You are on page 1of 25

COMPETITIVE

ADVANTAGE OF
KFC
CHAIN OF
RESTAURANTS

COMPETITIVE
ADVANTAGE
COST
ADVANTAGE
DIFFERENTIATION
ADVANTAGE

Market Segmentation
Geographic segmentation : In India KFC focuses
how geographically its customers demand different
products.

Demographic Segmentation: In demographic
segmentation, the market is divided into groups
based on an age, gender, family size, income,
occupation, religion, race and nationality.

Psychographic segmentation: in this segmentation
,the market is divided into middle class & upper class.



As the outlets of KFC are in posh area and prices are too high (overhead
expenses-rent, air-conditioning, employees), so KFC targets upper and middle
classes. Target market depends upon size and growth rate of population, Company
resources and structural attractiveness of market segment.

Target Group

For a product to occupy a clear, distinctive and desirable place relative to
Competing products in the minds of target consumer.

In KFC feedback is taken from the customer in order to know the customer
demands and then improvements are made in products.

KFC focuses on pure and fresh food in order to create a distinct and clear
position in the minds of customers KFC has a strong brand name and they are
leading the market in fried chicken.
Market Positioning

Business Model

PESTLE Analysis
POLITICAL ECONOMICAL
SOCIAL TECHNOLOGICAL
LEGAL ENVIRONMENTAL
+ +
+
+
+
X

PORTERS 5 Force Model
LOW
MEDIUM


MEDIUM


MEDIUM


HIGH

Threat of buyers bargaining power
Highly Elasticity (high demand fried chicken)
Too many options and substitutes FMCG,
McDonald etc

Threat of suppliers bargaining power
Bargaining power of suppliers is low.
Fixed rates


Threat of intense segment rivalry

Low entry barriers
Too many big giants in the market like
McDonalds, Subway, etc

Threat of substitute products

There are a lot of competitors in the market making
substitute chicken products in the market

Threat of new entrants
Low entry barriers
KSFs:
Location/Number of
Outlets
Extensive Menu
Price
Service/Ambience
Taste

Threshold Factors:
Operations
Quality Standards
Location Target market
Free home
delivery
170 outlets in
the country
Internet
Their products are priced
high and target the middle
to upper class people

KFC adopted the Cost-
based Pricing strategy

Pricing of the product
includes the govt. tax and
excise duty

The products are bit high
priced according the
market segment and it is
also comparable to the
standard of their product

In the cost based method
we include the variable and
fixed cost.
BILLBOARDS
NEWSPAPERS
TVCs
POP UPS ON INTERNET
SOCIAL MEDIA

Cruel treatment of chickens

1 billion chickens killed each year

Unsafe chicken/Bird flu

Unhealthy food
Yum!
Environment
Waste management
Sustainable building
design
Packaging
Yum! Animal
Welfare
Partnership with
industry experts
Ongoing training and
education
Animal treatment
Specifications KFC Mc Donalds
Core Target Group Youth Kids
Pricing Strategy Cost-based Pricing EDLP
USP Differentiation
through variants in
product range
Pricing + Value
Provided
Short Term
Introduce new recipes suited to local taste
Introduce cheaper items in the menu
Introduce healthier recipes
Differentiate through good service
Work on the image of a healthy fast food chain through Advertising

Long Term
Change the image of KFC from fried to healthy
Open up new outlets in Urban locations
Engage is CSR activities related to animals &
environment
Develop a strong culture of good service