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IN INDIA ETHICAL ISSUESPresented By- Kalyani Singh Neha Singh Shahbaz Khan Shakshi Gupta Surendra Singh Bisht
BACKGROUND OF KFC KFC is based in Corbin, Kentucky, U.S. and is the world’s most popular chicken restaurant chain. Founded by Colonel Harland Sanders in in the early 1930s by cooking & serving food for hungry travellers. In 1952 Sanders started franchising his chicken business & named it as KENTUCKY FRIED CHICKEN. KFC is part of Yum! Brands, Inc., the worlds largest restaurant company in terms of system restaurants, with more than 36,000 locations around the world. KFC operates more than 15,000 units in 109 countries and territories around the world.
CONTINUE….. Every day, more than 12 million customers are served at KFC restaurants. KFC is world famous for its Original Recipe fried chicken -- made with the same secret blend of 11 herbs and spices Customers around the globe also enjoy more than 300 other products -- from KFC The company is ranked #239 on the Fortune 500 List, with revenues in excess of $11 billion in 2008.
KFC’s Entry in INDIA KFC was the first fast food multinational to enter INDIA , after the economic liberalization policy of the Indian Govt. in early 1990s. KFC received permission to open 30 new outlets across the country KFC opened first fast food outlet in Bangalore in June 1995 by targeting upper middle class population. PepsiCo planned to open 60 KFC and Pizza Hut outlets in next 7 yrs in the country.
ISSUESGovt. was criticized for granting permission to multinational food giantThreat to domestic businessNationalists feared a cultural invasionNutritionists highlighted the high rates of obesity, hypertension, heart disease and cancersMonosodium Glutamate (MSG) controversy
PROBLEM for KFCProtests by angry farmers led by the Karnataka Rajya Ryota Sangha (KRRS).Protests by EcologistProtests by PETA . Support of celebrities in against of KFCNon-Conformity with food products regulations
STRENGTH World’s largest restaurant company in terms of system restaurants, operates more than 15,000 units in 109 countries and territories around the world. KFC is world famous for its Original Recipe fried chicken -- made with the same secret blend of 11 herbs and spices Ranks highest among all chicken restaurant chains for its convenience and menu variety. Generate $1B each year
WEAKNESS LACK OF KNOWLEDGE ABOUT THEIR CUSTOMERS. LACK OF FOCUS ON R&D. MSG FLAVOUR IN CHICKEN
OPPORTUNITYRETAIL BOOM IN INDIAINDIANS YOUTH ARE ADOPTING WESTERN CULTUREINDIAN ECONOMYMETROPOLITAN RAPID DEVELOPMENT
THREATSINDIAN RECIPIES LIKE TANDOORI CHICKENPETA AND KRRS LIKE ORGANIZATIONSPOLITICAL PARTIES PROTESTING FOR JUNK FOODPROTEST SUPPORT FROM FAMOUS PERSONALITIES LIKE ANIL KUMBLE,ADITI GOVITHRIKAR,JOHN ABRAHAM ETC
MARKETING CONCEPTSNEEDS – a consumer needs foodWANTS – they want chicken or other non-vegDEMANDS – but they demands KFC’s fried chicken
TARGET MARKETSAs the outlets of KFC are in posh area and prices are too high (overhead expenses- rent, air-conditioning, employees),KFC targets upper and middle classes, youthTarget market depends upon size and growth rate of population,
MARKET SEGMENTATION Geographic segmentation : In India KFC focuses how geographically its customers demand different products. Demographic Segmentation: In demographic segmentation, the market is divided into groups based on an age, gender, family size, income, occupation, religion, race and nationality. Psychographic segmentation: in this segmentation ,the market is divided into middle class & upper class
PRICING STRATAGY Their products are priced high and target the middle to upper class people KFC adopt the cost base price strategy. Pricing of the product includes the govt. tax and excise duty 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.
PROMOTIONAdvertisingSales PromotionPublic RelationsEvents and ExperiencesCoupons, Discounts and Bundled packages
COMPETITION We can compare the price of their products with mcdonald, dominoes and pizza hut. If the competitor provides the same product at a lower price then 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 indian fast food market (only with fried chicken). It prices its burgers, french fries and soft beverages with relation to its competitors.
RECOMMENDATIONS the company should be able to use an ethical management strategy that will uplift the image of the company. uses of marketing knowledge, concepts, and techniques as well as with the social consequences of marketing policies, decisions, and actions every business organization should understand the importance the culture, regulatory & ecological issues in different countries.