Kfc Consumer Behaviour.docx

CONSUMER BEHAVIOUR PROJECT

TOPIC: HEALTHIER PRODUCT INCLUSIONS IN KFC MENU

Made By: Jahnvi Khanna (14) Kriti Sharma (21) Jeevesh Gadh (25) Kshitij Malhotra (35) Sanchit Sharma (45) Mansi Aggarwal (59)

INTRODUCTION

KFC Kentucky Fried Chicken, popularly known as KFC, is a fast food restaurant chain that is known for its fried chicken. Headquartered in Louisville, Kentucky, the United States, KFC is the world’s second largest restaurant chain after McDonald’s. Currently, KFC has more than 18,000 outlets in over 100 countries. And every day, more than 12 million customers are served at KFC outlets around the world. KFC is a subsidiary of Yum! Brands, which also owns Taco Bell and Pizza Hut. The first KFC outlet in India was opened in Bangalore in June 1995 and from 30 outlets, the number has grown to 296 today. Fast food restaurants have gained popularity in India because of their customised menus that suit the taste buds of the citizens

CASE INTRODUCTION HEALTHIER PRODUCT INCLUSION IN KFC MENU People nowadays are very health conscious. Millennials in particular - those who came of age at the turn the century - are leading the charge by making health-promoting diet and lifestyle choices a priority. Everyone in the food and drink industry, from fast food to traditional restaurants, is being scrutinised for the nutritional content of their meals. Now KFC, the firm which is famous for Bargain Buckets and Zinger Burgers, are set to offer customers healthy sides instead of fries. The restaurant chain said that it planned to roll out exciting changes to its menu in the next few months, including more healthy and vegetarian options. They are also considering

offering only low or zero calories carbonated drinks. Also KFC has vowed to revamp its menu and remove 20 percent of calories "per serving" by 2025 By 2020, the company plan to have more lunch and dinner options available under 600 calories, in line with Public Health “We know people are more passionate than ever about eating well, and we face a big challenge in shifting their perceptions of what we offer," said Victoria Robertson, the firm's head of food innovation. ‘’We’ve done it before."

PROJECTIVE TECHNIQUE

Projective technique – when people hear the word KFC they think of fried chicken and 11 secret herbs and spices used for fried chicken. A haven for non-vegetarian products. Inclusion of Msg in its recipes No healthy option offered by the restaurant

KFC- INDUSTRY ANALYSIS Factors driving the fast food industry in

india: The following are some of the reasons for the emergence of fast food restaurants in India: ● Gender Roles: Gender roles are now changing. Females have started working outside. So, they have no time for their home and cooking food. Fast food is an easy way out because these can be prepared easily. This has been seen as the major reason for the growth of fast food industry. Gone are the days when women prepare food for their family. As women also take up jobs their preferences changes for something quick and cheap. ● Consumer Sophistication And Confidence: Consumers are becoming more sophisticated now. They do not want to prepare food and spend their

time and energy in household works. Qin, Zhao (2010). They are building their confidence more on „ready to eat and easy to serve‟ kind of foods. All the fast food brands have created a confidence in the consumers mind as healthy and hygienic. Consumers start seeing fast food restaurants as social symbol for prestige and status. ● Paucity of Time: People have no time for cooking. Because of emergence of working women and also number of other entertainment items. Most of the time either people work or want to enjoy with their family. Fast food restaurants satisfy their appetite in a quick and cheap manner which has increased the growth of fast food restaurants. ● Double Income Group: Emergence of double income group leads to increase in disposable income. Now people have

more disposable income so they can spend easily in fast food and other activities. As people start earning more and more income they are willing to spend time and money on more recreation and entertainment. ● Working Women Working women have no time for cooking, and if they have then also they don't want to cook, because they want to come out of the traditionally defined gender roles. They do not want to confine themselves to household work and upbringing of children‟s. Working women bring up their children in a more relaxed way which increases their preference towards more of fast foods. All the families who have a working women in home have less preference for home made foods and fast food restaurants comes in handy for their consumption.

Marketing Strategies of KFC • According to KFC, kids become the future permanent customers and we know very well that without any marketing strategy no marketing program and no product is successful because we are dependent upon customers, customers don’t depend on us. • KFC is following Niche Marketing and Societal Marketing techniques. • KFC follows a western culture because some of the Indian people are also following that culture. • KFC is moving from Divisional Level to the District level by opening branches • KFC also offers free home delivery • KFC menu consists of more than 30 products. RELATIONSHIP MATRIX FACTOR

WEI MCD KFC BU BUR GH RG GER

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SING KIN H G

SWOT ANALYSIS FOR KFC: Strengths: • Delicious and well-liked recipes. • Strongest category among nearest competitors • Well Global Penetration. • Well recognised brand logo.

• Strong Cash Flow via franchise and license fee. Weakness: • Most KFC items have close substitutes in market. • No product innovations. • Lack of control in joint venture arrangements. • Inconsistent quality of service in many outlets. Opportunities: • Undeveloped markets in many countries. • Increased 18-25 age group. • Increasing trends to take meal out of homes. Threats: • Other cheap alternatives available. • Bird flu. • Cannibalization of own products. • Changing health trends of customers.

• High calorie food

HEALTHIER PRODUCT INCLUSION IN KFC Fast food chain KFC has vowed to revamp its menu and remove 20 percent of calories "per serving" by 2025. The restaurant chain said it planned to roll out “exciting changes” to its menu in the next few

months, including vegetarian options.

more

healthy

and

The move comes with PHE calling on the food and drink industry to cut 20% of calories from a raft of products, including pizza, ready meals and sandwiches, by 2024. The firm which is famous for Bargain Buckets and Zinger Burgers, are set to offer customers healthy sides instead of fries for free. They are also considering offering only low or zero calories carbonated drinks and are to trial a vegetarian option later this year. However, it will not change the Colonel’s secret recipe of 11 herbs and spices. By 2020, the company plan to have more lunch and dinner options available under 600 calories. It wants to encourage people to aim for 400 calories for breakfast, 600 for lunch and 600

for dinner, along with a couple of healthier snacks and drinks. KFC is currently running a programme which will not only provide customers with an amazing, tasty range of healthier lunch and dinner dishes, but we’ll also be helping find ways to support them to make the lighter choice. Everyone in the food and drink industry, from fast food to traditional restaurants, is being scrutinised for the nutritional content of their meals. As an industry leader and world famous brand, KFC bear a responsibility to help move the sector forwards. KFC is a fast-food spot (and even some fastcasual chain restaurants) aren't the places to find healthy eats, but there are smart-ish choices to be made. Here's what you should order if you'd prefer to be health-conscious at KFC:

Best Chicken: Kentucky FIERY Grilled Chicken Compared to the restaurant's original recipe, extra crispy option, and spicy crispy offering, the grilled chicken breast clocked in with significantly less calories (180 vs. 390) and just 6 grams of fat (compared to 23 grams).

THE RICE BOWL Though it's covered in honey barbecue sauce and served on a serving of rice, this item is 600 calories, saving you 130 calories compared to the Colonel's Original Sandwich

(500 calories), and contains just 15 grams of fat (the original contains a whopping 23 grams)—though it does contain about 200 mg more sodium.

Why it made the cut: KFC is known for fried chicken meals that come with heavy side dishes like mashed potatoes and biscuits and gravy. This meal takes advantage of the lighter items on the menu such as grilled chicken and fiber-rich veggies, which add

nutrients to a hearty meal that contains just 10 grams of fat and 240 calories. This products may be launched next year in the indian market.

LITERATURE REVIEW

For literature review of this research paper we undertook two research papers. 1. Fast food chains like KFC, Dominoes, McDonalds are not just a western phenomenon anymore. In today’s globalised world, the study of the behaviour of such quick service conglomerates is always educational. In his 2017 study, Lin Zhu undertook the analysis of one such component in his case based research paper. The study named ‘Social Media and Culture in Crisis’ examined crisis management of two fast-food chains in China: McDonald’s and KFC. He also emphasised on crisis response strategies of the fast food giants. His result posed an important spotlight in the functioning of the two. McDonald’s emerged

stronger after the crisis because of their effective crisis management. As opposed to KFC which took more than a year to recuperate from the crisis. This case study analyzed the command chain of KFC and the decision making processes and all the steps that are involved.

2. The whole industry of quick service restaurants are dependent on component of ‘Branding’. Sharafat Hussain in his 2016 study pursued the impact of sensory branding specifically in case of KFC. Sensory branding is based on the idea that consumers are most likely to form, retain and revisit memory when their all five senses are engaged during the process of buying products or services. By going beyond the traditional marketing media of only sight and sound, brands are now taking advantage of all other

senses to establish a stronger and longerlasting emotional connection with consumers. In his survey of 116 respondents from 13 outlets, he deduced that KFC is loved because its impact on all five senses extremely highly. Therefore, the company is able to produce a demand of its product even in the toughest of markets like India. Additionally, it is one of the reasons for its popularity despite it being one of the unhealthiest fast food alternative. One can also understand the unpopularity of the healthy alternatives using this concept. To any QSR, product innovations is a two way process: introduction of the product and generation of demand amongst the consumers. The generation of acceptability of the new products in association with the brand is as important as the existing product line.

Therefore, constant innovation and impactful market strategies are the way to go.

METHODOLOGY

METHODS OF SAMPLING

JUDGEMENTAL SAMPLING:

Judgmental sampling is a non-probability sampling technique where the researcher selects units to be sampled based on their knowledge and professional judgment. People are getting more inclined towards buying Smoky grilled chicken wings as it is more healthy and less fattening than the crispy chicken wings KFC is offering and the price of both are same so consumers are becoming more health conscious. CONVENIENCE SAMPLING: Convenience sampling is a non-probability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher. I went to KFC Located in INDIRAPURAM as it was near to the place where i live and it has more footfall than any other KFC in the area. I stood at the exit gate and asked people who were willing to fill the feedback.

METHOD OF COLLECTION DATA

PRIMARY SOURCE: We used questionnaire method to carry out the research. The survey was conducted amongst the random sample of 10 people. Why we used questionnaires? The questionnaire plays a number of important roles: ● It is primary purpose for extraction of data from respondent. ● They are cheaper and we can get lot of responses in less time. ● Efficiency to researchers. ● Easy to analyze. ● We conducted face to face so its better to analyze the respondents face expression.

TYPES OF QUESTIONNAIRE: ● Classification Questions ● Yes/No Questions. ● Multiple Choice Questions. ● Scaled Association Questions. ● Word Association Questions.

P.S. Due to Headquarter mandated audit going on, we were unable to get unable contact with the management of the outlet.

DATA INTERPRETATION ● How frequently do you use any fast food chain?

The frequency of visit by the respondents to their nearest Fast food retail outlet recorded

that the monthly visit were the highest while the daily and rare visit stood at 0. ● Which is your favourite fast food brand?

Mcdonald's was the highest voted fast food retail outlet by the respondents with a total of 4 votes while kfc was at number 2 and burger king was at number 3 followed by burger singh.

● How frequently do you go to KFC?

The frequency of visit by the respondents to their kfc outlet recorded that the monthly visit were the highest while the daily and rare visit stood at 0. ● Do you know about the healthy options offered by KFC?

8 Out of 10 respondents were unaware of the healthier alternatives that kfc offers. ● Which do you prefer amongst: - Fiery Grilled Fried Chicken Bucket

7 Out of 10 respondents preferred fried chicken over fiery grilled chicken which is an healthier alternative. ● Which do you prefer amongst: Krushers Mojito/Yogurt based drinks

9 out of 10 respondents preferred krushers over a mojito which may be a better alternative for the health freaks out their. ● Would you ever go to KFC specifically for Rice Bowl or Fiery Grilled or Corn On The Cob?

Only 3 out 10 respondents would come to kfc specifically for a rice bowl or fiery grilled or a corn on the cob. ● How would you rate the following factors of a KFC outlet? Very Good Good Average Poor Very Poor - Menu - Food quality - Services

- Ambience - Health Quotient - Outlet Accessibility

The general consensus amongst the fast food patrons for the menu was good, while the food qualities general consensus was very good, the ambience was given an average rating ,while the general consensus for service and outlet accessibility was poor. There was a tie poll

between average and very good for the health quotient offered by the restaurant.

CONCLUSION

The image of kfc in the eyes of the indian consumers is pretty stagnant all over the subcontinent as it is perceived as the number one destination for serving fried chicken. However the young consumers ie from the age group of 18-25 years are the evident target market for the brand but a latter shift in the trend of eating habits from unhealthy to a healthy outlook will squish the sales of the brand if new healthier alternatives are not introduced in its menu. The current healthy option that kfc offers to its consumers are a virgin mojito ,

yogurt based fruit drinks , corn on the cob , fiery grilled chicken and due to lack of marketing for the same many of the consumers are unaware of the above variants. Kfc is a step behind being the consumer favourite , it is right behind mcdonalds and people who do visit kfc prefer fried chicken over fiery grilled (which was introduced to give competition to burger king's whopper) and people prefer crushers which is loaded with sugar and chocolate over mojito or a yogurt based beverage. And ofcourse the obliviousness of the consumer towards the healthier option and vegetarian option is justifiable due to lack of advertising. And even after tasting the same only 30 percent of the respondents would ever go back to kfc to specifically try these items. Kfc just registered a decline in their ssg in india which shows that the data obtained via the filled out questionnaire is correct which

lays an emphasis that the brand needs to work on improving its service and outlet accessibility. In the end kfc needs to work on introducing healthier alternatives keeping in mind the change in consumption pattern of the consumer and lastly work on its advertisement for the same products.

LEARNING OUTCOMES: ● To understand consumption pattern through application of quantitative and qualitative data. ● To understand the process of market research and identify variables that influence demand amongst target customers. ● Knowledge about product line and differentiation of KFC. ● To analyse consumer trends and initiatives of KFC to meet these changes through new products. ● To analyse the healthy food section of KFC in terms of demand and product placement in relation to consumers.

● To pursue the variables that influence the acceptability of healthy segment amongst consumers of KFC. BIBLIOGRAPHY

1.https://www.mbarendezvous.com/generalawareness/kfc-story-in-india 2.https://www.independent.co.uk/lifestyle/food-and-drink/kfc-menu-changenew-2020-healthy-calories-cut-friedchicken-uk-a8374056.html 3.http://www.academia.edu 4.https://is.muni.cz 5.https://www.sciencedirect.com/science/arti cle/abs/pii/S0363811115301594 6.http://citeseerx.ist.psu.edu/viewdoc/downl oad?doi=10.1.1.678.7063&rep=rep1&type =pdf

QUESTIONNAIRE ● Name: ● Age: ● Gender: ● Profession: ● How frequently do you use any fast food chain? Rarely Monthly Weekly Daily ● Which is your favourite fast food brand? KFC McDonalds Burger King Burger Singh ● How frequently do you go to KFC? Rarely Monthly Weekly Daily

● Do you know about the healthy options offered by KFC? Yes No ● Which do you prefer amongst: - Fiery Grilled Fried Chicken Bucket - Krushers Mojito/Yogurt based drinks ● Would you ever go to KFC specifically for Rice Bowl or Veg Strips? Yes No ● What is your favourite item on the KFC menu? _____________________________________ Why? _____________________________________ ● What do you associate the name KFC with? _____________________________________

● How would you rate the following factors of a KFC outlet? - Menu VG G A P VP - Food quality - Services - Ambience - Health Quotient - Outlet Accessibility