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...

References: from newspaper
Mc Donald’s is the biggest competitor of KFC
Mc Donald’s is very successful in India as compare to KFC because Mc Donald’s have changed its strategy from time to time according to the requirement of time or customers choice.
With the invention of McDonald’s in INDIA, junk food has become more popular between the young youth as McDonald’s launched its branch in most of the major cities of INIDA. Along with McDonald’s many other junk food brands started their business here. But KFC still has very less no of outlets.
When it comes to Quality – KFC is far behind from MC Donald’s, they really need to maintain their quality standards well if they want to rise up the ladder and compete with Mc Donald’s.
Though Non-Veg lovers can have a fest in KFC, the VEG lovers are sidelined and are not taken of that much care; there is no variety for the veggies here in KFC, as much as they have in McDonald’s. In MC Donald’s you get a wide variety of choices for both VEG and NON-VEG lovers.
Presentation skills also matters – and no one can really beat MC Donald’s for that, they have these different offers from time to time, they have special offers for 12 months of the year for kiddies, they give away free toys etc, all this is really required if you want to win away the masses. KFC does not offer any of those. Presentation skills at KFC are really poor.
KFC has not changed its strategies and has not taken much interest in consumers demand. It has not done much for vegetarians. This has lead to slow growth of KFC and less popularity of KFC as compared to Mc Donald’s.
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