Mkt320 Research Project.rtf - Bhanu Priya Gupta 89904457 Lesson Number \u2013 08055000 Student ID [email protected] India has been steadily claiming a

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Bhanu Priya Gupta Lesson Number – 08055000 Student ID # - 89904457[email protected]India has been steadily claiming a larger share of the attention of leading operators looking toexpand abroad, and some have even gone as far as calling India, “China 2.0”. While brands from all over the world have already rushed to carve out a presence in India, the market is still years away from seeing anywhere close to the kind of chained foodservice penetration already achieved in China. And as excitement about future potential in India has grown, so too has the competition, taking with it any chance of finding any sort of first-mover advantage. This has resulted in a market that is relatively underdeveloped in terms of outlets per-capita, and yet one that is already crowded with competitors all vying for customers in the same concentrated areas.Within these conditions, many chains are having trouble finding ways to stand out, and the window for establishing oneself as a leader in the lucrative market may soon be closing. But there is one brand which came out from nowhere and ranked third in the market. “Yum Brands KFC”.A slow start, with Building MomentumKFC was the fastest-growing major chain in India in 2012, recording 45% value growth year-over-year based on a 41% increase in outlets (a net addition of 62). This level of growth has helped KFC become the third-ranked brand in India, a fact that is particularly notable considering they were a relatively late entrant in terms of widespread expansion. In 2003, KFC had just 3 local outlets, putting them well behind Baskin-Robbins, Domino’s, Pizza Hut,and McDonald’s, all of which had over 50 outlets already in operation, and were growing quickly.KFC’s success has come as a combination of clever localization, savvy pricing strategies, successful consumer education, and a menu that appeals well to the changing preferences of sophisticated, urban Indian consumers. KFC’s entry into the market was slow, and despite opening three initial outlets as early as 1995, the chain had reached just five units nearly a decade later. At that time, the market posed significant logistical issues, and sourcing enough poultry, beef and other products continues to be a challenge even in 2012. Back in the ‘90s,
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