Kentucky Fried Chicken – Management Mission and Values of the Cupola Group

_ key outrect __ draw drift drawrect drawg _ _ draw hurl drawrect drawg _ tabular array of Contents textbook editionbooktoc-mark-end Ac spotledgement.. 3 textbookmark texttoc-mark-start Executive Summary .. . . 3 texttoc-mark-end Mission Statement texttoc-mark-end .. 6 Vision. 6 textbookmark texttoc-mark-start Comp all Overview texttoc-mark-end . 6 textbookmark texttoc-mark-start KFC In Pakistan texttoc-mark-end 8 textbookmark texttoc-mark-start Cupola Pakistan texttoc-mark-end . . 8 textbookmark texttoc-mark-start KFC Facts texttoc-mark-end 8 textbookmark texttoc-mark-start Performance Overview texttoc-mark-end 9 textbookmark texttoc-mark-start Organization texttoc-mark-end Structure. 11 textbookmark texttoc-mark-start Advertisement. . .. 11 Organizational Culture. 12 Food, Fun & Festivity, this is what KFC is all about. Leading the mart since its inception, KFC provides the ultimate chicken meals for the yellowish Loving Nation. Be it Colonel Sanders secret Original Recipe Chicken or the sweltry & Spicy version, every bite brings a YUM on the face. At KFC we proudly say _ KFC has more than 11,000 restaurants in more than 80 countries and territories around the World__.In 1971, Heublein, Inc. acquired KFC, in brief after, conflicts erupted between the Colonel (which was working as a public relations and goodwill ambassador) and Heublein management over quality control issues and restaurant_ _ draw set up _ _ drawframe _ _ drawframe _ _ drawframe _ _ drawframe _ _ drawframe _ _ drawframe _ _ drawframe _ Mission statement KFC is an internationally renowned agile nutrient industry in the world. They stomach the main ambition to increase & maintain the quality in truehearted food industry.Their use up is to capture the fast food market. Basically they want to provide their products to whateverone that is why they expending their branches in all over the world. They want to increase their profit by dint of giving maximum satisfaction VISION Our pa ssion, as a restaurant phoner, is to put a YUM on large bends faces around the world, satisfying nodes every time they decimate our food and doing it better than any other restaurant partnership. still used today. We Do Chicken RightPerfecting its secret recipe of 11 herbs and spices in 1939, KFC has come a long way, with over 10,000 outlets in the world KFC has maintained its title, for the last 60 years, of being The Chicken Experts. Kentucky Fried Chicken has become KFC. Does anybody know why? We thought the real reason was because of the FRIED food issue. Its non. The reason why they call it KFC is because they throw out not use the word chicken anymore. why? KFC does not use real chickens. They actually use genetically manipulated organisms.These so called chickens are kept alive by tubes inserted into their bodies to pump blood and nutrients without their structure. They collect no beaks, no feathers, and no feet. _ Their bone structure is dramatically shrunk to get more meat out of them. This is great for KFC because they do not energise to fall in so much for their production appeals. There is no more plucking of the feathers or the removal of the beaks and feet. _ KFC In Pakistan Presently KFC is branched out in nine study cities of Pakistan (Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad, and Islamabad) with 45 outlets nation-wide.Opening the first KFC outlet in Gulshan-e-Iqbal, Karachi in 1997, and KFC wore the title of being the market leader in its industry. Serving delicious and hygienic food in a relaxing environment made KFC everyones favorite. Since then, KFC has been constantly introducing hot products and opening new restaurants for its customers. About Cupola Cupola is a Dubai based multinational company involved in several business including, oil gas exploration, plastic cards, retail markets and food franchising. Cupola Pakistan Cupola holds the master franchise rights to operate KFC in Pa_kis tan since 1999.That was a major(ip) difference that when Cupola takes complete Operate in Pakistan that was only 05 Outlets in all over Pakistan, and then now the major difference that Cupola takes 45 Outlets in Pakistan. _ asunder from fulfilling the commitment of serving delicious, fresh and hygienic food and at the same time providing the customers with the ultimate entertainment KFC also plays part in the economic increment of our country. KFC Facts Presently KFC has provided employment to over 1200 Pakistanis, which adds up to 6000 individuals behavely dependent on KFC Pakistan.The Government of Pakistan receives over Rs. 10 to 11 million per month from KFC Pakistan as operate taxes. 95% of all food and packaging material used in KFC Pakistan is procured locally, which sums up to a purchase of over Rs. 35 million per month. Each new outlet developed by KFC Pakistan costs approximately Rs. 40 million, which is a huge amount for our construction industry. Annual turn over in Pakistan_ 2. 5 billion. _ KFC doesnt buy its supplies from Pakistan KFC and PakistanGrowing Together Performance OverviewOrganizational Structure Competition KFC does not consider Mc Donalds are its direct competitors. As Mc Donalds has a limited menu and cater to contrastive segments of society e. g. Mc Donald is catering to lower middle society of Pakistan. Though KFC has approach a teeny-weeny contestation from local restaurants but their breakeven in terms of revenue has been done and they are planning to expand further to other cities worry Islamabad and Peshawar. Yum discolorations, Inc. International Presence & Competition The International Portfolio of 5 leading U.S. Brands give Yum a distinctive advantage over the single-brand competitors. drawframe Customers KFCs customer market consists solely of the consumer market (Kotler et al 2003). KFCs products are bought by individuals (males, females, singles, and families). Therefore, the product range KFC offer should appe al to as many people within this consumer market as possible, to ensure that the maximum amount of products can be sold. The characteristics of these individuals and a segmentation of them are discussed later in this report. Company KFC is a multinational fast food cosmic string company that has successfully established itself in the Pakistan market. It has a long history, going back to where Colonel Harland Sanders created its distinct recipes. The KFC brand is rise known in Pakistan, which makes it a powerful merchandising tool to use against competitors. _ textbookmark texttoc-mark-start textbookmark texttoc-mark-start Advertising texttoc-mark-end texttoc-mark-end One of KFCs_ advertisements is a commercial advertizing its wicked crunch box meal.The commercial features a fictional black metal solidification called Hellvetica performing live, the lead singer then swallows fire. The commercial then shows the lead singer at a KFC feeding the wicked crunch box meal and saying Oh man that is hot. _ _In 2007, the original, non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and food packaging, as well as some restaurant signage. _ Organizational Structure The KFC adopted traditional structure for their outlets that other food chains are following. There is one General passenger vehicle for Pakistan.The outlet is leaded by the Manager, assisted by two assistant managers, and one shift in-charge for each shift, that supervises the performance of counter workers and kitchen workers. Organizational Chart drawframe ORGANISATION CULTURE _ drawframe _ Big on diversity in the workplace _- Promotes differences in background, ethnic cultures, and values_ Team-oriented environment Focuses on dogma everybody something new Promotes building blocky in the workplace Focuses on building relationships and creating diversity and commitment within the company and amongst employees and customers FOUNDING TRUTHSSa tisfied customers and profitability follow. _ Respond To The vowelize Of The CustomerNot just listen. _ _ The Restaurant General Manager Is Our 1 LeaderNot senior management. _ _ Run Each Restaurant As If Its Our Only OneAvoid the trap of the averages. _ _ Recognition Shows You CarePeople leave when you dont. _ _ Quality In Everything We DoEspecially the food. _ Refocused international strategies _ warring marketing strategy_ _ Distribution strategy_ WEAKNESS Management Shift textlist-item textlist-item THREATS Consumer health food trend textlist-item BRINGING ABOUT EFFICIENCY lesser production costs Building healthful customer relationships Efficient hierarchical structure within the company starting from area_ manager till the food benefit team members_ _Every single chicken goes through Quality Assurance Lab. _ Porters Five Force Analysis drawframe Entry _For the current Pakistanmarket 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 Pakistanor even make a significant amount of profit. While there are enough people in urban Pakistanfor any restaurant to survive, KFC holds the first- chance uponr 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 observe from their parents or grandparents, are not going to want to go to other restaurants theyve 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 _ McDonalds, Pizza Hut, Dominos and Subway, and any new fast-food entrants would just be presenting something very equal to whats already there. While small _Neighborhood restaurants generally have low barriers to entry, these are the _barriers to entry for similar restaurant businesses to enter the fast-food ch ain market.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 is not going to lower its price because the cost of losing one customer is not very great. The suppliers, like 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 also extend branches into Pakistan. KFC also began helping local suppliers by giving them technological support to improve their products.This is a brilliant strategy because the supplies that KFC would otherwise need to import from the _ U. S. can now be obtained domestically, and if the U. S. suppliers decide to raise their prices, KFC can easily project 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 extremel y 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. As mentioned above, there are a fewer major competitors in the fast-food industry _in Pakistanfor KFC, namely McDonalds, Pizza Hut, Dominos and Subway. The substitute products, in this case, would be burgers, pizza, and sandwiches. Though they are competitors, their primary products differ greatly from each other, in that they sell, chicken, burgers and fries, pizzas, and sandwiches, respectively.Traditional _ Pakistandining, 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. Unlike what one would expect, KFC has little rivalry wit h similar fast-food chains in _Pakistan. The primary reason is that their core products are different, as in they sell different kinds of fast foods with very different tastes and styles.For example, if KFC raised its price for chicken by a small amount, Pakistan chicken lovers who may not be as accepting to pizzas (many Pakistanpeople 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, these restaurants have such different target customers that the fluctuation of price for one restaurant is not going to affect the others. For example, a full meal at KFC ranges about Rs. hundred, whereas a full meal at Pizza Hut can cost over Rs. 300. The drastic difference in price assures no price competition between these restaurants. _ drawframe _ drawframe _ drawframe _ textbookmark texttoc-mark-start textbookmark texttoc-mark-start textbookmark texttoc-mark-start textbookmark texttoc-mark-start texttoc-mark- end texttoc-mark-end capital of Massachusetts Consultancy Group (BCG) Matrix texttoc-mark-end texttoc-mark-end textbookmark texttoc-mark-start textbookmark texttoc-mark-start Question Mark texttoc-mark-end texttoc-mark-end _Currently KFC have launched a new product in the market. They have also tried to come into the beverages market by launching its new brand of shakes called KRUSHERS.As it is a fairly new product it comes in the category of the Question Mark in the BCG Matrix. It has a low market share thus brings low revenue. KFC is advertising a lot to popularize this product so there is a lot of expenditure on it. This product is individually not bringing any profits and is a cash drain for the company. Company may decide to completely remove this product from the market if it does not do well currently and start bringing in revenue. _ textbookmark texttoc-mark-start textbookmark texttoc-mark-start DOG texttoc-mark-end texttoc-mark-end KFCsVeg Thali comes under this category. Although company had launched this product much earlier, it has still failed to become a success. As KFC is known more for its non-veg food, this also results in low demand for this item. It has a low market share and although low on expenditure (as company does not spend on its promotion), it does not bring in much revenue as demand is low. The product is mostly CASH NEUTRAL. textbookmark texttoc-mark-start textbookmark texttoc-mark-start CASH COW texttoc-mark-end texttoc-mark-end KFCs Chicken Bucket is the most successful product of the company.It has the highest market share amongst all the other products. It has good demand in the market and brings in huge gross revenue revenue. The development and other expenses are also low and thus this product is a CASH SIRPLUS for the company. textbookmark texttoc-mark-start textbookmark texttoc-mark-start STAR texttoc-mark-end texttoc-mark-end KFC Business Strategy KFC fast-food chains are currently under the restaurant partition of Pepsi Co Incorporated. Some major threats include the ever-changing attitudes of society toward healthier eating habits, KFC has more than 9,800 outlets located in 77 countries.In marketing, KFC restaurants are not restricted from locating within close proximity of other KFC restaurants. There are two alternative strategies for KFC. The first strategy involves keeping PepsiCo beverage division and snack foods division together, and a divestiture of PepsiCo restaurant division selling Taco Bell, Pizza Hut, and KFC. trade Strategies KFC Target commercialise KFC targets the young generation, as here in this country the young generation is more towards eating out and is more energetic. It targets the early single segment that is the focal ratio class. Aggregation StrategyKFC does not need aggressive marketing or advertising because Brand is strong enough. Market Segmentation Previously they were focusing on single segment that was through Niche Marketing by offering Combo Deals. today th ey are focusing more on other classes as well. They are dealing in masses by introducing value deals most recently introduced Zinger next-to-last. Benefits Colonels value combo meals introduced previously were expensive and so there were less sales but through their recent offers, they have increased the sales by offering low prices. Purpose Inflation highly affects the purchasing power of the customers.And here the purchasing power of many customers is low. To cover this major segment, they have introduced affordable meals, so that it is in reach of the masses. Want Specification The people here need a friendly and family restaurant, which must be affordable for them. Consumer Market Segmentation Region Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad and Islamabad Geographic Gulberg The main Gulberg branch is situated on M. M Alam passageway, which covers a wide area and serves a large number of customers. This restaurant faces competition with many top Fast Food restaurants located on the same road.Defence Their Defence Branch in H-Block focuses the potential customers of Defence. Barket Market This branch covers the area of Model Town, Johar Town, Muslim Town, Garden Town and Faisal Town. It is situated among many offices and banks. Cavalry Ground Shadman The Shadman branch is located on Jail Road and serves potential customers. Thokar Niaz Baig This restaurant branch serves latent customers. Mall Road Fortress Stadium Marketing Mix Marketing mix consists of 4Ps. It contains everything a firm can do to influence the demand for its product. The 4Ps are PRODUCT PRICEPLACE PROMOTION Their product is classified as consumer product as it has no intermediates. KFC offers specialty goods. The stock turn over of KFC is high. Price and quality of the product is always compared. Their product includes textlist-item _ written with it. _ comes in mind. KFC Brand textlist-item textlist-item textlist-item textlist-item textlist-item Brand s Equity Branding Strategies KFC is marketing the entire output under products own brand. Complementary Branding Packaging Strategies They use musical composition material for packaging to avoid health hazards and environmental pollution.Labeling 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 rank 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. KFC has only one channel of distribution i. e. direct where the goods are transferred to the consumer directly.KFC has no middlemen. KFC does distribution of consumer goods directly to the consumer. KFC also does distribution of services to the consumer like parking, sitting, home delivery, etc. 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 unique(p) convenience of enjoying the delicious KFC offering anytime, anywhere, thus making fast food truly fast and convenient. KFC intends to further develop its mobile network nationwide through more such units KFC does intensive distribution on its outlets. (All and everything on every outlet). 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 Colonels Spirit and heritage are reflected in KFCs brand identity. KFC by its advertisements derives the desire in the customer to come and enjoy healthy food in their favorite 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 Faryad Keep the city Clean. KFC does institutional advertising to stimulate demand. When KFC offers new products then it does product advertising. KFCs ads act as counteracts which means to drive the customer to KFC i. e. it uses pull advertising strategy. _ drawframe _ Unlike McDonalds, KFCs promotion is highly decentralized.It adopts cultural values for their advertisements PSO had made a scheme in which PSO had given the coupons of KFC having 10% off. (1 coupon was given after each purchase of 10 liters of petrol) KFC in its advertisements says Nobody does chicken like KFC We do chicken right The message conveyed in the ads is recognition for the brand. KFC does competitive advertisement with its head on competition with McDonalds. Regarding this KFC uses Pricing below competition strategy. KFC sponsors many NGOs and other social welfare organizations like Regular sponsorship to SOS village.Sponsorships to FARYAD_ a plant and breeding association. FARYAD Keep The City Clean. They also offer different deals according to the season and occasions. _ Quality Assurance Food Safety Chicken & its Products Locally produced and urbane chicken. Supplied in frozen form Marketing Research and methods to collect information Marketing research was done before launching the product through different mediums. It was conducted after the survey that mostly students prefer to go to KFC than other people. The second in majority were people who are in services. That covers the majority of this country. drawframe _ drawframe drawframe drawframe drawframe Strategic management Market Development Product Development coaxial Diversification Implementations textlist-item textlist-item textlist-item textlist-item textlist-item textlist-item Recent Achievement of KFC The Stevie International Business Awards KFC Pakistan was honored to receive the award among 100 countries and 800 participants. The award was presented to Mr. Rangoonwala by Mr. Graham Allan, President, YUM Restaurants International at a recent conference in Prague, Czech Republic.KFC is a very strong chain of fast food restaurants with more than 10,000 restaurants all over the world. Being in Maturity Stage it has high opportunities of introducing its new products and deals. In Future it will be expanding its chain by introducing more outlets in Pakistan as well as in other countries. Believe in value creation. Provide ultimate choice of active service restaurants for consumers. Won the hearts of millions of Pakistanis _ drawframe _ References Yum Brands, Inc. http//www. yum. com KFC http//www. kfc. com KFC Barkat Market Mr. Shabir (Marketing Manager)