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KFC REPORT.docx
Delhi Technological University

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70% Overall Similarity

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43 Not Cited or Quoted 70% 66% Internet sources

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Match Groups Top Sources

43 Not Cited or Quoted 70% 66% Internet sources

Matches with neither in-text citation nor quotation marks
4% Publications
0 Missing Quotations 0% 61% Submitted works (Student Papers)
Matches that are still very similar to source material

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1 Internet

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2 Submitted works

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3 Internet

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4 Internet

1library.net 7%

5 Internet

www.scribd.com 4%

6 Internet

www.slideshare.net 3%

7 Internet

oessays.com 3%

8 Internet

vustudents.ning.com 3%

9 Submitted works

HELP UNIVERSITY on 2016-01-17 2%

10 Submitted works

University of Greenwich on 2015-12-07 2%

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11 Internet

www.bartleby.com 1%

12 Internet

propakistani.pk 1%

13 Submitted works

Swinburne University of Technology on 2017-11-14 <1%

14 Submitted works

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24 Internet

idoc.tips <1%

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25 Internet

www.studymode.com <1%

26 Internet

www.austinchronicle.com <1%

27 Internet

www.notar.se <1%

28 Submitted works

Anglia Ruskin University on 2013-12-20 <1%

29 Submitted works

Westford School of Management on 2023-08-15 <1%

30 Internet

c.coek.info <1%

31 Submitted works

Higher Education Commission Pakistan on 2011-11-30 <1%

32 Submitted works

Varsity College on 2015-08-18 <1%

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Executive Summary

11 The aims and objectives of KFC are not only to sell chicken to make money and
make a profit, they are to expand as a business whether that's to be a worldwide
business or just to open up a phew more restaurants around the country to
provide a better service/faster service/better customer service to beat
competitors.

19 Mission and Vision Statements

Vision Statement:

” To be the leading integrated food services group in the ASEAN region

delivering consistent quality products and excellent customer-focused service.”

Mission Statement:

“To sell food in a fast, friendly environment that appeals to pride conscious,
health minded consumers”

Key Success Factors

32 The critical success factors of KFC are:

 Location.
 Speed of service.
 Adaption of localization.
 Quality of food.
 Environment.
 Menu Selection and Pricing.

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Company Summary

9 Type Subsidiary

Industry Restaurant

Genre Fast food

 Sanders Court &Café: March 20, 1930 in North

Corbin, Kentucky
Founded
 First franchise: September 24, 1952 in Salt Lake
City, Utah

Founder Harland Sanders

Headquarters 1441 Lane, Louisville, United States

Number of
18,875
locations

 David C. Novak (Yum! Brands Chairman andCEO)

Key people  Muktesh Pant (KFC CEO)

 Roger Eaton (Yum! COO and KFC President)

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 Fried chicken  Soft drinks

 Chicken sandwiches  Salads

Products
 Wraps  Desserts

 French fries  Breakfast

Revenue US$23 billion

Parent Yum! Brands

Slogan Finger Lickin' Good

Website www.kfc.com

KFC IN PAKISTAN

31  KFC offers the Healthy and delicious chicken meals for a chicken loving
people.

15  KFC open its first outlet in Gulshan-e- Iqbal in 1997.

 KFC gets the title of being the market head in its industry.

 KFC serving the delicious and healthy food in a relaxing environment in

order to made KFC everyone’s favorite.

15  After its successful start KFC has been regularly introducing new
restaurants and new products for its consumers.

 KFC has been launched in eighteen major cities of Pakistan (Karachi,

Multan, Sialkot, Lahore, Islamabad and Muree) with more than 60 outlets
country-wide.

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4  Now, KFC has provided to over 1200 Pakistanis, which adds up to 6000
individuals directly reliant in KFC Pakistan.

 Direct taxes of Rs 1 crore are collected by Government from KFC Pakistan

monthly.

4  KFC Pakistan purchased 95% of all food and packing material localy, used
in KFC which totals to a purchase of over Rs.3 Crore 50 Lakhs per month.

 KFC Pakistan costs approximately Rs.4 crores, for the opening of its new
outlet which is a large amount for our production industry.

Competitive Comparison
KFC has many competitors is Multan. It has many similarities as well as differentiations
from its competitors.
Similarities:
 Fast Food.
 Catering.
 Home Delivery.
 Play area for children.
KFC have many advantages over its leading competitors:
 Its secret recipe.
 Global presence.
 Friendly staff.
 Strong brand image.
 Suppliers as they are also renowned ones.
 And all its key resources and value propositions are also considered as advantages.

Competative Analysis

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KFC have some key resources by which they have competitive edge over their
competitors that are briefly described as follows:

Perceived Value:

 What customers perceive about KFC products and services is the major
resource of them.
 It is because the value perceived by customers is positive and they think
they are getting maximum return of what they are paying.

Channels:

 The distribution channels of KFC are their key resource.

 Reason is KFC is adopting direct distribution channel and has control over
its channels.
 More control over its channels means it can satisfy their customers more
well which will ultimately generate profit for them.

Suppliers:

 KFC has very well renowned companies as their suppliers which are K&Ns
Pepsi co, Hilal and Nescafe.
 These companies itself have image in market so they will be considered as
key resource of KFC.

Trained Staff:

 KFC has very well trained staff as employees.

 Each and every employee from the top level to the lower level is trained.
 Special training programs are organized for this purpose.
 As a result of trained staff they are able to gain more value from customers.

25 High Technology:

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25  Technology is the very important factor for the success of any organization
in today’s world.
 KFC possess advanced technology in their cooking utensils, making of
packaging material, services and for their office work even.
 This advancement in technology is getting them to lead in market every
time so it is considered as a key resource.

Swot Analysis of KFC

Strength

2 For the current Pakistani market for fast food, it is not difficult for a fast food
restaurant to enter the market. However, it would be extremely difficult to
take over already running major fast food chains' dominancy in Pakistan or
even make a significant amount of profit. While there are enough people in
urban Pakistan for any restaurant to survive, KFC holds the first-mover advantage
into the 'non-veg food specialty food segment' that gives them free
reputation. Customers, especially children who are used to going to KFC as a
treat or reward from their parents or grandparents, are not going to want to go
to other restaurants they’ve never heard of. The brand name is
already established. Also, there is already a large variety in the numerous
western-style dining places in Pakistan, such as McDonald’s, Pizza Hut, Domino's
and Subway, and any new fast-food entrants would just be presenting
something very similar to what’s already there. While small Neighborhood
restaurants generally have low barriers to entry, these are the bar riers to
entry for similar restaurant businesses to enter the fast -food chain market.

Weakness

The customers of KFC, especially as individual buyers, have almost no bargaining

power because if only one customer threatens to no longer eat at KFC, the store

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is not going tolower its price because the cost of losing one customer is not very
great. The supplierslike the buyers, have very little bargaining power.In terms of
food, KFC, upon its move into Pakistan, urged many of its U.S. suppliers to
alsoe x t e n d branches into Pakistan. KFC also began helping local
suppliers by g i v i n g t h e m technological support to improve their
products. This is a brilliant strategy because thesupplies that KFC would
otherwise need to import from theU.S. can now be obtained domestically, and
if the U.S. suppliers decide to raise their prices,KFC can easily switch to the
local suppliers. This gives us a brilliant strategy.With this strategy, KFC created
competition among its suppliers, lowering the supplier bargaining power. In terms
of human resources, labor cost is extremely low because the supply of non-
skilled workers great exceeds the demand for them. With so little buyer and
supplier bargaining powers, KFC is able to have a very tight control over its
prices and expenditures.

Oppurtunities

As mentioned above, there are a few major competitors in the fast-food industry
in Pakistan for KFC, namely McDonald’s, Pizza Hut, Domino's and Subway. The
substitute p r o d u c t s , in this case, would be burgers, pizza, and
sandwiches. Though they are competitors, their primary products
d i f f e r g r e a t l y f r o m e a c h o t h e r , i n t h a t t h e y s e l l , chicken, burgers and
fries, pizzas, and sandwiches, respectively. Traditional Pakistani dining, home-
cooked meals, and grocery stores with ready -to-eat foods are also
substitutes, as families could choose any one of these over fast food for
a meal. These substitutes are definitely considered healthy as compared to
the fast food chains. Even foods from street vendors count as substitute goods.
While other fast foods serve as substitute to KFC, they can also serve as
complements for fast foods as a whole. If the general price of fast foods goes up,
KFC’s price rises as well, a n d t h e s a m e c a n b e s a i d o f t h e q u a n t i t y s o l d
of these products, which make them complements to each other. KFC

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30
22
5 a l s o s e t s u p s t o r e s l o c a t e d n e a r p o p u l a r t o u r i s t attractions, so tickets
to these tourist spots are also complementary goods because the more people
tour these attractions, the more customers KFC will get.

Weakness

Unlike what one would expect,KFC has little rivalry with similar fast-food chains
in Pakistan. The primary reason is that their core products are different, as in
they sell differentkinds of fast foods with very different tastes and styles. For
example, if KFC raised its price for chicken by a small amount, Pakistani chicken
lovers who may not be as acceptingto pizzas (many Pakistani people strongly
dislike the taste of cheese) are not going to switch to Pizza Hut just because
the price for KFC increased. In addition to that, theserestaurants have such
different target customers that the fluctuation of price for onerestaurant is not
going to affect the others. For example, a full meal at KFC ranges about Rs. 400,
whereas a full meal at Pizza Hut can cost over Rs. 1000. The drastic difference
in price assures no price competition between these restaurants.

8 Marketing Strategy

 Our marketing strategy will be education of the consumer and subsequent

word of mouth.
 Customers will be reached through neighborhood advertising, special
promotions, and most importantly, word of mouth.
 Location also plays a crucial role in marketing and promotion.
 KFC is located in high-traffic retail area.
 This area offers many incentives to business operating there because of
the high-end reputation and affluent residents nearby.

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8  Also, the area is popular amongst tourists who come to see Multan’s
cantonment area, cantonment garden and lake which is not so far, which
will be most beneficial.
 We will target progressive and generally well-educated and affluent
consumers who are interested in high quality brownies experience and are
dissatisfied with the limited selection and lack of personal service found in
grocery store bakeries and neighborhood cafes and coffee shops.

1 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.

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 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.

1 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 Macdonald’s, American Burger, Burger 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.

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 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.

16 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.

Promotion

1  They used advertisement for promotion that is 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 prod ucts.
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

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4 Floating Trucks:

 KFC Pakistan adopts a very interesting way of advertisement as for as their

business as concerned that is Floating Truck.
 When KFC Pakistan’s Restaurant Support Center introduces a new product
in Pakistan they adopt this way and there Floating Trucks travel throughout
the city at where they have KFC stores.
 Generally it is a very effective way of advertisement through whic h
maximum of their customers are able to know about their new products
that they introduced.

In House Publicity:

 KFC Pakistan has another way to advertise their business is in house

publicity in which they use banners, electronic boards, broachers, etc to tell
their customers about packages, prices, product’s detail, new products and
all other information that customers want.

By Phone:

 KFC Pakistan stays in Touch with their potential customers by using their
database.
 They informed their potential customers about the new products and
packages by phone because they have their phone numbers in there
database.

Print & Electronic Media:

 Internationally KFC advertise their products through electronic media also

they use world’s famous T.V channels, newspapers, magazines, etc.

Internet:

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 All most all the KFC’s well developed franchises have their own websites
through which they advertise their business very well, but they also use
other websites for advertising purposes like hotmail, yahoo, google, etc.
 E-mail marketing techniques are used by KFC to promote their business.
They use their own database to send e-mails to their value added customers
to informed them about new products, packages, discounts, etc and uses
third parties to promote their business through e-mail marketing.

Media Coverage:

 KFC Pakistan also uses common ways for advertising like newspapers, cable
TV networks, a big road side boards, etc.

Action Programs

1 Sales Promotion

Promotion is the method used to inform and educate the chosen target audi ence
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

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 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.
17  For sales promotion KFC has introduced different strategies such Ramadan
Package, Birthday Package, Midnight Package and many other.
 Also they have introduced goods like watches, keychain, coffee cup, T -shirt,
14 toys etc. to the customers.

Public Relations

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14  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:
o News
o Speeches
o Internet

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2. Objectives of studying organization

The objective of studying organizations is to gain a comprehensive understanding of
their structure, functioning, and dynamics in order to analyze, improve, and optimize
their performance. This study encompasses various aspe cts, including management,
operations, culture, strategies, and external influences. The primary objectives of
studying organizations can be summarized as follows:

2.1. Insight into Organizational Behavior:

By studying organizations, we aim to understand how individuals and groups within
the organization interact, behave, and make decisions. This insight helps in creating
effective leadership, fostering a positive work environment, and improving overall
productivity.

2.2. Enhancing Organizational Performance:

Through careful analysis, studying organizations helps identify strengths,
weaknesses, opportunities, and threats. This knowledge enables the implementation
of strategies and improvements to enhance efficiency, productivity, and
profitability.

2.3. Optimizing Management Practices:

The study of organizations provides valuable insights into different management
styles, techniques, and approaches. By analyzing successful management practices,
one can learn how to lead and motivate teams effectively.

2.4. Understanding Organizational Structure:

Examining organizational structures helps in understanding how authority,
communication, and decision-making flow within the organization. This knowledge
aids in streamlining processes, minimizing bureaucracy, and promoting better
coordination.

2.5. Adapting to Changing Environments:

27 Organizations operate in dynamic environments influenced by various factors,
including technological advancements, market trends, and economic conditions. By

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studying organizations, we can learn how they adapt to these changes and ensure
their sustainability.

.1. Nature of the Organization

The nature of the KFC brand can be described as follows:

20 3.1.1. Global Brand Recognition

29 KFC is a highly recognized global brand known for its iconic image of Colonel Sanders
and its finger-licking good fried chicken. Its brand awareness is extensive, making it
23 one of the most well-known fast-food chains in the world.

3.1.2. Heritage and Tradition

The brand's heritage and tradition play a significant role in its identity. Colonel Harland
26 Sanders, the founder, and his secret blend of 11 herbs and spices are part of KFC's
unique history, adding to its appeal and authenticity.

3.1.3. Consistency and Quality

KFC maintains a strong focus on delivering consistent quality across its restaurants
worldwide. The taste and flavor of its fried chicken are standardized to ensure
customers receive the same experience, regardless of the location.

20 3.1.4. Customer Loyalty

KFC has a loyal customer base that enjoys its signature products and has developed a
strong affinity for the brand. The combination of good food, brand recognition, and a
positive dining experience contributes to customer loyalty.

3.2. Business Volume

The business volume of KFC, like any large multinational corporation, is subject to
change and can vary over time and across different regions. Business volume typically
refers to the total revenue generated by the company through its various restaurant
locations and other revenue streams.

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18 As of my last knowledge update, KFC was one of the leading fast-food chains globally,
with thousands of restaurants operating in over 140 countries. It was part of Yum!
Brands, Inc., which is one of the world's largest restaurant companies. Yum! Brands
28 also owns other well-known brands such as Pizza Hut and Taco Bell.

3.3. Profile of employee

 Team Member / Crew Member
 Shift Supervisor / Team Leader
 Restaurant Manager
 Regional / Area Manager
 Marketing and Advertising Specialist
 Supply Chain and Logistics Specialist
 Human Resources Specialist
 Finance and Accounting Specialist

3.4. Product line

 Fried Chicken
 Chicken Sandwiches and Wraps
 Chicken Tenders
 Bucket Meals
 Sides
 Salads
 Desserts
 Beverages

Budget Statements
Sales Forecast
We forecasted sales by using Trend analysis:
2011 2012 2013 2014 2015 2016 2017

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Sales

Sales Programs

Strategic Alliances
10 1. Yum Brands has been involved in several mergers and acquisitions over the past three
years. The majority of Yum’s activities have revolved around acquiring either branded
10 restaurants (such as acquiring 68 KFC restaurants) or acquiring separate entities, such
as Long John Silver’s, A&W All-American Food Restaurants and Little Sheep Group Ltd.
These acquisitions resulted in a consolidation of competitors. Some of this consolidation
24 has been successful; however Long John Silver’s and A&W All-American Food Restaurants
were not. These were not successful because Yum overpaid for these brands and they
did not properly align with Yum’s strategy of operating global brands. The failure of A&W
and Long John Silvers was a result of poor strategy and failure to grow in the domestic
market, as those brands did not achieve the projected growth numbers.
10 Yum Brands has entered several strategic alliances in the past three years.
One in particular that stands out is its alliance with Sinopec (China Petroleum and
21 Chemical Corporation). Sinopec is the largest firm in China by revenue, and operates over
13 30,000 gas stations in China. The agreement was to open Pizza Hut and KFC restaurants
in Sinopec gas stations, providing very big growth opportunities for both firms. Yum
brands chose to get into this alliance because it provided a significant impact on the
development and strategic growth of their business. As quoted from their strategic
alliance announcement, “Through the complementary advantages of both companies, the
combination of the strength will offer better service for customers, promote both brands,
generate more economic returns, and improve their capabilities for sustainable
development.” Yum’s success in China made the alliance with Sinopec a good fit, and its
well-established supply chain would enable it to reach the multiple locations in inland
China.
Reference

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Reference will be furnished on demand.

Critical analysis
7 The company KFC is recognized as a famous and leading food manufacturing company
in the world over 130 from its establishment. It deals with the business of food and
Agriculture raw material. These two parts are very important and are indispensable part
of each community in the world. At present time the company has been enjoying the
privilege of being world’s largest and diversified company in the sector of food and
agriculture Raw materials and it possesses about 500 factories all over the world in 80
countries.

Nestle has it’s headquarter in Switzerland, Vevey and it was founded in 1866 by Sir He nri
Nestle and at present this has been recognized as the biggest beverages and food company.
At the end of the year 2004 were 87 bn. this had net profit of 6.7 bn. The company has
around 247,000 employees.

5.1. Failure of different products

The KFC Double Down was a unique sandwich that replaced the traditional bread with
two fried chicken fillets, sandwiching bacon, cheese, and sauce. While it gained initial
attention for its novelty, it faced criticism for its high -calorie content and nutritional
concerns. Although it generated buzz, it did not become a long-term menu staple.

KFC introduced a healthier option to its menu with grilled chicken, aiming to attract
health-conscious consumers. However, this product faced challenges in consistency,
taste, and preparation time, which led to customer dissatisfaction and a decline in
demand.

3 5.2. Major competition

In some products Nestle is facing fierce competition. For example, in Milkpak Nestle is
facing competition from Chaudhary Dairies Limited who has launched “Dairy Queen”
at lower prices which has decreased market share of Milkpak. CDL has also launched

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“N’rish” milk powder at lower prices, it also has capability to decrease the market share
of “NIDO”. So in long run, if Nestle do not respond to such competit ors, they may
create a lot of problems in other products also.

5.3. Future prospectus

12 3.4 billion Are planned for 2021, primarily focused on operational reliability and capacity
increases to meet consumer demand, the company said in its annual financial re port.
Nestle Pakistan witnessed a handsome 20 percent growth in profitability in 2020, which
stood at Rs. 8.8 billion in the outgoing year.

Short-fall of marketing
3 6.1. Dependent on the outside Milkmen
Raw material is basic input for every organization and milk is core raw material of Nestle
for which it is dependent on the outside Milkmen. Nestle has no single its own dairy form
which provide high quality milk to the firm.

6.2. Packaging dependence

Another weakness of Nestle Milkpak Ltd. is that its total packaging depends upon
Packages (Pvt.) limited.

6.3. Complex supply chain

Having complex supply chain management.

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6
7. Conclusion
The period of my internship with such esteem organization like Nestle Pakistan was a
great delight for me who enhanced my knowledge up to latest trends and bridged the gap
between theoretical knowledge and practical approaches being implemented in the
industry. .

The learning environment was superb, just like an ocean where you come, take what you
want but there is no deficiency in that ocean. Moreover, different internal systems that
NESTLE has evolved like NCE (Nestle Continuous Excellence), TPM (Total Performance
Management), NQMS (Nestle Quality Management System), NSMS (Nestle Safety
Management System) and NGMP(Nestle Good Manufacturing Practices) etc. are unique
& assures the safety of worker & best quality food products.

Nestle is international organization, being an multinational is always great because it is

always backed up by the parent company but however Nestle Pak istan is doing best in
this region because of the static demand & less portfolio. Nestle management is key
success factor of the company they are highly committed & they do not compromise on
their tasks. Quality & sustainability is another factor that is g iving nestle an edge against
its competitors and NESTLE PAKISTAN is at top because of high demand & promising
quality they provide.

8. Recommendations
3 Internship at Nestlé was really a wonderful experience for me. It was a short journey full
of commitment, passion, encouragement and hard work. I was very lucky that was I
worked in Milk Collection & Dairy Development (MCDD) department. I came across in
the company of amazing people who taught me many things that would be a great help in
professional and daily life. They took care of each and every intern so well and they
helped me with each and every query I had and helped me to understand the various
issues.

In MCDD, everybody makes sure that the internes are doing well, I was given tasks
clearly and sometimes with a deadline to submit an assignment. That thing helped me to

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3 do my work in time. Also, they make sure the punctuality of the employees as well as of
the internees.

Working in such a great environment with a lot of people have made me much more
confident. They made me believe in myself. Reading of scenarios and generating various

answers have given me a good edge to think from different perspectives. I

always got encouraged with my work.

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