Methods in Business Research: Report on KFC Pakistan

 

Executive Summary

 

The research was carried out for Husein Group of Companies. The project was given to us by Mr. Hasan L. Jamal who is the Director of the company. The management problem was whether there are prospects for further growth and development of the foreign franchise fast food industry in Pakistan. The management problem was converted in to the following research problem:

 

“To identify whether there is scope for growth and development of the foreign franchised fast food industry in Pakistan”

 

 Research Objectives

 

• To determine the total size of the fast food market in Pakistan in value terms.
• To determine the market share of key players within the fast food industry in Pakistan in value terms.
• To determine the annual rate of growth in the fast food industry in Pakistan.
• To identify key success factors in the fast food industry

 

We Define our population as “The Outlet Managers of Pizza Hut, KFC and McDonald who are currently working for them”

 

Element:         Outlet Managers

Unit:               of Pizza Hut, KFC and McDonald

Time:              who are currently

Extent:           working for them

 

The data collection was done through survey research using questionnaires. These questionnaire filled by Outlet Managers were administered through personal interviews. Questions that were asked included direct, open-ended, dichotomous questions and non -comparative rating scale.

 

 

In this project we had covered the whole population (we went for the census) as there are only 18 outlets of these companies. Breakup of these outlets is given as follows:

 

KFC	9
Pizza Hut	5
McDonalds	4

 

 

Findings of the report are as follows

• Total size of the market is around Rs. 1 billion per annum.
• Market share of the three franchises is as follows
• Pizza Hut 32%
• McDonald 29%
• KFC 32%
• Annual growth rate of the industry is around 10-12%
• KFC has lost it’s share by around 13-15%, Pizza Hut has also lost it’s share by 6-8% while McDonald is a new entrant so it’s growth cannot be estimated.
• Among the key success factors, Good Service was considered as a prerequisite and all the respondents gave it the first ranking.
•  Location was considered second most important as around 44% gave it a rank 2.
• Hygienic Food was give third with 33%.
• Other Factors that were also considered as Key factors were Price 27%, Taste 28% and Variety of Menu 16%.
• Problems faced by the Industry were of Taxation (Rank 1 66%), Government Regulations (Rank 3, 33%), Parking (Rank 2, 43%), Law and Order Situation (Rank 4, 27%) and other problems were high operating cost, high customer expectations, management problems and high capital requirements.

 

Limitations of this research include Biased Responses from the respondents and it was only conducted in Karachi.

 

 

Cost Incurred:

 

Total Transportation Cost	Rs. 2000
Photo Copying	Rs. 100
Printing	Rs. 500
Binding	Rs. 30

 

The total cost comes out to be Rs. 2,630/-. Total number of respondents were 18. Therefore the cost per respondent was 146.1.

 

Introduction

 

This research report was carried out on behalf of Husein group of companies..   Keeping in view the growing market of the fast food, Husein group of companies wanted to become a part of this challenging trend and wants to offer its services in this market. Keeping this in view the company wanted us to conduct a research on the feasibility of another foreign food franchise in Pakistan.

 

The basic guideline of this research was to look for whether there exist a gap in the fast food industry to be filled by another competitor or not. If this is filled by the competitor than what are  the factors which are conducive to this and which are unfavorable to these.

 

Management problem was described as whether there are prospects for the growth and development of the foreign franchised fast food industry in Pakistan.

 

This management problem was converted into a research problem which was “To identify whether there is scope for the growth and development of foreign franchised fast food industry in Pakistan”.

 

Research objectives can be described as follows.

 

• To determine the total size of the fast food market in Pakistan in value terms.
• To determine the market share of key players within the fast food industry in Pakistan in value terms.
• To determine the annual rate of growth in the fast food industry in Pakistan.
• To identify key success factors in the fast food industry

 

The initial section of the report explains the issue of research methodology, data collection and the sampling process.

 

The report then goes on to the analysis of individual questions and tabulates the results first in the table and then represents the same information on a pie chart. Both these are followed by a brief explanations of the underlying trend that was observed from these questions.