Report On Kfc Bangladesh 160430181850 5m445l

Report on KFC in Bangladesh

Submitted to: Ms. Rumana Anam Adjunct Faculty School of Business

Submitted by:

Md. Al-Amin Md. Terben Hossain Atikur Rahman Md. Farhad Reza Shaheda Arobe

141011011 141011119 141011025 141011204 141011083

UNIVERSITY OF LIBERAL ARTS BANGLADESH

Date: July 27, 2015

1

Date: July 27, 2015

Ms. Rumana Anam ULAB School of Business, University of Liberal Arts Bangladesh (ULAB)

Subject: For the Acceptance of the Term Paper

Dear: Ms. Anam With due respect and humble submission, we the students of course: BUS 205, section: 01 and submitting our report on “KFC Restaurant in Bangladesh”. It’s our opportunity to inform you that we have completed our report under your course guidance amid your kind hearted direct supervision.

In preparing this report, we have tried our level best and worked sincerely and made it structured as well as possible. We fervently hope that this report will help us for our future.

Sincerely yours,

Md. Al-Amin (141011011) On behalf of the group.

Other are: Atikur Rahman Md. Terben Hossain Md. Farhad Reza Shaheda Arobe

(141011025) (141011119) (141011204) (141011083)

2

TABLE OF CONTENTS

SL

CONTENT

PAGE

0

EXECUTIVE SUMMARY

4

1

INTRODUCTION

5

2

BACKGROUND

5

3

HISTORY OF KFC

6

4

OBJECTIVE

8

5

SCOPE

8

6

METHOLODOLOGY

9

7

LIMITATIONS

9

8

ENVIRONMENT OF KFC

9

9

UNIQENESS OF THE FIRM

10

10

RECENT PROBLEM OF KFC

11

11

SWOT ANALYSIS OF KFC

12

12

FINDINGS

15

13

RECOMMENDATIONS

15

14

FOOD ITENS & PRICE

16

15

CONCLUSION

17

3

EXECUTIVE SUMMARY This report responds to the recommendation of honorable teacher “Ms. Rumana Anam” who is our instructor for “Business Communication”. We are thankful to her for the guidance she provided us all the way in preparation of this report.

As we have prepared our report of KFC. It was a nice experience to spend there 4 weeks as an apprentice. Although 4 weeks period is not enough to learn all practices performed by company because there is a lot to learn but we got be familiar with about all practices with the help of whole staff. While studying their system we came to know their policies their history and their corporate profile. We came to know about the rules and regulations of the management that are being followed. It was a nice experience of doing apprenticeship there due to their full corporation.

For the preparation of this report we interviewed the manager of KFC who provied information about KFC at Dhanmondhi in Bangladesh. We also interviewed some customer to know about their perception about KFC. We also looked for their ads & website so we also used our personal observation as a source. We consulted different books& journals for the purpose of our analysis.

In the global market increase the demand of hygienic food, KFC is trying to do some contribution in its industry. This report has some important parts. First part is introduction. We’ve discussed the objective of the study, methodology and limitation of the study. We’ve also discussed the company overview, environment and competitors of the firm, a recent problem faced by the firm, and we also developed a SWOT analysis. The SWOT analysis of KFC at Dhanmondhi makes use of the understanding of the marketing environment in its examining of opportunities and threats. Findings, recommendation and appendix are included in chapter three. And lastly we draw a conclusion of this report.

4

INTRODUCTION Now a day, the food choice of the people of Bangladesh is changing. Today people like fast food a lot. Whenever we talk about fast food, the first choice that comes to our mind is KFC. KFC is known for its uniqueness in fried chicken. They use a secret recipe to make their chicken tasty and crispy. Their employees are not allowed to share their recipe with anyone. And they have to maintain a specific quality in their food. So they offer hygienic food to their customers. As a result they have been able to grab a very good number of loyal customers. They rely on this food brand. So parents allow their children to enjoy KFC food without any doubt. Now the young generation has become their main target group. Whenever they offer any new item or make any special offer, they keep this customer segment in their mind.

BACKGROUND K.F.C is an American based company. It was established in mid fifty when Herland Sanders conducted business in United States with prospective Franchises about his colonel Sanders recipe K.F.C. He has also succeeded in establishing a number franchises in all over the world. The minority of KFC’s restaurant in Mexico & Poverto Rico were company owned. However, KFC had established 21 new Franchises in Mexico by the end of 1993. Now it has nearly 13000 outlets all around the world. KFC is a fast food industry. It is introduced in Pakistan round about 2 years ago. Firstly, KFC opened in Karachi and then after in Lahore. KFC has two branches in Lahore, one is Garden Town and other is Cavalry Road.

5

KFC Corporation based in Louisville, Kentucky is the world’s most popular chicken restaurant chain, specializing in original recipe, extra crispy a dcolonel’s crispy strips with home styles slides. Everyday 8 million customers are served around the world KFC Menu Everywhere includes original recipe chicken made with the same great taste Harland Created more than a half century ago.

KFC is part of Tricon Global restaurants, which is the world largest restaurant system with nearly 30,000 KFC. Harland started LFC back in 1952 at the ripe age of 62. His recipe for the best chicken in the world was made with a special cooking process and a secret blend of 11 herbs and special the same secret blend that is used to dayin KFC original recipe chicken. Today KFC has more than 11,000 units in over 79 countries. Every week nearly 69 million customers come through KFC do for the chicken.

HISTORY OF KFC KFC is an internationally renowned fast food industry in the world. They have the main ambition to increase & maintain the quality in fast food industry. Their aim is to capture the fast food market. Basically they want to provide their products to anyone that is why they expanding their branches in all over the world. They want to increase their profit through giving maximum satisfaction & other better facilities to people that they want. Now after catching such a marvelous position in the International Market, KFC is introducing a new item Boneless Fried Chicken, with even more attractive and charming taste.

Company overview: Colonel Harland sanders, born September 9, 1890, actively began franchising his chicken business at the age of 65. Now, the Kentucky fried chicken business he started has grown to be one of the largest retail foodservice systems in the world. And colonel sanders, a quick service restaurant pioneer, have become a symbol of entrepreneurial spirit. More than two billion of the colonel’s “finger lick in’ good” chicken dinners are served annually. And not just in America. The colonel’s cooking is available in more than 82 countries around the world. When the colonel was six, his father died. His mother was forced to go to work, and young Harland had to take care of his three year old brother and baby sister. This meant doing much of the family cooking. By the age of seven, he was a master of a score of regional dishes. At age 10, his first job working on a nearby farm for $2 a month. When he was 12, his mother remarried and he left his home near Henryville, Ind., for a job on a farm in Green wood, Ind. He held a series of jobs over the next few years, first as a15-year-old streetcar conductor in New Albany, Ind., and then as a 16-year-old private, soldiering for six months in Cuba. After that he was a railroad fireman, studied law by correspondence, practiced in justice of the peace court, sold insurance, operated an Ohio River steamboat ferry, sold tires, and Operated service station. When he was 40, the colonel began cooking for hungry travelers who stopped at his service station in Corbin, KY. He didn’t have a restaurant then, but served folks on his own dining table in the living quarters of his 6

service station. As more people started coming just for food, he moved across the street to a motel and restaurant that seated 142 people. Over the next nine year, he perfected his secret blend of 11 herbs and spices and the basic cooking technique that is still used today. Kentucky Fried Chicken 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 September at Gulshan, Dhaka with a seating capacity of 178 person. Stands for high-quality fast food in a popular array of complete meals to enrich the consumer’s everyday life. KFC strives to serve great-tasting, “finger lickin’ good” chicken meals that enable the whole family to share a fun, uninhibited and thoroughly satisfying eating experience, with the same convenience and affordability of an ordinary Quick Service Restaurant. TFL successfully launched the flagship KFC on South Avenue, Gulshan in September 2006. It has already won over the heart of the Dhaka crowd with its great tasting food, high standard of hygiene, cleanliness, terrific interior and of course excellent and affordable pricing. Following its enormous success in Gulshan, the second outlet was opened in Dhanmondi in November 2008, and yet another in Banani in December 2008. Most recently TFL has opened two outlets at Eskaton on February 2010 and another one is in Paltan.

Branches: 1. Gulshan: Bir Uttam Mir Shawkat Ali Sorok (South Avenue), Gulshan1, Dhaka. 2. Dhanmondi: H#84, R#7/a, Sat Masjid Road, Dhaka. 3. Banani: Bulu Ocean Tower, Kemal Ataturk Avenue, Dhaka. 4. Baily Road: 10 Natok DSarani, New Baily Road, Dhaka. 5. Eskaton: 400 New Eskaton, Dhaka. 6. Chittagong: Amin Centre, Laikhan Bazar.

7

Geographical location:

OBJECTIVES Every report has some objectives and to fulfill those objectives people do the report. As our course teacher had given us to do a report on KFC, our first objective was to do the proposal report successfully. To do it successfully, we had to make a study on the firm. The objectives of the study are given below      

To know about KFC broadly To have a specific knowledge about the company To know about their establishment period, products & services To know the name of companies from which they are facing tough competition To know about their branches located inside & outside Dhaka To form a SWOT analysis of the firm To draw a overall picture of the company etc.

These were the main objectives of our study.

SCOPE There are lots of scopes of KFC in Bangladesh. Food facilities, delivery facilities, online facilities, good communication with customer, high security etc.

8

METHODOLOGY It deals with the process of doing the proposal report. Here we mainly followed secondary data collection process. We arranged our information from the web. But some information like number of employees, products and services etc was not available in the web. To collect that information, some of our group went there personally and collect the required information through primary data collection process. In our proposal report we used times new roman style. And normal font size was 12 although it varied in the heading and sub-heading part.

LIMITATIONS Every study has its own limitations. While doing the report we also faced some limitations. They are given below –       

Different class schedule of group Lack of space in the discussion room Lack of facilities in the lab Lack of necessary information in the web lack of convenient environment in the discussion room lack of group discussion because of mid- term examination Reluctance of KFC employees sharing their information etc.

These are the limitations that we faced while doing the report.

ENVIRONMENT OF KFC  Internal environment Internal environment is the part of the business environment which refers to the company’s internal components like owner, employee etc.  Owner: The Company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952. Now Rojer Eaton is the president of the company. And Harvey R. Brownlea is the CEO of company. Transcom Foods Limited, a concern of Transcom Group is the franchisee of KFC in Bangladesh.  Employee: KFC have almost 24000 of employee as the part of internal environment.  External environments External environment refers to those business environment components which are outside the company. In a word where the company run their business. Like the consumer. Govt. etc

9

 Consumer: KFC generally target the upper middle class people and young people of Bangladesh. Young people are the main consumer of the KFC.  Government: Government is also is the part of the external environment. Govt. influences the company through different regulation and rules.  Competitors: Every organization has some competitors who provide similar goods & services. KFC also have some competitors in the food market. Although KFC access a unique place in the market because of its secret recipe and brand name, it faces a tough competition by other food brands. Those brands may not have the same recognition and taste as KFC, but they attract a good number of customers because of their low price. The main competitors of KFC are – BFC, CFC, DFC, FFC etc. There are some other companies like NFC and RFC who are also involved in this competition.

In the metro shopping mall, there is also a KFC (king fried chicken).some people consider it as real KFC. These fast food companies provide customers with similar types of fried chicken for low price. The chicken may be different in taste but they use the same formula to make their fries crispy as KFC does. As a result, they become successful in attracting customers. Moreover, as these companies provide fried chicken for low price, they get a huge number of customers. In KFC the lowest price for fried chicken is 280 taka where in BFC it is only 80 taka. So middle class people our country prefer BFC to KFC. And a huge number of students, who love fried chicken, are not able to spend a lot of money as their pocket money is limited. They are regular customers of local food brands as they can afford KFC visit occasionally.

UNIQUENESS OF THE FIRM There are some unique qualities in KFC which make the firm different from others. They are given below        

High quality product Assurance of purity Customer loyalty Unique taste Customer care Employee loyalty Secret recipe Popular among young generation Faith and trust of people 10



Recognized brand etc.

These are the major uniqueness of the firm that makes it different from other firms.

RECENT PROBLEM OF KFC

A rumour that KFC uses mutated chickens with extra limbs is going viral on Facebook and Twitter.

A story citing a University of New Hampshire study claims that the federal government forced KFC to shorten its name from Kentucky Fried Chicken when it stopped using real chickens and started using these tube fed genetically modified organisms. The post, which has now been shared thousands of times on Facebook and Twitter, was published on the viral news site Daily Buzz Live, pumping new life into a rumour that has been circulating for more than a decade. There is absolutely no truth to this ridiculous urban legend, which has been debunked many times, KFC spokesman Rick Maynard told Business Insider in an email. KFC uses only top quality poultry from trusted companies like Tyson and Pilgrim’s Pride the same brands customers know from their local supermarkets.But apparently, a lot of people find no reason to question the information that’s making the rounds on social media. Most recently there rises a question about the quality of food in KFC due to having cockcrows in the burger of KFC. This affected in the consumer loyalty of KFC. Although KFC faced the situation cleverly, people are still are not sure in the quality of KFC in Bangladesh. These have an impact on sale of KFC.

11

SWOT ANALYSIS OF KFC The acronomy stands for strength, weakness, opportunities and threat of an organization the SWOT analysis of KFC is given below Strengths Strengths can be found internally in a company and can be used to the company’s advantage. The strengths identified are as follows:  KFC’s secret recipe The secret recipe has long been a source of advertising, and allowed KFC to set itself apart from other food brands.  Recognition and reputation KFC’s early entrance into the fast-food industry in 1954 allowed KFC to develop strong brand name recognition and a strong foothold in the industry. The Colonel is KFC’s original owner and a very recognizable figure, both in the U.S. and internationally, in their new logo.  Traditional employee loyalty As it is a renowned food brand, it has maintained a long and strong network with their employees. In return they get a very strong employee loyalty which is known as their unique company asset. They provide their employees with various types of facilities other than salary (long term contract, recognition, management training.) etc.  Improving operating efficiencies by reducing overhead and other operating costs can directly affect operating profit Due to the strong competition in the food market, the fast-food chains are reluctant to raise prices to increase profit. Many of the chains are turning to operating efficiencies to increase profit. For many companies, operating efficiencies are achieved through improvements in customer service, cleaner restaurants, faster and friendlier service, and continued highquality products.  Emotional benefit because of recognition

12

As KFC is a very well known food brand in the market, it was able to create a very loyal group of customers who rely on their food quality. This group of regular customers serves as an asset for the company.  Strong and experienced management As KFC in BD is a franchise company, so it follows a systematic management system. They are bound to follow a specific system. They can’t change it whenever they want. It has been followed successfully for couple of years.  High quality and 100% pure product As it follows a very systematic and secret recipe, they are able to maintain a high quality in their food. As it is a franchise company, so they are not allowed to change or share the recipe. They are bound to maintain a specific quality level in food making.  Weaknesses  KFC has a long time to market with new products Because of the nature of the chicken segment of the fast food industry, innovation was never a primary strategy for KFC. However, during the late 1980’s, other fast food chains began to offer chicken as a menu option.  High production cost comparing to the competitors companies KFC has to maintain a quality level in food making. So their production cost is higher then their competitors. To gain their production cost they ask for a pretty much higher price for their fast food.  No access to home service KFC do not offer any home service like pizza hut and dominos, as a result they loss a good number of customers. Sometimes people want to enjoy the food in their own home with all of their family . Sometimes people also get tired and do not want to spend the time to travel to the restaurant.  Lack of branch KFC have only a few branches in the Dhaka city. They do not have their branch in shopping mall like Bashudhara city like other fast food brands like BFC or FFC. As they have only few branches in the renowned area, so they loss a huge number of customers residing in other parts of Dhaka.  Opportunities

13

 Increasing demand The demand for fast food is increasing day by day. Formerly, people used to have it occasionally. Now they like to have it regularly. Even in occasions or party, they prefer fast food to desi food. So, it is a very good opportunity for the fast food companies to sell their products to customers.  Fondness of youth Today’s youth are getting westernized. They are following all of latest western fashion. They are following their food habit too. Now they like fast food very much. All of the fast food companies are using this opportunity very intelligently.  Daily needed product Now the children as well as their parents are ing a quality time of the day outside their home. All of the food companies can take advantage of this opportunity. As now people love fast food more, so the fast food companies are enjoying the most benefits of this opportunity.  Threats  Increasing competition and rising sales of substitute products Faced by slowed sales growth in the fast-food industry, other segments of the industry have turned to new menu offerings while KFC still offers its limited choice of chickens.  Changing preferences of consumers During the 1980s, consumers began to demand healthier foods and KFC was faced with a limited menu consisting mainly of fried foods. In order to reduce KFC’s image as a fried chicken chain, it changed its logo from Kentucky Fried Chicken to KFC in 1991.  Inflation in local market When the real value of money decreases it creates inflation in the economy. During inflation, people have less money to spend as well as the price of raw materials also rises. It creates threat for the overall economy. As a result, the food market also gets affected by it.  Sharp rise in the production cost Rise in the price of raw materials increases the total production cost. So when the price of raw materials increases, KFC needs to increases its price. As a result, consumers become less interested to spend a huge amount of money on fast food.  Instability of the price of raw materials 14

In our country the price of chicken is not stable. So the fast food brand like KFC faces a problem in setting their menu. The price of raw materials changes almost everyday, but they can’t change their price list every day.

FINDINGS

While doing this report, as we have done a research on KFC we get familiar with some of the problems of the company.  High price: KFC has set a very high price for their fast food. So the middle class people of our country can’t even think of going to KFC. Children of middle class families treat it as a dream coming true whenever they get chance to go to KFC. They also loss a huge number of customers who can’t afford KFC visit regularly but they enjoy it occasionally.  Limited choice: KFC is famous for its unique taste but it offers a very limited number of choices in drinks and fried chickens for a long period of time. They do not change their menu regularly like pizza hut.  Lack of special offer: KFC hardly give any special offer like “happy price menu” for students and kids. In India these types of offer is available for the youth. They do this type of things to attract and create a new customer segment.

RECOMMENDATIONS

In the findings we have mentioned a number of problems about KFC in bd. here are our recommendation about solving the problems. They should try to –

    

Reduce their price a little bit Increase their number of branches Offer home service to the customers Offer happy price menu occasionally Offer different flavor of fried chicken

15

FOOD ITEMS OF KFC NAME

Price/Unit

Pepsi Tk ৳240.17 / 2 Liters 7up Tk ৳240.17 / 2 Liters Bun Tk ৳73.00 / 1 Bun Fries Tk ৳156.95 / 1 Large Coleslaw Salad Tk ৳142.35 / 1 Large Fried Chicken Tk ৳266.45 / 2 Pieces Burger - Chicken Zinger Tk ৳288.35 / 1 Burger Burger - Hot Zinger Tk ৳302.95 / 1 Burger Burger - Veggie Feast Tk ৳251.85 / 1 Burger Snack box (1 pc chicken + fries) Tk ৳204.40 / 1 Box Zinger meal (1 x burger+ fries+ drinks) Tk ৳448.95 / 1 Meal Hot Zinger meal (burger+ fries+ drinks) Tk ৳456.25 / 1 Meal Boneless Chicken strips with dip Tk ৳478.15 / 6 Pieces Hot Wings Tk ৳346.75 / 6 Pieces 8 Pieces Chicken Bucket (Hot & Crispy) Tk ৳1018.35 / 1 Bucket 12 Pieces Chicken Bucket (Hot & Crispy) Tk ৳1529.35 / 1 Bucket 8 Pieces Chicken Bucket (Fiery Grilled) Tk ৳1091.35 / 1 Bucket 12 Pieces Chicken Bucket (Fiery Grilled) Tk ৳1602.35 / 1 Bucket

CONCLUSION In this assignment, we have talked about a famous food brand- KFC. Here we talked about their background, environment, competitors etc. we also made a SWOT analysis which enabled us to know about their strengths, weaknesses, opportunities and threats. Based on this segment, we also find out some of their problems and made recommendation. In one part, we made an analysis about the recent problem faced by them. Although they are famous for their quality, it is obvious to have some problem too. They should try to solve their problem as soon as possible and continue to serve their customers with great quality.

16

END

17