BUSINESS PLAN

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Executive Summary

This report responds to the request of our teacher, Dr. Hanif that each group should look
into some products assigned to them in class, make a final report on the products and
identify the major issues in each case, analyze each issue in the light of advertising
principles taught in class and give special attention to key issues and finally give a
conclusion of the findings along with the an advertisement on that particular product.

For the convenience of the readers the report has been divided in three parts; Company
Profile, Objectives and Marketing Strategy with special emphasis on Marketing and their
conformity with marketing mix.

In our highly competitive markets, new products are thought by many to be the key to
business growth and profitability. The problem developing successful new products is not
a shortage of ideas, but rather the expense in producing and marketing new products
without any guarantee of success. Sadly, this is a fact that is little known to individual
inventors and is a tremendous hurdle for a manufacturer. Consequently much time and
effort has been devoted to developing a systematic approach to new product
development.

Company Profile
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 home style 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 11,000 restaurants in more than 80 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 is the 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.

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 Success Story of Rotisserie Gold
As KFC begins its rollout of Colonel's Rotisserie Gold, the PepsiCo subsidiary appears to
have discovered the missing link in its turnaround strategy.

Over the past two years the chain has been trying to revamp its image. With a name
change that dropped "fried" from its longstanding namesake, the development of its Lite
'n Crispy, which was soon converted to Skin free Crispy, and the revival of its old
advertising slogan, "we do chicken right," the chain was slowly working toward
repositioning itself as a more healthful concept.

But having finally decided on the recipe for its rotisserie product, the chain is confident it
has developed the right product to execute a turnaround. Although the company had spent
considerable time and money launching the fried Skin free Crispy Product, KFC slowly
has been pulling it from stores. By the year's end only about 5 percent of the system's
stores will carry that product.

"[Rotisserie] is pivotal in rebuilding the concept," said Kyle Craig, president of domestic
operations for KFC. He said the chain would have invested about $150 million in
equipment, marketing and training costs by the time the product rolls nationally. The
rollout began last week on the East Coast will hit the Midwest next month and will be in
Western and South Central markets in September.

Rotisserie Gold is available whole, half or quarter chickens and sells for between 2.09
and $6.99. The line also includes the introduction of Chicken Taquitos, a barbecue
chicken sandwich, and a new line of sides, such as garden rice, barbecue beans, macaroni
and cheese, garden salad and potato wedges.

"This is clearly a big cornerstone. It is a key product launch in the company's history [and
in our effort] to revitalize our customer base and sales," he added.

Test results, which chalked up about 10- to 15-percent gains above projections, showed
that stores should expect to tally from $70,000 to $120,000 in new business. The
company said it expects the product line to top sales of $700 million in its first year.

Nonetheless, it will still take some time to alter consumer perceptions of the chain, KFC
said. It would be really of us to think that after a 90-day campaign we could completely
change consumer perceptions," Craig said.

The chain's frequent "limited time only" offerings drove the company to position the
rotisserie product line separately, said Craig and senior vice president of marketing Colin
Moore. In order to facilitate the menu introduction and be consistent with a more
healthful image, KFC is making a push to convert stores to new signage that had been
introduced about two years ago.

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Although national advertising of KFC rather than Kentucky Fried Chicken began some
time ago, the new name has been inconsistent with restaurant signage throughout many
markets. Since the company introduced the new logo and signage, only about 10 percent
of the chain's stores incorporate the new look.

"By the year's end 90 percent of the stores will change over," Craig said.

To position the product as a permanent menu addition, the chain will create a separate
advertising budget and campaign for ongoing national support. "We plan to support it as
its own brand; we want to establish a new image," Moore explained. Rotisserie will get
about one-third of the chain's overall marketing budget for 1994, Moore said. And the
overall budget will increase about 15 percent to accommodate the new line.

"The level and continuity of advertising will pound it into the consumer" that rotisserie is
permanent, Craig said. Separate menu boards in restaurants and completely different
packaging for Rotisserie orders also will help establish a separate brand identity, the
executives said. Craig and some of these top staffers were so excited about the product
launch that he participated in a huge public-relations campaign. The promotion delivered
about 120 dancing and singing imitation Col. Sanders to New York's Grand Central
Station recently to kick off the product launch that began last week on the East Coast.

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 Mission Statement

“Increase the Market Share of KFC & Change the Current Image of KFC Along With
This Product”

We will launch a new product in KFC with their existing line called Rotisserie Gold
which in explanation is a new type of roasted chicken. The company is launching this
product in Pakistan for the first time ever & they already have the product running in
USA. We will now also be competing with the local brands in a new sense as this time
KFC will have new competitors such as all the barbeque restaurants.

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 Situational Analysis (SWOT Analysis)

Market Strength:
KFC has a very long history and has the most recognizable brand in chicken. With over
50% of the market share it becomes very difficult for new companies who may want to
enter the market. KFC has name recognition around the world and has been globally
positioned for many years. KFC’s secret recipe of 11 herbs and spices has made it the
leader in chicken for the last fifty years. KFC sells three recipes: Original recipe, Extra
Crispy, and Tender Roast.

The many sales of KFC during the 1970’s and 1980’s lead to a very confusing direction
and took the focus of the company off of its original strategy. During the 1980’s and
1990’s KFC struggles were much do to the inability to bring new products to the market
quickly and it’s innovation of new products. KFC fell behind the market in new products
and was copying other fast food chains to stay competitive. KFC changed its strategy in
the late 1990’s, which included adding items to its menu. KFC then in an effort to
address its declining market share began building smaller restaurants in non-traditional
outlet.

1. Franchises:
KFC have their franchises all over Pakistan which is one of their main features and
strength that they reach many of the top cities in Pakistan may it be Jehlum or Karachi.

KFC

Pakistan

Jehlum Gujranwala Karachi Lahore

Faislabad Peshawar Multan Sialkot

Rawalpindi Islamabad Hyderabad Sukkur

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This map shows the coverage of KFC all around the world:

2. Marketing Strength:
KFC has gained a strong hold in the local Pakistani market very quickly since the time it
came in Pakistan it has been able to cut down a market share of around 30% which is big
in numbers and gaining millions of customers an their trust in their brand they have been
able to do all this with a great help from their advertising department and other
departments and now KFC is among one of those popular brands who have a strong hold.
Early TV commercials for KFC regularly featured Colonel Sanders licking his fingers &
talking to the viewer about his secret recipe and the importance of a family joining one
another for a meal. Despite his death in 1980, this angle was quite common through the
1980s and up until the early-mid 1990s.

Throughout the mid 1980s, KFC called on Vinton Studios to produce a series of
humorous, Claymation ads. These most often featured a cartoon-like chicken illustrating
the poor food quality of competing food chains, mentioning prolonged freezing and other
negative aspects.

By the late 1990s, the stylized likeness of Colonel Sanders as the KFC logo had been
modified. KFC ads began featuring an animated version of "the Colonel" with a lively
and enthusiastic attitude. He would often start out saying "The Colonel here!" and moved
across the screen with a cane in hand. The Colonel was often shown dancing, singing,
and knocking on the TV screen as he spoke to the viewer about the product at hand.

The animated Colonel is uncommon today. Still using a humorous slant, the current KFC
campaign revolves mostly around customers enjoying the food. It also features a
modified version of Lynyrd Skynyrd's "Sweet Home Alabama" as the theme song for
practically all its commercials, though the restaurant hails from Kentucky. In 2006, KFC
claimed to have made the first logo visible from outer-space. "It marked the official debut

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 of a massive global re-image campaign that will contemporize 14,000-plus KFC
restaurants in over 80 countries over the next few years." The logo was built from 65,000
one square foot tiles, and it took 24 days to complete. The logo measured a record-
breaking 87,000 square feet and was placed in Rachel, Nevada, "UFO capital of the
world".

In Pakistan KFC has emerged as one of the hot favorites among people when they want
to try fast food. This new trend began as KFC entered in the Pakistani market they in the
past have been doing a different type of advertising approaching people through radio
spots and others and we have thought about keeping the same strategy alive. This is what
KFC says:

3.
From: www.kfcpakistan.com

3. Food Variety and Taste:

KFC brings along a great variety and taste with a wide product line. They serve in many
segments and touch all the short meal types which any fast food chain can present. The
main advantage KFC has is that they call themselves as chicken experts and they really
are because they have a unique frying system which fries the chicken at a constant
temperature making it fully cooked from all sides, and their have not been many
complains in Pakistan with regards to its taste. A potential customer hops in KFC not only
for the taste he gets but also that what he spends gets paid off. The KFC product range is
as follows:

KFC Rice

CHICKEN Sandwiches Side Salads Deserts

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4. Key Factors of the last 26 years of KFC’s Success:

12/16/1980
Colonel Harland Sanders, who came to symbolize quality in the food industry, dies after
being stricken with leukemia. Flags on all Kentucky state buildings fly at half-staff for
four days.

1982
Kentucky Fried Chicken becomes a subsidiary of R.J. Reynolds Industries, Inc. (now
RJR Nabisco, Inc.) when Heublein, Inc. is acquired by Reynolds.

1986
PepsiCo, Inc. acquires KFC from RJR Nabisco, Inc.

1997
PepsiCo, Inc. announces the spin-off of its quick service restaurants - KFC, Taco Bell and
Pizza Hut - into Tricon Global Restaurants, Inc.

2002
Tricon Global Restaurants, Inc., the world's largest restaurant company, changes its
corporate name to YUM! Brands, Inc. In addition to KFC, the company owns A&W®
All-American Food® Restaurants, Long John Silvers®, Pizza Hut® and Taco Bell®
restaurants.

2006
More than a billion of the Colonel's "finger lickin' good" chicken dinners are served
annually in more than 80 countries and territories around the world.

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 Over All Weaknesses
Beside strength KFC lack in some things which are mentioned in this report in detail the
company needs to fulfill them as soon as possible to maximize here profit scale, increase
there product demand and gain more customer attention. KFC has been recognized as the
chicken experts and this SWOT analysis shows how KFC have lacked this quality of
theirs as one of there weaknesses along with others which are discussed below:

1. Only Chicken:
KFC is well known as chicken experts in town but this is considered to be one of their
weaknesses in this fast moving race with other restaurants. KFC has categorized
themselves as fried chicken makers and sellers. But we want to eliminate this one
problem by launching Rotisserie Gold which is a roasted chicken and being a roasted
chicken this will also try to eliminate the mind people have made about the KFC.

Another potential weakness of KFC is that they only deal with chicken goods and only
sell chicken they should try to focus on other varieties like trying something like one or
two of beef products to get to the mark to beat up some products of their one of the main
competitor McDonald.

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2. Limited Target Market:
The second weakness found in KFC is that they have been found lacking in their price
department. The price of KFC basically focuses the rich class and the upper middle class
while many of its competitors have kept the price of their similar products to KFC much
cheaper then their in KFC.

Company Names Product Price

McDonald Chicken Burger 65/. Rs

KFC Chicken Burger 120/. Rs

Mr. Burger Chicken Burger 50/. Rs

Local Fast Foods Chicken Burger 45/. Rs

A Price Comparison of KFC and other brands on Chicken Burger

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 Advertising Opportunities:
By some extreme surveys we have found out that if KFC follows these following steps it
can really help KFC to increase their industry sales and come into a new phase and
compete with their other brands it starts from increasing there customers to increasing
there offers as well.

1. Increasing Franchises:
KFC have basically focused only eleven major cities in Pakistan while if they try they
can open more in some other cities of Pakistan which may not be major cities but which
can help them gain more and more profit with potential customers in these cities. This
may be considered as one of the weaknesses that the local brands don’t have because they
have more market share in comparison with KFC. By getting into many nips and corners
of the country KFC can develop a new sensation among every customer and even by
filling what else they lack.

Focusing Some Cities Like:

Quetta Sukker
2. Introducing New Deals:
KFC has around ten different deals to offer since the time they have entered in the
Pakistani market. They have been offering these same deals continuously and not even
once have looked to change these main deals. It has been seen that they may have
changed what they offer but their main deals on the sign boards at the counter are the
same as they are from the start. One thing which can just turn out to be a great
opportunity for KFC is that they should offer some new meals or make a new set.

For Example:

One Spicy Zinger Burger One Arabian Rice

One Rice and Spice One Rotisserie Gold

One XL Cold Drink One and a Half Liter Pepsi

For Only: For Only

199/. Rs 500/. Rs 12
3. Surprise Prizes:
“There is nothing such as free lunch”

This is a quote usually used in economics but fits here and explains that even today the
customer is not able to understand this statement fully. Because this free prizes strategy is
a basic advertising tool in marketing and it has even been seen in the past that how much
attractive it has been for companies and with the use of this they have been able to
increase their sales. KFC have been trying such schemes which have been successful in
the past and if they continue to do so this is an opportunity for them. These policy if
adopted helps the company to make sudden boosts to there sales to get great amount of
revenue.

BUY 1

GET 1
FREE

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 Major Threats:
The largest threat KFC is faced with is the restaurant industry as a whole. The consumer
continues to have many choices when it comes to fast food restaurants. By the year 2000
only 27 percent of the restaurants were company owned. The cultural differences took the
focus away from the chicken business. These are the major threats to KFC when
launching Rotisserie Gold in Pakistan.

Main Threats

KFC
30%
McDonald
47%
Mr.Burger

Other Local
16% Brands
7%

Comparison between the markets

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 The Advertising Problem
The past record of KFC clearly shows that KFC has not been a very great advertiser in
the local Pakistani market. It has only been doing its advertising campaigns of new
products via radio spots and hoardings. But this time we come up to fill the entire past
loop holes which the other adverting agency were not able to do. The major problem in
the past with KFC has been that in Pakistan they haven’t used TV advertising very
adequately like in their Fish Zinger campaign they placed the radio spots as well as the
hoardings but there was no TV advertisement ad made. We have planned to change the
entire approach which KFC has been using till now. This time we have planned to use the
360 degree approach to reach the customers. We will try to reach the customers through a
different angle; they will see our advertisements flowing all over the newspapers,
hoardings, posters, buntings and television ads too.

Key Planning Decisions

Advertising Objectives
We cannot overstate the importance of delineating specific advertising objectives. This
advertising campaign and the ads are guided by clear goals & objectives. Our advertising
objectives are derived from our marketing objectives & our mission statement. The
results we have received from our SWOT analysis clearly show the KFC has only been
able to get a market share of 30% with its fast food products and is know only as being
another fast food restaurant. This campaign of ours shows that KFC not only is a fast
food restaurant but is now operating with a new product which will widen the branches of
the restaurant for selling something which will compete with the barbeque restaurants.
This will enable the company to increase their market share & sales. The contribution
which the product will bring would be a rather small one in the very start but it will
strengthen itself in the later half of its life cycle to start cutting the market share of other
brands, may it be a local one or an international brand. We plan to (1) Increase the sales
by minimum 10%, (2) Increase the overall market share by 5%, (3) Change the image of
KFC for not only being another fast food restaurant but dealing in different kind of
products, (4) Maintain the current dominance of KFC among all other Brands. We here
illustrate our impact of customers via the HIERARCHY OF EFFECTS MODEL, as we
also know that a lot of people may get awareness of our product, but far fewer will try it:
35% Loyal Customers
50% People Should Try
60% Prefrance
70% Interest in the Product
80% Awareness of the Product

100% Target Audience

Explanation of Advertising Objectives through Hierarchy of Effects Model

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Short Term Objectives
Induce Trial; our advertisement will be attractive and full of glamour and opulence. This
will attract consumers to try our product and see it for themselves what is it all about.

Break the Ice; our advertisement will aim to make people aware of the product so that
they have heard of Rotisserie Gold and are aware of our brand which will give a head
start to our salesperson when they call upon consumers, franchisers etc as they will all be
familiar with our products name. Our Ads will be instrumental in waving the products
name just enough to provide brand recognition and, thereby, get the salesperson in to see
the buyer.

Build Ambience; our ads will help to create a positive feeling about our product and our
business. It is evident from our marketing campaign that it is in conformity with our
products image and is attractive. It will create an environment, a mood conducive to our
products success.

Increase Awareness; our ad will also create awareness because without awareness there
is a detrimental affect on sales. Thus ads are crucial in promoting awareness about our
brand.

Confirm Imagery; our ads will be featured in many media forms. Moreover the
illustration, the copy and where the ad will be placed will all serve to confirm what the
customer already thinks about our product. Our choice of media will be reflective of our
product and its image.

Long- Term Objectives

Intensify Usage; our advertising will resort to the premise that there is no better prospect
than a current customer. Therefore thereafter all our ads will appeal to our existing
customers.

Sustain Preference; we aim to advertise heavily both in good and bad times to maintain
product awareness as well as preference and loyalty.

Build Line Acceptance; we plan to expand and introduce a number of other related
products Cheese Chicken, Pop Corn Chicken etc. Thus, thereafter our advertising will be
aimed with an objective to build sales for the total line as opposed to sales for a specific
item alone as is the case now.

Increase Sales; this objective is most desirable in the long-run. Our ads will attain a 5%
percent increase in our current Market Share.

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 The Fast Food Industry:
The fast food industry is one of the largest industries in the world. Fast food has been
known to be a large area of investment involving food. Restaurants such as McDonald’s
and Burger King have been known for their popularity mostly from advertisements and
are highly rated to be the trademarks for the fast food industry. Although part of the
industry’s functions is to sell their products, we [the consumers] play a large role in their
profits to keep these restaurants in business. The question is the responsibilities of both
the consumer and the industries.

Fast food industry is growing at its peak and has no stop and KFC is felt as one of the
strong competitors to all the other brands in the fast food industry and claims its share of
30 % of the market share.

Working at a fast food restaurant comes along with a stigma. People tend to believe that
those who work in fast food restaurants can't do anything better. They assume people
working at fast food's are stupid and uneducated, or they simply look down upon them
because these jobs have become known as "dead-end jobs."

The "dead-end job" assumption is unfair to fast food employees. A so-called "dead-end
job" is what people describe as low-wage labor that people tend to become trapped in.
While fast food workers may not be making great money, very few of these workers
intend to stay in their positions at these restaurants. Many students take on jobs at fast-
foods because they are convenient and can work around their schedules. Some use the
money they make toward an education, and most have goals that do not at all include the
fast-food world.

If fast food has such a huge impact on our society and economy, it is only natural that it
should also have at least some effect on our environment. Presumably, the generalization
of fast food in America, and now spreading all over the world, can lead to major negative
impacts on our environment.

The growth of the fast food industry has reached a staggering number. If there are so
many millions or even billions of hamburgers, or chicken nuggets, or French fries sold
each year, then imagine all the packaging that is thrown to waste. “One poll showed that
Americans believe fast-food packaging takes up between 20 and 30 percent of landfill
space, and expanded polystyrene foam between 25 to 40 percent. However, the Garbage
Project found that fast-food packaging accounts for no more than one-third of one percent
of the total volume of the average landfill.”

KFC gives a wide choice to its staff and giving them benefits as well and promoting them
as much as possible “It maybe a genitor it maybe a sales representative we care about
them” this is what one of the KFC managers Mr.Rehman says.

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 Target Segment
Target Segment: For this particular product KFC has selected Pakistan’s Province Sindh
and the city of Karachi.

KFC will initially be launched only in Karachi and the population of Karachi will
therefore encompass the target segment. However for now we are targeting to a very
niche market, i.e. the upper middle class and the rich class only.

According to statistics and research and based on the demographics and psychographics
described below, out of 15 million population in Karachi, the majority market of this
product includes diabetics and health conscious and class conscious people.

Consumer’s Demographic Profile

Age 15 and above

Gender Any
Occupation Students/ upper working class
Education Any
Marital Status Married / Unmarried
Expenditure Rs.10,000 and above
Income Rs.15, 000 and above
Location Karachi: Upper Middle class areas and Upper lower class
areas: Defense, Clifton, Bath Island, K.D.A, and Mohd.

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 Ali Society, Karsaz and Sindhi Muslim, Bahadurabad,
Malir Cantt, Gulshan Others.

Consumer’s Social Profile

Culture Any
Family Lifestyle Any
Opinion Leaders Family/ Friends
Social Class Upper class

Consumer’s Psychological Profile

Personality Perusable person

Perceived risk Low risk
Class Consciousness Outer directed

Target Product
Our target product is rotisserie gold (roasted chicken) which KFC has already tried in
USA and has been successful with it. Now we are launching the same product in Pakistan
with the same name and same taste as it has already created enough images among the
customers of KFC abroad and is now being launched in Pakistan for the local customers
of Karachi. This product will be a full roasted chicken with light brown coating and juicy
taste served with two pieces of loafs of bread and one and a half liter of Pepsi.

The product is based on the taste and crisp with the hidden recipe which KFC already
posses. Now it comes to Pakistan for the local Pakistani customers to enjoy.

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 Purchase Criteria
1. Standard:
When the name KFC comes the standard comes with it all by itself. Talking about
KFC the Standard Which KFC has maintained is unmatched to any other.

2. Unique Taste:
With the name KFC the unique taste comes all by itself and which cannot be tasted
anywhere else.

3. Imported Ingredients:
KFC uses imported Ingredients In this roasted chicken which includes Pepperonis,
Chilies, Hallal Chicken and many other things.

4. Food Presentation:
The way the food is presented in KFC is excellent and while if you buy the same
chicken from anywhere else there you cannot get the similar quality presentation as
KFC serves you.

5. Brand Name:
The brand name is last but not the least thing due to which customers will get
attracted.

Price Analysis

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 Competitor Names Product Price (In Rs/.)
Khan Broast Full Broast 300
Fast Food Junction Full Broast 280
Murghanno Full Roast 350
Café ‘N’ Grill Full Roast 475
Hollywood Grill Full Roast 550
Baloch Saji House Full Chicken Saji 300
Tando Adam Saji House Full Chicken Saji 300
KFC Full Rotisserie Gold 300

Competitors
The Main Competitors of KFC when launching Rotisserie Gold in Pakistan Can be as
follows:

DIRECT COMPETITORS INDIRECT COMPETITORS

Nandos
&
Barbeque Tonight

Competitive Advantage
This is the key section of our report and this analyzes our product in comparison to
competing products. Here we have used an extensive technique which is known as
Feature Analysis this here shows different features of the product in co-relation with the
same that of other products:
Product Performance

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 Feature Importance KFC Local Mc Donald
to Prospect Brands
Price 1 - + +
Quality 2 + + +
Taste 3 + + +
Availability 4 + + +
Hygiene 5 + - +
Specified Brand 6 + - +

Nutrition Facts of Rotisserie Gold

Reference: www.dietfacts.com
Marketing Plan
Market Segmentation
Basic Target Market customers are the rich class and the upper middle class and every
one of those who can afford a roasted chicken from any other fast food restaurant. The
customers will get attracted to my product because the brand name is classy and the rich

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gentry will love to Dine-In and have a whole meal instead of quick snacks this is the
main idea behind the product.

Market Positioning
KFC’s normal chicken is already positioned in the market with enough brand loyalty.
This new product is quite different with the product line that KFC already posses. The
main focus of this product is not chicken but the focus if on difference when this product
will come in the market it will change the entire image of KFC from fried to roasted is
the title given under the product and this is the main focus. From a long time KFC has
been serving fried chicken and now Roasted this is something new and this is the main
focus line under the product which will lead to an excellent new position for KFC.

For Best Fried

Chicken Go to

Older Concept

New Concept

For Best Fried and

Roasted Chicken
Go to

Marketing Mix
1. Unique Selling Proposition:
We at KFC greatly focused on customer satisfaction & taste when talking about rotisserie
gold, our product has been launched after extensive research. The inclusion of special
spices (including green and red) as one of the ingredients ensures that the customers will
get better taste from roasted chicken. Thus our tagline;

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 “At Kentucky Fried Chicken you can now skip the Fried”.

2. Price Objectives
• To attain a 35% market share.
• To recover our costs and earn normal profits.
Evaluation of Competitors’ Prices:
Retail Prices Of Competing Brands
BRAND NAME QUANTITY PRICE
Khan Broast Full Broast 300
Fast Food Junction Full Broast 280
Murghanno Full Roast 350
Café ‘N’ Grill Full Roast 475
Hollywood Grill Full Roast 550
Baloch Saji House Full Chicken Saji 300
Tando Adam Saji House Full Chicken Saji 300

Our prices have been set keeping in focus:

• The market elasticity
• Customer expectations
• Competitors
• Economic Conditions
We have our major competitors with market shares as following:

BRAND NAME MARKET SHARE

Other Local Brands 47 %
Mr. Burger 7%
McDonald 16%
TOTAL 70%

Based on this survey and information we have, we get to know that the market still has
potential to grow and there is still space for a new brand to come in the market and get a
respectable share if effective marketing and advertising is done.

So we decided to launch our product with a proper campaign and advertising plan which
will help us in achieving our goal of capturing a market share of 35%.

3. Product Positioning

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KFC positions itself along with the other leading brands of the market. It is of good
quality and economical to the pocket. It an Elite product which is being launched after
extensive research thus which makes it attractive to our target. KFC believes in customer
satisfaction.
Good Quality
Mc Donald
KFC
Mr. Burger

High Price Low Price

Local Brands

Bad Quality

4. Key Buying Factor

The main buying factor of our rotisserie gold is the quality and taste of our product. This
high quality product is roasted in a machine which is completely hands free product with
perfect taste without leaving any side uncooked.

We will provide good meal at fair price which will be the main buying factor of people.
They will compare prices of local roasted chicken, Saji or any other Barbeque Item
Similar to our product and our branded product which will be a plus point for us. But
again other branded product will be our competitors which will be back off in prices.

5. Reason to Buy

It was the weakness of KFC that it was just only dealing with fried chicken. Now KFC
has entered in a market where the demand of roasted chicken is fulfilled with a unique
style of cooking and presentation in an upper middle market.

People will find good taste and excellent quality which will attract them. The ingredients
of product like spices, herbs etc are imported from outside the country which will attract
their decision to buy our product.

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It is a branded item at a fair price. So in comparison with local restaurants people will
prefer to buy a branded product at slightly different price. It is a psychological factor
which will attract people to buy a branded product at a slight different price.

Media Strategy
We at KFC have strived to translate our media objectives onto workable guidelines that
will aid in the selection of and use of media. Dominance, reach and coverage are three of
the strategy decisions we have looked into.

1. Coverage
Our key market is Karachi and in it the Upper Middle class and Upper Lower class areas
like:
1. Clifton
2. Defence
3. P.E.C.H.S.
4. Bahadurabad
5. K.D.A
6. Malir Cantt
7. K.D.A scheme 1
8. Bath Island
9. Gulshan

So ours will be a key market plan as we do not need or have the desire for complete
coverage. Our advertising will be AIDA based. To implement the key market plan, spot
television and spot radio along with regional or Karachi based magazines like Mr., Mag
and Home Xpress will be used. Television media will be IM, The Musik and O2 on
World call cable, which is strictly restricted to the viewers in our target market.

2. Reach
We wish to reach the maximum of our target market, at least 10 times a day in the
beginning and thereafter 5 times a day and wish to secure at least 35 per cent of the
market share. Moreover we plan to use a multimedia mix as many different types of
advertising like print media; magazines and leaflets, broadcast media will include radio,
and television and cable network will be used.

3. Dominance
We plan to attain dominance by being creative and coming up with eye-catching
advertisements which will be a blend of attractive colors, picture quality and quality of
workmanship and preferred positions but we strive to all that in the most cost effective
manner.

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 Media Objectives
We at KFC believe that media goals and objectives are the heart of the media plan. Our
goal, as mentioned above, is to reach the maximum of our target market and secure 35 %
of the market share in the first year of operations. This we believe is possible if we reach
the maximum of target market at least 25 times during the period of the campaign. Our
media objectives obviously reflect our corporate and business unit objective and are in
conformity with our marketing objectives, our marketing strategy and our advertising
objectives.

Media Tactics
The ways and means through which our media strategy will be implemented is spelled
our in the media tactics outlined below. These are the action plans, which will help us to
build up an image of KFC and make an advent in the media arena. Media selection and
scheduling are of prime importance to the success of KFC.

Before the launch of Rotisserie Gold the first question we answered is concerning the
choice of media based on the nature of our product and our target market. The next task
was media scheduling and placement and finally media buying completes our process of
implementation of media tactics.

Media Selection
Our choice of media includes mobile media; billboards, print media; magazines and
leaflets and broadcast media; radio and television.

1. Mobile Media: Billboard, hoardings and Electronic Boards. The tactics used will be
teasers.

2. Print Media: Mr. Magazine, Mag, Visage, Home Xpress, SHE and leaflets.

3. Broadcast Media: Radio; FM 89 and 101 and Television; IM and The Musik

4. Internet: On MSN, Hotmail and Yahoo websites.

Media Scheduling
The next task in media tactics after media selection is media scheduling. Out of the
various tactics used in media placement we will opt for a Steady Schedule in the
beginning in order to gain dominance and thereafter we will resort to Alternating Even
Schedule.

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Media Buying
The purchase of advertising and the appropriate checking to insure that the
advertisements are run as contracted is most important to KFC for the success of
Rotisserie Gold.

Advertising Plan
Promotion for our campaign will require both above and below the line activities. The
purpose of these activities will not only be to make the consumers aware of Rotisserie
Gold but will also be to influence them to sample it.

Promotional Activities
The primary focus of our promotional activities would be:

• To increase awareness of the product in the selected target market

• To induce trial and repurchases
• To maintain brand loyalty in the after trial period
• Increase sales

1. Events:
Since our target market comprises primarily of middle class and the upper class, we feel
it would be a good idea to have events that would cater to this segments. We plan to
sponsor events that would attract our target market. These events could include jam
sessions, parties, concerts etc. This variety of events can be organized in the first two
months of the product’s launch. This would allow the target market to become acquainted
with the brand and associate it with a light, carefree side of life. This would also give us a
chance to supply the people with testers of the chicken. This would induce trial amongst
the target market.

2. Personal selling
We plan to approach different people at different places and give them a taste of rotisserie
gold places such as FORUM, PAK TOWERS etc. We also plan to distribute free discount
tickets which people will carry to KFC outlet and receive discount on buying Rotisserie
Gold.

3. Online Advertising:

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We also plan to display our brand over the Internet. Portals through which, our ads may
be seen would include the yahoo and msn messenger services in addition to websites that
have a high local hit rate such as Yahoo etc. This advertising medium would ensure that a
large part of our target market would be exposed to our brand.

4. Electronic Boards:
Another advertising medium that will be using would be electronic boards. We will be
advertising on boards placed at all leading supermarkets and shops such as Aghas, Amis,
Ebco, and Paradise etc. As these boards are internally lit and have a digital image of the
visual rather than the usual Pan flexes one, they are more appealing.

In addition to the boards placed at supermarkets, we will also advertise on those boards
that are placed at Petrol station in the vicinity of our target market. Since people will be at
these stations for a time period ranging from five to thirty minutes, depending on the type
of fuel they are getting, they will be bound to see the ad.

5. Hoardings:
We plan on acquiring billboards at prime locations that include:
• KPT Underpass
• Karsaz
• Do Talwar
• Mohammad Ali Society
• Millennium Mall
• Shahra-e-Faisal

We will have outdoor campaign in the form of teasers. We will be using a series of three
visuals for this purpose. The first visual will include the background, the second would
incorporate the tagline into the first visual and the final one will complete with visual
with a picture of the product itself.

6. Print Media:
Since our target market does not include the entire metropolis, we will not be advertising
in the local newspapers. However we will have high quality leaflets printed and inserted
in all those newspapers that will be distributed in those localities that comprise our target
market.

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We will however be placing an emphasis on advertising in magazines. The Publications
that we will be advertising in include:

• Mr.
• Herald
• Visage
• Home Express
• SHE

7. Radio:
We will also be airing a thirty second radio commercial on the City fm 89 and
Radioactive 101 channels at frequent intervals. Since radio is making a comeback as a
popular medium, we believe that advertising through this medium would aid us in
reaching our target market.

Since radio has the disadvantage of having a large amount of clutter, we will make our
advertisement stands out by using sex appeal. For this we will have a voice over in a
sultry female voice. This would increase the recall of our commercial; thereby ensuring
that is not lost in the clutter of radio advertising.

8. Television:
We will be airing a commercial on the following television channels at various intervals.
• Indus Music
• The Musik
• GEO
• ARY Digital

Television has a very high viewer ship and has a very high retention rate because of the
visual stimuli. Hence we will be airing our commercial several times during the day in-
order to ensure the target markets maximum exposure to our brand.

Packaging of the Product

1. Standard Kept Unit

The packaging will include:

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 • Brand Name
• Product Name
• Specialty
• Recycle Tag
• Ingredients
• Quantity
• Nutrition Table
• Hallal Tag

2. Point of Sale
We have created attractive logos, posters and hoardings in order to grab the attention of
customers to change their buying decision from competitors and to increase our sales
who don’t like fried chicken. We are using 360 approaches to give our customers
complete range of products to satisfy their desire of all types of chicken. We will paste
posters at the entrance of the door at KFC that will give awareness to the customers that a
new product has been launched. We will hang buntings at the entire branches which will
give a good look as well as awareness to the customers. We will place hoardings on all
major streets and roads of Karachi in order to increase our sales.

3. Posters

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Following are the posters which we have designed to be placed in different outlets of
KFC:

4. Logo & Bunting

The logo which we are using is the same that will be further printed to be hanged around
as a bunting:

5. Hoardings

We have planned to set a 90 x 60 ft hoarding which is as follows:

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 Advertising Budget
1. Radio:
Channel Cost No. of Spots Total/ day

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 City fm 89 20,000 5 100,000
Radioactive 101 15,000 5 75,000

Total 175,000

Total Expected cost for launch month Rs 250,000/-

2. Television:
Channels Cost No. of Spots Total/ day

GEO 1,120,500 2 2,241,000

ARY One World 120,000 1 120,000

Total 2,361,000

Total expected cost for launch month Rs 20,000,000/-

3. Print:
Magazine Cost Total

MR. 20,000 20,000

Herald 73,500 73,500
Visage 20,000 20,000
Home Xpress 5,000 5,000
SHE 40,000 40,000
Dawn 1,132,680 1,132,680
Jung 100,000 100,000

Total 1,411,180

Total expected cost for launch month Rs 3,000,000/-

4. Events:

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Event Cost Quantity Total

Jam session 1,000,000 1 1,00,000

Party 1,500,000 1 1,50,000

Total 2500000

Total expected cost for launch event Rs 2,500,000

Sales Plan
Distribution
There are an estimated 20 Franchises in Karachi. We aim to target all of these Franchises
as they cater to our target market. We believe that the ideal distribution method for our
product would be to use all franchises who can directly deliver the product to the
customers.

Product Life Cycle

Rotisserie Gold
Growth Maturity Decline
Introduction

Rotisserie Gold is in the introduction phase of its life cycle. Our primary objective is to
ensure a smooth transition through the growth stage.

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Product Costing
KFC has decided to launch it the maximum price for Rs.300/-
The Total Manufacturing cost of this product is Rs.170/-

Performance Standard (Sales Forecast)

PARTICULARS Rotisserie Gold

raw material cost 120
Over head cost 5
labor cost 5
promotional cost 20
distribution cost 20
Total manufacturing cost 170
Cost before Sales Tax 170
Sales Tax (18%) 30.00
cost after sales tax 200.00
Profit 100
Price 300

Rotisserie Gold will be capturing 35% of the total market of the roasted chicken market.
Below are the Sales forecast and the profit earned from the deodorant.

Rotisserie Gold Rs/. 300

Total No. of boxes sold by a shop in a month of
roasted chicken 2500

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 Total sale per year 30000
market share of KFC 30%
Total Number of Retailers 20
Total Boxes sold per year 600000

Total Sales in Rs 180000000

Profits
Total Profits :Rotisserie GOLD 60000000

Total Investment 77250000

References
1. www.Kfcpakistan.com

2. www.kfc.com

3. My Teacher

4. My Fellow Students

5. Survey Questioners

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