![[object Object],Introduction to the Project<br />The study is based on the store atmospherics and space strategy which different retail stores follow to attract their customer and make them buy or generate interest to buy from their retail outlets.<br />Atmospherics and retail space management are critical to any form of retail business. Their relevance emerges from the link between the shopping behavior and physical environmental factors. Physical environmental factors, for instance, influence the perception of shopping hours spent and the evolution of merchandise. It, therefore becomes important for the retailer to effectively plan and organize all the aspects related to atmospherics and retail space to be able to optimize scare resources and improve profitability. Atmospherics refers to the physical characteristics associated with the store.<br />Atmospherics refers to as a store’s physical characteristics that are used to develop the retail unit image and draw customers. It describes the physical elements in a store’s design that appeals to the customers and encourage them to buy.<br />These characteristics include both interior and exterior elements, as well as layout planning and display. Display is popularly referred to as visual merchandising. Atmospherics plays a significant role in attracting customers to the store, improving to the quality of service experience, creating a brand positioning for the outlet, and improving customers retention rates. Another equally significant but related concept is retail space management attempts to ensure optimum utilization of retail space along with convenience to customers and employees.<br />In this study two different type of retail outlets are taken. One is KFC and another one is BMW showroom. Both these retail outlets are situated at Connaught Place, New Delhi.<br />Both these retail outlets follow different atmospherics and store layout strategy to attract their customer. This study mainly talks about what are the different atmospherics and store layout strategy follow by KFC and BMW, comparison between them, and some recommendation to the retail outlets.<br />INTRODUCTION TO KFC<br />Introduction to KFC<br />KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky, in the United States. KFC has been a brand and operating segment, termed a concept of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc.<br />KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of grilled and roasted chicken products, side dishes and desserts. Outside the USA, KFC offers beef based products such as hamburgers or kebabs, poutine, pork based products such as ribs and other regional fare.<br />The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, though the idea of KFC's fried chicken actually goes back to 1930. Although Sanders died in 1980, he remains an important part of the company's branding and advertisements, and quot;
Colonel Sandersquot;
or quot;
The Colonelquot;
is a metonym for the company itself. The company adopted KFC, an abbreviated form of its name, in 1991. Newer and remodeled restaurants will adopt the new logo and name, while older stores will continue to use the 1980s signage. Additionally, Yum! continues to use the abbreviated name freely in its advertising.<br />History of KFC:<br />Born and raised in Henryville, Indiana, Sanders passed through several professions in his lifetime. Sanders first served his fried chicken in 1930 in the midst of the Great Depression at a gas station he owned in North Corbin, Kentucky. The dining area was named Sanders Court & Café and was so successful that in 1935 Kentucky Governor Ruby Laffoon granted Sanders the title of honorary Kentucky Colonel in recognition of his contribution to the state's cuisine. The following year Sanders expanded his restaurant to 142 seats, and added a motel he bought across the street. When Sanders prepared his chicken in his original restaurant in North Corbin, he prepared the chicken in an iron skillet, which took about 30 minutes to do, too long for a restaurant operation. In 1939, Sanders altered the cooking process for his fried chicken to use a pressure fryer, resulting in a greatly reduced cooking time comparable to that of deep frying. In 1940 Sanders devised what came to be known as his Original Recipe.<br />The Sanders Court & Café generally served travelers, often those headed to Florida, so when the route planned in the 1950s for what would become Interstate 75 bypassed Corbin, he sold his properties and traveled the U.S. to sell his chicken to restaurant owners. The first to take him up on the offer was Pete Harman in South Salt Lake, Utah; together, they opened the first quot;
Kentucky Fried Chickenquot;
outlet in 1952. By the early 1960s, Kentucky Fried Chicken was sold in over 600 franchised outlets in both the United States and Canada. One of the longest-lived franchisees of the older Col. Sanders' chicken concept, as opposed to the KFC chain, was the Kenny Kings chain. The company owned many Northern Ohio diner-style restaurants, the last of which closed in 2004.<br />With these new groups of investors undertaking the corporation, KFC expamded and matured quickly.<br />The corporation was listed on the New York Stock Exchange on January, 16, 1969. Only after three years it had gone public on March 17, 1966.<br />Sanders sold the entire KFC franchising operation in 1964 for $2 million USD, equal to $14,161,464 today. Since that time, the chain has been sold three more times: to Heublein in 1971, to R.J. Reynolds in 1982 and most recently to PepsiCo in 1986, which made it part of its Tricon Global Restaurants division, which in turn was spun off in 1997, and has now been renamed to Yum! Brands.<br />In 2001, KFC started test in Austin, Texas restaurants of quot;
Wing Worksquot;
chicken wing line sold with one of a few flavored sauces. Also, KFC hired a consultant to develop a breakfast menu.<br />Additionally, Colonel Sanders' nephew, Lee Cummings, took his own Kentucky Fried Chicken franchises (and a chicken recipe of his own) and converted them to his own quot;
spin-offquot;
restaurant chain, Lee's Famous Recipe Chicken.<br />Recipe:<br />The recipe of 11 herbs and spices used by KFC in preparation of their chicken remains a trade secret. Portions of the secret spice mix are made at different locations in the United States, and the only complete, handwritten copy of the recipe is kept in a vault in corporate headquarter.<br />On September 9, 2008, the one complete copy was temporarily moved to an undisclosed location under extremely tight security while KFC revamped the security at its headquarters. Before the move, KFC disclosed that the recipe, which includes exact amounts of each component, is written in pencil on a single sheet of notebook paper and signed by Sanders. It was locked in a filing cabinet with two separate combination locks. The cabinet also included vials of each of the 11 herbs and spices used. Only two unnamed executives had access to the recipe at any one time. One of the two executives said that no one had come close to guessing the contents of the secret recipe, and added that the actual recipe would include some surprises. On February 9, 2009, the secret recipe returned to KFC's Louisville headquarters in a more secure, computerized vault guarded by motion detectors and security cameras. Reportedly, the paper has yellowed and the handwriting is now faint.<br />In 1983, writer William Poundstone examined the recipe in his book Big Secrates. He reviewed Sanders' patent application, and advertised in college newspapers for present or former employees willing to share their knowledge. From the former he deduced that Sanders had diverged from other common fried-chicken recipes by varying the amount of oil used with the amount of chicken being cooked, and starting the cooking at a higher temperature (about 400 °F (200 °C)) for the first minute or so and then lowering it to 250 °F (120 °C) for the remainder of the cooking time. Several of Poundstone's contacts also provided samples of the seasoning mix, and a food lab found that it consisted solely of sugar, flour, salt, black paper and Monosodium Glutamate (MSG). He concluded that it was entirely possible that, in the years since Sanders sold the chain, later owners had begun skimping on the recipe to save costs. Following his buyout in 1964, Colonel Sanders himself expressed anger at such changes, saying:<br />That friggin' ... outfit .... They prostituted every goddamn thing I had. I had the greatest gravy in the world and those sons of bitches-- they dragged it out and extended it and watered it down that I'm so goddamn mad!<br />Ron Douglas, author of the book America's Most Wanted Recipes, also claims to have figured out KFC's secret recipe.<br />International Operations:<br />According to the corporate website, KFC is present in 109 countries and territories around the world. It has in excess of 5,200 outlets in the United States and more than 15,000 units in other parts of the world.<br />Countries with KFC restaurants<br />KFC India:<br />KFC is the world’s No.1 Chicken QSR and has industry leading stature across many countries like UK, Australia, South Africa, China,USA, Malaysia and many more. 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. Renowned worldwide for it’s finger licking good food, KFC offers its signature products in India too in the year 2001. KFC has introduced many offerings for its growing customer base in India 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, flavorful 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 Snacker and Veg Rice meals. In India, KFC is growing rapidly and today has presence in 11 cities with close to 50 restaurants.<br />Menu offered in India:<br />,[object Object]](https://image.slidesharecdn.com/introductiontotheproject-110923154752-phpapp02/85/Introduction-to-the-project-1-320.jpg)
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Introduction to the project
- 2. Veg Snacket
- 4. Snack Box
- 5. Snacks-
- 7. Hot Wings
- 10. Veg Snacket
- 11. Veg Zinger
- 12. Veg Strips with Salsa
- 13. Toasted Wraps-
- 14. Toasted Twister
- 15. Burgers-
- 16. Veg Zinger
- 17. Chicken Zinger
- 18. Tower Zinger
- 19. Box Meals-
- 20. King Kong Box
- 22. Hot & Crispy
- 23. Original Recipe
- 24. Bucket-
- 25. Chicken Bucket
- 26. Signature Sides-
- 27. Corn on the Cob
- 28. Cole Slaw
- 29. Fries
- 30. Krushers-
- 31. Frappe
- 32. Iced Mochaccino
- 33. Iced Kappuchino
- 34. Desserts-
- 35. Soft Twirl
- 36. Choc Amor
- 38. Store Front: At the front of the store, there was a big hoarding of KFC to increase the visibility. Also there was two display windows in both the side of the entry and the exit door to attract the customer.
- 39. Entrances: At the entrance there was a gatekeeper to welcome and to greet the customer.
- 40. Display Windows: in that stores the display window is full of attractive adds of KFC’s product. Also the window is transparent, so that outside people can see inside easily. It was done to create attractiveness among the outside people.
- 41. Size of the Building:
- 42. Visibility: The store is situated at the junction of 4 lanes and it also have a big hoarding, so that, it can be easily visible to the customers.
- 43. Adjoining Stores: The store do not have any other restaurant adjoin to it. So that, they can avoid competition.
- 45. Flooring: The floor of the store is well furnished and also well cleaned.
- 46. Lightning: The lightning of the store is not bright but u can easily see everything. But at the food counter they used bright lightning so that, the advertisement of their product can be well visible to the customer.
- 47. Personal: They have many personal to help their customers. Separate division also there for every personal. They have food counter controlling personal, drink counter controlling personal, personal to clean the table and personal at the back store to help in order processing. But everybody wearing red t-shirt with KFC logo printed on it.
- 48. Cleanliness: The store is well cleaned. Cleaning personal, cleans the tables when the customer left the tables. They also frequently cleans the washroom and the clean the floor 2 times in a day. They also cleans the glass window one time in a day.
- 49. Wall: The wall is colored in red to reflect the patent color of the company. The wall also consist of various adds of their products to attract the customer.
- 50. Wash Rooms: the wall is well cleaned and there was board telling the customer that ”Please use liquid soap to avoid the spread of Swine Flu”.
- 51. Aisles: The aisles are also cleaned like the tables.
- 52. Temperatures: The temperature of the sore is comfortable, to give a relax situation to the customer.
- 53. Sitting areas: They have different sitting areas, like, two chair table for the couples, large tables for the families and for the large group of friends, crouches are also there.
- 54. Music’s: They play the music continuously to make the customer relax and comfortable.
- 56. Assortment: They have long and deep assortments of their products and cold drinks of PEPSI only.
- 57. Self Service: Customer have to bring their foods to the table and they have to choose their foods and drinks themselves, which is attractive to the customers.
- 58. Payment Counters for Foods: They have separate counters for food, where first the customer have to pay after that they will get their foods.
- 59. Payment Counters for Drinks: They have separate customers for drink also like the food counter.
- 61. Payment counters for DrinksStore Layout:
- 64. Store Front: At the front of the store there was a big logo of BMW and also there were various cars of BMW standing outside of the store. They do that to attract their customers.
- 65. Entrances: The entrance door is of transferable glass so that the cars inside the store, is easily visible.
- 66. Display Windows: They don’t have any display windows but the cars inside the store do the job of displaying.
- 67. Size of the Building:
- 68. Visibility: The store is situated at the junction of four lanes and they have big hoarding, which consist of the logo of BMW, to increase the visibility.
- 69. Adjoining Stores: Though they have an adjoin store of SKODA but they don’t target the same category of the customer as BMW targeting. They mainly target the high class segment in automobile sector.
- 71. Flooring: The floor of the store is well cleaned and it consist of white marbles to attract the desire customer.
- 72. Lightning: They use bright lightning strategy to make their cars glow, to catch the customer eye.
- 73. Personal: The personal in the stores is well dressed. They have to wear suits and tie and they must be good looking to attract the customer. They also have back store personal in the store.
- 74. Cleanliness: The store is well cleaned and after some time one of the back store personal clean the cars to make it glow.
- 75. Wall: The wall of the store is of white color to reflect the light on the cars and make them glow.
- 76. Wash Rooms: They have their washrooms at the back store, which is also well cleaned.
- 77. Temperatures: The temperature of the store is maintained comfortable to the customers.
- 78. Sitting areas: The sitting area is consist of crouches and carpet is lying in the floor, which they brought from Italy, to give a high class look.
- 80. Assortment: They have a long but not deep assortment of their products and they first took the order from the customer and after some time they deliver that product to the customer.
- 81. Theme: They design their store on theme basis to attract their customer.
- 82. Payment Counter: The payment counter have four chairs and a pretty girl sitting over there to attract the customer.
- 83. Interior Kiosk Sign System: BMW stores using this system only for visual merchandising purpose.
- 84. Store Layout:
- 85. Upstairs & DownstairsSitting Areas (Crouch)Sitting Areas (Chairs)Staff Room
- 87. KFC colored the walls inside the store in red to reflect the brand image as they are using red as the color of their brand during promotional activities.
- 88. The lightning inside the store is not bright to give a comfortable environment to the customer while they are using bright color at the outside to increase the visibility.
- 89. Their store situated at the junction of four lane so that it can be easily accessible.
- 90. They don’t have any adjoin fast food store to avoid competition.
- 92. They colored the wall in white to reflect maximum light on to the cars and to make them glow.
- 93. They have a screen touch computer into their store, which displaying various features, performance of the cars continuously, if any customer want to know about any part in details then he/she have to touch that options in the menu bar and the details will be displayed.
- 94. They brought the sitting crouches and carpet from Italy to attract high class customers into their stores.
- 96. In the cold drinks section they only have PEPSI and their own products. They should keep COKE and other verities also so that the customer can have what they wants.
- 97. They are playing only western music in their store. They should play hit hindi songs also while they are operating in India.
- 99. No Electric Neon or Hoarding was available.
- 100. Doormen wasn’t available all the time.
- 101. At the front gate they should hire a gatekeeper, who will open the gate for the customer and greet them.
- 102. They should increase their sitting space. Because if two or three customer come to the store at the same time then they might face a problem of shortage of sitting space.
- 104. Marketing Management by Philip Kotler.
- 105. Retail Management by Chetan Bajaj.
- 106. WEBSITES:
- 115. SEARCH ENGINES:
- 117. http://www.google.co.in/APPENDIX<br />APPENDIX:<br />WITH THE STORE MANAGER IN KFC AT CP<br />WINDOW DISPLAY OF KFC<br />VISUAL MERCHANDISING INSIDE THE STOREWITH THE STORE HEAD OF THE BMW AT CP<br /> <br />WINDOW DISPLAY AT BMW STORE<br />