Swot Analysis of Kfc

Topics: Fast food, KFC, Fried chicken Pages: 8 (2219 words) Published: December 19, 2008



Submitted to: - Submitted by:-

Lecturer in management
LPU, Phagwara

KFC was founded by Harland Sanders (Sanders) in the early 1930s, when he started cooking and serving food for hungry travelers who stopped by his service station in Corbin, Kentucky, US. He did not own a restaurant then, but served people on his own dining table in the living quarters of his service station. His chicken delicacies became popular and people started coming just for food.

Kentucky Fried Chicken was born. Soon, Sanders moved across the street to a motel-cum-restaurant, later named 'Sanders Court & Cafe,’ that seated around 142 people.

Over the next nine years, he perfected his secret blend of 11 herbs and spices and the basic cooking technique of chicken. Sanders' fame grew and he was given the title Kentucky Colonel by the state Governor in 1935 for his contribution to the state's cuisine. Sanders' restaurant business witnessed an unexpected halt in the early 1950s, when a new interstate highway was planned bypassing the town of Corbin. His restaurant flourished mainly due to the patronage of highway travelers. The new development meant the end of this. Sanders sold his restaurant operations. After settling all his bills, he was reduced to living on a meagre $105 social security cheque. But Sanders did not lose hope. Banking on the popularity of his product and confident of his unique recipe for fried chicken, Sanders started franchising his chicken business in 1952. He called it Kentucky Fried Chicken. He traveled the length and breadth of the country by car, visiting as many restaurants as possible and cooking batches of chicken. If the restaurant owners liked his chicken, he entered into a handshake agreement that stipulated payment of a nickel9 for each plate of chicken sold by the restaurant. By 1964, Sanders franchised more than 600 chicken outlets in the US and Canada.

Foreign fast food companies were allowed to enter India during the early 1990s, thanks to the economic liberalization policy of the Government of India (GoI). One of the first fast food multinationals to set foot in India was Kentucky Fried Chicken (KFC), owned by PepsiCo. KFC received permission to open 30 new outlets across the country. It chose Bangalore as its launch pad because the city had a substantial upper middle class population, with a trend of families eating out. Also, it was considered India’s fast growing metropolis in the 1990.

The Bangalore outlet was opened in June 1995. Apart from Bangalore, PepsiCo planned to open 60 KFC and Pizza Hut outlets in the country over the next seven years. However, KFC became embroiled in various controversies.

SWOT Analysis of KFC


1. BRAND NAME:- KFC is a well known Foreign Brand. KFC has name recognition around the world and has been globally positioned for many years. People in India get easily attracted towards foreign brands n foreign food habits. Western influence is too much on Indians. Most of the people are very found of non-vegetarian food. So it is the strength of KFC.

2. STANDARD PRODUCTS: - KFC's brand standard products are their strength throughout the world, KFC works around the core and gives consumers products with a familiar taste, especially "important in a country like India that is home to such distinct and different food...
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