Home >> Blog >> Home >> Case Study of KFC/ Kentucky Fried Chicken
city road traffic landscape

Case Study of KFC/ Kentucky Fried Chicken

Introduction

KFC is one of the few American companies that can look back on a lengthy history of success and innovation. All of it started with one cook who created a soon-to-be global-well-known recipe extra than 70 years in the past, a listing of mystery herbs and spices scratched out at the lower back of the door to his kitchen. That prepared dinner became Colonel Harland Sanders, of the path, and now KFC is the arena’s maximum famous hen eating place chain, that specializes in that equal unique Recipe® at the side of more Crispy™ hen, home-fashion aspects and buttermilk biscuits. There are over 21,000 KFC retailers in more than a hundred thirty nations and territories around the world. Kentucky Fried Chicken (KFC) is a fast-food restaurant that has meals processed and organized with the aid of the use of popular components and production strategies.

According to Schlosser 2002, rapid meals also contain a big wide variety of chemical components and regularly lack correct nutrient labeling. In current years, customers globally are more and more concerned about vitamins, health, and satisfaction in their food essential issues have appeared because of recurrent food crises regarding pesticide residues on clean produce, meals contamination by using chemical substances in dairy and seafood products, and the unregulated use of additives in processed ingredients.

image source flicker

The adjustments in patron consuming habits and call for wholesome food had been caused by the public awareness of coronary heart disorder, most cancers, and different ailments that took place due to an unhealthy weight loss plan. Rapid food restaurants chain in America began to seize the demand of the consumers who asked for a portion of healthy rapid food. Many speedy-food eating places are looking to remodel the photo from dangerous food to healthy fast food. Rapid-food chain consisting of Burger King which provides Lite combo food and Veggie Burger, which presented 3 chook sandwiches with a facet salad and bottled water. except, the supply of online food shipping is getting better, which gets rid of the need for consumers to pressure eating places in addition to confirming they receive meals at the proper time. This trend additionally subsidizes the mushrooming of healthful meals delivered within the Klang Valley. Therefore, KFC should have a clean function regarding offering healthful speedy meals to stay a success in the future.

Products & Services

KFC is a global speedy meals enterprise chain renowned for its rapid-meals fine, and comprehension of gadget management. running more than 5,000 restaurant chains all over the globe, the company has elevated opening retailers within the United Kingdom, Canada, Jamaica, and Mexico via the mid-Seventies. KFC’s original products include fried chicken nuggets, seasoned with Sanders 11 spices and special herbs. considerable portions 59 of fried bird are bought within the shape of a cardboard bucket that is the signature feature of the brand because it was first reintroduced by using Pete Herman in 1957.

For the reason that in the early 90s, KFC has added approximately modifications inside the menu to provide additional products along with chicken wraps, and fillet burgers. It also involves more healthy items which include salads, and coleslaw to have a selection of meal objects for centered clients. Desserts and drinks are a number of the highlighting products which are furnished with the aid of KFC. The other fowl offering, more crispy, is created out of garlic marinade and double dipping the chook in flour before deep frying in a well-known business kitchen set gadget. It additionally serves wedges, potato chips, zinger burgers, coleslaw, depending on the worldwide place. The organization has made its region in the marketplace with steadiness and great products. Through the help of fast facility results, the success of consumer dreams, KFC included a couple of enterprise tactics to provide a similar kind of revel in. Their taste and freshness of merchandise are like no other franchise inside the marketplace and even though they’re offered at a lower rate, consumers get a balanced, healthy meal with an identical amount of deliciousness.

Swot Analysis

SWOT analysis is a combination of a company’s strengths, weaknesses, opportunities, and threats. The main goal of SWOT assessment is to help the company grow a complete recognition of all of the elements involved in creating a business selection. Possibilities check with the elements which the organization can use to its choice to grow its market percentage, sales, and logo recognition.

The Possibilities for KFC are:

  • Increasing demand for more healthy meals clients now are changing their needs and wants for convenient food to greater wholesome food. Many rapid-meals agencies had modified their menu and provided more alternatives to clients to deal with these changes. Although KFC has a vegetarian fast-meals category like coleslaw, and mashed potatoes, KFC has restrained menu gadgets compared to SubwayPizza Hut, and McDonald’s. KFC could introduce steamed fowl and vegan burgers on its menu. According to the investigation, the steamed hen has less than one-1/3 of the energy of fried chicken. A vegan burger made from greens and soya bean patty is also more healthy than a fried chicken patty. 
  • Introducing new products to its simplest hen variety KFC is thought to be a favorite of chicken meat fanatics and this segmentation is the principal achievement component of KFC. However, focusing on chook products makes KFC hard to compete with every competitor who has a large range of products on their menu. KFC can also introduce new meals to its menus which include pork and fish products. KFC ought to transform the pork and fish meat into a burger patty, nuggets, meatball, or maybe serve in maintaining a slice of red meat or fish meat.

The Solution to the problem

  • Greater product diversification is one way to do this.
  • Continuing the exercise of combining brands 
  • Expanding international strategy to the international locations of Japanese Europe and Russia.

These movements, for my part, might comfortable the sales stage from falling.

Conclusion

With the fast-changing lifestyle, wholesome eating addiction is turning into a part of a cutting-edge lifestyle that has driven customers to attempt new things and stories. Those adjustments have made KFC observe the fashion and the desires of the patron in recent times. To deal with the healthy lifestyle, KFC ought to broaden a more fit menu in line with the general public of clients’ tastes and the modern flavor fashion.

In recent times, clients are paying greater attention to their fitness at the same time they manage their studies or work. The reason people like to consume speedy meals is as they can devote less time finishing the food and additionally they need a balanced meal to meet their fitness desires. KFC may additionally offer the nutrient stability “chook Salad Plate” which consists of hen and vegetables at the same time to meet the stability food required by using the purchaser.

KFC can introduce a variety of steamed hen or grilled fowl menu to the client as it’s far low calories while compared with fried crispy hen. The burger bun of KFC can be exchanged for a wholemeal bun to be more healthy. to attract extra clients from every other group like veganism, KFC ought to introduce a vegan burger for them. Even though KFC is especially selling a bird-related product for clients, the way of uploading vegan products to their menu can display that KFC is the problem about patron health. In making ready for the vegan burger, KFC desires to make sure all of the aspects and oil used to cook dinner are suitable for vegetarians. Aside from coffee and soda liquids, KFC can promote vegetable juice and fresh fruit juice as fruit juice contains more nutritional value than soda drinks.

By the mid-1950s, fast food franchising was still in its infancy when  Harland Sanders began his cross-country travels to market  “Colonel Sanders’ Recipe Kentucky Fried Chicken.” He had developed a secret chicken recipe with eleven herbs and spices.  By 1963, the number of KFC franchises had crossed 300. Colonel  Sanders, at 74 years of age was tired of running the daily operations and sold the business in 1964 to two Louisville businessmen —  Jack Massey and John Young Brown, Jr. — for $2 million. Brown, who later became the governor of Kentucky, was named president,  and Massey was named chairman. Colonel Sanders stayed in a  public relations capacity.

In 1966, Massey and Brown made KFC public, and the company was enlisted on New York Stock Exchange. During the late 1960s, Massey and Brown turned their attention to international markets and signed a joint venture with  Mitsubishi Shoji Kaisha Ltd. in Japan. Subsidiaries were also established in  Great Britain, Hong Kong, South Africa, Australia, New Zealand, and Mexico.  In the late 1970s, Brown’s desire to seek a political career led him to seek a buyer for KFC. Soon after, KFC merged with Heublein, Inc., a producer of alcoholic beverages with little restaurant experience and conflicts quickly arose between the Heublein management and Colonel Sanders, who was quite concerned about the quality control issues in restaurant cleanliness.  In 1977, Heublein sent in a new management team to redirect KFC’s strategy.  New unit construction was discontinued until existing restaurants could be upgraded and operating problems eliminated. The overhaul emphasized cleanliness, service, profitability, and product consistency. By 1982, KFC  was again aggressively building new restaurant units.

In October 1986, KFC was sold to PepsiCo. PepsiCo had acquired Frito-Lay in 1965, Pizza Hut in 1977 with its 300 units, and Taco Bell in 1978. PepsiCo created one of the largest consumer companies in the United States.  Marketing fast food complemented PepsiCo’s consumer product orientation and followed much the same pattern as marketing soft drinks and snack foods. Pepsi soft drinks and fast food products could be marketed together in the same restaurants and through coordinated national advertising.

The Kentucky Fried Chicken acquisition gave PepsiCo the leading market share in three of the four largest and fastest-growing segments in the U.S., the quick-service industry. By the end of 1995, Pizza Hut held a 28 percent share of $18.5 billion in, U.S pizza segment. Taco Bell held 75 percent of the $5.7  billion Mexican food segment, and KFC held 49 percent of the $7.7 billion,  U.S chicken fast food segment.

Japan, Australia, and United Kingdom accounted for the greatest share of the KFC’s international expansion during the 1970s and 1980s. During the  1990s, other markets became attractive. China with a population of over 1  billion, Europe, and Latin America offered expansion opportunities. By 1996,  KFC had established 158 company-owned restaurants and franchises in  Mexico. In addition to Mexico, KFC was operating 220 restaurants in the  Caribbean, and in Central and South America.

Many cultures have strong culinary traditions and have not been easy to penetrate. KFC previously failed in German markets because Germans were not accustomed to take-out food or to ordering food over the counter. KFC  has been more successful in the Asian markets, where chicken is a staple dish. Apart from the cultural factors, international business carries risks not present in the U.S. market. Long distances between headquarters and foreign franchises often make it difficult to control the quality of individual franchises.

In some countries of the world such as, Malaysia, Indonesia, and some others, it is illegal to import poultry, a situation that has led to product shortages. Another challenge facing KFC is to adapt to foreign cultures.  The company has been most successful in foreign markets when local people operate restaurants. The purpose is to think like a local, not like an  American company.

As KFC entered 1996, it grappled with a number of important issues. During the 1980s, consumers began demanding healthier foods, and KFC’s limited menu consisting mainly of fried foods was a difficult liability. In order to soften its fried chicken chain image, the company in 1991, changed its name and logo from Kentucky Fried Chicken to KFC. In addition, it responded to consumer demands for greater variety by introducing several new products, such as Oriental Wings, Popcorn Chicken, and Honey BBQ Chicken as alternatives to its Original Recipe fried chicken. It also introduced a  dessert menu that included a variety of pies and cookies.

Soon after KFC entered India, it was greeted with protests of farmers,  customers, doctors, and environmentalists. KFC had initially planned to set up 30 restaurants by 1998 but was not able to do so because its revenues did not pick. In early 1998, KFC began to investigate the whole issue more closely. The findings revealed that KFC was perceived as a restaurant serving only chicken. Indian families wanted more variety, and the impression that  KFC served only one item failed to enhance its appeal. Moreover, KFC was also believed to be expensive. KFC’s failure was also attributed to certain drawbacks in the message it sent out to consumers about its positioning. It wanted to position itself as a family restaurant and not as a teenage hangout.  According to analysts, the ‘family restaurant’ positioning did not come out clearly in its communications. Almost all consumers saw it as a fast-food joint specializing in a chicken recipe.

KFC tried to revamp its menu in India. Cole Slaw was replaced with green fresh salads. A fierier burger called Zinger Burger was also introduced. During the Navaratri festival, KFC offered a new range of nine vegetarian products,  which included Paneer burgers. Earlier, KFC offered only individual meals,  but now the offerings include six individual meals, two meal combos for two people, and one family meal in the non-vegetarian category. For vegetarians,  there are three meal combos for individuals, and meals for couples, and for families.

KFC also changed its positioning. Now its messages seek to attract families who look not only, for food, but also for some recreation. Kids Fun Corner is a  recreational area within the restaurant to serve the purpose. Games like ball pool and Chicky Express have been introduced for kids. The company also introduced meals for kids at Rs. 60, which was served with a free gift.

Over the years, KFC had learned that opening an American fast food in many foreign markets is not easy. Cultural differences between countries result in different eating habits. For instance, people eat their main meal of the day at different times throughout the world. Different menus must also be developed for specific cultures, while still maintaining the core product —  fried chicken. You can always find original recipe chicken, coleslaw, and fries at KFC outlets, but restaurants in China feature all Chinese tea and  French restaurants offer more desserts. Overall, KFC  emphasizes consistency and whether it is Shanghai, Paris, or India, the product basically tastes the same.

Case Study about Google

1 thought on “Case Study of KFC/ Kentucky Fried Chicken”

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

Idopedia will use the information you provide on this form to be in touch with you and to provide updates and marketing.
%d bloggers like this:
Available for Amazon Prime