KFC Marketing
KFC Marketing
EXECUTIVE SUMMARY:
This project is based on analysis of marketing strategies of “KFC”.
KFC fast-food chains are currently under the restaurant division of PepsiCo
Incorporated. PepsiCo is a corporation with three divisions including beverages,
snack foods, and restaurants. PepsiCo is acquired by Yum! Brand Inc, so KFC is
part of Yum! Brands, Inc., which is the world's largest restaurant system with over
32,500 KFC, A&W All-American Food™,Taco Bell, Long John Silver's and Pizza Hut
restaurants in more than 100 countries and territories.
Yum! Brand Inc has franchised KFC in different countries for being global. In
Pakistan Kapola (Pak) ltd. is the franchisee of KFC. First KFC branch in Pakistan is
in Karachi Gulshan.
Our project covers all the marketing strategies used by KFC regarding to
price, product, promotion, positioning, market and public relation and finally we
analyze the consumer perception about KFC.Major competitor of KFC in Pakistan is
McDonalds other competitors include Pizza Hut, Café Zouke, Salt’n Paper and
cooper and Kettle.
Market strategies deal with the perspective of market to be served. KFC has
first in entry strategy regarding market entry strategy, multi market strategy regarding
to market scope strategy, international market strategy regarding to market
geographic strategy. As far as the level of commitment to the market is concerned
they use different approaches in different perspectives like they are highly committed
to customer satisfaction.
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PRODUCT & PRICING STRATEGY OF KFC
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PRODUCT & PRICING STRATEGY OF KFC
ABOUT KFC
Kentucky fried chicken (KFC) - one of the most known fast food chains in the world
started in the early 1930’s by kernel sanders in the southern USA as a small
franchise operation. Colonel sanders have become a well-known personality through
out thousands of KFC restaurants worldwide. Quality, service and cleanliness (QSC)
represent the most critical success factors to KFC’s global success. Food, fun and
festivity, this is what KFC is all about. Leading the market since its inception, KFC
provides the ultimate chicken meal for the chicken loving nation. Be it colonel
sanders secret original recipe chicken or the hot and spicy version, every bite bring
a YUM on the face. At KFC we proudly say that: KFC has more then 11,000
restaurants in more than 80countries and territories around the world. In
1971Heublein Inc, acquired KFC, soon after, conflicts erupted between the colonel
and He able in management over quality control issues and restaurant.
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PRODUCT & PRICING STRATEGY OF KFC
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.
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PRODUCT & PRICING STRATEGY OF KFC
ORGANISATIONAL CHART
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PRODUCT & PRICING STRATEGY OF KFC
Marketing
Operational Project
Quality
Finance
Assurance
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PRODUCT & PRICING STRATEGY OF KFC
Long John Silver's, A&W, Taco Bell, and Pizza Hut are the other divisions
VALUES OF KFC:-
Focus all our resources to our restaurants operation because that is where we serve
our customers.
Expand and update training with time and be the best we can be and more.
Be open, honest and direct in our dealings with one and other.
Encourage new and innovative ideas because these are the key to our competitive
growth.
Work as a team.
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PRODUCT & PRICING STRATEGY OF KFC
Aims:
Mission:-
"we find reasons to celebrate the achievements of others and have fun doing it"
The mission of the KFC is to sell food in a fast ,to have a friendly environment that
appeals to pride conscious, to be in a health minded consumers.
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PRODUCT & PRICING STRATEGY OF KFC
Objective:-
An objective is what a business wants to achieve but more precise targets than aim.
For example an objective for a business can be to sell 1000 more products than we
sold last year, sell more products than its competitors, make £20,000 more profit
than the previous year.
Goals:-
Consistently deliver superior quality and value in our products and services.
Generate consistently superior financial returns and benefit our owners and
employees.
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PRODUCT & PRICING STRATEGY OF KFC
Chicken:
1 pieces
2 pieces
5 pieces
10 pieces
Burgers:
Zinger burger
Zinger jr
Combos:
Chicken meals
Sandwich meals
Family meals
Fruit salad
Tea
Coffee
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PRODUCT & PRICING STRATEGY OF KFC
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PRODUCT & PRICING STRATEGY OF KFC
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PRODUCT & PRICING STRATEGY OF KFC
SWOT ANALYSIS
Strengths:
It is the oldest and finest in Business having a high Goodwill. It does not have any
Core competitor in chicken serving. They have a large Number of Outlets at prime
locations in Pakistan. They serves variety of items under single menu. They are
successful in maintaining their loyal customers. It has an incentive of being a
Multinational Organization e.g. economies of scale, government incentives etc.
Weaknesses:
Its major weakness id the presence of Multinational competitors in the market e.g.
McDonalds(specialized not in chicken serving but in burgers) and the other
weakness faced by KFC is the imported raw material which usually rise their prime
cost.
Opportunities:
The opportunities are the cheap and easy availability of labor. The increase
consumption of fast food has increased the market size of KFC. As the consumer
usually prefer “All under one roof”, therefore, in order to increase their sales turnover
they can increase or add the served items.
Threats:
The threats faced by KFC are the entrance of many new competitors into the market
that may be local or international brands. And being in Pakistan, there is high
political instability/uncertainty involved.
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PRODUCT & PRICING STRATEGY OF KFC
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PRODUCT & PRICING STRATEGY OF KFC
KFC IN INDIA
KFC is the world’s No.1 Chicken QSR and has industry leading stature across
many countries like UK, Australia, South Africa, China, USA, Malaysia and many
more.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.
Renowned worldwide for it’s finger licking good food, KFC offers its signature
products in India too! KFC has introduced many offerings for its growing customer
base in India 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
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PRODUCT & PRICING STRATEGY OF KFC
COMPANY OVERVIEW
When he was 40, the colonel began cooking for hungry travellers who
stopped at his service station in Corbin, KY. He didn’t 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.
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PRODUCT & PRICING STRATEGY OF KFC
KFC rules the roost when it comes to serving chicken. One of the world's
largest fast-food chains, the company owns and franchises more than 16,200 outlets
in about 100 countries. (More than 5,100 locations are in the US.)
The restaurants offer the Colonel's trademark fried chicken (in both Original
Recipe and Extra Crispy varieties) along with chicken sandwiches, chicken pot pies,
crispy chicken strips, mashed potatoes and gravy, and potato wedges.
Its locations can be found operating as free-standing units and kiosks in high-
traffic areas. More than 25% of the restaurants are company-operated. KFC is a unit
of fast-food franchisor YUM! Brands, which also operates Pizza Hut and Taco Bell.
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PRODUCT & PRICING STRATEGY OF KFC
Mission Statement
'Recognition: we find reasons to celebrate the achievements of others and have fun
doing it,' is right up there with 'Customer Focus' and 'Belief In People.' "Recognition
is everybody's responsibility," says Chicago restaurant manager Adonis Chapel. He
explains that since KFC started encouraging informal recognition, things have really
changed. "You keep employees longer, they are happier, they work better for you."
Champs stands for our belief that the most important thing each of us can do is to
focus on the customer. It stands for our commitment to provide the best food and
best experience for the best value.
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.
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PRODUCT & PRICING STRATEGY OF KFC
COMPETITORS OF KFC
McDonald
McDonald’s has a wider variety here with products starting from as low as Rs
20, while KFC has not been able to match that.
KFC is still priced a little higher for the general Indian population and its strong
customer segment is the cosmopolitan population which is mall going and earning or
have spare money to spend, 18-30 years.
While people from even small income range and lower middle class have
been able to associate themselves with McDonald’s.
McDonald’s has set up its own supply chain investing huge amount which
leads to lower costs and prices.
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PRODUCT & PRICING STRATEGY OF KFC
4P’S OF KFC
Marketing Mix:
Marketing mix consists of 4P’s. It contains everything a firm can do to influence the
demand for its product. The 4P’s are:
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PRODUCT & PRICING STRATEGY OF KFC
PRODUCT
PRICE
PLACE
PROMOTION
these marketing mixes are described in detail as under.
PRODUCT:
Product planning: Their product is classified as consumer product as it has no
intermediates. It also offers specialty goods. The stock turn over of KFC is relatively
high. The prices and quality of the product is always compared. Their product
includes Goods (Burgers, Chicky Meals etc) and Services (cleanliness, quick
service, parties, and meetings).
PRICE:
In introduction stage KFC entered the market using market-skimming strategy. Their
products were high price and targeted only upper class. Gradually they trickle down
focusing on the middle class to penetrate the market. Also KFC follows one price
strategy. Price is determined according to the rates of the raw materials and policies
of the Govt. The political and legal forces often affect the policies of KFC and
eventually results in change of prices that is due to imposing of taxes.
PLACE:
Distribution Channel: KFC has only one channel of distribution i.e. direct where the
goods are transferred to the consumer directly. KFC has no middlemen.
Distribution of Consumer Goods and Services:
KFC does distribution of consumer goods directly to the consumer. It also does
distribution of services to the consumer like parking, sitting, home delivery, etc. KFC
does intensive distribution on its outlets. (All and everything on every outlet).
KFC gets Wheels! KFC launched its first mobile unit, which took the streets of
Karachi by storm. The mobile unit has been designed to cater to the needs of those
who are on the go, and have little time to stop by at a restaurant. It also provides a
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PRODUCT & PRICING STRATEGY OF KFC
unique convenience of enjoying the delicious KFC offering anytime, anywhere, thus
making fast food truly fast and convenient. It intends to further develop its mobile
network nationwide through more such units.
PROMOTION:
The logo features Colonel Harland Sanders that is one of the best logo in the world
has created its name as a standard in the market. Today the Colonel’s Spirit and
heritage are reflected in KFC’s brand identity. KFC by its advertisements derives the
desire in the customer to come and enjoy healthy food in their favourite restaurant.
They spend 2% of its profits on advertisement. They use print media and most
recently doing televised marketing to promote it products. Their advertising media
involve: Newspapers, Pamphlets, Billboards and Television. KFC does both the
primary demand advertising (“Become a Chicken Fanatic”) and the selective demand
advertising (e.g. “Zinger Meal”). In its advertising it give informative messages like
“Keep the city Clean”. KFC does institutional advertising to stimulate demand. When
KFC offers new products then it does product advertising. KFC’s ad’s act as
counteracts which means to drive the customer to KFC i.e. it uses pull advertising
strategy. They also provide wit the key chains, watches, bags, tee-shirts etc. to its
customers with the purchase of different meals as a part of their promotional
activities. They also provide with certain midnight packages, birthday packages and
lot more.
KFC has put big hoardings on the busy areas of Pakistan and have an effective
advertisement campaign on the media in order to motivate its customers. The colors
used in advertising are Red, White and blue which itself is recognition for the
brand.KFC have joint sale promotions with different companies like HP, Philips,
Value Meals, Pepsi-Cola. And most recently with ARY Gold digital and World Call
Internet services. Also KFC Proud Partners are
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PRODUCT & PRICING STRATEGY OF KFC
It has covered 80% of the market share in fast food industry KFC has
recognition around the world and has been globally positioned for many years in
Pakistan and to capture the market share in Pakistan adopts champs philosophy.
KFC is looking that how much its current strategies are beneficial for them.
Although these are good and profitable but dynamic changes in environment are
requiring identifying the attractive opportunities. That is the reason that they are
expanding there market size by focusing on sub urban areas and targeting middle
class people by providing them differentiated products at a fair price.
They are opening their new mobile outlets in there potentional markets. KFC
is also going to increase its sweet dishes to avail the opportunity available for them.
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PRODUCT & PRICING STRATEGY OF KFC
MARKETING STRATEGY
KFC Brand:-
KFC's brand identity is the logo featuring Colonel Harland Sanders, one of the best-
recognized icons in the world. It is trademarked registered brand and is distinctive,
adaptable to addition to product line. It suggests something about product. It is
legally protected and registered.
The brand equity is very high as the value added by brand to the product effects the
product selling. And the Brand strategy followed is that the KFC is marketing the
entire output under products own brand. Pepsi and Nescafe are the complementary
brands associated with KFC.
Packaging Strategy:-
KFC makes its own disposable packaging. If they need promotion Pepsi contributes
in improving the packaging quality. KFC does family packaging. They use paper
material for packaging to avoid health hazards and environmental pollution.
Labeling:-
KFC does brand labeling. Some of its products also have informational labels such
as Halal, Veggie Burgers and Chucky Meals.
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PRODUCT & PRICING STRATEGY OF KFC
KFC sponsor’s many NGO’s and other social welfare organizations. They also
offer different deals according to the season and occasions.
KFC was launched here as an innovative product. KFC has got one product line
but later they introduced products in the same line to product their market share.
New product ideas are generated from:
1. Customer services
2. Gallops survey
KFC have a quality assurance department that decides the new product
innovation. Q.A department prepares screening of new ideas and product feasibility
report.
KFC products are tested extremely by offering trials to customers by giving them
free sample.
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PRODUCT & PRICING STRATEGY OF KFC
1. Their competitors
2. Product adequate demand
3. The satisfaction of key financial criteria
4. Its compatibility with environmental standards
The market of KFC is increasing day by day. Being a food market it is always
considered in a growing market because it increases continually with the population.
Their growth is continuously increasing and if they want to be a leader, they have to
develop a strategy which is predominantly a market expansion strategy and in this
way they will not lose their leadership.
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PRODUCT & PRICING STRATEGY OF KFC
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PRODUCT & PRICING STRATEGY OF KFC
DATA ANALYSIS
While carrying out the survey, I chose 15 male and 15 female customers of
different age groups. The following diagrams show the target audience and their age
groups.
his figure shows 15 male and 15 female customers were interviewed in all.
To conclude, one can determine that market segmentation is one of the core
marketing tools or strategies a business should consider properly as different
segments have variable tastes and preferences.
"KFC" has adopted the strategy to cater to the tastes and preferences of
different segments of the vast market in the UK, so it offers a variety of product
range to different customer age group. Below are some popular products that are
being served in the INDIAN market.
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PRODUCT & PRICING STRATEGY OF KFC
Q1) the different age group of the customer of KFC (for bucket meal only)
35
30
25
20 Series 1
Column1
15
Column2
10
0
teens young adults)young family older family older adults
Interpretation:
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PRODUCT & PRICING STRATEGY OF KFC
Q.2) which day part most of the customer coming to eat bucket meal so it is easy to
differentiate demand and supply?
40
35
30
25
20
15
sancks%
10
lunch%
5
dinner%
0
Interpretation:
This graph depicted the demand and supply variation of the KFC bucket
meal whereas after shopping most customer came in KFC for snacks so
KFC may plan their product portfolio according to the KFC. Also craving
and relive is the making difference of the company
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PRODUCT & PRICING STRATEGY OF KFC
Q 3) Accompanied by:
a. friends b. Colleagues
c. family d. Spouse
e. others
45%
40%
35%
30%
25%
20% Series 1
15%
10%
5%
0%
friends colleagues faimily spouse others
Interpretation:
K F C h a s d o m i n a n c e i n t h e wo r k i n g s e g m e n t p r i m a r i l y d r i ve n b y
families. KFC clearly is the preferred choice of youth & young adults. For
KFC the highest percentage of Respondents coming to these outlets are
with friends followed by families. KFC has 9% more respondents coming with
friends than the other meals like zinger etc. has a 10% more respondents coming
with families than KFC.
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PRODUCT & PRICING STRATEGY OF KFC
a. Yes
b. No
c. Can’t say
70
Series 1
60
50
40
Series 1
30
20
10
0
yes no cant say
Interpretation:
K F C h a s d o m i n a n c e i n t h e wo r k i n g s e g m e n t p r i m a r i l y d r i ve n b y
families. KFC clearly is the preferred choice of youth & young adults. For
KFC the highest percentage of Respondents coming to these outlets say
YES to service of HOME DELIVERY started by KFC.
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PRODUCT & PRICING STRATEGY OF KFC
a. Very much
b. Normal
c. Very little
Sales
VERY MUCH
NORMAL
VERY LITTLE
Interpretation:
People think the prestige of KFC is very good that’s why most number of people i.e.
about 65 percent of people think the prestige of KFC affect their decision.
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PRODUCT & PRICING STRATEGY OF KFC
a. Every 3 days
b. Once a week
c. Once a month
Sales
Every 3 days
Once a Week
Oncea Month
Interpretation:
Most of people like to come to KFC often in 3 days i.e. about 45 percent.
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PRODUCT & PRICING STRATEGY OF KFC
a. Very expensive
c. Reasonable
d. Cheap
Series 1
60
50
40
30 Series 1
20
10
0
Very Expensive Expensive but Reasonable Cheap
still payble
Interpretation:
Most of the people think that KFC have reasonable prices in INDIA that they can
affort for their daily use. 25 percent of people think the prices are expensive but still
they can pay once a month.
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PRODUCT & PRICING STRATEGY OF KFC
a. Delicious
b. Good
c. Normal
d. Not Good
Series 1
40
35
30
25
20 Series 1
15
10
0
Delicious Good Normal Not Good
Interpretation:
The taste of KFC product is delicious as like all time said by the peoles of all
generation there is no one who said the taste of KFC is not good.
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PRODUCT & PRICING STRATEGY OF KFC
Chapter: - 6-RECOMMENDATION
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PRODUCT & PRICING STRATEGY OF KFC
RECOMMENDATIONS
They should also make their menu dynamic, by introducing new meals after
certain period of time. New items should be introduced by varying the taste. They
should also try the local desi taste addressing the desi food lovers, thus it will help to
increase their market share.
The prices of KFC are reasonable as compared with other fast food
restaurants. But as price is always a primary concern for the customer, therefore,
they should adopt certain strategy to attract the customers. And it can only be done
by lowering the prices.
The membership card can be used to provide certain extra value to the customer.AS
far as placement of the products is concerned, it is an important factor, for a
company to increase its market share, by targeting the right customer.
KFC needs to have more outlets, at commercial areas. It will help to target
the actual as well as the potential customers. Mobile outlets may be an effective
addition as well.
KFC has large customer equity, but being a market symbol, a company
should strive for having more actual customers. KFC should work for having more
solid marketing departments.
They should organize and run the proper advertisement campaign. It would
definitely be an incremental factor for their sales. They can also use the brand
promotions. They can set up the promotional campaigns. All they need is an
effective marketing department to facilitate the promotional activities.
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PRODUCT & PRICING STRATEGY OF KFC
Chapter: - 7- CONCLUSION
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PRODUCT & PRICING STRATEGY OF KFC
CONCLUSION
KFC is a very strong chain of fast food restaurants with more than 10,000
restaurants all over the world. KFC is providing employment to 1200 Pakistanis an
around 6000 Pakistanis dependent on KFC.
KFC is leading in Fried Chicken. It gives quality, variety and fresh meals as of
its competitors.
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PRODUCT & PRICING STRATEGY OF KFC
ANNEXURE
QUESTIONNAIRE:-
Q1) the different age group of the customer of KFC (for bucket meal only)
Q.2) which day part most of the customer coming to eat bucket meal so it is easy to
differentiate demand and supply?
Q 3) Accompanied by:
a. friends b. Colleagues
c. family d. Spouse
e. others
a. Yes
b. No
c. Can’t say
a. Very much
b. Normal
c. Very little
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PRODUCT & PRICING STRATEGY OF KFC
d. a. Every 3 days
e. b. Once a week
f. c. Once a month
a. Very expensive
c. Reasonable
d. Cheap
a. Delicious
b. Good
c. Normal
d. Not Good
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PRODUCT & PRICING STRATEGY OF KFC
BIBLIOGRAPHY
References
http://www.scribd.com/doc/6546600/Questionnaire
http://foodcourt.pk/index.php?option=com_wrapper&Itemid=113
http://www.kfc.com/contact/
http://www.pueblo.gsa.gov/
http://www.kfcpakistan.com/
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