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

_ scramrect __ induce roam stupefyrect drawg _ _ draw body-build drawrect drawg _ Table of Contents school schoolbooktoc-mark-end Ack in a flashledgement.. 3 school school schoolbookbookbookbookual matter bookmarker schoolbooktoc-mark- spark Executive digest .. . . 3 school texttoc-mark-end Mission Statement texttoc-mark-end .. 6 ken. 6 textbookmark texttoc-mark-start go with 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 carrying into action Overview texttoc-mark-end 9 textbookmark texttoc-mark-start Organization texttoc-mark-end twist. 11 textbookmark texttoc-mark-start Advertisement. . .. 11 organisational Culture. 12 Food, Fun & Festivity, this is what KFC is all about. Leading the market place since its inception, KFC provides the last chicken m eals for the chickenhearted Loving Nation. Be it Colonel Sanders cryptic Original chemical formula Chicken or the Hot & Spicy version, all bite brings a YUM on the face. At KFC we proudly say _ KFC has to a greater extent than 11,000 eating ho functions in more(prenominal)(prenominal) than 80 playries and territories around the World__.In 1971, Heublein, Inc. acquired KFC, soon after, conflicts erupted between the Colonel (which was working as a public relations and good volition ambassador) and Heublein partagement oer case visualise issues and eating place_ _ draw body _ _ drawframe _ _ drawframe _ _ drawframe _ _ drawframe _ _ drawframe _ _ drawframe _ _ drawframe _ Mission statement KFC is an internationally illustrious betting fodder industry in the world. They pee the main dream to increase & maintain the quality in fast food industry.Their manoeuver is to capture the fast food market. Basically they want to provide their harvest-festivals to some(prenomina l)one that is why they expending their growthes in all oer the world. They want to increase their net by giving maximum satisfaction VISION Our passion, as a restaurant club, is to put a YUM on muckles faces around the world, satisfying clients all time they eat our food and doing it better than any otherwise restaurant play along. still personad 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 k straight why? We thought the trustworthy reason was because of the FRIED food issue. Its non. The reason why they call it KFC is because they crapper not use the word chicken anymore. Why? KFC does not use real chickens. They actually use genetically manipulated organisms.These so called chickens ar kept alive by tubes inserted into their bodi es to pump blood and nutrients throughout their bodily structure. They gift 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 have to net income so much for their fruit costs. There is no more plucking of the feathers or the removal of the beaks and feet. _ KFC In Pakistan at once KFC is discriminateed out in nine major(ip) 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 voluptuous and hygienic food in a relaxing environs make KFC everyones favorite. Since then, KFC has been constantly introducing hot products and opening new restaurants for its guests. About Cupola Cupola is a Dubai based multinational company involved in several profess ion including, oil gas exploration, plastic cards, retail markets and food franchising. Cupola Pakistan Cupola holds the master certification rights to operate KFC in Pa_kistan since 1999.That was a major difference that when Cupola takes complete hunt in Pakistan that was provided 05 Outlets in all over Pakistan, and then now the major difference that Cupola takes 45 Outlets in Pakistan. _ Apart from fulfilling the commitment of divine helper delicious, fresh and hygienic food and at the same time providing the customers with the ultimate placetainment KFC also plays part in the economic development of our country. KFC Facts Presently KFC has provided employment to over 1200 Pakistanis, which adds up to 6000 individuals requirely dependent on KFC Pakistan.The political sympathies of Pakistan receives over Rs. 10 to 11 million per month from KFC Pakistan as direct taxes. 95% of all food and packaging material used in KFC Pakistan is procured topical anaestheticly, which sum s up to a purchase of over Rs. 35 million per month. for each one 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 atomic number 18 its direct competitors. As Mc Donalds has a limited menu and render to different elements of smart set e. g. Mc Donald is catering to swal emit middle society of Pakistan. Though KFC has faced a little tilt from local restaurants but their breakeven in terms of tax has been done and they are planning to expand further to other cities like Islamabad and Peshawar. Yum Brands, Inc. world-wide Presence & Competition The International Portfolio of 5 leading U.S. Brands arrest Yum a differentive advantage over the single- instigator competitors. drawframe Customer s 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 spree should appeal to as many throng within this consumer market as possible, to ensure that the maximum amount of products mint 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 orbit company that has success repletey 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 cognise in Pakistan, which makes it a federal agencyful 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 cognitive content publicise its wicked crunch box meal.The commercial features a fictional black metal band called Hellvetica performing live, the lead singer then swal downcasts fire. The commercial then shows the lead singer at a KFC eating the wicked crunch box meal and saying Oh man that is hot. _ _In 2007, the original, non-acronymic Kentucky Fried Chicken number was resurrected and began to reappear on company merchandising literature and food packaging, as well as most restaurant signage. _ Organizational Structure The KFC adopted traditional structure for their outlets that other food chains are following. There is one General coach for Pakistan.The outlet is leaded by the Manager, assisted by two garter 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 _ bulky on diversity in the workplace _- Promotes differences in background, ethnic cultures, and apprises_ Team-oriented envi ronment Focuses on teaching everybody something new Promotes unity in the workplace Focuses on building relationships and creating diversity and commitment within the company and amongst employees and customers FOUNDING TRUTHS fulfil customers and profitability follow. _ Respond To The Voice Of The CustomerNot practiced listen. _ _ The eating place General Manager Is Our 1 LeaderNot senior management. _ _ channelize Each Restaurant As If Its Our Only One ward off the trap of the averages. _ _ Recognition Shows You CarePeople leave when you dont. _ _ caliber In Everything We DoEspecially the food. _ Refocused international strategies _ Competitive marketing strategy_ _ diffusion strategy_ WEAKNESS Management Shift textlist-item textlist-item THREATS Consumer health food trend textlist-item BRINGING ABOUT EFFICIENCY Lesser production costs Building healthy customer relationships Efficient hierarchical structure within the company starting from area_ manager till the food serv ice team members_ _Every single chicken goes through Quality Assurance Lab. _ Porters quint 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 cartroad major fast food chains dominancy in Pakistanor even make a significant amount of profit. While there are enough concourse in urban Pakistanfor any restaurant to survive, KFC holds the first-mover advantage into the non-veg food distinctiveness 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 theyve never heard of.The brand name is already established. Also, there is already a large soma in the numerous western-style dining places in Pakistan, such as _ McDonalds, pizza pie Hut, Dominos and Subway, and any new fast- food entrants would just be presenting something very analogous 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 chain market.The customers of KFC, especially as individual buyers, have almost no negociate power because if except one customer threatens to no longer eat at KFC, the store is not going to lower its charge because the cost of losing one customer is not very great. The providers, like the buyers, have very little negotiate power. _In terms of food, KFC, upon its move into Pakistan, urged many of its U. S. suppliers to also extend weapones into Pakistan. KFC also began fortune 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 switch to the local suppliers. This gives us a brilliant strategy. With this strategy, KFC created tilt 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. As mentioned above, there are a few 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 ch oose any one of these over fast food for a meal. These substitutes are unimpeachably 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 with 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 perceptivitys and styles.For example, if KFC brocaded its price for chicken by a small amount, Pakistan chicken lovers who may not be as accepting to pizzas (many Pakistan race 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 aim customers that the fluctuation of price for one restaurant is not going to advert the others. For example, a full meal at KFC ranges about Rs. degree Celsius, whereas a full meal at Pizza Hut can cost over Rs. 300. The drastic difference in price assures no price emulation 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 Boston 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 advertisement a lot to spread 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 comp letely extinguish this product from the market if it does not do well soon and start bringing in revenue. _ textbookmark texttoc-mark-start textbookmark texttoc-mark-start DOG texttoc-mark-end texttoc-mark-end KFCsVeg Thali comes at a lower place 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 for the most part 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 exp enses 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 division of PepsiCo Incorporated. Some major threats include the 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 propinquity 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. commercialize Strategies KFC Target Market 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 tha t is the upper 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 merchandise by offering Combo Deals. Now they are focusing more on other classes as well. They are dealing in mountain by introducing value deals most upstartly introduced Zinger Junior. 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, Ra walpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad and Islamabad Geographic Gulberg The main Gulberg branch is situated on M. M Alam Road, which covers a wide area and serves a large number of customers. This restaurant faces competition with many top libertine Food restaurants located on the same road.Defence Their Defence commencement in H-Block focuses the potential customers of Defence. Barket Market This branch covers the area of Model Town, Johar Town, Islamic 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 trade cockle Marketing mix consists of 4Ps. It contains everything a firm can do to form the demand for its product. The 4Ps are PRODUCT PRICEPLACE advance Their product is classified as consumer product as it has no intermediates. KFC offer s intensity goods. The stock turn over of KFC is high. legal injury and quality of the product is ever compared. Their product includes textlist-item _ written with it. _ comes in mind. KFC Brand textlist-item textlist-item textlist-item textlist-item textlist-item Brands Equity Branding Strategies KFC is marketing the constitutional output under products own brand. Complementary Branding Packaging Strategies They use paper material for packaging to avoid health hazards and environmental pollution.Labeling set 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 a good deal 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 dissemination 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 pulley by at a restaurant. It also provides a unique thingamabob of enjoying the delicious KFC offering anytime, anywhere, thus making fast food actually 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 th e market. Today the Colonels spirit up and heritage are reflected in KFCs brand identity. KFC by its advertisements derives the swear in the customer to come and enjoy healthy food in their favorite restaurant. They spend 2% of its profits on advertisement. They use target 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 monster) 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 heathenish 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 nongovernmental organizations and other social welfare organizations like Regular sponsorship to SOS village.Sponsorships to FARYAD_ a plant and life association. FARYAD Keep The City Clean. They also offer different deals according to the season and occasions. _ Quality Assurance Food pencil eraser Chicken & its Products Locally produced and processed chicken. Supplied in frozen form Marketing Research and methods to collect information Marketing research was done in the beginning 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 strategical management Market Development Product Development Concentric diversification Implementations textlist-item textlist-item textlist-item textlist-item textlist-item textlist-item young 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 i n Pakistan as well as in other countries. Believe in value creation. take into account ultimate choice of quick 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)