Kfc International Business - 1810 Words

Executive summary Kentucky Fried Chicken is the second largest fast food restaurant. KFC has focused on foreign markets since the 1960s. At first this report will detailed describe the history of the Kentucky Fried Chicken. And then next parts will analysis the international business of the Kentucky Fried Chicken. Finally the report will give some recommendations to the KFC. Background to Kentucky Fried Chicken Kentucky Fried Chicken (KFC) was established in Louisville, Kentucky, United states as a chain of fast food restaurant by Colonel Harland Sanders in 1952. At first the Colonel started to implement the franchising business operation with the Chicken Secret Recipe by travel tower to tower. In 1960s because of the Colonel’s†¦show more content†¦In the last 1950s Colonel Sander started to expand KFC by the franchising operation. But when PepsiCo bought the KFC, PepsiCo made a new contract for the franchisees in order to control the franchised restaurants. In the meantime, PepsiCo spent a big cash flow on buying back the week franchised restaurants. However this operation needed higher levels of investment and KFC returned on assets slowly. The investors thought PepsiCo’s return on assets did not match returns delivered by Coca-Cola. Therefore PepsiCo sold back the franchised restaurants. Marketing This part will explain the marketing of KFC base on 4 P’S: production, pricing, promotion and placement. Production KFC dominated the chicken segment in US. During 1990s Boston Market absorbed a lot of customers form KFC because of its roasted chicken. The Boston market’s chicken was more health and its menu was more broaden which included ham, turkey, meat loaf, chicken pot pie, and deli sandwiches. So KFC introduced a new product called Rotisserie Gold in 1993. But the new product was not responded well by the customers because the customers did not like take whole chicken away. So in 1996 KFC reintroduced a roasted chicken which could be sold by piece. Pricing The pricing of KFC always was not expensive. The pricing of the product contained the taxes, excise duties, profits and the cost. Promotion Promotion is very important for theShow MoreRelatedKfc, A Spot Light And Taste Of Food Restaurants Essay1615 Words   |  7 Pageshypothesis that why people in Pakistan prefer KFC over Macdonald and we found that due togood quality and taste of food people prefer KFC .When KFC was introduced in Pakistan the prices was not affordable by people but now they have lower their prices. One reason was alsothe impressive packages due to which people prefer KFC over McDonald’s. While conductingour research we also came to know that KFC is more advertised this is one of the reasons that people prefer KFC over McDonald’s. We are going to discussRead MoreCase Study 1 - Kfc in India1152 Words   |  5 PagesCase Study 1 KFC in India – Ethical Issues 1. 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