Kfc Market Analysis

Topics: KFC, Fast food, Fast food restaurant Pages: 27 (6788 words) Published: September 18, 2011
| KFC | |MM-1 Project Phase 2&3 | |By : Group 10 |

The Indian fast food market has been witnessing rapid growth on the back of positive developments and presence of massive investments. Currently, market growth is largely fuelled by the rising young population, working women, hectic schedules, and increasing disposable income of the middle-class households. Improving living standard, rapid urbanization and westernization of Indian culture are some of the other factors responsible for robust growth. Some of the unique properties of fast food like quick served, cost advantage, etc are making it highly popular among the masses. Thus, India offers enormous opportunities for both domestic as well as international players. According to the new research report from RNCOS Experts, Indian Fast Food Market Analysis, the Indian Fast Food Industry is anticipated to grow at a CAGR of around 34% during 2011-2014. Anticipating the future growth, many big international players are entering into the market by making deals with the domestic players. And those already present in the Indian market are expanding their presence in different provinces of the country. This trend will emerge more strongly during the coming period, providing opportunities to local players to widen their product portfolios. Our research further revealed that there is a large scope of growth in the untapped tier-II and tier-III cities, owing to which, major fast food retailers have already started applying various marketing strategies in popularizing their brands in these cities. Furthermore, they are aiming to provide affordable and customized products to suit the needs of people that would ultimately provide necessary boost to the Indian fast food industry.

Macro Factors


1. Political

The government has introduced several steps to enhance the growth of food processing industry. In order to further enhance investment in the food processing industry, several policies have been initiated in the recent past. The well established R&D and technical expertise of Indian research institutions like Central Food Technological Research Institute, Central Institute of Fisheries, National Dairy Research Institute, National Research and Development Centre etc support and regulate the food processing sector. The Union budget 2011-12 has also allocated US$ 135 million to the Food Processing Ministry from the previous US$ 90 million. As a measure to boost investment in agriculture the minister extended the Viability Gap Funding Scheme (VGFS) for public private partnerships (PPP) for setting up modern storage capacity besides giving infrastructure status to cold chains. India still lacks an effective cold chain network and storage systems are not very efficient. Roughly 30 percent of produce in India goes to waste due to transportation, warehousing and cold storage bottlenecks. With 100% subsidy on cold storage government has given a boost to this industry this year. The Indian government has approved funds for establishing 15 mega food parks across the country. Governments also control the license given to open the restaurant. Good relationship with government in giving mutual benefits such as employment and tax is a must for the company to succeed in any foreign market.

1. Security of raw material.
2. Research and development of raw material.
3. Support for expansion.
4. 100% subsidy in cold storage will make an advantage towards quality, supply and prices.

2. Economical

The Food Processing sector has attracted foreign direct investment (FDI) worth US$ 1,253.79 million from April 2000 to April 2011, according to the data provided by Department of Industrial Policy and Promotion (DIPP). The amount of FDI inflow for Food Processing Sector in India during the...
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