC financial flexibility to fund its business needs while maintaining financial
discipline and yielding attractive returns on assets and investments.

Stable Growing Market

KFC primary customer are - schools, restaurants, hotels and other office institutions - tends to be
less sensitive to the economic cycles faced by many other businesses. Since KFC products fulfill
basic hygiene needs, they are less susceptible to reduction in tough economic times. This provides
KFC with a relatively stable market in which to do business.

Marketing objective
Marketing objective means the ‘goals’ that the business must achieve in order to meet its wider
business objectives
• Clearer product differentiation
• Targeting their market consumer
• Increase their market share
• Long term brand value to customer
• Decrease customer acquisition costs 8% per year
• Creating and launching new products / services – ‘Innovation’

Marketing Strategy
Running a successful business is not like a field of dreams; you can build it but they might not come
true. You have to let people know about the product or service you offer, and persuade them to buy
or use it. And you have to let people know about your product or service repeatedly. For this,
marketing strategy is very important. Your marketing strategy consists of: The "what" has to be done.
Inform consumers about the product or service being offered. Inform consumers of differentiation
factors.
So it helps the company to decides which customers it will serve (segmentation and targeting) and
how (differentiation and positioning).It identifies the total market, then divides it into smaller
segments, selects the most promising segments , and focuses on serving and satisfying the
customers in these segments. And this marketing strategy provides the goals for your marketing
plans.

KFC has marketing strategy emphasis on the following facts:

• Market Segmentation
• Market target
• Differentiation
• Positioning

Market Segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics or
behaviours and who might require separate products or marketing programs. KFC mainly focus on
following market segments.

Demographic Segmentation
Demographic segmentation consists of dividing the market into groups based on variables such as
age, gender, family size, income, occupation, education, religion, race and nationality. As one might
expect, demographic segmentation variables are amongst the most popular bases for segmenting
customer groups. Also, for practical reasons, there is often much more data available to help with
the demographic segmentation process.
KFC give their concern in following demographic segmentation:

• Age:
One of the first variables of demographic segmentation is age. This is because consumer needs and
wants change with their age.
In KFC Generally there is no age limit focus by the KFC. The target and focus is on each and every
individual in a society. KFC finds its largest demographic in the young of any society.

• Life cycle stage:

Closely connected to age, the life cycle stage of a consumer group defines what will be the need of
that particular customer. For this KFC offer kids meal with toys and veggi burger for old age people.
This demographic segment cannot be said as an “Age” segment because these customers are in
specific phase of their “Life”.

• Income:
Another popular basis for segmentation is income. A person’s income level combined with its
accumulated wealth is the major determinant of the consumers’ willingness to purchase a product.
Income is the main decisive factor that influences consumers purchasing power. Consumers with
low incomes may not be able to purchase their desired products whereas consumer with higher
incomes may not be satisfed with the existing product.
In KFC Income is an important key factor for KFC. This factor decides which class is to be targeted.
In the early rise of KFC they focused on the upper class but slowly are introducing economy meals
that attract the lower to middle classes.

Social Class:
This plays a vital role in the demographic factor of the KFC. Generally they target upper class, upper
middle class, middle class and middle lower class. Because the items KFC sell are very expensive.

Geographic segmentation
The market is segmented according to geographic criteria—nations, states, regions, countries, cities,
neighbourhoods, or zip codes.. With respect to region, in rainy regions you can sell things like
raincoats, umbrellas and gumboots. In hot regions you can sell summer wear. In cold regions you
can sell warm clothes.
KFC in Bangladesh only focus following geographic segmentation. These are:

• City:
Because Bangladesh is a developing country and the fast food business highly profitable in only
Dhaka and Chittagong city that’s why KFC only focus on this two city.
Key Spots:
- Tourist spots
- Commercial Areas
- University Canteen

Psychographic Segmentation
Psychographic segmentation is dividing a market into different groups based on social class,
lifestyle, or personality characteristics is called psychographic segmentation.
KFC divides market on the basis of psychographic variables like:
Life Style (Lifestyle is not specific)
Personality (Personality is ambitious and authoritarian)

Behavioural Segmentation
In behavioural segmentation, consumers are divided into groups according to their knowledge of,
attitude towards, use of or response to a product. It is actually based on the behavior of the
consumer.

Occasions:
The first form of behavioral segmentation is selling product in different occasions. In Bangladesh
KFC can permit their customer to celebrate various occasions. They also offer their customer on
cricket match “KFC Popcorn Chicken”, on Valentine’s Day special couple discount offer.

Benefits:
Several products are targeted towards the benefits sought by the customer. For this KFC only focus
some social class.

Loyalty Status:
There are two ways to grow a business. First is to acquire new customers and second is to retain
your existing customers. The more loyal your customer is to you, the more your customer base will
increase. That’s one more kind of behavior which marketers target. In case of KFC, they have some
advantage because they are well known chain international fast food company.

Market Targeting
Market targeting is the process of evaluating each market segment’s attractiveness and selecting
one or more segments to enter.
After a company has defined market segment it can enter one or many of these segments. A
company should target segments in which it can profitably generate the greatest customer value and
sustain it over time .A Company with limited recourses might decide to serve only one or a few
special segments. A company with a great number of recourses might decide to serve two or more
segments.

Market Positioning
Positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to
competing products in the minds of target consumers.

After a company has decided which market segments to enter, it must decide how it will differentiate
its market offering for each targeted segment and what positions it wants to occupy in those
segments. A product position is the place the product occupies relative to competitors products in
consumer’s minds. Marketer wants to develop unique market positions for their products. If a product
is perceived to be exactly like others on the market consumers would have no reason to buy it.

KFC promotes a “high quality poison” for its products. It produces high quality products, chargers a
high price, distributes through high class dealers and advertises in English newspapers with a high
circulation. KFC is communicating through physical size and ques that people use to judge quality.
For KFC management the image their customers carry in their mind is the most important factor.
That is why for them the product quality, which is almost, standardizes the entire world except little
differences because of local requirements & the promotions are very critical factor. The people which
are their customer and the physical evidence, the environment customers get in the KFC are the
focus that built KFC’s image in the customer mind that is why they are always trying to bring positive
changes in the environment so that every time their customer enter the KFC, can feel the difference.
They think that trough continuous efforts they have developed such a brand image in their
customer’s minds that their customers have become brand loyal. I order words they have got brand
equity.

Differentiation
Differentiation is actually differentiating the market offering to create superior customer value.
Once KFC chosen a desired position it has taken strong steps to deliver and communicate our
position to target consumers. KFC differentiated their market offering for each targeted segment and
what positions it wants to occupy in those segments.

Branding
Brand identity was defined as the customer impressions of four different KFC identity elements -
properties, products, presentations, and publications. The people of our country also have much
more positive impressions of KFC. Brand identity impressions were correlated with overall customer
satisfaction and with future patronage intentions for both groups. These findings support a model
where differences in cultural frames of reference lead consumers to actively localize the brand
identity of this nominally globalized product.

Packaging
The packaging for KFC products is chosen according to performance against three criteria: heat
retention, moisture removal, and grease absorption. The packaging material and carton design are
all adapted to maximize performance against these three criteria.

Environmental concerns
Over and above ensuring our packaging is supplied via recycled or renewable resources; KFC are
enthusiastically complying with the new environmental directives on recovery and recycling of
packaging waste.

Products Pricing Strategies

KFC globally enters the market using market skimming. Their products are priced high and target the
middle to upper class people. Gradually they trickle down the prices focusing on the middle to lower
class people to penetrate both sides of the market. We can compare the price of their products with
FFC, CFC, American Burger, Chicken King and Pizza Hut. If the competitor provides the same
product at a lower price than the organization usually lowers the price of its product too. In the case
of KFC, Fried Chicken is its main selling point and controls a monopoly over the fast food market
(only with fried chicken). It prices its burgers, French fries and soft beverages with relation to its
competitors. KFC price their product keeping different points in view. They adopt the cost base price
strategy. Pricing of the product includes the govt. tax and excise duty and then comes the final stage
of determine the price of their product. The products are bit high priced according the market
segment and it is also comparable to the standard of their product. In the cost based method we
include the variable and fixed cost.

Advertising
Any paid form of non personal presentation and promotion of ideas, goods, or services by an
identified sponsor.
• KFC introduce the new products to the customers using many kind of advertising. They inform the
customers about the new products, what kind of product, the price, its availability etc.
• With the advertisement, KFC persuade their customers to buy the products. In order to do that,
KFC will make a good and attractive advertisement. So, their customer will attract to buy the
products.
• Using the good advertising will make the customers remember about the products. And certainly,
they will come again to buy the products.

There are some Media Types that KFC use for their advertising:
- Newspaper
- Radio
- Magazine
- Internet
- Outdoor

Sales 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, discount and bundled packages and organization
finds most of its meanings and survival through promotion.
KFC uses the following tools to further enhance its sales.
• Premiums
• Exhibits
• Coupons
• Entertainment

All KFC outlets offer its customers with various forms of incentives to buy its Chicken. Using
coupons that one can acquire after spending a particular amount over a period of fixed time,
customers can enjoy the benefits of free 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.

Public Relations
KFC also building a good relation with the company’s various publics by obtaining favorable
publicity, building up a good corporate image, and handling or heading off unfavorable rumors,
stories, and events.
Public Relations Tools are:
• News
• Speeches
• Internet

Marketing Mix
The marketing mix is a business tool used in marketing. The marketing mix is often crucial when
determining a product or brand's offering, and is often synonymous with the four Ps:
1. Product
2. Price
3. Place
4. Promotion

1. Product
A product can be defined as anything that can be offered to a market for attention, actuation, use or
consumption that might satisfy want or need.
KFC is specially dealing in the chicken products; Basically, KFC has the special recipe for chicken
products that is why, KFC is known as a chicken specialist all over the globe. KFC target the Asia
and east side because they observe that these people like the chicken products, so they enter in the
market due to the demand of their chicken products. KFC is variety of product in the chicken, those
products are

Product Categories
There are different products divided into sections according to the differentiation in them.
i. Chicken
ii. Burger
iii. Desserts & Beverages
iv. Snacks & side orders

KFC’s original recipe is fried chicken and French fries.

Burger: It includes the following burger items:
i. Mighty Zinger
ii. Zinger Extreme
iii. Fish Zinger
iv. Veggie Burger
v. Colonel Fillet Burger

2. 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.
Pricing Strategy: KFC globally enters the market using market skimming. Their products are priced
high and target the middle to upper class people. Gradually they trickle down the prices focusing on
the middle to lower class people to penetrate both sides of the market. KFC pricing the products by
keep the different pointsin the mind, adopt cost base price strategy.
Prices of Chicken PCs. and all the other products of KFC are set by the Head Office by adopting the
proper method. According to Marketing Manager,Price of any product is equal to the cost plus
desirable profit. The pricing strategies of organization are different in the different countries due to
different exchange rate, inflation, and different tax policies in the different countries.

In Bangladesh, main concern of KFC is to sell in volume and maintain it on long term basis. They are
charging a price which they think fair to customers.
KFC offer different products at different list prices.
• KFC provide special discounts to only employees and special customers.
• Payment period, customer pays when the services are delivered to them.
• Allowances are provided to employees.

3. Place
Place includes company activities that make the product available to target consumers. High quality
product, attractive pricing, huge promotional activities is of no use if the product is not available to
the consumer.
In our country, there are 11 outlets of KFC. They are located in convenient place so that the
customers can easily go and enjoy delicious foods.

4. Promotion
Promotion means activities that communicate the merits of the products and persuade consumers to
buy it. It 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.

Advertising
The logo of the smiling Colonel is probably one of the most recognized faces in the world and
instantly brings the image of fried chicken to one’s mind. It also does the following activities as
advertisements:

Public Relations
It is a communication effort that is designed to favourably influence attitudes toward an organization,
its products and policies. KFC is not just a quality food restaurant, but also a socially conscious
corporate citizen. It has been equally involved in promoting and funding several community welfare
projects through aggregate KFC revenue. To enhance public relation KFC does different types of
seminars and employee training classes.

Sales Promotion
All KFC outlets offer its customers with various forms of incentives to buy its Chicken. Using
coupons that one can acquire after spending a particular amount over a period of fixed time,
customers can enjoy the benefits of free 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.

Marketing Plan
As marketers of KFC our plan is communicate and promote our new and existing product and
services to our target market, and capture maximum market share through increasing our sales. In
addition we want to create and retain long term relationship with customers and prospects, and
delight them by our continuous effort to serve package of tasty surprise.
Broad description to achieve our goal is described under ‘Action Program’, ‘Financial Budget and
forecast’, and ‘Controls’ section.

Market surveys
For every business to success we need a strong market holing. So continuous research to
understand the market will help us grow as an organization. With this motive staring from this year
we will carry on different market survey and market research to get to know our customers,
suppliers, competitors, weakness, opportunity, threat, competitive advantages, future assumption
and forecast base to come up with the best possible market solution and keep pace with time.

The Top 5 Benefits of Market Surveys:

1. Wide Reach of Market Survey
2. Get Honest Answers
3. Cost Benefits- The survey may generate sales leads.
4. Find Out About Your Competitors
5. Customer Retention

Customer Feedback
We will arrange a feedback system from customers. It will help us to trace our performance. For this
we have to develop a quantitative ranking along with qualitative description of the ranks to specify
positive and negative sides of our product and service. Feedback collection can be done in our
outlets or through campaign.

Guerrilla Marketing
Guerrilla marketing is an advertisement strategy, in which low-cost unconventional means (graffiti,
sticker bombing, flash mobs) are utilized, often in a localized fashion or large network of individual
cells, to convey or promote a product or an idea. The idea of guerrilla marketing was introduced as
an unconventional system of promotions that relies on time, energy and imagination rather than a
big marketing budget. Typically, guerrilla marketing campaigns are unexpected and unconventional,
potentially interactive, and consumers are targeted in unexpected places. The objective of guerrilla
marketing is to create a unique, engaging and thought-provoking concept to generate buzz, and
consequently turn viral.

Guerilla marketing is a whole new concept in Bangladesh so it will be surprising for our customer if
we successfully implement this promotional activity in proper manner.
We can also arrange Surprise Selling under this method. For example: In Rainy season we can take
a lobby filling with Bucket of hot wings, take the car at a public place or amusement park and sell
those hot wings in a limited offer within a limited time.
Or in the evening of cold winter we can go through public place with a tank full of KFC hot coffee and
sell them in a special offer.
Some may consider these efforts humorous as KFC is not an infant brand that need to step up to the
street to sell its offerings, but if we think from the contrary perspective then this may increase
customer intimacy with KFC.

Seasonal offers
We will introduce seasonal offers concentrating on different season. For example: in Bangladesh we
have three main seasons’ summer, winter, and rainy season. We can transform it into our marketing
opportunity of seasonal offers. We will provide with variety of weather friendly offering to boost up
the taste of season with KFC experience.

Discount offers
Like almost all competitive brands we will also provide occasional Discounts. For example: lunch box
discount, Dinner offer, Breakfast offer etc. If we create this offer simple with logical pricing these
offers can gain much popularity among our customers. This will also enhance our brand image.

Some rule of Discount offers:

1. Do not exaggerate the offer.
2. Create an honest offer.
3. Simplify the key benefit.
4. Communicate the offer according to local norms.
5. Do not underestimate or overestimate our customers, prospects, competitors, suppliers and
business.
6. Present a simple offer attractively.
7. Set offers accord

Participate in social activity, as part of social welfare

Corporate social responsibility has been talked as a big issue among business and people. As a
corporate member of Bangladesh KFC also care for its’ surrounding. We have already taken few
steps about cleanliness and in future we plan to participate more into the social welfare activity.

WE do care for our surrounding, and we have act on our realization so far, but in next one year we
have so many plans. We select some area in Dhaka city where we want to run a project of tree
plantation. Under this project we will plant trees in the roadside island and also have a plan to
organize a workshop of tree plantation in different schools to encourage new generation about it.

Financial Projections
Every plan has its cost of implementation, financial managers has to make all the calculation
regarding cost analysis, projection, break even analysis, sales forecast, expense forecast, income
statement analysis and overall cost-benefit analysis to determine which project should be chosen
and implemented.
Basically, financial projection estimates of the future financial performance of a firm, and through
creating prospective financial statements that present, given one or more hypothetical assumptions,
an entity's expected financial position, results of operations, and changes in financial position

(Here we are representing simple form of company’s cost and profit evaluation. Our attempt is to
give a model budget for KFC)

Assumptions:
1. We are considering all the forecast based on the Gulshan brunch that is the first ever KFC
restaurant in Bangladesh.
2. Forecasts are done on yearly basis.
3. Annual Fixed Cost 180,00,000
4. Average selling price of KFC’s per unit product is 200tk.
5. Average variable cost per unit 60tk.
6. Contribution margin percentage calculation:
= 1 – (variable cost per unit/selling price per unit)
= .070
7. All the calculations are done in a simplified form.
Controls
Controlling is measuring and correcting individuals and organizational performance to ensure that
events conform to plans.KFC involves measuring performance against goal and plans, showing
where deviations from standard exist, and helping to correct deviations from standards. In shortly,
KFC controls the facility of the accomplishment of plans.

The essential elements of KFC control processes are:

• Establishment of Standards
• Measurement
• Comparing performance with the standards
• Taking corrective action

Conclusion and Recommendation

KFC is the largest brand of Yum Restaurants, a company that owns other leading brands like Pizza
Hut, Taco Bell, A&W and Long John Silver. Transcom foods limited have brought KFC franchise in
Bangladesh for the first time In Gulshan area, Dhaka. KFC has introduced many offerings for its
growing customer base in Bangladesh while staying rooted in the taste legacy of Colonel Harland
Sander’s secret recipe. Its signature dishes include the “crispy outside, juicy inside” Hot and Crispy
Chicken, flavourful and juicy Original Recipe chicken, the spicy, juicy & crunchy Zinger Burger,
Toasted Twister, Chicken Bucket and a host of beverages and desserts. For the vegetarians in
India, KFC also has great tasting vegetarian offerings that include the Veggie Burger, Veggie and
etc.
KFC builds on past concepts. One of the most important and oldest resources “The secret recipe” of
11 herbs is still used in meals, with modifications according to the taste of local market. Most of the
new meals offered are based on the old product concept of providing quality chicken. KFC has the
culture of team. Teams are blending of old and new employees but KFC more on old employees.
The firm believes in learning of old employees rather thanrecruiting new employees. Moreover new
products highly refresh the oldones as recipe is modified according to the culture
In recent survey it has been proved that most people in love to take home parcel rather than dining
out, but unfortunately KFC do not have any home delivery service like McDonald or other food chain
storestherefore, we would say that KFC should definitely have a home delivery service.
KFC is one of the few food brands that have been surviving for so long with an aristocratic brand
image. Just because of its quality it has been holding a competitive position so far. We expect to
grow its reputation and business in future and hope our marketing plan will contribute in reaping the
root towards a successful food chain in its brighter future.

Sources

• Text Book:
Marketing Management, 13th Edition
Philip Kotler
Kevin LaneKeller
Abraham Koshy
MithileshwarJha

• Websites:
www.kfc.b.org
www.wekipedia.cpm
www.youtube.com
www.investopedia.com
www.guriellamarketing.com

• Links:
http://en.wikipedia.org/wiki/Break_even_analysis
http://www.kfcbd.com/aboutus_kfcbang.htm
http://www.gmarketing.com/
http://www.scribd.com/doc/17818440/KFC-marketing-strategies
http://www.scribd.com/doc/9259321/KFC-New-Product-Plan
http://marketing.about.com/od/marketingplanandstrategy/a/Marketing-Strategy-Vs-Marketing-
Plan.htm