Market Segmentation of KFC in Bangladesh

1. 1
Table of Content
Title Page No
Chapter 01
1.1 Executive Summary 02
1.2 Introduction 03
1.3 Purpose 03
1.4 Scope of the report 03
1.5 Methodology 04
1.6 Limitations 04
Chapter 02
2.1 Products 05
2.2 Hot and crispy Chicken: 05
2.3 Fiery Grilled 06
2.4 KFC Twister 06
2.5 KFC Rice 06
2.6 Sandwiches 07
2.7 Potato Wedges 07
2.8 Popcorn Nuggets 07
2.9 French Fries 08
2.10 Coleslaw 08
2.11 Krushers 08
Chapter 03
3.1 Market Segmentation 09
3.2 Demographic Segmentation 09
3.3 Geographic segmentation 10
3.4 Psychographic Segmentation 10
3.5 Behavioral Segmentation 10
Chapter 04
4.1 Conclusion 11
4.2 Recommendation 11
Chapter 5
5.1 References 12

2. 2
Chapter- 1
1.1 Executive Summary
Idea is the key of Business.
Each business is established
to accomplish something, KFC
is not any exception. Starting
from 1930 its journey from
Colonel Harland Sander’s
small kitchen in the small front
room of a gas station in
Corbin, Kentucky, U.S.; to
2012 it have been serving complete friends and family meals at affordable prices. There
are over 15000 KFC outlets in 105 countries and territories around the world. It has
several outlets in Bangladesh also.
KFC is an established brand image in our country, but in recent days various local
competitors has been growing as threat to the KFC market share. So here is the
solution with fresh new ideas to market and promote KFC and hold on to its profit share
and to take in order to keep pace with the changing fast food market in Bangladesh.

3. 3
1.2 Introduction
KFC (Kentucky Fried Chicken) is the world largest and most well known chicken
restaurant, with chains in more than 10 thousand locations and worldwide in 80
countries. KFC and its franchised employees are more than 200 thousand in all over the
world.
John Y Brown and Jerry Messy purchased KFC for USA for $2 million in 1964 that time
KFC become a corporation. After five years, Colonel buys first 100 shares of KFC. In
1986, Pepsi Company purchased KFC. Pepsi company changed the logo from
Kentucky fried chicken to KFC in 1991 and then in 1992 KFC 1000th restaurant opened
in Japan and in 1994 9000th restaurant in china.
KFC is the part of Tricon global restaurant. Tricon global restaurant is the world largest
restaurant group, with in nearly 100 countries around the world, which in turn was spun
off in 1997, and has now been renamed to Yum! Brands. In 1997, KFC franchised with
GrayMecanza International and started work in Pakistan. Rawalpindi branch started
work in 1999 and in Islamabad in August 2002 and now in Pakistan; there are 45 outlets
nation-wide.
In Bangladesh Transcom Foods Limited, a concern of Transcom Group is the
franchisee of KFC in Bangladesh. The first ever KFC restaurant has been opened in
1997,September at Gulshan, Dhaka with a seating capacity of 178 persons. KFC
restaurant has been opened in 2009 at lalkhan Bazar circle, Chittagong with a seating
capacity of 120 persons. Till now there are 9 branches of KFC in Bangladesh. 9 of them
are in Dhaka. In the coming days, KFC plans roll out more restaurants in Bangladesh.
1.3 Purpose
The purpose of this report is to knowabout “Marketing Segmentation” of “KFC”.
1.4 Scope of the report
This report is about Segmentation of marketing plans of “KFC” .This report focus on
consumer behaviour, social class, personality, hectic lifestyle and what consumer
perception about “KFC”. Survey, asking different question from people, visiting different
blog sites to collect information about consumer behaviour, personality, and hectic
lifestyle is the way to make this report. It also expresses company growth opportunity of
the market.

4. 4
1.5 Methodology
I used different types of method, to prepare this report. From our text book, survey,
journal, articles, visiting different website to collect information.
Sources of information-
The sources of data collection are primary, target population, secondary.
Primary data source-
Usually primary data collected from the survey. I went various places and gathered
through informal interviews of the employee working over under “KFC” and gathered
more information from group discussion and personal observation as resource.
Target population-
“KFC” target consumers are upper- middle class. The target is on each and every
society. Both male and female customers are focused by “KFC”. Gender does not play
any role here.
Secondary data source –
Secondary sources had also used to collect information. We collect information from our
text book of “Marketing Management” by” Philip Kotller”, features and articles published
in newspaper and other journal, visiting website of “KFC” to access their company
background, services, marketing strategy and mix.
1.6 Limitations
This report has many limitations. When I prepared this report I faced many problems. If
no problem has seen the report would become more meaningful and well established.
The limitations of our study are given below:
 Time limitation
 Lack of information
 Unavailable resources
 Less experience effort

5. 5
Chapter- 02
2.1 Products
Product is anything is offering in the market for sale. KFC (Kentucky Fried Chicken) is
the world's largest chain of fried chicken fast food restaurants which is offering its
special product to their customer. Kentucky Fried Chicken is famous for its chicken,
which is a blend of 11 herbs and species, which gives it the flavor everyone is crazy
about it. KFC offering product are:
Source: www.google.com
2.2 Hot and crispy Chicken:
Freshly double breaded by hand to make sure every tender, juicy bite starts with a
crispy, flaky crunch.
Source: www.google.com

6. 6
2.3 Fiery Grilled
Marinated and seasoned with a blend of herbs and spices, and then grilled to
perfection, Fiery Grilled Chicken is spicy, juicy and truly irresistible.
Source: www.google.com
2.4 KFC Twister
Two freshly prepared, Extra Crispy white meat chicken strips with shredded iceberg
lettuce, fresh tomatoes, and pepper mayo sauce - all wrapped together in a soft, warm
tortilla.
Source: www.google.com
2.5 KFC Rice
KFC’s first-ever rice meal, a delectable combination of crispy chicken fillet and fluffy
white rice with Original Recipe sauce or spicy tomato sauce. To make it more
refreshing, KFC Rice Meals come with regular NESTEA® Green Tea. These all new
sensations will give everyone the energy to excel!
Source: www.google.com

7. 7
2.6 Sandwiches
There are several types of sandwiches in KFC. They are Zinger Burger, Hot Zinger
Burger, Veggie Burger and Fusion Burger. These burgers available with different size
and prices.
Source: www.google.com
2.7 Potato Wedges
These crispy potatoes are seasoned with a special blend of herbs and spices so good
they’ll drive a wedge between you and the common french fry forever.
Source: www.google.com
2.8 Popcorn Nuggets
All white meat, like every nugget should be. Our extra crispy Popcorn Nuggets are
made from 100 percent solid white meat. Grab a box to go or add them as a side.
Source: www.google.com

8. 8
2.9 French Fries
Fresh Potato boiled with pinch of salt and turmeric and made mouthwatering French
fries.
Source: www.google.com
2.10 Coleslaw
Freshly prepared in store with cabbage, carrots, just the right amount of onion and our
signature dressing. Our cole slaw can teach your family-reunion cole slaw a thing or
two.
Source: www.google.com
2.11 Krushers
'Krushers' is a cold drink made from a unique combination of chocolate, cookie bits,
coffee, dairy and ice, available in 5 mouth-watering flavors.
Source: www.google.com

9. 9
Chapter- 3
3.1 Market Segmentation
Running a successful business is not like a field of dreams; you can build it but they
might not come true. You have to let people know about the product or service you
offer, and persuade them to buy or use it. And you have to let people know about your
product or service repeatedly. Market segmentations are the techniques used to attract
the right customer.
Objectives of segmentation are:
1) To reduce risk in deciding where, when, how, and to whom a product, service, or
brand will be marketed;
2) To increase marketing efficiency by directing effort specifically toward the designated
segment in a manner consistent with that segment's characteristics.
3.2 Demographic Segmentation
Demographic segmentation consists of dividing the market into groups based on
variables such as age, gender, family size, income, occupation, education, religion, race
and nationality. As one might expect, demographic segmentation variables are amongst
the most popular bases for segmenting customer groups. Also, for practical reasons,
there is often much more data available to help with the demographic segmentation
process.
KFC give their concern in following demographic segmentation:-
Age:
One of the first variables of demographic segmentation is age. This is because
consumer needs and wants change with their age. In KFC Generally there is no age
limit focus by the KFC. The target and focus is on each and every individual in a society.
KFC finds its largest demographic in the young of any society.
Life cycle stage:
Closely connected to age, the life cycle stage of a consumer group defines what will be
the need of that particular customer. For this KFC offer kids meal with toys and veggi
burger for old age people. This demographic segment cannot be said as an “Age”
segment because these customers are in specific phase of their “Life”.
Income:
Another popular basis for segmentation is income. A person’s income level combined
with its accumulated wealth is the major determinant of the consumers’ willingness to
purchase a product. Income is the main decisive factor that influences consumers
purchasing power. Consumers with low incomes may not be able to purchase their
desired products whereas consumer with higher incomes may not be satisfed with the
existing product.

10. 10
In KFC Income is an important key factor for KFC. This factor decides which class is to
be targeted. In the early rise of KFC they focused on the upper class but slowly are
introducing economy meals that attract the lower to middle classes.
Social Class:
This plays a vital role in the demographic factor of the KFC. Generally they target upper
class, upper middle class, middle class and middle lower class. Because the items KFC
sell are very expensive.
3.3 Geographic segmentation
The market is segmented according to geographic criteria—nations, states, regions,
countries, cities, neighbourhoods, or zip codes.. With respect to region, in rainy regions
you can sell things like raincoats, umbrellas and gumboots. In hot regions you can sell
summer wear. In cold regions you can sell warm clothes.
KFC in Bangladesh only focus following geographic segmentation. These are:-
City:
Because Bangladesh is a developing country and the fast food business highly
profitable in only Dhaka and Chittagong city that’s why KFC only focus on this two city.
Key Spots are:
 Tourist spots
 Commercial Areas
 University
3.4 Psychographic Segmentation
Psychographic segmentation is dividing a market into different groups based on social
class, lifestyle, or personality characteristics is called psychographic segmentation.
KFC divides market on the basis of psychographic variables like:
Life Style (Lifestyle is not specific)
Personality (Personality is ambitious and authoritarian)
3.5 Behavioural Segmentation
In behavioural segmentation, consumers are divided into groups according to their
knowledge of, attitude towards, use of or response to a product. It is actually based on
the behavior of the consumer.
Occasions:
The first form of behavioral segmentation is selling product in different occasions. In
Bangladesh KFC can permit their customer to celebrate various occasions. They also

11. 11
offer their customer on cricket match “KFC Popcorn Chicken”, on Valentine’s Day
special couple discount offer.
Benefits:
Several products are targeted towards the benefits sought by the customer. For this
KFC only focus some social class.
Loyalty Status:
There are two ways to grow a business. First is to acquire new customers and second is
to retain your existing customers. The more loyal your customer is to you, the more your
customer base will increase. That’s one more kind of behaviour which marketers target.
In case of KFC, they have some advantage because they are well known chain
international fast food company.

12. 12
Chapter-4
4.1 Conclusion
KFC is the largest brand of Yum Restaurants, a company that owns other leading
brands like Pizza Hut, Taco Bell, A&W and Long John Silver. Transcom foods limited
have brought KFC franchise in Bangladesh for the first time In Gulshan area, Dhaka.
KFC has introduced many offerings for its growing customer base in Bangladesh while
staying rooted in the taste legacy of Colonel Harland Sander’s secret recipe. Its
signature dishes include the “crispy outside, juicy inside” Hot and Crispy Chicken,
flavourful and juicy Original Recipe chicken, the spicy, juicy & crunchy Zinger Burger,
Toasted Twister, Chicken Bucket and a host of beverages and desserts. For the
vegetarians in India, KFC also has great tasting vegetarian offerings that include
the Veggie Burger, Veggie and etc.
KFC has the culture of team. Teams are blending of old and new employees but KFC
more on old employees. The firm believes in learning of old employees then recruiting
new employees. Moreover product highly refreshes the oldness as recipe is modified
according the culture.
In recent survey it has been proved that most people in love to take home parcel rather
than dining out, but unfortunately KFC do not have any home delivery service like
McDonald or other food chain storestherefore, we would say that KFC should definitely
have a home delivery service.
KFC is one of the few food brands that have been surviving for so long with an
aristocratic brand image. Just because of its quality it has been holding a competitive
position so far. We expect to grow its reputation and business in future and hope our
marketing plan will contribute in reaping the root towards a successful food chain in its
brighter future.
4.2 Recommendation:
KFC builds on past concepts. One of the most important and oldest resources “The
secret recipe” of 11 herbs is still used in meals, with modifications according to the taste
of local market. Most of the new meals offered are based on the old product concept of
providing quality chicken. It is very appreciable work to sustain old taste within
generation to generation.

13. 13
Chapter-5
5.1 References:
Website Access Date Time
https://www.boundless.com/marketing/textbooks/boundless-
marketing-textbook/consumer-marketing-4/market-
segmentation-36/the-importance-of-market-segmentation-
187-4063/
15.07.2017 2.30 pm
http://en.wikipedia.org/wiki/Break_even_analysis 15.07.2017 2.45 pm
http://www.kfcbd.com/aboutus_kfcbang.htm 15.07.2017 3.00 pm
http://www.gmarketing.com/ 15.07.2017 3.15 pm
http://www.scribd.com/doc/17818440/KFC-marketing-
strategies
15.07.2017 3.30 pm
http://www.scribd.com/doc/9259321/KFC-New-Product-Plan 15.07.2017 3.35 pm
http://marketing.about.com/od/marketingplanandstrategy/a/
Marketing-Strategy-Vs-Marketing-Plan.htm
15.07.2017 3.47 pm
https://www.kfc.com/menu/chicken/extra-crispy 01.08.2017 11.10
am
http://archive.thedailystar.net/lifestyle/2010/10/02/page01.ht
m
01.08.2017 11.20
am
http://www.thedailystar.net/news-detail-157478 01.08.2017 11.35
am
https://kfcbd.com/menu/ 01.08.2017 11.43
am
https://www.kfc.co.in/menuchicken-Chicken_2pc.php 01.08.2017 11.50
am
http://www.ainycooks.com/kfc 01.08.2017 2.07 am