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KFC India - Relishing on Consumer Learning?

CASE STUDY, CONSUMER BEHAVIOR
ET Cases, 10 pages

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KFC India – Relishing on Consumer Learning?

 

“Typically, super consumers are responsible for 30 per cent of category sales, 40 per cent of category growth and 50 per cent of category profit. They are well-informed about the category, talk a lot about it, give their opinions, are active on social media and experiment a lot within the category.”1

-- Roosevelt D’Souza, Senior Vice-President, Nielsen India


“Earlier, there was a reverence for anything foreign because local products were of terrible quality, but as the market developed, the focus started shifting from the product to the brand. Customers started patronizing a brand only if the product suited them. So the need arose for companies to adjust their products to customers’ requirements.”2

-- Abraham Koshy, Professor, Indian Institute of Management, Ahmedabad (IIMA)


“There is a huge scope for consumer engagement in the online space and KFC, one of India’s most loved QSR brand and the biggest digital brand in the category, is excited to indulge their loyal fan base with exciting engagement and content to bring them closer to their motto — life is So Good!.”3

-- Dhruv Kaul, Director, Marketing, KFC India


KFC evolved from being a road side eatery joint to be ranked second amongst the Top 10 Global Food Brands listed in Forbes4. While KFC has been on consumer’s wish list in many countries, its Indian story has largely been that of ‘Made in India vs Made For India’. Since its entry in 1991 and re-entry in 2003, KFC not only learnt to re-orient and re-discover itself but also co-created several consumer engagement initiatives with Indian consumers. While KFC learnt from its experiences, Indian consumers learnt from KFC’s engagement initiatives. However, many wonder if the same tempo can be sustained over a long time horizon? While India’s demographic dividend, with a median age of 28, is unquestionable, can KFC be the preferred destination for discerning and demanding Indian consumers?.....

 



1 Viveat Susan Pinto, “Homing in on super consumers”, http://www.business-standard.com/article/management/homing-in-on-superconsumers-115051201417_1.html, May 12th 2015 (accessed date: June 8th 2015)
2 “Made for India: Succeeding in a Market Where One Size Won’t Fit All”, http://knowledge.wharton.upenn.edu/article/made-for-indiasucceeding-in-a-market-where-one-size-wont-fit-all/, March 12th 2009 (accessed date: June 15th 2015)
3 India Infoline News Service, “KFC India bags prestigious awards”, http://www.indiainfoline.com/article/print/news-business/kfc-indiabags-prestigious-awards-114050700133_1.html , May 7th 2014 (accessed date: June 9th 2015)
4 http://www.forbes.com/pictures/mlf45ejhgi/2-kfc-3/, (accessed date: June 9th 2015)

Teaching Note Preview

KFC India – Relishing on Consumer Learning?

 

Synopsis

KFC evolved from being a road side eatery joint to be ranked second amongst the Top 10 Global Food Brands listed in Forbes.1 While KFC has been on consumer’s wish list in many countries, its Indian story has largely been that of ‘Made in India vs Made For India’. Since its entry in 1991 and reentry in 2003, KFC not only learnt to reorient and rediscover itself but also co-created several consumer engagement initiatives with Indian consumers. While KFC learnt from its experiences, Indian consumers learnt from KFC’s engagement initiatives. However, many wonder if the same tempo can be sustained over a long time horizon? While India’s demographic dividend, with median age of 28, is unquestionable, can KFC be the preferred destination for discerning and demanding Indian consumers?

Prerequisite Conceptual Understanding (PCU)/Before the Classroom Discussion

This Case study’s discussion would be more effective if the participants understand the nuances of Consumer Learning. A preliminary understanding of this concept can be had from the following suggested chapter:

  • • Leon G. Schiffman, et al., “Chapter 7: Consumer Learning”, Consumer Behavior, 10th Edition, Pearson Education, Inc., 2010 – To understand how companies influence the ways consumers learn.

 

Mandatory Viewing

  • • “KFC’s Great Divide”, https://www.youtube.com/watch?v=fpPXdw8uYmY, April 29th 2014
  • • “Social Media Case Study: How KFC India Boosted its Social Media Presence”, https://www.youtube.com/watch?v=lZsVORnp0kI, January 2nd 2014
  • • “Radio KFC RJ Hunt Facebook App - Case Study Video”, https://vimeo.com/74379122,September 12th 2013
  • • “KFC Currycature”, https://www.youtube.com/watch?v=q96ftbETlSk, September 12th 2013

 

Case Positioning and Setting

This Case Study is positioned to understand the process of consumer learning and to understand its implications on consumption behavior. Ideally suited for “Consumer Learning” chapter of Consumer Behavior course, this case study can be used in MBA, Executive MBA programs and Digital Marketing module.

Assignment Questions

  • I. Are there any differences in the way people learn generally and they learn as consumers? Substantiate your opinion with relevant arguments. Would there be any difference between the way an individual consumer learns and the way a group of consumers learn?
  • II. What do you understand by behavioral learning and cognitive learning? How do you think KFC India’s initiatives exemplify the purport of these two types of learning?
  • III. What according to you are the learning measures and outcomes? Are they consumer specific or are they company/brand specific? While learning measures and outcomes can be different for different consumers, what’s your analysis for KFC India’s consumers?

 

Preamble to the Case Analysis

The classroom discussion was facilitated under three broad sections as explained in Exhibit (TN)-I....



1 http://www.forbes.com/pictures/mlf45ejhgi/2-kfc-3/, (accessed date: June 9th 2015)

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Abstract


This case study aims to introduce the students/participants to the process of consumer learning and to understand its implications on consumption behavior. It studies how consumers responded to KFC's differentiated marketing strategies thereby developing and retaining brand loyalty. By observing and gauging consumer responses, KFC came out with unique menu offerings. KFC began as a road side eatery joint to being ranked second amongst the Top 10 Global Food Brands listed in Forbes. Will KFC be able to effectively influence consumer decision-making and tickle the Indian palate? Having learnt the changes in consumer behavior, can these factors be used to influence the buying traits of the consumers in the long run?



Pedagogical Objectives

  • To understand the relationship between how an individual/consumer learns and the expected consumer behavior
  • To examine the differences between behavioral learning and cognitive learning and to analyze the operation of the same in case of KFC India's consumers
  • To discuss and debate on the possible consumer learning outcomes and conceptualize the same for KFC India

Case Positioning and Setting

This Case Study is positioned to understand the process of consumer learning and to understand its implications on consumption behavior. Ideally suited for 'Consumer Learning' chapter of Consumer Behavior course, this case study can be used in MBA, Executive MBA programs and Digital Marketing module.




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