KFC
History
KFC’s history can be traced back to the man who started it all: Harland David Sanders, or the
man popularly known as the face and logo of KFC, “Colonel Sanders.” Sanders was born on
September 9, 1890 in Henryville, Indiana and started cooking at a very young age to help out his
working mother and family.
Growing up, he took on many jobs—working as a steamboat driver, insurance
salesman, railroad firefighter, farmer and even as an Army private. But it wasn’t until age 40
that Sanders really explored his love for fried chicken. In 1930, he cooked and served chicken
meals for busy families in his small eatery called “Sanders Court and Café” which operated out
of his service station living quarters. Eventually, the business boomed, prompting Sanders to
expand his restaurant to fit 142 people. In the next 9 years as chef, he would perfect his fried
chicken recipe.
In 1935, he was given the honorary title “Kentucky Colonel” by Gov. Ruby Laffoon for his
contributions to the state’s cuisine. Since then, Sanders referred to himself as the “Colonel,”
and dressed in a “Southern Gentleman” outfit as a means of promoting the restaurant.
In 1939, he switched his cooking method from deep frying to pressure frying, which resulted to
extremely faster cooking times. In the following year, Colonel Sanders created his famous
“Original Recipe.”
Sanders officially went into the chicken franchising business in 1952, when he sold his
restaurant after it was by-passed by a major interstate. He traveled the U.S. selling his concept
of pressure-cooked chicken for a 5-cent royalty fee for every chicken sold.
By 1955, he established Kentucky Fried Chicken.
In the early 1960s, the KFC franchise totaled 600 stores in the U.S. and Canada. In 1964, Sanders
sold his share for $2 million to a group of investors, turning KFC into a fast-growing corporation.
In 1971 it was acquired by Heublein Inc. and was later sold to R.J. Reynolds Industries. In 1986,
KFC was purchased by PepsiCo Inc. and was placed under its restaurant company Tricon Global
Restaurants. In 2002, Tricon changed its name to Yum! Brands, now the largest restaurant
company in the world with 32,500 stores in more than 100 countries.
Colonel Sanders remained faithful to the restaurant he loved and nurtured for so many years.
He traveled 250,000 miles a year to visit KFC stores found all around the world.
In 1980, he passed away at the age of 90.
Today, his memory lives on through his famously delicious fried chicken enjoyed by millions of
people the world over.
KFC vs. MCDONALD’S
KFC
1. Product
Anything that can be offered to a market to satisfy a want or need. KFC's specialty is fried
chicken served in various forms. KFC's primary product is pressure-fried pieces of chicken made
with the original recipe. The other chicken offering, extra crispy, is made using a garlic marinade
and double dipping the chicken in flour before deep frying in a standard industrial kitchen type
machine.
Segmentation
Geographic segmentation:
KFC has outlets internationally and sells its products according to geographic needs of the
customer. In Philippines KFC focuses how geographically its customers demand different
products. In the north, Chicken is the main selling product, while in the south the Veg. items sell
more than the chicken.
Demographic Segmentation
In demographic segmentation, the market is divided into groups based on an age, gender,
family size, income, occupation, religion, race and nationality. KFC divides the market on
demographic basis in this way:
Age is between 6-65.
Gender is both males and females.
Family size is 1-2, 3-4, 5+
Income is Rs 10,000 n above.
Family lifestyle is almost all.
Psychographic segmentation
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:
Social class- Upper and Middle class.
Lifestyle is not specific.
Personality is ambitious and authoritarian.
TARGETMARKET
The process of evaluating each market segment’s attractiveness and selecting two or
more segments´
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.
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.
2. Price
Price is the any amount of money that customers have to pay while purchasing the
product. More broadly, price is the sum of all the values that consumers exchange for
benefits of having or using the product or services.
Demographic factors
Age: 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.
Gender: Both male and females are focused by KFC; gender does not play any role here.
Household Size: This plays a vital role in the demographic factor of the KFC. Generally
they target whole families rather than single persons. This being the reason for their
Family Meals which are basically bundled items served at a nominally cheaper rate.
Economic Factors
Income: 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.
Consumption Behavior: It estimates the behavior of people, their liking and disliking
towards the pricing of the products.
