1. IN INDIA
ETHICAL ISSUES
Presented By-
Kalyani Singh
Neha Singh
Shahbaz Khan
Shakshi Gupta
Surendra Singh Bisht
2. 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 world's 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.
3. 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.
4. 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.
5. ISSUES
Govt. was criticized for granting permission to
multinational food giant
Threat to domestic business
Nationalists feared a cultural invasion
Nutritionists highlighted the high rates of
obesity, hypertension, heart disease and
cancers
Monosodium Glutamate (MSG) controversy
6. PROBLEM for KFC
Protests by angry farmers led by the Karnataka
Rajya Ryota Sangha (KRRS).
Protests by Ecologist
Protests by PETA . Support of celebrities in
against of KFC
Non-Conformity with food products
regulations
8. 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
9. WEAKNESS
LACK OF KNOWLEDGE ABOUT THEIR CUSTOMERS.
LACK OF FOCUS ON R&D.
MSG FLAVOUR IN CHICKEN
10. OPPORTUNITY
RETAIL BOOM IN INDIA
INDIANS YOUTH ARE ADOPTING WESTERN
CULTURE
INDIAN ECONOMY
METROPOLITAN RAPID DEVELOPMENT
11. THREATS
INDIAN RECIPIES LIKE TANDOORI CHICKEN
PETA AND KRRS LIKE ORGANIZATIONS
POLITICAL PARTIES PROTESTING FOR JUNK FOOD
PROTEST SUPPORT FROM FAMOUS PERSONALITIES
LIKE ANIL KUMBLE,ADITI GOVITHRIKAR,JOHN
ABRAHAM ETC
13. MARKETING CONCEPTS
NEEDS – a consumer needs food
WANTS – they want chicken or other non-veg
DEMANDS – but they demands KFC’s fried
chicken
14. TARGET MARKETS
As 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, youth
Target market depends upon size and growth
rate of population,
15. 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
16. 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.
18. 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.
20. 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.