service strategy of kfc

8/13/2019 Service strategy of KFC

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Term paper on : Service strategy of KFC Subject code: MKT 412

Section: 01

PREPARED FOR:

SSM Sadrul Huda (SH)Assistant Professor

Department of Business AdministrationEast West University.

PREPARED BY:

Md . Taijul Islam ----------------------------------------------------Id: 2009-2-10-217

SHADIN -01917277300

Fariha Faroque Mitu ------------------------------------------------Id: 2009-3-13-024

Khaleda Akter -----------------------------------------------------Id: 2009-3-13-046

Taskina Jahan ---------------------------------------------------Id: 2009-2-10-132

Date of Submission: 01 August, 2013


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Letter of Transmittal

August 15, 2012

SSM Sadrul Huda

Faculty of Business Administration

East West University

Subject: Submission of a term paper on service strategy of KFC.

Dear Sir,

We consider it as a great pleasure to prepare an assignment on service strategy of KFC. Inmaking this assignment we offered our best to present positive and well-scanned efforts to

afford necessary and relevant materials for preparing a comprehensive presentation on

service strategy of KFC .

Finally, we acknowledge the special gratitude to you for providing us the golden opportunity

to work on the topic. It is a thrilling experience for us which will enrich our practical

knowledge. We are hopeful that our theoretical assessment, relevant information detailed

analysis and real-life example will achieve your appreciation.

Sincerely

Md . Taijul Islam Id: 2009-2-10-217

Fariha Faroque Mitu Id: 2009-3-13-024

Khaleda Akter Id: 2009-3-13-046

Taskina Jahan Id: 2009-2-10-132


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TABLE OF CONTENT

DESCRIPTION PAGE NO.


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Introduction:

Excellent customer serv ice is the process by which organization delivers its services or

products in a way that allows the customer to access them in the most efficient, fair, costeffective, and humanly satisfying and pleasurable manner possible.

A customer service strategy is an important part of any business plan. Since business relies oncustomer satisfaction, any good business should develop a strategy that not only draws incustomers, but keeps them happy so they are not tempted to try out a competitor.Customer service is the provision of service to customers before, during and after a purchase.Customer service is a series of activities designed to enhance the level of customersatisfaction that is, the feeling that a product or service has met the customer expectation."

The importance of customer service may vary by product or service, industry and customer.The perception of success of such interactions will be dependent on employees "who canadjust themselves to the personality of the guest. From the point of view of an overall sales

process engineering effort, customer service plays an important role in an organization'sability to generate income and revenue. From that perspective, customer service should beincluded as part of an overall approach to systematic improvement. A customer serviceexperience can change the entire perception a customer has of the organization.

4 Main activities of Service Strategy

Define marketIt is important to be careful about how a market is defined. The following keymarketing processes rely on a relevant market definition:

- Measuring market share- Measuring market size and growth- Specifying target customers- Identifying relevant competitors- Formulating a marketing strategy

A market can be defined as follows:

A market is the set of all actual and potential buyers of a product or service.

This definition suggests that a market is the total value and/or volume of productsthat satisfy the same customer need.

For example, if the customer need is eat breakfast , then the relevant market could be defined as the Breakfast Food Market . Many products would be r elevant tomeasuring and analysing such a market:

- Breakfast Cereals

- Nutrition Bars- Porridge / Oats


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Strips chicken with home style sides and five new freshly made sandwiches. Every day,

nearly eight million customers are served around the world. KFCs menu everywhere

includes Original Recipe chicken made with the same great taste Colonel Harland

Sanders created more than a half-century ago. Customers around the globe also enjoy more

than 300 other products from a Chunky Chicken Pot Pie in the United States to a salmon

sandwich in Japan.

KFC continues reaching out to customers with home delivery in more than 300 restaurants in

the United States and several other countries. And in quite a few U.S. cities, KFC is teaming

up with other restaurants, Taco Bell and Pizza Hut, selling nearly fifty years ago; Colonel

Sanders invented what is now called home meal replacement selling complete meals to

harried, time-strapped families. He ca lled it, Sunday Dinner, Seven Days a Week.

Today, the Colonels spirit and heritage are reflected in KFCs brand identity the logofeatures Colonel Harland Sanders, one of the best-recognized icons in the world.

KFC specialized in chicken and they says,

No bodys cooking like KFC today and we are the chicken experts

There is no competitor for spicy chicken which is made by KFC

Mission s tatement

To be the leader in w estern s tyle quick service restaurants through fr iendly service,good qual i ty food and clean atmosphere

Goals of KFC

Build an organization dedicated to excellence.

Consistently deliver superior quality and value in our products and services.

Maintain a commitment to innovation for continuous improvement and grow, striving

always to be the leader in the market place changes.

Generate consistently superior financial returns and benefits our owner and

employees.


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To establish in India our position as leading WQSR (Western Quick Service Restaurant)

chain, serving good value. Innovative chicken-based products. Consistently, providing a

pleasant dining experience, with fast friendly, in a clean and convenient location. At all times

we must be dedicated to providing excellent and delighting customers.

KFC History

KFC is an internationally renowned fast food industry in the world. They have the mainambition to increase & maintain the quality in fast food industry. Their aim is to capture thefast food market. Basically they want to provide their products to anyone that is why theyexpanding their branches in all over the world. They want to increase their profitthrough 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 anew 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 food service systems in the world. And colonel sanders, a quickservice restaurant pioneer, have become a symbol of entrepreneurial spirit. More than two

billion of the colonels finger lickin good chicken dinners are served annually. And not just in America. The colonels cooking is available in mo re then 82 countries around theworld.

When the colonel was six, his father died. His mother was forced to go to work, and youngHarland had to take care of his three year old brother and baby sister. This meant doing muchof the family cooking. By the age of seven, he was a master of a score of regional dishes. Ateage 10, his first job working on a nearby farm for $2 a month. When he was 12, his motherremarried and he left his home near Henryville, Ind., for a job on a farm in Greenwood, Ind.He held a series of jobs over the next few years, first as a 15-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 Operatedservice station. When he was 40, the colonel began cooking for hungry travelers who stoppedat his service station in Corbin, KY. He didnt have a restaurant then, but served folks on hisown dining table in the living quarters of his 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 basiccooking technique that is still used today.


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potatoes or rice, gravy, corn, popcorn chicken, and cheese, and is served with a biscuit. The bowl had been available at KFC's special test market store in Louisville since the thirdquarter of 2005.

Service offer:

Face to face / self service:

If the customer want to take service from KFC outlet by face to face contract then they haveto at first they have to reach appetizer counter then salad counter.

When the customer go KFC at first they select food items from menu. Then give orderaccording their desire to the cash counter. Whatever they want to eat place order to cashcounter and provide payment. After paying payments then take food from the food deliverycounter.

Online service:

Besides self service in outlet KFC provide online delivery service.at first receive order fromtelephone, e-mail or web site. After receiving order they select food items according toreceive order. Then select food from individual food container. Place food in the containerthen package tit base on their packaging criteria. Then deliver food items with their owntransport. Collect payment from the customer.

Delivery process:


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How communicate:

The primary role of service firm`s communication strategy is to inform, persuade and remindconsumers about the service being offered. Information, Persuasion and Reminding- three ofthese key factors can be addressed separately or can be addressed in an interrelated manner.In a service firm three of these key factors are deal with comprehensive format. In differentstage of consumer awareness, different strategies are needed to address them. In the basiclevel the primary objective is to create consumer awareness. Then further encouragement isneeded to initialize buying decision. Finally, people need reminder.

Figure: Communication Strategy Insights

While developing any communication mix components each of these factors should be keptin mind that what organization is going to do and how it is going to address different levels.

Communication Objectives

Inform

RemindPersuade


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The objective of a firm`s communication mix often relate directly to the service offering`sstage within the product life cycle.

Introduction:

Involves informational content like introduce the service offering, create brand awareness, prepare the way of personal selling efforts and encourage trials.

Growth and maturity:

Involves informational and persuasive communication content like create positive attituderelative to competitive offerings, provoke an immediate buying action, enhance the firmsimage.

Maturity and decline:

Involves persuasive and reminder communication content like encourage repeat purchase, provide ongoing contact, express gratitude to existing customer base, confirm past purchasedecisions.

Target market

Targeting Non- users

Word of mouth marketing is the most effective form in service marketing. Current customersare playing a vital role in this aspect.

Newspaper advertisement regarding new customer gaining is another means ofcommuni cation KFC is using to reach to prospective customers.

Prospective customers can also get information through KFC website.

Targeting Users

Regular customers may get price discount or coupon.

Communication with current customers can be done through

website


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Webmail Advertisement

Communication Mix

In service marketing personal sources are more effective than non personal sources.

Media- Print media (newspaper).

Visual media- Website

Mode of communication- Most effective is developing word of mouth communicationnetwork.

External communication- Communication outside the campus is being made through

Prospectus, Newspaper advertisement, Events- KFC organize different promote=oinal eventsin the different universities.

Physical evidence:

Clean and attractive Ambience

The servicescape of all KFC outlets will be improved in order to be attractive and enjoyable

environment for the customers, clearly defined menus with clear information will be placedevery table, poster words welcome and have nice days will be placed every corner withaim of connecting the customers emotionally. (Kotler, et al, 2007)

Since services are intangible in nature most service providers strive to incorporate certaintangible elements into their offering to enhance customer experience. Thus, there are hairsalons that have well designed waiting areas often with magazines and plush sofas for patronsto read and relax while they await their turn. Similarly, restaurants invest heavily in theirinterior design and decorations to offer a tangible and unique experience to their guests. Physical evidence:

Physical evidence A service encounter does not take place in a vacuum A service transactiongenerally involves the interaction of the service provider with the customer in a serviceenvironment. The service environment along with the tangible cues is termed as physicalevidence . There are 2 perspective to physical environment: Process of operation perspectiveMarketing perspective. Physical facilities .. Like building, furniture, equipments, stationery,

brochures. it reinforces the proposed image of the service organisation. The elements of physical evidence are: Essential Evidence Peripheral Evidence Essential Evidence-Constitutes a dominant part of the service facility. Technical facilities based on which servicetakes place. Cannot be passed on to consumer, except may be on temporary basis (eg: hotel

building, aircraft in airlines, office and furniture in consultancy firm). Peripheral Evidence- Not very visible in relation to dominant physical evidence. They definitely have an impacton the consumer perception about the qwlty of the service These include business cards,


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stationery, brochures, etc These evidences are pas sed over to customers in the course oftransaction the service is provides without these items yet can be used to enhance corporateimage Physical Environment the physical setting or the service environment withinwhich the service takes place. The service space Includes_ the exterior attributes (the

parking area, front elivation of the building, landscape) the interior attributes (the design,

ambiance, layout, etc)The important elements of physical settings are as follows: AmbianceDcor and Artifacts Spatial Layout and Functionality Physical evidence is about where theservice is being delivered from. It is particularly relevant to retailers operating out of shops.This element of the marketing mix will distinguish a company from its competitors. Physicalevidence can be used to charge a premium price for a service and establish a positiveexperience. For example all hotels provide a bed to sleep on but one of the things affectingthe price charged, is the condition of the room (physical evidence) holding the bed.Customers will make judgments about the organisation based on the physical evidence. Forexample if you walk into a restaurant you expect a clean and friendly environment, if therestaurant is smelly or dirty, customers are likely to walk out. This is before they have evenreceived the service. There are many examples of physical evidence, including some of thefollowing:

The building itself (such as prestigious offices or scenic headquarters). This includesthe design of the building itself, signage around the building, and parking at the

building, how the building is landscaped and the environment that surrounds the building. This is part of what is known as the servicescape.

The interior of any service environment is important. This includes the interior designof the facility, how well it is equipped, internal signage, how well the internalenvironment is laid out, and aspects such as temperature and air conditioning. This isalso part of the servicescape.

Packaging. Internet/web pages. Paperwork (such as invoices, tickets and dispatch notes). Brochures. Furnishings. Signage (such as those on aircraft and vehicles). Uniforms and employee dress. Business cards. Mailboxes. Many others . . .

People (personnel):People are a defining factor in a service delivery process, since a service is inseparable fromthe person providing it. Thus, a restaurant is known as much for its food as for the service

provided by its staff. The same is true of banks and department stores. Consequently,customer service training for staff has become a top priority for many organizations today.People in Service In service, the personnel come in contact with the process of productionand consumption of services. The service marketing mix applies not only to personnel butalso recognises the role of participants. In service business , the service personnel reflects theorganisational realities, it is through the interaction with the staff, the customers forms anopinion of the organisation. People are an essential ingredient in service provision; recruitingand training the right staff is required to create a competitive advantage. Customers make

judgments about service provision and delivery based on the people representing your


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organisation. This is because people are one of the few elements of the service that customerscan see and interact with. The praise received by the volunteers (games makers) for theLondon 2012 Olympics and Paralympics demonstrates the powerful effect people can createduring service delivery.

Staff require appropriate interpersonal skills, aptititude, and service knowledge in order to deliver aquality service. In the UK many organisations apply for the "Investors in People" Accreditation todemonstrate that they train their staff to prescribed standards and best practices. People or humancapital can be competitive advantage in the service sector if they are trained well . KFC willhave the following elaborate plan to achieve that success.

Recruitment and Training

KFC will recruit employees with prior experience in the fast food industry and enroll them inhouse training for one month courses leading to training in health and safety measures,

hygiene and food regulation. They will also be trained in customer handling practices,customer behavior, expectations and characteristics. ( Aeker, 2007).

Motivation and teamwork

Employees of all KFC outlets will be a warded 20% salary increment from January 2011.This translates to RM1440 per month from the current RM 1200 per month. They will beawarded bonuses for working during the holidays. Teamwork will be encouraged all the timein order to achieve organization objective.

Customer:

KFCs customer market consists solely of the consumer market (Kotler et al 2003). KFCs

products are bought by individuals (males, females, singles, and families). Therefore, the product range KFC offer should appeal to as many people within this consumer market as possible, to ensure that the maximum amount of products can be sold. The characteristics ofthese individuals and a segmentation of them are discussed later in this report. Employeesshould always be alert and attentive when taking customers orders to reduce wastages andincrease customer involvement as part of the service delivery in order to increase thecustomer confidence. The other option will be arranging customers in separate line for thetake a ways and those having their meals in the outlets for convenience.


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Conclusion:

KFC has to invest continuous product development in competitive industry like the fast foodindustry to remain market leader. This can be done by carrying out research concerningchange of customer needs and preferences all the time. The fact that differences between thecompetitors is narrowing day by day the only way to survive is creating difference in terms of

products, people, service delivery and quality. It is clear from the above report that a highnumber of people actually like to order from their home or workplace rather than coming.This may be due to more convenience, time shortage or just not willing to come and dine.Certainly

the home delivery market is huge and KFC can take well advantage of the situation.

Thus it would be in the best interest of the company to start the service as soon as possibleand capitalize on the opportunity. KFC expects arise in the orders by at least 20% by starting this service.

Therefore, to conclude we would say that KFC should definitely have a home deliveryservice.

KFC is a very strong chain of fast food restaurants with more than 10,000 restaurants

all over the world. Being in Maturity Stage it has high opportunities of introducing its new

products and deals. In Future it will be expanding its chain by introducing more outlets in

Pakistan as well as in other countries.


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Reference:

Yum! Br ands, Inc.http://www.yum.comKFChttp://www.kfc.com

http://www.kfcholdings.com.my/English/Flashsite/BusinessUnits/Restaurants_KFC.asp

http://www.kfcholdings.com.my/English/Flashsite/AboutCompany/OurGoals.asp

http://www.malaysiamission.com/team.php?id=25

http://www.indexmundi.com/malaysia/demographics_profile.html

http://www.allbusiness.com/food-beverage/restaurants-food-service-restaurants-

fast/6988065-1.html

http://www.indexmundi.com/malaysia/gdp_real_growth_rate.html

http://www.kfcholdings.com.my/English/Flashsite/BusinessUnits/BizU_Poultry_Integration.asp

http://www.kfc.com.my/about-halal.html
http://www.kfcholdings.com.my/English/Flashsite/BusinessUnits/Restaurants_KFC.asphttp://www.kfcholdings.com.my/English/Flashsite/BusinessUnits/Restaurants_KFC.asphttp://www.kfcholdings.com.my/English/Flashsite/AboutCompany/OurGoals.asphttp://www.kfcholdings.com.my/English/Flashsite/AboutCompany/OurGoals.asphttp://www.malaysiamission.com/team.php?id=25http://www.malaysiamission.com/team.php?id=25http://www.indexmundi.com/malaysia/demographics_profile.htmlhttp://www.indexmundi.com/malaysia/demographics_profile.htmlhttp://www.allbusiness.com/food-beverage/restaurants-food-service-restaurants-fast/6988065-1.htmlhttp://www.allbusiness.com/food-beverage/restaurants-food-service-restaurants-fast/6988065-1.htmlhttp://www.allbusiness.com/food-beverage/restaurants-food-service-restaurants-fast/6988065-1.htmlhttp://www.indexmundi.com/malaysia/gdp_real_growth_rate.htmlhttp://www.indexmundi.com/malaysia/gdp_real_growth_rate.htmlhttp://www.kfcholdings.com.my/English/Flashsite/BusinessUnits/BizU_Poultry_Integration.asphttp://www.kfcholdings.com.my/English/Flashsite/BusinessUnits/BizU_Poultry_Integration.asphttp://www.kfcholdings.com.my/English/Flashsite/BusinessUnits/BizU_Poultry_Integration.asphttp://www.kfc.com.my/about-halal.htmlhttp://www.kfc.com.my/about-halal.htmlhttp://www.kfc.com.my/about-halal.htmlhttp://www.kfcholdings.com.my/English/Flashsite/BusinessUnits/BizU_Poultry_Integration.asphttp://www.kfcholdings.com.my/English/Flashsite/BusinessUnits/BizU_Poultry_Integration.asphttp://www.indexmundi.com/malaysia/gdp_real_growth_rate.htmlhttp://www.allbusiness.com/food-beverage/restaurants-food-service-restaurants-fast/6988065-1.htmlhttp://www.allbusiness.com/food-beverage/restaurants-food-service-restaurants-fast/6988065-1.htmlhttp://www.indexmundi.com/malaysia/demographics_profile.htmlhttp://www.malaysiamission.com/team.php?id=25http://www.kfcholdings.com.my/English/Flashsite/AboutCompany/OurGoals.asphttp://www.kfcholdings.com.my/English/Flashsite/BusinessUnits/Restaurants_KFC.asp


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