Tbilisi State University

Faculty of Humanities
English Philology

KFC

Subject – English 4 – Business English

Student – Mariam Chokharadze

Lecturer – Eter Baliashvili

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Introduction to History of KFC

KFC (Kentucky Fried Chicken) was founded by Colonel Harland Sanders, who started
selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great
Depression. Sanders' recipe, consisting of 11 herbs and spices, became popular, and he soon
realized the potential of franchising. The first KFC franchise opened in Salt Lake City, Utah,
in 1952. Sanders branded himself as "Colonel Sanders" and became a well-known cultural
icon, which helped the company expand and attract customers.
In 1964, Sanders sold the company to a group of investors led by John Y. Brown Jr. and Jack
C. Massey. KFC continued to expand internationally, opening outlets in the UK, Mexico, and
Jamaica by the mid-1960s. Throughout the 1970s and 1980s, the company underwent several
ownership changes, which led to mixed success in the U.S. market. In 1971, KFC was sold to
Heublein, a spirits distributor, which was later acquired by R.J. Reynolds. In 1986, PepsiCo
purchased KFC, leading to a focus on global expansion.
In 1987, KFC made history by becoming the first Western fast-food chain to open in China,
marking a major milestone in its global strategy. By the 1990s, KFC had grown significantly
in international markets, particularly in Asia.
In 1997, PepsiCo spun off its restaurant division, creating Tricon Global Restaurants, which
was later renamed Yum! Brands in 2002. Under Yum!'s leadership, KFC focused on growing
its presence in Asia, South America, and Africa.

KFC Marketing Strategy: A Comprehensive Analysis

KFC has successfully maintained its position as one of the world's leading fast-food chains
by leveraging a combination of strong brand identity, product innovation, localization, digital
marketing, and strategic partnerships. The brand's ability to adapt to global markets while
staying true to its core values has contributed significantly to its global success.

1. Brand Positioning and Identity

A major element of KFC's marketing strategy is its brand positioning, which centers around
its founder, Colonel Harland Sanders. By using Sanders' image in its advertisements and
branding, KFC emphasizes tradition, authenticity, and high-quality food. The "11 herbs and
spices" recipe is a key differentiator, allowing KFC to maintain a premium, homemade feel in
an industry dominated by quick-service competitors. This strong brand identity helps KFC
stand out in a competitive market and builds consumer trust across various regions.

2. Product Innovation and Localization

KFC’s localization strategy has been crucial in driving its success in international markets.
While the brand stays true to its core menu of fried chicken, it tailors its offerings to suit local
tastes. In India, for instance, KFC offers a wide variety of vegetarian options, while in Japan,
the menu features chicken skewers and unique seasonal items. This ability to adapt to local

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preferences while maintaining its core identity has made KFC highly successful in diverse
markets, from Asia to the Middle East.

3. Digital and Social Media Marketing

KFC has effectively leveraged digital and social media marketing to reach a broader
audience, particularly younger consumers. The brand uses platforms like Facebook,
Instagram, and Twitter to engage with customers through promotional campaigns, influencer
collaborations, and interactive content. By creating buzz around new menu items and limited-
time offers, KFC keeps its brand relevant and visible in the fast-paced digital landscape.
Additionally, KFC’s use of digital platforms to promote delivery services and mobile
ordering has made it more convenient for customers to access their favorite meals.

4. Strategic Partnerships and Collaborations

Strategic partnerships play a significant role in KFC’s marketing strategy. The brand has long
partnered with PepsiCo to provide beverages and collaborated with other local and
international companies to expand its reach. These partnerships not only enhance the
customer experience by offering complementary products but also help increase brand
visibility across various channels. Additionally, KFC’s strategic alliances with tech
companies and delivery platforms have expanded its digital presence, allowing customers to
easily access KFC offerings online.

5. Focus on Customer Experience

KFC’s customer-centric approach is a key driver of its marketing success. The company
has embraced digital innovations like mobile apps for ordering, loyalty programs, and
delivery services to enhance the overall customer experience. This focus on convenience and
personalization ensures KFC stays competitive in a fast-changing industry. In recent years,
the brand has also integrated sustainability initiatives and healthier menu options in response
to changing consumer preferences.

6. Consistent Global Expansion

KFC’s global expansion has been a critical factor in its success. From becoming the first
Western fast-food brand in China in 1987 to opening stores in countries like India, Russia,
and many others, KFC has managed to build a robust international presence. While its
number of U.S. outlets has declined, the brand continues to grow rapidly in markets across
Asia, South America, and Africa. Today, KFC operates over 24,000 outlets in 145 countries,
with China being its largest market, boasting over 4,500 locations.

10 Things You Didn’t Know About KFC

KFC is a global fast-food giant with a rich history and some surprising facts. Here are 10
things you might not know about the brand:

1. Colonel Sanders wasn’t always a businessman – Before founding KFC, Harland

Sanders worked various jobs, including insurance salesman, railroad fireman, and
farmer. He didn’t start selling chicken until his 40s.
2. The “11 Herbs and Spices” recipe is a secret – The famous blend is one of the best-
kept secrets in the food industry. The recipe is locked in a safe, and only a few people
know the exact ingredients.

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 3. Colonel Sanders wasn’t a real colonel – Sanders was given an honorary title of
"Colonel" by the Governor of Kentucky in 1936 for his contributions to local cuisine,
not for military service.
4. KFC invented the bucket meal – The iconic chicken bucket was introduced in the
1950s as a way to serve families, making it easier to share meals together.
5. KFC is huge in China – KFC's largest market is China, where it has more than 4,500
locations. It was the first Western fast-food chain to open in China in 1987.
6. KFC’s fried chicken is pressure-cooked – The pressure fryer method was invented
by Sanders to ensure his chicken stayed crispy on the outside and tender on the inside.
7. The original KFC building is still standing – The first KFC restaurant, now a
museum, is located in Corbin, Kentucky, where Sanders started selling fried chicken.
8. KFC's slogan almost didn’t happen – "Finger Lickin’ Good," one of the most
famous slogans in advertising, was introduced in 1956 after a customer praised the
taste of KFC chicken.
9. KFC once tried vegetarian chicken – In the 1990s, KFC tested a vegetarian version
of its chicken, but it didn’t catch on and was eventually discontinued.
10. KFC’s Colonel Sanders was a TV personality – Sanders appeared in countless
commercials for KFC, making him one of the earliest celebrity brand ambassadors.

These fun facts reveal the history and innovation behind KFC, which helped it become a
worldwide fast-food leader.

KFC’s primary source of income comes from selling food and beverages, both in physical
stores and through online orders. Additionally, it generates revenue from its franchises,
collecting fees through licensing agreements. In 2022, KFC’s total revenue amounted to
$31.116 billion, with $6.8 billion coming from its annual sales, reflecting a growth of 3.92%
from the previous year.

Cost Structure

KFC's pricing strategy varies by location, influenced by factors such as:

1. The costs of equipment, ingredients, and raw materials.

2. Operational and rent-related expenses.
3. Payments made to partners.
4. Costs for advertising and marketing efforts.

Customer Segments & Marketing Strategy

KFC caters to three key groups:

1. Individuals: Busy professionals who seek quick, affordable meals.

2. Families: The brand creates a welcoming atmosphere with play areas for children and
toys in meals.
3. Groups: People hosting events like birthdays or office parties often choose KFC for
catering

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Channels

KFC runs over 29,000 restaurants across 145 countries. In addition to in-store dining, it offers
customers the convenience of ordering food online through its website or app, with its own
delivery team ensuring prompt service to customers’ homes.

Competitors

KFC competes with several well-known brands:

1. McDonald's: Famous for its burgers, fries, and drinks.

2. Starbucks: Known worldwide for coffee and other specialty beverages.
3. Burger King: Recognized for its flame-grilled burgers.
4. Subway: Specializes in fresh, customizable sandwiches.
5. Pizza Hut: Offers a wide variety of pizzas and both dine-in and delivery services.

Conclusion

KFC's marketing strategy is a blend of strong brand identity, localized menu offerings, digital
engagement, and strategic partnerships. Its ability to adapt to diverse cultural preferences
while maintaining a consistent brand image has enabled KFC to thrive in both domestic and
international markets. With a focus on customer experience and continuous innovation, KFC
remains one of the most successful fast-food brands globally.

KFC’s business model thrives thanks to its consistent focus on high-quality food, competitive
pricing, and strong customer loyalty. By partnering with franchisees and suppliers, managing
operational costs effectively, and adapting to various markets, KFC continues to expand its
global presence.

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Bibliography:

1. History of KFC - https://en.wikipedia.org/wiki/History_of_KFC

2. Marketing Strategy Analysis - https://www.brandcredential.com/post/kfc-marketing-
strategy-a-comprehensive-analysis
3. Facts You Didn’t know - https://www.delish.com/food/a45917/things-you-didnt-
know-about-kfc/
4. KFC Logo - https://1000logos.net/kfc-logo/
5. KFC Statistics -https://www.coolest-gadgets.com/kfc-statistics/

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