1. COMPETITIVE
ADVANTAGE OF
‘KFC’
CHAIN OF
RESTAURANTS

2. COST
ADVANTAGE
COMPETITIVE
ADVANTAGE
DIFFERENTIATION
ADVANTAGE

4. Market Segmentation & Targeting
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, airconditioning, 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.

5. Market Positioning
• 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.

6. Business Model

7. PESTLE Analysis
POLITICAL
ECONOMICAL
SOCIAL
TECHNOLOGICAL
LEGAL
ENVIRONMENTAL

8. PORTER’S 5 Force Model
MEDIUM
HIGH
MEDIUM
LOW
MEDIUM

9. 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

10. KSF’s:
 Location/Number of
Outlets
 Extensive Menu
 Price
 Service/Ambience
 Taste
Threshold Factors:
 Operations
 Quality Standards

12. Location
Target
market
Free home
delivery
Mobile
units
35 outlets
in the
country
Internet

13.  Their products are priced
high and target the middle
to upper class people
 KFC adopted the Costbased 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.

15. Cruel treatment of chickens
1 billion chickens killed each year
Unsafe chicken/Bird flu
Unhealthy food

16. Yum!
Environment
Yum! Animal
Welfare
Waste management
Partnership with
industry experts
Sustainable building
design
Ongoing training and
education
Packaging
Animal treatment

20. Specifications
KFC
Mc Donald’s
Core Target Group
Youth
Kids
Pricing Strategy
Cost-based Pricing
EDLP
USP
Differentiation
Pricing + Value
through variants in Provided
product range

23. 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