"BUSINESS STRATEGIES OF KFC"
Submitted By
MRUNAL KODHALKAR
M.COM PART-I Semester-I
2014-15
Submitted
To
University of Mumbai
Vidyalankar School of Information Technology
(Affiliated to University of Mumbai)
Vidylankar Marg, Wadala (E),
Mumbai 400037
TABLE OF CONTENTS
Sr. No.
Topics
Page no.
1.
INTRODUCTION OF KFC
5
2.
KFC IN INDIA
6
3.
COMPANY BACKGROUND
8
4.
MISSION/VISSION
9
5.
MARKETING MIX
10
6.
PRICE STRATERGY
13
7.
THREATS
19
8.
SALE PROMOTION CAMPAIGN OF KFC
20
9.
SOCIAL MEDIA STRATERGY REVIEW
23
10.
PLATFORM WISE STRATERGY
24
11.
COMPARISON WITH COMPETITOR
27
12.
CONCLUSION
28
DECLARATION
Vidyalankar School of Information Technology
(Affiliated to University of Mumbai)
Vidylankar Marg, Wadala (E),
Mumbai 400037
I, Mrunal Kondhalkar, of Vidyalankar School of Information Technology, M.COM Part-I Semester-I hereby declare that I have completed the project on " BUSINESS STRATERGIES OF KFC" in academic year 2014-15. The information submitted is true and original to the best of my knowledge.
Signature of the student. MRUNAL KODHALKAR
ACKNOWLEDGEMENT
At the successful completion of my project I would like to extend my gratitude to all those without whose valuable guidance and support it would have not been possible.
I also owe my gratitude to my internal guide PROF. ABHIJIT RANE for giving me an opportunity to carry out this study.
Also I would like to thank my family members. It is their blessings and motivation that prompted me to undertake this venture. With my prayerful thanks to the all mighty, I affirm my renewed thanks to everyone who in one-way or the other helped me to complete this project. I deeply acknowledge every service with great gratitude.
INTRODUCTION
KFC Corporation or KFC, founded or also known as Kentucky Fried Chicken, is a china of fast foods restaurant based in Louisville,Kintucky.KFC is a brand and operating segment, called a concept of Yum!Brands since 1997 when that company was spun off from Pepsi Co. KFC primarily sells chicken in the form of pieces, wraps, salads. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and deserts.
KFC IN INDIA
KFC outlet on Middleton Row in KOLKATA In December 2013, there were 361 KFC outlets in India. As well as the standard KFC offerings, the chain sells a chickpea burger, a paneer burger, hot wings with chili lemon sprinkles and other country-specific products. A major franchise holder is QSR Brands (M) Holdings, which operated 26 outlets as of 2012. The first Indian KFC was a two-storey outlet on the fashionable Brigade in Bangalore in June 1995. According to journalist Michael White, the company could not have chosen a "more difficult venue for its maiden entrée into the country." Bangalore housed the headquarters of the Karnataka Rajya Raita Sangha, one of the most influential, vocal and anti-foreign investment farmers' associations in the country. The first outlet suffered protests from left wing, anti-globalization and environmental campaigners, as well as local farmers, who objected to the chain bypassing local producers. Many Indians were concerned about the onslaught of consumerism, the loss of national self-sufficiency, and the disruption of indigenous traditions. The protests came to a head in August 1995, when the Bangalore outlet was repeatedly ransacked. The KFC outlet in Bangalore demanded, and received, a police van permanently parked outside for a year. The outlet was closed on September 13, 1995 by local authorities, who claimed the company used illegally high amounts of monosodium glutamate (MSG) in its food. However, the outlet reopened for business within six hours of its closure, after the Karnataka High Court blocked the local authorities' order on an appeal by KFC. The company had argued that it prepared food in India using the same formula as in 77 other countries. Rural activist M.D.Nanjudaswami subsequently claimed KFC would adversely affect the health of the impoverished, by diverting grain from poor people to make the more profitable animal feed. Former environment minister Manekha Gandhi joined the anti-KFC movement. A second outlet opened in Delhi, but was closed by the authorities throughout November, purportedly for health reasons, but more likely to avoid a repetition of the Bangalore incident. The Delhi outlet soon closed permanently. KFC began to expand outside of Bangalore in 2004, with a localized menu that was the most extensive meat-free menu across the chain's worldwide operations. It introduced a vegetarian menu that included rice meals, wraps and side dishes and, like McDonald's, served eggless mayonnaise and sauces. Unnat Varma, marketing director of KFC India, states "The vegetarian offerings have made the brand more relevant to a larger section of consumers and that is necessary for KFC's growth." KFC also began using Indian spices and cooking techniques to localize its chicken dishes. By 2008–09, KFC operated 34 outlets in India. In 2014, KFC launched the "So Veg, So Good" menu as part of an India-specific promotional strategy focused on enhancing their vegetarian range. Dhruv Kaul, marketing director of KFC India, stated, "The So Veg, So Good menu launch does not mean that we are moving away from our core chicken offerings. It enhances and strengthens our existing vegetarian range and helps broaden the brand's relevance in a diverse country such as India."
COMPANY BACKGROUND
KFC Corp owned by Yum Brand is one of the oldest and most popular chicken and food restaurants in the world Other restaurant under Yum brands are Taco Bell, Pizza Hut, Long John Silver’s and A&W KFC generally sells Chicken Piceses, wraps, salads and Sandwiches. While its primary focus is Fried chicken KFC also offers a line of other meat products suiting to local palate In India they opened in 1995 and are lagging behind in terms of sales and rich vis-à-vis chains like McDonalds and Dominos
MISSSIONS/VISSIONS
MISSION
To sell food in fast and friendly environment that appeals to pride conscious, health conscious consumers
VISSIONS
Our passion as a restaurant company is to put YUM on people’s faces around the world satisfying customers every time they can eat our food and doing it better than another company. The unique eating experience at each of our restaurants make our customers smile and inspire their Loyalty for Lifes.Towards their end our associates around the world are trained to be customer maniacs.
MARKETING MIX 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
PRODUCT : 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.
POWERPOINT PRESENTATION: “No body’s cooking like KFC today and we are the chicken experts” “There is no competitor for spicy chicken which is made by KFC” KFC specialized in chicken and they say-
PRICING POLICY FOR PRODUCT OF TWISTER :
PRICING POLICY FOR PRODUCT OF TWISTER Manufacturing cost RS. 100/- 5% marketing cost (PER UNIT) RS. 5/- Total cost RS.105/- 15% G.S.T +15% RETAIL MARGIN RS.25/- Total retail Price RS.140/-
SEGMENTATION : Segmentation Geographic segmentation : KFC has outlets internationally and sells its products according to geographic needs of the customer. In India KFC focuses how geographically its customers demand different products. In north India Chicken is the main selling product, while in the south the Veg. items sell more than the chicken.
SEGMENTATION: Segmentation 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.
Segmentation 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
KFC MENU:
Menu:
Menu Original recipe® chicken · Extra Tasty CrispyTM chicken · Hot WingsTM pieces · Tender Roast® chicken · Chunky Chicken pot pie · Kentucky Nuggest® · Colonel’s Crispy Strips® · Honey BBQ sandwich · Original Recipe® Sandwich · Tender Roast® Sandwich · Triple Crunch® Sandwich · Triple Crunch ®Zinger® Sandwich
Price: 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: 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: 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.
GEOGRAPHIC LOCATION PREFERENCE: Geographic location preference : urban semi urban Price
BEHAVIOR SEGMENTATION: Behavior segmentation taste conscious quality conscious class combination of product and quality Price
PRICING STRATEGY:
Pricing Strategy Market skimming : KFC globally enters the market using market skimming. Their products are priced high and target the middle to upper class people . Gradually they trickle down the prices focusing on the middle to lower class people to penetrate both sides of the market.
COMPETITION: Competition We can compare the price of their products with McDonald, Dominoes and Pizza Hut. If the competitor provides the same product at a lower price then the organization usually lowers the price of its product too. In the case of KFC, Fried Chicken is its main selling point and controls a monopoly over the Indian fast food market (only with fried chicken). It prices its burgers, French fries and soft beverages with relation to its competitors.
COST BASED: Cost Based KFC price their product keeping different points in view. They adopt the cost base price strategy. Pricing of the product includes the govt. tax and excise duty and then comes the final stage of determine the price of their product. The products are bit high priced according the market segment and it is also comparable to the standard of their product. In the cost based method we include the variable and fixed cost.
PLACE: Place TARGET AREAS “ Free home Delivery ” strategy – They provide free home delivery to offices & homes (select countries). Accessibility – Resulting in several outlets to cater to the needs of people in & around the city. Hectic lifestyle – Due to the hectic lifestyle of office goings individuals the fast food concept saves time of preparing food and gives the customer a full meal quickly. Economically convenient – The pricing appeals to the many classes of a society.
TARGET MARKET: TARGET MARKET “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.
POWERPOINT PRESENTATION: Target Market Geography : India Metros and Tier II Cities Demography : Urban people of both genders aged between 15 to 45 years of age. Income Group : A, B and C segment of people. Psychographic : People who have a busy lifestyle and are influenced by western culture
TARGET MARKET: TARGET MARKET Location Hectic lifestyle of individuals – giving them more time at work and less stress about waiting for food. Commercialization of urban and sub-urban markets leading to more mid-sector people that find high-end eating joints very expensive. Mid-sector people are always looking for change which KFC provides in their range of fast food. Quality conscious – people in urban areas are more conscious about the quality of food than rural areas. Urban areas are more populated therefore they help with attracting higher revenues. Placement of outlets Due to KFC placing itself close to schools, colleges, cinemas and markets which are mostly populated by the young and those who are in a hurry, KFC enjoys a large number of footfalls every day. In addition, they also have outlets close to non-vegetarians (mostly Muslim populated areas).
INDIAN MARKET: INDIAN MARKET An important thing to note is that Indian Fast food market is fundamentally different-Eating at home remains very much ingrained in Indian culture. Fast food joints or QSRs are one of the cheap sources of taking a break from home cooked food and eating out. The growth in nuclear families, particularly in urban India, exposure to global media and Western cuisine and an increasing number of women joining the workforce are responsible for changing this trend
MARKET POSITIONING: 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. KFC uses its attributes to Position its Product(Fried Chicken)
STRATEGY: STRATEGY Given the competitive nature of fast food joints, KFC uses the “ Push Strategy ” to help them create: Awareness Be different Sound attractive Place.
PHILOSOPHY OF KFC THE CHAMPS PROGRAM: PHILOSOPHY OF KFC The CHAMPS Program THE CHAMPS These are: cleanliness Hospitality, accuracy,, maintenance of Facilities, product Quality, Speed of Service,etc.
CHANNELS: CHANNELS KFC believes in first level channels in the order given below: Manufacturers Retailers Consumers Place
CHANNEL PROCESS: CHANNEL PROCESS KFC works on the flow of good operation techniques i.e. “Good Operating Manager→ leads to “Good Team Selection →Good Services → Good Targets → Good Revenues through the following internal strategies: Training Incentive based targets Recognition for good work Performance based bonus Employee benefits to keep them motivated Promotion Place
PROMOTION: Promotion Promotion is the method used to inform and educate the chosen target audience about the organization and its products. Using all the resources of promotion: Advertising Sales Promotion Public Relations Events and Experiences Coupons, Discounts and Bundled packages An organization finds most of its meanings and survival through promotion. At KFC, Promotion is the main tool to bring all chicken lovers attention towards its delicious one-of-a-kind product, the Fried Chicken.
PROFILE CRITERIA:
1) Gender: KFC is for each gender both male and female.
2) Income: Everyone can use the KFCservice upper and middle class .
3) Age: age limitation for using this product above 15
4) Occupation: By profession also everyone can use this product means businessman student workers and other peoples.
5) Education: It has no need more education that why the person who know something can easily enjoy with this product.
6) Family life cycle: KFC is suitable in every stage of life like single married couple and also those who have children can use this product.
7) Lifestyle: This product is used in every level of social class like upper, middle class.
8) Attitude : When the customers once buy this product after that they can use the product continuously.
9) Purchasing decision: Often KFC changes the purchasing decision of customers because of its good attributes.
10) Geographic region: Geographically KFC is used in every part of the country as well as all over the world.
ADVERTISING: Advertising The logo of the smiling Colonel is probably one of the most recognized faces in the world and instantly brings the image of fried chicken to one’s mind. KFC and its new company jingle, “finger lcikin good” is a frequent announcement on televisions, billboards, flyers and radio. The concept of showing a normal customer deeply involved in devouring his piece of chicken usually turns on the drool factory in everybody’s mouth and makes them rush to the nearest KFC. In India where chicken lovers are plenty abound these ads featuring normal people connect instantly and create a rush at their outlets. Using the following methods KFC spreads its message of finger licking good chicken.
POWERPOINT PRESENTATION: One of KFC's latest advertisements is a commercial advertising its "wicked crunch box meal". The commercial features a fictional black metal band called "Hellvetica" performing live, the lead singer then swallows fire. The commercial then shows the lead singer at a KFC eating the "wicked crunch box meal" and saying "Oh man that is hot". In 2007, the original, non-acronymic Kentucky Fried Chicken name was resurrected and began to reappear on company marketing literature and food packaging, as well as some restaurant signage
ADVERTISING: Advertising Using Reminder advertisements KFC stimulates repeat purchases of its products. The company anthem “finger linking good” is just a wakeup call to the consumer to remind them how good they felt the last time they ate KFC chicken. Sponsorship is another tool to strengthen an organizations image. KFC is currently the sponsor of the Australian Cricket Team and the colonel logo can be seen on their uniforms throughout the matches.
SALES PROMOTION: Sales Promotion KFC uses the following tools to further enhance its sales. Premiums Exhibits Coupons Entertainment Promotion
SALES PROMOTION: Sales Promotion All KFC outlets offer its customers with various forms of incentives to buy its Chicken. Using coupons that one can acquire after spending a particular amount over a period of fixed time, customers can enjoy the benefits of free meals or free add-ons. Additionally they provide meal vouchers and exciting offers in their print ads, which the customer must cut and bring along.
COMPETITIVE ADVANTAGE: COMPETITIVE ADVANTAGE KFC McDonalds Spicy Products Indian people like spicy products instead of Burger and French Fries boiled food Arabian Rice and Zinger Burger Big Mac Free Delivery Charges for home delivery Chicken is eaten by every community Beef is banned in some community Local Staff and Highly Qualified because Its Staff consist of simple Graduates local staff can better deal with the and give them training customers. KFC uses Top to Bottom and Bottom to McDonalds Uses Top To Bottom Top Approach in Management. Approach. KFC is Co branding with Walls No such approach.
ENVIRONMENTAL TRENDS TAKEN INTO ACCOUNT BY KFC: Environmental Trends Taken into account by KFC KFC operates in a larger macro environment of forces that creates opportunities, but also threats. (Kotler et al 2003). A company such as KFC usually cannot influence trends in the macro environment, as they affect people and organisations on a larger scale.However, KFC has to carefully examine macro environmental trends and must create competitive responses to such trends.There are six major macro environmental forces KFC has to take into account.
THREATS:
LEGAL FACTORS: Legal Factors As a certified fast food operator, there are many regulations and procedures that KFC should follow. For example is the Halal certification that becomes a concern to Muslim consumers. KFC should protect its integrity and consumer confidence by ensuring all materials and process are as claimed or must followed. Other legal requirement that the business owner should follow as stipulated in laws are such as operating hours, business registration, tax requirement, labor and employment laws and quality & environment certification (such as ISO) in which the outlet has been certified. The legal requirement is important because the offenders will be fined or have their business prohibited from operating which can be disastrous
POLITICAL ISSUES: Political issues The operations of KFC are affected by the government policies on the regulations of fast food operation. Currently government are controlling the marketing of fast food restaurant because of health concern such as cardiovascular and cholesterol issue and obesity among the young and children in the country. Governments also control the license given for open the fast food restaurant and other business regulation need to follow such as for a franchise business. Good relationship with government in giving mutual benefits such as employment and tax is a must for the company to succeed in any foreign market.
QUALITY assurance certificate: QUALITY assurance certificate Quality control over ingredients Every chicken tested
SALES PROMOTION CAMPAIGN OF KFC
Kentucky Fried Chicken or KFC has been a late entrant in the Indian market. Even though it has an unique offering with “Crispy Chicken”, it faces stiff competition in the fast food segment from organised players like McDonalds which competes with its range of value meals and Dominos which is symbolised by its 30-minutes delivery of Pizza. In fact, in all major markets across the globe, KFC competes with these two companies. Both the brands have looked at catering their product offerings suited to Indian tastes. KFC has also included items such as Rizo (Rice) which is served only in South-east Asian countries. The company is owned by Yum Brands! and has several licensees in India including KFC Malaysia with Kolkata forming a major sourcing destination.
Why the Indian market is critical for KFC in long run
More than 50% of KFC’s sales and profits are generated from the Chinese market. However, the recent food scandal in China has affected KFC adversely, thereby the emphasising the need to grow in other markets. India forms the perfect answer to this requirement with a young population and growing spending power.
Sales Promotion Campaign adopted by KFC
KFC has a tie-up with Free Charge. in through which it offers food coupons currently. The various offers that it has are:
1. Get three piece hot wings free with any meal
2. Get a Choco cake on purchase of Rs 300
3. Value Snacker meal at INR 70 (veg) and INR 80 (non-veg)
In terms of in-store sales promotion, KFC offers a special offer to promote breakfast sales. If a meal is ordered in the breakfast slot, the customer can avail another piece of crispy chicken for an additional INR 20 instead of INR 75 in normal case. This can be seen in direct response to McDonald which is promoting its breakfast menu quite heavily with its loyalty cards that offer free McMuffin during breakfast. Both the Free Charge campaign and the in-store campaign are not valid for home delivery order. However, there is a slight fallacy in this assumption on KFC’s part as Indians are not likely to consume chicken in breakfast.
If we closely analyse the three offers above, the third coupon is redundant as the snacker meals are available at these prices even without the coupons. The second coupon ensures a minimum ticket size of INR 300 in order to avail the offer, which is possible only in groups of 2 or more generally. The only value coupon appears to be three piece hot wings free (INR 59) which can be availed with meals starting from INR 70 (Taxes extra in both cases).
KFC recently started its home delivery service in India, for which it has similar offers. However the minimum order size for home delivery has to be INR 150. In addition to it, KFC was also offering 2 Liter Pepsi free with Chicken buckets for home delivery. The Free Charge offers were introduced after the home delivery offers got discontinued in January, this year. As a consumer, there is enormous value in the deals as KFC is often perceived as a premium product due to its unique offering.
In fact, the value deals can also be looked at as targeting the college student and the family market to change its perception from a fast food to family food. If we analyse the monetary value of the deals, KFC has a significant cushion as margins are quite high due to the price difference between the final product and the raw materials. The only problem for KFC though will be who redeems it and how it is being redeemed. For instance, the coupon for three piece hot wings free might pose serious challenge towards the profitability in case it is redeemed with the low priced meals. However, there is little doubt that the strategy is bound to increase market share for KFC in the fast food segment in short run.
SOCIALMEDIA STRATEGY REVIEW
Kentucky Fried Chicken, the biggest competitor of McDonalds in terms of product offerings has had a tough start in the Indian market. A restaurant chain which has the word “Chicken” in its name is ought to face some hindrance in a country like India. But KFC has come a long way from its inception in India.
OVERALL STRATEGY : KFC played the watch and watch game in India and it soon realized that it needs to work on “Price” and “Customer Satisfaction”. To highlight these aspects KFC has used three of the many social media platforms- Twitter, Facebook and YouTube.
PLATFORM-WISE STRATEGY
KFC on Facebook : KFC India’s Facebook page is extremely high on interactions with customers and is even used as a medium to educate their customers with new product offerings, discounts and other schemes. It is also used as a medium to solve customer grievances. The brand is high on product oriented content. Online ordering facilities are being promoted on social media which is a smart move. However, most food and beverage brands tend to follow a set pattern in Facebook marketing instead of executing innovative ideas.
On the occasion of 26th January-Republic Day, the KFC’s Facebook team had created a sort of an animation in which they used images to portray as if three MIG fighter planes are travelling across the page. It included a series of 13 photos in which you just need to keep on pressing the right arrow key and the planes would move across the page from left to right. This whole animation of photos received tremendous response and gave a patriotic appeal to the page and helped them connect with the audience on the occasion of Republic Day. They also got a good level of interaction on the post.
If you look at the fan page engagement details, the page has 250,141 likes and 7088 comments during the study period, with a total engagement level of the fan page being 5% which depicts that the page is quite interactive and engaging. As interactions on Facebook page play an important role in audience engagement KFC India’s Facebook page managed to do a decent job and the page received 93.73% likes, 3.62% shares and 2.66% comment.
I also found the team handling KFC’s Facebook page to be extremely interactive and quick in responding to customers. They even encouraged customers to log a complaint if they were unhappy with the service at any of their outlets to which even the customers responded graciously.
KFC on Twitter : After some positives from the Facebook page I moved on to the Twitter handle of KFC which turned out to be as interactive as the Facebook page. The team looking after the handle was prompt and excellent when it came to pacifying unhappy customers. The engagement level was extremely high. They were interactive and had a contest which was running (integrated across Facebook and Twitter). They were prompt while tackling a customer grievance and used the portal to promote new schemes and discounts.
But on the negative side some of the tweets didn’t make any sense at all and these tweets didn’t engage the audience as well. The number of retweets or conversation on these tweets was extremely low. Possibly because KFC needs to move beyond displaying products on their handles. KFC can have more engaging tweets where they involve their customers to interact with the brand and get some returns in terms of audience behavior.
KFC on YouTube : The YouTube Channel of KFC lacks in content big time. There are just advertisements which are aired on the Idiot Box which are present on the channel. With a good number of subscribers KFC could have used YouTube as a medium in a better way. KFC’s last year’s campaign- “25 me khao, kha ke bolo WOW” was an excellent one but KFC couldn’t take it to the next level by using its YouTube channel more frequently. YouTube should not be used as a secondary medium to show its ads but as a medium to attract customers and engage with them. Though KFC has used YouTube as a medium very efficiently in the past, lately there has been no effort.
COMPARISON WITH COMPETITOR McDonald’s being the toughest and the biggest competitor of KFC has not been able to capitalize on the fact that they entered the Indian market well before KFC. If we compare the two brands the verdict is marginally in favor of KFC. The engagement level and the interaction level of both the brands are decent but KFC still has an edge over McDonalds. Both the brands are competing at the price point.
With KFC introducing the Rs 25/- menu and communicating the same though its social media platforms it is giving a tough competition to McDonalds.
The above charts represents the average response per post on their respective Facebook pages. As seen in the charts the number of likes and comments per post on KFC’s Facebook page is double of what McDonalds has. McDonalds India doesn’t have a Twitter handle so KFC has an upper hand in the case of engagement and promotions through Twitter. KFC uses twitter as an efficient medium to interact with its customers.
CONCLUSION : KFC is using Twitter and Facebook as a medium to connect with its customers at the fullest. All the promotions and schemes are communicated through both these mediums. Besides this they are using it to solve the customer grievances as well and connecting will with the audience by pacifying them with the right tone while handling a complaint. Both the mediums are well integrated and in-sync. However the use of YouTube as a medium is disappointing. KFC should use YouTube a little more and integrate with its other active mediums. KFC having built a fan base through Facebook and Twitter should also look at other social media platforms through which it could connect with its audience.
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