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Large Youth Population:As the younggeneration are more open to fast foods anddemand it more, this is good news for thecompanyBoom In Organized Retail And Consumerism: with urbanization theAspiration level of the people especially the youth has gone to a level at which American eateries are the “in” thing and the Fast food chains are cashing on it by attracting more of the market to their joints.New Variety:Company can also come up with new variety in the menu like Pizzas, garlic breads to attract more customers16 | P a g e
THREATS:Competition:Competitor companies like McDonalds, Subways, and other fast food chains more familiar with the Indian ethos are fast catching up with the market. Threat From Ngo’s And Political Organizations:Anti-KFC campaigns, such as the one from PETA are affecting KFC’s brand image in a negative way and result in direct dollar losses, as lesspeople are consuming KFC chicken. Saturated U.S Market:As the US marketsare already saturated ,company necessarilyneeds to look at offshore foreign markets togenerate sales and keep up the profits.Bulk Of The Population Is Vegetarian:Indiais still mostly a vegetarian dominated culturedsociety. This may reduce the market share of the company.Economic Crisis:With the Government facing a high fiscal deficit tax and duty hike will result expenditures cutting on luxury food items. This is a serious threat facing KFC.17 | P a g e
RecommendationShort term Introduce more new recipes suited to local tasteIntroduce cheaper items in the menu Work on the image of a healthy fast food chain through advertisingLong Term Change the image of KFC from fried to ‘healthy’Engage is CSR activities related to animals & environmentDevelop a strong culture of good service 18 | P a g e
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Conclusion With a rapidly growing economy and a developingmiddle and upper-class population well into thehundreds of millions, international companies such as KFC expanding into India was alwaysinevitable. KFC maintain a Global Standardized Strategy however choose to adapt this strategyto suit international markets that require a higher level of local responsiveness and not so muchfocus on cost reductions. It now operates numerous stores in all the Indian cities and can seeopportunity for continuous growth throughout the country as the economy develops.20 | P a g e
Bibliography26Krug, Jeffrey, Kentucky Fried Chicken and the Global Fast-Food Industry in 1998. Marketing Management Case Analysis 2005.ww.yumfranchises.com/about_yum.asp21 | P a g e