Marketing assignment about KFC and their business

Table of Contents
Section One
Introduction
Industry overview
Section Two
Macro environment – PESTLE Analysis
Section Three
Micro Environment – Stakeholder Analysis
Competition
Customers
Local publics – groups who may have an interest in the company
Suppliers
Section four
Recommendations

Introduction
KFC (Kentucky Fried Chicken) Founded by Colonel Harland Sanders, an
entrepreneur who was a fried chicken seller at roadside of
Corbin,Kentucky in 1952. His tasty chicken soon spread. He sooned
open a restaurant where he perfect his ‘’secret recipe of 11 herbs and
spices’’. In 1953 Kentucky Governor RubbyLaffon made Harland an
honorary “Kentucky Colonel” and Colonel Sanders Kentucky Fried
Chicken was complete. The Colonel Drive himself from restaurant to
restaurant cooking chicken and by selling franchises KFC become one of
the largest food fast food chain in the world. The first overseas
franchise was established in the United Kingdom 1964More than
18,000 (2012) outlet.120 countries and territories around the world.8
miIlion customers each day. This is a fast food restaurant chain
headquartered in Louisville, Kentucky United States., which specializes
in fried chicken. An "American icon", it is the world's second largest
fried chicken chain and the first largest restaurant chain isMcDonald's
,First "Kentucky Fried Chicken" franchise opened in Utah in the early
1950s. The chain primarily sells fried chicken pieces and variations such
as chicken burgers, chicken sandwiches and wraps as well as side dishes
such as French fries and coleslaw, desserts and soft drinks.Its most
famous product is original fried chicken pieces.

Industry Overview
KFC Corporation, based in Louisville, Kentucky, is the world's most
popular chicken restaurant chain, specializing in Original Recipe®, Extra
Crispy™, Twister® and Colonel's Crispy Strips® chicken with homestyle
sides. Every day, nearly eight million customers are served around the
world. KFC's menu includes Original Recipe® chicken made with the
same great taste Colonel Harland Sanders created more than a half-
century ago. Customers around the globe also enjoy more than 300
other products. From a Chunky Chicken Pot Pie in the United States to a
salmon sandwich in Japan. KFC has more than 18,000 restaurants in
more than 120 countries and territories around the world. And in quite
a few U.S. cities, KFC is teaming up with sister restaurants, A&W, All-
American Food™, Long John Silver's, Taco Bell and Pizza Hut, selling
products from the popular chains in one convenient location. KFC is
part of Yum! Brands, Inc., which operates world's largest restaurant
system with over 32,500 KFC, A&W All-American Food™,Taco Bell, Long
John Silver's and Pizza Hut restaurants in more than 100 countries and
territories.

Pestle Analysis of KFC
Politics
KFC is a running fast food business. KFC faced very little political
problem. In India and Pakistan government have banned beef mixed
food items because of their minorities religious culture. KFC follows
every health and safety guideline. So there’s no problem for them to
run business where political situatios are unstable.
Economic
Every successful business associated with the countries economy.
These condition includes Capital flow, Costs, Standard of living , stock
rates etc. The buying ability of customer from KFC is important. Many
countries have slow economy growth. Which affects in sales reduction
of KFC.In many country KFC affected in these problems.

Social
For being a global company KFC can’t go against social ritual and other
things of a country. It may undergo the side effect of fast food,
increased vegeterians and other health issues.
KFC has been the target of ancampaign by the animal rights
organization PETA. In spite of KFC executives have protested that the
Yum! chain is unfairly singled out for criticism. KFC has also been
accused by Greenpeace with contributing to the destruction of the
world's rainforests with unsustainably sourced cardboard and paper
packaging.Which can’t be able to support the future.
Technology
In this 21st
century technology become a very important part of every
business. KFC customers are more rational about their food choice,
price, taste. By the bless of internet everyone is able to do marketing of
their business. But using the facility companies getting so many rumors.
In case of fast food KFC recently suffered from a rumor of animal
cruelity. Protesting the false news KFC ensured their quality
maintenance and other issues to the authority.
By using advance technology they are minimizing cost of productions,
speeding up production and maintaining their customer mania.

Environment
Environment is the one of the important analysis that must be had by
the company. Without environment they can’t run their transaction
because the environments are their customer and they get profit from
the product that has been bought. Many people like KFC because they
are not like the industrial company. KFC does not disturb the public
activity by make a noisy. They just invite the environment to come to
the restaurant to enjoy their food.
Legal
KFC is a legal company of Yum! They gather with Pizza Hut and
McDonald’s that they are the food company. This legal analysis guides
them to go overseas because the companies which want to going
international business are the legal company. They also can hold their
recipe because it has been legality so no one can steal it. In other
hands, the employee also protect from the stealing cooking recipes.
Kentucky Fried Chicken Company can growth bigger and bigger. They
are legal so every activity is done in legal system.

StakeholderAnalysis
A organization can affect or be affected by Its stakeholdersor
Stakeholders can affect or be afftected by the Organization.
Stakeholderscan be characterized in many way.
 Primary stakeholders are the group of peoples that
stand to be directly affected, either positively or
negatively, by an effort or the actionsof an agency,
institution,or organization. In some cases, primary
stakeholderson both sides of the equation:a
regulation that benefits one group may have a
negative effect on another. Aincrease of price in KFC,
for example, benefits KFC, but may hurt the regular
customers who are mostly eat in KFC.
 Secondary stakeholders are people or groups that are
not directly affected, either positively or negatively,
by an effort or the actionsof an agency, institution,or
organization. A program to reduce salt in chips at
KFC, for instance, could have a positive effect on
people who have bloodpressure. It might need
timeto get used to the salt preferable
customers. Both of these groups would be secondary
stakeholders.

 Key stakeholders, who might belong to either or
neither of the first two groups, are those who can
have a positive or negative effect on an effort, or who
are important within or to an organization,agency, or
institutionengaged in an effort. The owner of an KFC
franchise might be an obviouskey stakeholder, but so
might the managers – those who work directly with
participants– who carry out the work of the effort. If
they don’t believe in what they’re doing or don’t do it
well, it might as well not have begun. Other
examples of key stakeholdersmight be some one
who’s been choosen by vote or from a group
interview.

Who are the main
stakeholders:
Main stakeholders are the owners or partners, who are directly related
to the business.Those who are gaining profit and taking risk of loss.
There is no real limit of partners. May be liability be limited to as few as
1 partner inthe group. So the main KFC brand owner Yum! , its other
titles and the franchise owners are main stakeholder here.

Other Stakeholders
Publics are other stakeholders. Includes Financial publics, media
publics, government publics, Citizen actions publics, Local publics,
General publics and Internal publics.
Financial publics
Persons or public who invests in some project to gain or lose money
until the completion of the project. Currently KFC don’t have any
investment project.
Media publics
Media publics can be good or can be bad. Good publicity by them can
help bad publicity can hurt. KFC has been affected by these kind of
publicity so many times. PETA issue, unprocessed meat, unhealthy
foods and so many.
Government publics
Government regulations can be a good outcomes. Guidelines influence
may test the outcome. In some countries KFC doesn’t have any pork or
beef contained food. They can use halal meat only in those country.
Because of some religional ritual. Government of those countries made
these regulations that’s why KFC is out of questions and conflicts.

Citizen actions publics
Some decisions from KFC may by questioned by the citizens, consumer
organizations, environmental groups, minority groups and others. The
public relation department should go and communicate with those
groups.
Competetors

In the over past seven years from 1987-1994, Kentucky Fried Chicken
worldwide has grown in the around on average rate 8.2 percent.
The world has gone to the more healthy living and this is the chance off
KFC to meet the changing demands society with make a changes on
14951
7250
5000
4200
3500
2518
1994
McDonald's
Burger King
Pizza Hut
Taco Bell
KFC
Subway
Top 6 Leading U.S. Fast-Food Chains
U.S. Sales ($M)
15800
7830
5400
4853
3720
3520
1995
McDonald's
Burger King
Pizza Hut
Taco Bell
KFC
Subway

their menu just like Honey BBQ Chicken, Popcorn Chicken, Rotisserie
Chicken and they had begun promoting the lunch and dinner buffets.
The buffets are very important in Kentucky Fried Chicken because it can
persuade customer to dine-in instead of take out.

Customers
All ages peoples KFC’s Target Customer. Everybody loves chicken.
KFC has so many loyal customers. Most of the customers are familiar
with staffs. Same customer come again and again even sometimes
same customer come to eat in KFC 4-5 time on the same day.
KFC has so many variety menu of foods. Deals are very attractive which
attract customers. KFC has a website named ‘’talk to KFC’’. It’s a
customer satisfactory survey site. Which helps a lot to know customers.
Families are most seen in KFC. Because of KFC’s variety of bucket
chicken menu’s.
Local People’s
Local people’s always have interest in everything around their
neighbourhood. Sometimes they taste foods around the area. They
write review or give feedback in some social media sites. These days
some group of people use these social media sites in a very bad way.
They are related with some other rival company or they have been paid
to do by those company. They spread bad names. Some few years ago a
number of facebook user spread a rumor that KFC sells waste part of
chicken. Which is totally not logical. And they couldn’t prove anything
by pen and paper.

Suppliers
KFC always choose local suppliers for their chicken and other raw food
supplies. In Ireland they use Irish chicken and pork in their food. In
middle east and other muslim religion based country they use only
Halal chicken. In India they don’t sell beef because of hindu religion
rituals.
Recommendation for
KFC
- Staff’s need to be more trained.
- They should make a marketing strategy to gain control of the food
chain industry.
- Customer service should be natural.
- Sometime staffs fake smile annoy customers.
- KFC standard has to be equal everywhere in the world.

Conclusion
KFC is a profitable and successful venture in everywhere. KFC must aim
at providing not just the product but an entire experience which will be
share via social media encouraging one of the guests’ friends to walk
down the same path in turn the KFC obtaining more consumers due to
better basics such a quality, cleanlinessand online security, hyper
convenience such as ease-of-shop, home delivery, online payments and
experience such as edutainment and digital engagement should be
start in future.

References
KFC - Wikipedia, the free encyclopedia. 2013. KFC - Wikipedia, the free encyclopedia.
[ONLINE] Available at: http://en.wikipedia.org/wiki/KFC. [Accessed 23 November 2013].
List of countries with KFC franchises - Wikipedia, the free encyclopedia.
2013.List of countries with KFC franchises - Wikipedia, the free encyclopedia.
[ONLINE] Available
at:http://en.wikipedia.org/wiki/List_of_countries_with_KFC_franchises. [Accessed
23 November 2013].
Top 10 Ways KFC in Japan is different from KFC in the US | Eating & Restaurants in Japan.
2013. Top 10 Ways KFC in Japan is different from KFC in the US | Eating & Restaurants in
Japan. [ONLINE] Available at:http://www.facingtherisingsun.com/japan-travel-tips-eating/japan-kfc-
different. [Accessed 23 November 2013].
Main Section | Community Tool Box. 2013. Main Section | Community Tool Box. [ONLINE]
Available at: http://ctb.ku.edu/en/table-of-contents/participation/encouraging-involvement/identify-
stakeholders/main. [Accessed 26 November 2013].
KFC COMPANY PESTEL ANALYSIS GOING INTERNATIONAL. 2013. KFC COMPANY
PESTEL ANALYSIS GOING INTERNATIONAL. [ONLINE] Available
at: http://www.ukessays.com/essays/management/kfc-company-pestel-analysis-going-international-
management-essay.php. [Accessed 28 November 2013].

Marketing assignment about KFC and their business

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Marketing assignment about KFC and their business