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A STUDY OF GLOBALISATION STRATEGIES OF FAST FOOD CHAINS IN INDIA

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 VIRTUE: A Bi-annual Refereed Journal of DAV Institute of Management

A STUDY OF GLOBALISATION STRATEGIES OF FAST FOOD CHAINS

IN INDIA

Mahi Balusu Dr. Karina Bhatia

Student Assistant Professor
GD Goenka University GD Goenka University
Sohna, Haryana Sohna, Haryana
Email: mahibalusu@yahoo.com Email: kareenabhatia@gmail.com

ABSTRACT
Over the past years KFC has outperformed all its competitors and has become one of the most
famous fast food chains in today 's time. The cutting-edge technology, research and creative
strategies have helped it in serving customer needs better. KFC has been successful taking over
the local markets and serving the needs of the local consumers. This study aims at analysing how
KFC has captured the markets around the world and the specific strategies it has used to devise
country specific menus. The Adaptation strategies of KFC are commendable and so is their
sensitivity to various cultural needs. While many of its competitors and their strategies have been
studied in detail previously, very few have focused on KFC and its business strategies.
Aim:
Aim of the study is to .find out the integration global strategies of the global fast food chains in
India.
Findings of the study:
The results of this study show how KFC has been the most successful in integrating itself to the
domestic markets with varying cultural demands.
Keywords:
Adaptation, Research, Innovation, Country-specific-menus, Cultural-barriers, Fast-food-chain

INTRODUCTION
d
Globalisation is the process of the integration of markets, economies industries, cultures a!l J
' • - - nrA11nrl thP. worlrl lt h".) c, ;.., ~- ~- -- _, .• '
_,:- the
11atio!18
 VIRTUE : A Bi-annual Reti .
e1eedJournalofDAVI .
nst1tute of M
anagement
ct,1nomies and there has been a tr
. emendous increase in trade . .
The- biggest companies are n I m all kinds of goods and .
o onger national fi services.
·di · · inns but mult · ·
~ bs1 anes rn many countries . Th mat1onaJ corporations with
e dependency of all th .
increased as a result of their fr e countnes around the world has
. ee movement of capital and al . . .
u-,msporrat:Jon. But Gbemawat h so imp10ved communication and
on t e other hand reasons that we
perrei\·e because of th I f .· are not as connected as many
e aw o distance m · h .
dcie . th .. - eanmg t at differences among groups of people
mune e ab1bty and willirnm f difn
Th - . e ess o erent groups of people to interact with each other.
e-se differences can be cultural ( d'fft
_ e.g. , 1 erent tastes), geographical (e.g., physical distance and
barriers ). administrative (e o · th E
•o· , lil
u· ·
e uropean mon or not m the European Union), or economic
(e.g.. differences in affordability and/or living standards). These differences help in proving that
globabsation today is not as it seems and the world is not as close as it seems.

TO prm ·e this Ghemav.,at showed the statistics of the percentage of all telephone calls that are
mremational (2% ), the percentage of all citizens in a given country who are recent immigrants
(3%). the percentage of all foreign direct investment (10%), and finally, the percentage of all
expons relative to GDP (30%). In most cases people overestimated the categories by a

51.on;fi amount.. H e be11ev

5-'-1..1. cant
· es that the world is not flat . The CAGE Distance Framework was

de,·eJoped by PankaJ. Gh emawa t identifies the Cultural. Administrative, Geographic

~
and
between countries that companies should address when
Economic differences or di stances
It may also be used to understand patterns of trade, capital.
crafting international strategies.
information. and people flows .
CAGE framework makes distance visible for managers, helps to
A d. . Gbemawat the
ccor mg to ountries that might handicap multinational companies relative to
. . th d.I ffereaces across c .. . . . ..
Pmpomt e h d light on the relative pos1t1on of multmat10nals from different
. and can also s e
local compentors . Ghemawat also developed the AAA framework which offers three
. ddjtion to this
countnes. In a value creation . Adaptation strategies seek to increase revenues and
hes to oloba I
generic approac .:::, ~ or more components of a company's business model to suit local
tailonng ont:
market share by Aggregation strategies focus on achieving economies of scale or
. or preferences. . . . .
reqmrements . al or global efficiencies: they typically involve standard121ng a
· a regwn
b v creat1n.= - d .
scope ., . f the ,·alue proposition and grouping together development and pro uctlon
. paruon o
significant
151
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VIH'l'llE : /\ Bl-;11rnual Hcl·crced juurna 1o1. l)/\V
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·
processes . Arh1trngc · 11bnut explrntlllg
1s · · ccnnoin1c °
· , 01• 11, 1,;,,. llifferenccs
·
between nation·1\
'
,

rc1J.illn11I 11111rkcts, 11su11\ly hy \ocnting sepnrnte parts nr the supply drnin in different places.

In lhis study I hnw 1nkc11 the cnmpnny KFC nnd analysed the CACiE nnd AAA framework of ti
rnmpnn y. Kl.'(' Cmporntion is the largest fost -foml chicken operator, developer, and franchiser
the wnrld . KFC, a whnlly owned subsidiary or PepsiCo, Inc . until late 1997, operates owr 5,0t
units in the l lnited Stales. approximnlcly 60 percent of which arc franchises . International\
KFC has more thnn 3.700 units, or which two-thirds an:: also franchised. In addition ;
din.:d frnnchising and wholly owned operations, the company participates in joint ventures. nr.
continues investi gating alternative vem1es lo gain market share in the increasingly compctiti,
t'ast -rood market. KFC was founded by Colonel I larland Sanders, an entrepreneur who hega
sdlin11c, li·ied chicken from his roadside restaurant in Corbin , Kent11cky durinoe the Gre:
Depression . Sanders identi lied the potential ot' the restaurnnt franchising concept, and the fir)
"Kentucky Fried Chicken" franchise opened in Utah in 1952. KFC popularized chicken in th
l:.,sl rood . industry, diversifying the market by chalknging the established dominance c
the hamburger. By branding himself as "Colond Sanders", Harland became a prominent figur
of American cultural history , and his image remains widdy used in KFC advertising. In the earl
t 970s, KFC was sold to the spirits distributor Heublein , wt 11· ct1 was tak' en over by 11,,.: R..
Reynolds food and tobacco conglomerate·· that comi1'·my ,sold ti1e c\1am • to p eps1•co. Tl1c l:·hai
,

continued to expand overseas. however. and in I 9X7 it \),,c., 111 , ti :- t W ••l,·1i·

, -.. " c 1e 1trs cstern restauran 1 .: ,
to open in China. It has since expanded rapidly in Chin·l · . ,.. · ,\
< , w1 11c 11 ts now the company ~ ~111~
largest market. PepsiCo spun off its restaurants divis,·o .. T .· ·I · •I
· n <ls 11con Global Restaurants. " m
later changed its name to Yum! Brands.

RESl~ARCH OH.JECTIVE

Thi.: objective or Research Paper is lo studythe i\ob ., . , i1,

. . g n1tsat,on strategics of the Fnst fm)d Ch:1
Industry Ill India. ~

RESF.ARCII METIIOUOLOGY:

IS'.!
 ---

~~.:-.:.1.:. .,~ ?:-....'\.: ..__·:-.:~-.:-n 1..">r Kn.- :s ~~1h."'.1~1lt\.)lL'- tl)f ,.:-ht1.'.l-.('n. Thi~ "br,mJ 1..) f fast t1.)1.).J is llh .)S(

:r ,.:c::- :-..., ::s ' ·..:.:.;;'..: 1.."'t' 1.-. -hi,-~.:.u. b utt.._) . .-..u('r C1.."' J.itt';.'rt'nt m.trk...-r~ \\'1..)rlJ-wiJ,- J itkr\:'nt str,Ho.:~io.:s
~ -. :: ='-~ ~,~.:.--J... -\ :('\\ ...-.f the.' m ..irkc~ ~mJ thc-ir J itfrrt'nt m-.· nus for l1..)1..·al R'quin: n11...·ncs ;U\.'

:s...-~,-'I..: ::: iK- s:t::.J, Th..:- ti~: :s .-\si.m. \ L.1.n-.-.'t. ln ill(' .-\~i.m m~trk-.·t th,- fo'-xi 1..'1..)nsumo.:J is
----- Lc ~--=.::.,d~ ~ :-:-~ ..:..:-.'1 :h-.:- [h.'.;:' im·,k.-:- lS \ --~ hi~. But th('R' ,U\.' ~rill 1..lin('R'n1..'('S 1..'1..'lllltry-\\ is,- .
~ ~-...-=:n·-wl..~ ~
• C
tn1..·:.m-..--ns ..L.~ .m..1hc:-c'l..i.
•

2- -. :-,;, n i.-;:' ~'l..'-.-..L ~ lll~rtl.:.'nCS tn lti.J.i.1 ..u-.:- \ -:'(: J.i t'f-.'R'nt ffi'lll th(' l){h('r pmts l)f th1..' \\'l)rl1..l
~~-:.;:~ ,-.:· ±..:- \, 1 ..k J i ~ric:- mm~ -:-uln.1.R~ - KFC w-.:1s th1:.' ti~t fast fo,)J 1..·hain 1..'nt,'r lndi,i in t1..)

~~ : ~"'s .::.::..i ;:he :'1..r-s: ._-.mt~ ,,::.JS 1..'pc-n1..--J in R1ng,1t..., ~ in t u0 :-. ln th(' initial stag.o.:s 1'..FC' ,,~is

:-:;-~.::.:~ ~ :-i::._...,_,;;_N .lS ~,--rk \ \c'l.--;;' \\1..'rri1..-J: .1t--..,m th.:.' int1t1('t11..',' 1..' f th(' Wo.:sk'm 1..·u\tun.' and tho.:
.::..:..-::,--a 1..-.:· ±-.:- :n&~'""'ll.S :r.1diri..--ns. K.Fl- \\ ~,s ~tlk~1;;-.Jly ~11..'l. '. US('J 1..'f using ilkgally high am1..)llllts
.:::· =.:1..-..=.....~xiiu::r: f lu::.:...""t1..::r~ ..1..,J ..tl~) ch..H tt ~l[j t-___,...J th..u w ~ti i.:-1..)1.)k.t.'...i :mu fric'd in pt)rk. fat. But
· ~ ~ ._"-: :wt.~. ::.~ ;:;:-lik~ ,-..,,I~ J.._l,vn in l ~ ~FC built ur its prlxiui.:-rs t1..) i.:-atc'r to tho.: taste' bmb
. .- •_ ~ __ . ~
\,. - I.._~ ~ -
- ,.::-~ orefrre~~~ in lnJ.i;.1
t £..!.~ ___ .... &.
.J..n:' 1..'l..lfil~-1tivd y m1..)~ spicy ~mJ t~m~_Y and h1..'Hl'1..'-

~ C L .......-. R..tlt..,--"\.] :h..1:: tt h-.-:J C1..l -.~-1rcr r1..' the thin:y- five pc-n:-em of tho.: lndian pt,pulatil'll. which is
,. ~ ~ . D- Kfl ._-.tkr-5- .1 \\i J'-" r..m~c 0f \ t:>gt'l:J.Ii.lll prlxiui.:-ts, whio.:h indudc- th(' tangy. lip-
~3'.-kr::if P'-n ~ Ti..\ck:.1 Wr..i.r ·n R1....,\L y~ De- Lite Burgc-r. \"-:-g Crispy Burgc'r. Then.' ar(
:c:.~-h~ ~,.__+,_ .lS :11c -:-:-1:-r f '-'l..kn, ~g nnger:; J.nd crunl'hy g1..)lJc-n fric-s sc-f\ 1...-J with tangy sau1..'('s.
y .._v.: ~-..n ..L."'--"' ...-..-...-nt-i..c"K rh~ , -;~ finge-rs with st~'1ming. pcp{Xf:. ri1..'(' ~md a spio.:1..' o.:nrrv. Tho.:
. - - - - - - - - - - - - - - - - - - - - - - - -f~D ~A·v Institute of Management
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VIRTUE: A Bi-annual Re e1 ee

. Not just the vegetarian menu but also the

. .. " , ~ . I do not have egg m t11em.
mayonnaise and s,mc1::s a so . f I dians For example ch· k
. . .- suit the spicy pallets o n · • 1c en
standard chicken 1s be111g mod1tied to
~ f the wrap is changed to local tastes. In 2012.
strips are served with a local sauce. or th e sauce O . . . , . .
I d Fiery Grilled Chicken to 111c1ease tts populanty.
KFC India also launched an oven product ca I e
. . d oven prepared products. These changes
All of the KFC restaurants m India now have ovens an
helped KFC build their brand name in India.

.·
In China, the Chinese culture and tra d 1t1ons are vet•y different from the Western culture and
traditions. A typical Chinese meal includes a starch, which is usually rice, noodles. or mantou,
also known as steamed buns. and an accompanying dish of vegetables, fish, or meat.
Fmthennore, rice is traditionally served in its own bowl while the accompanying dishes are
served on communal plates shared by everyone at the table. Dessert is typically not conswned
after meals: however, dessert snacks and sweet foods , such as basi fruit dishes consisting of
fmits such as bananas and apples coated in sugar syrup, do exist and are usually served with the
rest of the meal. Cold beverages are also not customary, as it is believed that cold liquids are
hannful to the digestion of hot foods. To cater to the Chinese lifestyle the menu adapted by KFC
in China includes rice congee, egg custard tarts and tree fungus salad, with an average of 50
different menu items per store. Another very popular item is the Dragon Twister, a wrap that
includes fried chicken, cucumbers, scallions, and duck sauce, similar in preparation to Peking
duck. Sander' s classic friend chicken is also offered along with spicy tofu chicken rice, fried
dough sticks, egg tarts. and soy milk drinks. In addition to its more diverse menu, Chinese outlets
are typically two to three times larger than American and European outlets , ooivino
o
them the
ability to serve more guests depending on the large population. Many are open 24 hours a day
and provide delivery services as well.

In Japan, KFC Japan 's menu has scored a home mn in developing a menu that perfectly suits the
local tastes. The menu comprises of the specific items like: Kentucky for Christmas. Japan has a
very famous Christmas meal even though Christmas is not celebrated in Japan, the meal has
become a very well followed tradition. The holiday meal that people have been known to stand
in line for hours to order includes a fes ti ve bucket of fried chicken. a side, cake and even
champagne.The menu also includes Kentucky Fried Rice Bowls. The Japanese flavoured rice

154

._ __ __ _ _ _ ____!' z::Ss>
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 et ced Journal or DAV
Vllrt'llE: A lli-annuill Ref•.,, - -Insl1Lute
.. of -~
M.1nagcmcnl
.

1'<,wb indmk Tcriyaki '

'\\\l11 s
, 'ptcao
.c111ckcn
, pants\ S·\I · ·is w·II
. I l ' ' c.
,,hll'' i)H\\ 1,n~s cnspy 11icc ·s 1· ·I .n . 'll . C ,. ,'.IS, IIle' more ln.1d i1i onal V, cnl,<lon
w1tl1' • . bowl
. .. .
• .
:ind ~p11..: y g.1ccn peppers Ser , I ~
VC{ Oil a heel or ri,·'
ccp ' ned ·I .. . k .
. I . s111lc1 c mushrooms s .•'. ' wc.:c.: I
.
polcJ[()l!~
11
.,ir..1.:, a l,u~k' d nl. KFC and ·1 l" I 1· ,e ,111, dnzzled . I a p14ua111
. . w,1' . swe c·1 sauce,
. . . . ,s
· • ,ow o tcmpurn .
l

1 me am,1 Hallotinc Kl:C I·

mc•1t iI ."l..f -rf ·•. .
1,;
.tipan~sc
,mine like Mcm1 ' • .' ,1 c. ItH.1C
·1\sl)
a cold . . ,,pan also has olkrc<l a fancy least ol'
. • • o,, - nut cake hybrid in chicken "'<l I .. • .-. .
hallotmc prcp·1rcd 1v·t·\ . ' ,ccf v,111,,uons an<l 1hc roasted
l'l,lkd ll'1 ,,,1.t\1, ct,· ' k t , apncots
. . . plums, , cT ,lll. l,erncs,
. oranges an<l chestnuts stewed in white wine

Biscuits, That Look 1c en.•. 11, c•d wit'

· I twine,
· roasted and topped with more fruit. Menu also includes·
Like Doughnuts . These biscuits arc usually more bhn<l when . cJ
Ile US . . • compare to
. , • c ,1 opp1ng o . sol serve ,cc cream an<l ma11k syrup anc.J a,· .. I .
I \ 'l I,mt· 1 arcmp
'\\''\
:.w·uhb\' with , t · 1· l ·
m avour dunng Halloween. The menu also includes The Histro Ilamburg c a so
, , ' a 1 i: m pu k. 11 .

The Bistro Han1burg is a 30 percent pork, 70 percent beef patty covered in a moshroom dcmi-
glace with lettuce and ,nayo on a bun . The menu also includes Kcntt1cky Fried Salmon. Since the
success of Kentucky fried fish a panko-crustcd, deep fried salmon fillet with iis generous
drizzle of tartar sauce has been introduced.In Japanese menu. Kentucky Chicken Rice is also
inc\ udcd, K FC Japan, Kentucky Chi ck en Ricc sandwich, is a ketc hop-soak cd rice pally la yerc<l0
5
with cheese and sauce between 1wo fri cd chic ken Ii II cts. In Menu also incl odes KFC Bent
11

.t't' tl f·' t I· . . ,-1,ickcn l'"ekaged in a two-tiered plaslic bento box wos introd ccd
Lunches.
. . , • ·s . c otnl'lcte with a sci of chopslicks, the box holds the meal on 1op
,crent · avours o )one css "
Dl . . d . ., Sides include a scoop of potalo salad and a bite-sized egg omc\ctlc
w 11c 1 became a raving succc. s.
I 1 . d . v 11. wickY fried soup. The deep fried corn potage friucrs at KFl' have
and a tray ot nee un c1111,;a ' ·
1
The menu atsn ,ncht cs "l,;

Korea·, Zinger [)oublc [)own King went the cxlru mile by adding a beef
become a sensation in Japan.
. hie j)oWll recipe (bacon and cheese between two li'icd chicken fillets) . In
I
ln South Korea. sout'

~
. . "'. 1,c classic
paltY , . . 0,incS
otl poublc l)og (hol Jog ciadlcd
.. .m a lned
.. chicken
. hllct).
• was a very
1 .• . • tn Tiu• iIund, K l mIroduec<l the ' Wmg Zced,' wh, ch was a spicy. fried,
PhihPP"'cs, I 111hPI ... . • .
. . ·k. 11 doused .,,.111 tune .1u1ce. On the side. yon can also get umque Kf(' items 1,kc a
popular spcc1,1I ,tel . . . . . . .
155
chili \1111c ch 1~ 1.:ll.
 VIRTUE: A Bi-annual Refereed Journal of DAV Institute of Management

shrimp donut, which is a donut shaped piece of shrimp that is breaded and fried. you can also

order an egg tart, which is a crispy egg pie with custard filling. In Arabia, KFC Arabia offers
Ramadan meals and specials. Unlike McDonald's, their Ramadan special includes ten mini
Krispy Kreme doughnuts which are not found anywhere else. In Singapore, at KFC in Singapore,
not only can you get a ' Rosata Twister (an egg wrapwith cheese, vegetables, and chicken,
waffles, or pancakes) in the morning, but you can also get cheese fries. Their breakfast menu
continues with a porridge, which they claim is a local favorite. For lunch, Singaporeans can order
a chicken and rice combo with a special sauce. In Malayasia, chicken meatball soup is sold. In
multiracial Malaysian markets, KFC also has different limited-time products to cater to different
festive seasons such as Ayam Kicap Meletup for Eid al-Fitr seasons and Golden Treasures
for Chinese New Year in 2015.

In American Market, KFC's core product offering is pressure fried, on-the-bone chicken pieces
seasoned with Colonel Harland Sanders' "Original Recipe" of 11 herbs and spices. The product
is typically available in either two or three piece individual servings, or in a family size
cardboard bucket, typically holding between 6 and 16 chicken pieces. Poultry is divided into 9
different cuts (2 drumsticks, 2 thighs, 2 wings, I keel, and a backbone-based breast cut divided
into 2 pieces). The product is hand-breaded at individual KFC outlets with wheat flour mixed
with seasoning in a two- to four-minute process.The basic model for KFC in the United States,
not necessarily duplicated elsewhere, is a focus on low prices, a limited menu (29 items on
average) and places an emphasis on takeout.America ' s infamous Double Down sandwich
includes bacon and cheese between two fried chicken fillets and the flavours used in America are
more subtle and less spicy compared to Asia. Grilled chicken is also very popularly sold. Some
locations in the US sell fried chicken livers and gizzards. A small number of US outlets offer
an all-you-can-eat buffet option with a limited menu. In the US potato wedges are sold instead of
French fries. In African Market, Jollof rice, a spicy dish native to West Africa, is one way in
which KFC is improvising to win over palates in Africa's largest economy, Nigeria.
In European Market, in Germany, the ' Indian Zinger Menu' was introduced like in Denmark.
But unlike Denmark, Ben & Jerry 's ice cream is available for dessert. KFC Germany also offers
three grilled products: Grilled K.FC Gourmet Chicken, Grilled Chicken Salad and YurnmY

T wister· These lighter menu options are displayed on dedicated spec1a

. 1green menu board spaces.
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1 u eo anagement

IllLondon, KFC London uses revised slan2: in their ' Wt.cked y,.,.,·,·ety
..., " 8 ucket · to attract
customers. A ' Cajun Box-master' meal with chicken breast, hash-brow,, I d C •
, , c 1eese, an a.1 till
sauce wrapped in a tortilla has also been introduced in the British market. rn Denmark, the
·Indian Twister Menu ' was introduced, which contains Indian inspired menu items like a chicken
wrap with cmi-y sauce and jalapefios or black pepper potatoes. For dessert, a hot vanilla tart was
considered as a delicacy. In France, French KFC sticks with the Colonel ·s original recipe when ii
comes to the chicken, but have more interesting options for dessert: tiramisu and sweet pie arc
just two items you can find on the menu . KFC France launched a new oven cooked sandwich in
2013 called the Brazer Parmesan, which offers a more balanced choice to customers. fn
Australian Market , KFC diners can try ' The Panny,' or the latest promotion from the
international chain. A ' Panny Stacker' comes with two chicken schnitzel filets, ' Parmigiana '

sauce, an d c h eese on an oa t mea I bun . Fol. dessert , you can order a Sara Lee chocolate and
. I1 1s
carame I mousse, w h rc · on Iy fioun d in Australia' · At K.FC Australia, they are passionate about
·
great tastmg food and are contmua· Il Y 111
· vestigatino
° how they can improve products
_ and provide
· I I d a pennanent grilled menu, cnsurmg that customers
broader menu choices. In 2013 , they aunc 1e
. more opt10ns
can enJoy . · ·t"mg KFC
when v1s1 · Australia.

Aggregation at KFC
needs through adaptation it also maintains a few
E I h KFC caters to the 1oca 1
ven t ioug . A fi w core components of KFC are observed in every
. with aggregation. e . ·
standardized products . S· d rs equation of I I flavours and also herbs 1s
. _t up wit11 an e
h. k pieces se ,
country. The c 1c en _ Tl ·s leads to economies of scale due to large scale
d acts as a base. u
available everywhere an . d th s a ham1onious combination of adaptation and
of chicken an u
production of one type
aggregation.

Arbitrage at KFC . . . .
b. . e and KFC has mcluded 1t m its framework . The Cultural
- cs of ar it1ag
·rtcrent typ · I 1· d b ·
There are d 1 • lated to country or place of origm have ong supp 1e a as1s
blc effects re
Arbitrage, favoura F0 1. example, an association with Frenc h cu Iture Iias Iong b een an
31•bitrage.
for cultural _ fr tor for fashion items, perfumes. wines, and foods. Similarly, KFC has
·011a I Sl,ccess ac
~
intcrnatt
157
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been mainly associated with the U.S. fast food culture and has gained its popularity because of
that. KFC headquartered in Louisville, Kentucky, United States was founded by Col. Harland
Sanders and KFC is known mainly for fried chicken, which is usually served in a bucket. The
influence of the western culture has now increased the demand for KFC and made it one of the
most popular fast-food chains in the world.

The Administrative arbitrage, Legal, institutional, and political differences between countries or
regions create opportunities for administrative arbitrage.When KFC was not accepted in India in
1995 then KFC began concentrating on other parts of the world without any wait. But then they
reclaimed their market again in 1999 and since then 350 outlets have been developed all over
India till date. The political situation did help KFC in coming back but mostly the acceptance of
the people and a change in their attitudes helped it in gaining popularity.

CAGE FRAMEWORK OF KFC

The CAGE Framework ofKFC in India includes:

The cultural distance, Culture affects the choices and behaviour of people. Various languages,
ethnic societies, religion, social values, can become a hindrance to successful business
transition. In India majority of people follow Hinduism and cows are considered auspicious .
Hence beef was not tolerable by the Indians as it is widely consumed in the US. The second
largest population of Muslims consider pork a taboo and only prefer to eat halal meat. The
vegetarian population in the country is the largest in the world and twice the whole population
of the US . This was a significant socio-cultural change for KFC to tackle. The company
responded by introducing the tangy, lip-smacking Paneer Tikka Wrap ' n Roll , Veg De- Lite
Burger, Veg Crispy Burger. There are munchies such as th e cnsp• go Id en veg fimgers and
crunchy golden fries served with tangy sauces · The veg fimgers were also com b'med with
steaming, peppery rice and a spice curry. The mayonnais d · • them.
e an sauces do not have egg m
Not just the vegetarian menu but also the standard cl · k . . . . h spicy
He en 1s bemg modified to suit t e
pallets of lndians. For example, chicken strips are se d . f the
rve with a local sauce or the sauce 0
wrap is changed to local tastes.Asian menus also offi . ' . sides
er nee meals and culture appropnate

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to suit the local needs better and these have been catered t0 • ., . I
1nd1 a by the 111troduc1ion of the
111
rice bowls. These changes helped KFC build their bra,1d name 111
· 1nd.ia.

The administrative distance, India is being more liberal a"'tcr 199 1

and is allowing more
1
1

opportunities to enter the Indian market from abroad afite,· the LPG (Li.be ra 11·sa. t.10n. pnvat1
· ·sauon
··

and Globalisation) scheme in 1991 . At that time, KFC received permission from the Indian
government to open 30 outlets across the country. From 30 outlets. the number has grown to
296 today. When the first KFC was set up in Bangalore it faced a lot of unrest and to pre\·cnt
further onslaughts on the KFC outlet, the management of the KFC outlet demanded a police van
to be permanently parked outside for almost a year. Even after this the brand could not SUI"\ ivc
and hence it was discontinued but it came back again in 1999. KFC started expanding outside
Bangalore in 2004 and by 2008-09 they had 34 outlets in India and gained more populan ty due

to t he spec1·fi1c menus. Th e operations of KFC are affected by the government policies on the
· · c ntly the government is controlling the marketing or fast
regulations of fast food operation. urre
~ h such as cardiovascular and cholesterol issue and
food restaurant because of hea1t concern
. ·n the country. As a certified fas t food operator, there ar,.:
obesity among the young and children 1 . .
K.FC hould follow. For example 1s the Halal ccrt1ficat1on
rn l t. ns and procedures that s
any regu a 10 . KFC should protect its integrity and con::-u1rn:r
to Mushm consumers.
that becomes a concern . d cess are as clai med or must fo llowed and any
·n all materials an pro . .
confidence by ensun g Other legal requirements mcludc operating hou~.
d. consequences.
violation will have tre . bor and employment laws and quality & cm imnm~nt
. . tax requirement, 1a
business reg1stratt0n, . rtified The leoal requirement is important bcnrnsL·
. . th outlet has been ce . o .
certification m which e h ·r business prohibited from operating \\ h1d1 "·nn ll~
have t c 1 ·
·11 be fin ed or
W1
the offenders
disastrous.

. 1 distance
,ca • between nutions still rcn111 rns u very Importnn1 fo"·tt,r
. ·stance. Phys . . .
In geographic di. . , busi ness s1rntcg1cs. f hc greater thl' ph ys1~11I d1struH.·1.· thl· n1t1r1.· the
. of the diverse . . .
in shaping up unicalH_;n und 1rnnsporH1t1 on, lnd1u 1s II very att mtll\'c murk'-'' t ti th"·
.. ed wi th conirn , ..
cost as50C ' 31 opulation and d1 vcr~c t:11lt11n: Mtis1 KH n:staun111t:- arc lt1n,1t.·d 1n tht.·
Ofit, large.: p
US because . . ch ,1~ 1,lw 1p1n1-4 ma ll , , th~ petro l, a11J lodgi 11 g 1.:n n111tc
jt) C'i SU ' ·
source co rn m un I ~9

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 AV Institute of Management
VIRTUE : A Bi-annual Refereed Journal of D

. . d · , -~ and the cost of the labour are the

In economic distance, the consumer wealth an m<.:Olllt:
economic factors which affect the business strategies. The entire pricing agcll d a depe nd s on it.
· • .. . · t •ban •md semi urban areas because the
KFC 111 India has partitioned the busmess sector m o m '
, food
fast - market m· India
· 1s
· highly
· ··
compet1t1ve, KFC t'ac es~ '•1 wide number of direct and indirect

competitors. McDonalds has already introduced a Salad plus line which targets th e ' healthy
food ' conscious Indians, which is a direct competitor. KFC will have to tackle this by

introducing a new and healthy product line.

CONCLUSION

After the above analysis of the CAGE and AAA Framework of KFC we can clearly see how the
differences across nations impact the business strategies. The more the disparate conditions the
more the need for building up better strategies to tackle the problems. Business leaders must
figure out which elements will meet their companies ' needs and prioritize accordingly. KFC in
particular has worked a lot on its Adaptaion and Aggregation but not so much on its Arbitrage
strategies. The CAGE framework for KFC revealed the differences in the cultural factors in India
and also showcased how the administrative situation in India supported its growth. The economic
and geographic factors along with the various legal requirements in India helped KFC grov,, and
gain more popularity.

REGERENCES/BIBLIOGRAPHY

• Ahuja, R. (2011) . Project Report Marketing Strategies With Refe T . h' k

rence o Kentucky Fned C 1c 'en ·
Retrieved March 26, 2018 , from https:l/·www.scr;bd.com/docl2324333 lkfi
4
. .I
c-pro1ect-on-market-resem c 1
• Ghemawat, P. (2012) . Differences and the CAGE Distanct Fr k g
amewor . 1-9. Retrieved March 26, 201 ·
from ht .1 .
tps ·11/ww,,,v.ghemawat com/wordpressl11 P-
content/uploads/2016/10/Dif.ferencesAndTheCA GEFramework.pdj ·
• Ghemawat, P., & Siegel, J. I. (20 l 1). Cases about red '.
e11zmng global strategy. Boston, M4 : Ha,Tard
Business Pub.
• Globalisation . (n .d.). Retrieved
March froi11
• ,. I.JG!
http:/,1/www.econom1csonme.co.u,v, obaI_economics/GI b . . 26, -?018 '
0 ahsaflon ·
_mtroduction. html

160
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VIRTUE : A Bi-annual Refereed Journal of DAV Institute ofM;rnagemcnt

KFC Corporation - Company Prnlilc, Information , Business Description. History, Background

ln fonnntinn nn KFC Corporation . (n .d.). Retrieved March 26, 201X, from

hfl/J :fA\'wll'.ref C're11ct.!Jvrbusi ness.c, >ml hisl<>1~v2/<J9/K Fe '-C<)l'pc m1tio11.l,1111/

Pmtnmi. D.. Amalia, D ., & Yulistin, I. F. (2009) . Kentucky Fried Chicken Markcling Slrnlcgy (English).
Retrieved March 26, 20 \ ~- rrom http:I/Hl'WW.\l'iSlltl(/t. 11•0/)J'()/(),('()11//kc11111cky:/i'ied-chickc11-111m·/..'eti11g-
1

1tmtegy-engl is hi

I
I

'(,'

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