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Kfc in India: Ethical Issues
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Introduction KFC is the world’s most popular chicken restaurant chain.
Founder-by Colonel Harland Sanders . KFC is part of Yum! Brands, Inc., the world's largest restaurant company in terms of system restaurants, with more than 36,000 locations around the world. KFC operates more than 5,200 restaurants in the United States and more than 15,000 units around the world. 109 countries and territories around the world. Every day, more than 12 million customers are served at KFC restaurants.
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KFC’s Entry in INDIA KFC was the first fast food multinational to enter INDIA , after the economic liberalization policy of the Indian Govt. in early 1990s. KFC received permission to open 30 new outlets across the country & Opened first fast food outlet in Bangalore in June 1995 by targeting upper middle class population. PepsiCo planned to open 60 KFC and Pizza Hut outlets in next 7 yrs in the country.
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Business Environment of KFC
PEST analysis POLITICAL Health and Safety Guidelines Labeling of GM Foods Animal rights campaigns ECONOMIC Low set up costs Franchising facilitates set ups Support from major suppliers Growing market Perceived value for money Increasing disposable income
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SOCIAL Busy lifestyles Healthy Eating and Obesity Increased Vegetarianism Homogeneity Social Activities TECHNOLOGICAL Investment in technological innovations Computer ordering (till system)
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Issues » Understand the significance of cultural, economic and regulatory issues while establishing business in a foreign country » Examine the reasons for protests of PETA(People for Ethical Treatment of Animals). »political issue
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Problems for KFC Protests by farmers led by the Karnataka Rajya Ryote Sangha(KRRS) & the farmers leader was Nanjundaswamy who used the term ‘junk food’ against KFC. Protests by cultural & Economic activists. Protests by PETA in the late 1990s. Support of celebrities in against of KFC
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SWOT ANALYSIS . Understand the importance of
STRENGTHS WEAKNESSES Non ethical business practice Peta protest Krrs protest Msg flavour in chicken . Understand the importance of Ethics in doing business Examine the reasons for protests Of peta Identify solutions for kfc’s problems In india Threats Peta like organizations Political parties protesting for junk food Protest support from famous personalities like Anil Kumble, Aditi Govithrikar,john abraham etc OPPORTUNITY Retail boom in india Indians youth are adopting western culture Indian economy Cosmopolitan rapid development
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Political Reason Need for protecting animal rights.
Chicken they serve is full of chemicals (mono-sodium glutamate) It encourage farmers to shift production of crops to animal feeding Leaves poorer section of society with no affordable food.
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Business ethics. The value of what should be done and what should not be done from the business point of view
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Ethical issues for business
Product safety standards Advertising contents Working environment Employee’s privacy Environmental issues
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Marketing Mix The marketing mix is generally accepted as the use and specification of the 'four Ps' describing the strategic position of a product in the marketplace. Product Price Place Promotion
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KFC's specialty is fried chicken served in various forms.
Marketing Mix 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. Price price is the sum of all the values that consumers exchange for benefits of having or using the product or services
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Marketing Mix Place TARGET AREAS Free home Delivery. Hectic lifestyle
Economically convenient Promotion Promotion is the method used to inform and educate the chosen target audience about the organization and its products.
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Segmentation Geographic segmentation :
. In north India 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.
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Segmentation Psychographic segmentation
Dividing a market into different groups based on social class, lifestyle, or personality characteristics is called psychographic segmentation. i.e Social class- Upper and Middle class.
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Recommendations Short-term:
Based on the analysis, we can conclude that they should start by solving their internal issues such as management and restaurant menu before thinking about expanding.. They also need to make sure that their restaurants offer a diversified menu, provide their customers with quality food, excellent service and restaurant cleanliness. KFC should always listen to their customers and try to follow the new trends on the market in order to fully satisfy their customers. Otherwise, competitors will satisfy them.
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Long Term They need to stay close to their mission (provide customers with quality food, excellent service and restaurant cleanliness) They also have to follow the trend and go hand in hand with customers to satisfy their changing needs, as we have previously discussed with the current healthier food trend. They also want to keep an excellent image by treating employees fairly and keeping a good control over franchises to make sure they follow the company’s procedures.
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Thank you.
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