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INDIA STRATEGY TERM PAPER PRESENTATION

Presented By: Aparna Priyadarshini MBA 2010,Date: 12th April 2010 Asian Institute of Management,Manila

1

Company Background
KFC Corp, owned by YUM brands is one of the oldest(1952) and most popular chicken and food restaurant in the world. Other restaurants under YUM brands are Taco Bell, Pizza hut, Long John Silver’s and A&W KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of other meat products suiting to local palate. In India they opened in 1995 and are lagging behind in terms of sales and reach vis-à-vis chains like McDonalds and Dominos

2

Target Market
Geography: India Metros and Tier II Cities Demography: Urban people of both genders aged between 15 to 45 years of age. Income Group: A, B and C segment of people. Psychographic: People who have a busy lifestyle and are influenced by western culture An important thing to note is that Indian Fast food market is fundamentally different-Eating at home remains very much ingrained in Indian culture. Fast food joints or QSRs are one of the cheap sources of taking a break from home cooked food and eating out. The growth in nuclear families, particularly in urban India, exposure to global media and Western cuisine and an increasing number of women joining the workforce are responsible for changing this trend. 3

DataStrategic Group Data-Competitors

Others 33%

Mc Donalds 35% Mc Donalds KFC Dominos Pizza KFC Dominos Pizza 15% 10% Café Coffee Day Others

Café Coffee Day 7%

In India the fast food joints also compete against the other Quick Service Restaurants like Pizza Hut(same company as KFC) and dominos. 4

PESTLE ANALYSIS
Political: India is liberally opening doors for international fast food joints Positive Economic: An ever growing middle class with increasing purchasing power Positive

Social: Women are moving out of kitchen to offices. A lot of Indians are veggies, so the menu has to changed Positive

Technological: Enough enabling technologies available Positive

Legal: Franchising models available and working successfully in India Positive

Environmental: Activists against killing of animals like PETA can create trouble Watch Out

When KFC came to India in 1995, it had to shut down because of the controversy about their handling of poultry. 5

PORTER’S FIVE FORCES
Threat of new Entrants
India is has opened doors for foreign fast food players recently

Verdict: The industry is moderately attractive

MEDIUM Bargaining power of Suppliers
There are a lot of suppliers available in the market

Competitive Rivalry HIGH

Bargaining power of Buyers:
There are only few western fast food joints in India

LOW

MEDIUM

Threat of Substitutes
Not a lot of options available

MEDIUM
6

STRATEGIC MAP 1
GAP
Domin os Pizza

McDonalds

Service KFC
CCD

Number of Outlets

Number of outlets and good customer service is a KSF in this industry KFC has to increase its reach and try to move rightwards

7

STRATEGIC MAP 2

CCD

Domino s Pizza

GAP

Price

KFC
McDonalds

Extensive Menu

Both Price and Extensive menu are KSFs in this industry and KFC is weak in both. It should try to move into the GAP zone

8

STRATEGIC MAP 3

KFC

Domino s Pizza

McDonalds

Operations

CCD

Extensive Menu

As evident from the clutter, operations are thresholds to succeed in this industry whereas Extensive menu i

9

STRATEGIC MAP 4
McDonalds

Number of Outlets

Domino s Pizza

KFC
CCD

Quality Standards

As evident from the clutter, quality standard is threshold and number of outlets is a KSF 10

Key Success Factors
KSF’s: Location/Number of Outlets Extensive Menu Price Service/Ambience Taste Threshold Factors: Operations Quality Standards

11

Competitive Matrix
Factors Weights McDonalds KFC Domino's Coffee Day Location/No of outlets 35% 9 4 7 4...
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