Chapter- 1

INTRODUCTION

Rationale of the study

Customers are the foundations of the business. They are the assets of the business enterprises the
business can attain long term growth and also for expansion and growth of the business. It is a
great boon for a company to have a good and cordial relationship with its customers.

Customers Relationship Management is basically a series of interrelated and integrated

activities designed in a systematic manner so as to serve its customers to their fullest.

Customer relationship management (CRM) is a term that refers to practices, strategies and
technologies that companies use to manage and analyse customer interactions and data throughout
the customer lifecycle, with the goal of improving business relationships with customers, assisting
in customer retention and driving sales growth. CRM systems are designed to compile information
on customers across different channels -- or points of contact between the customer and the
company -- which could include the company's website, telephone, live chat, direct mail,
marketing materials and social media. CRM systems can also give customer-facing staff detailed
information on customers' personal information, purchase history, buying preferences and
concerns.

With CRM strategy, the customer is always right, and they are the core factor in the success of the
company. It is important for any corporation to use reports that are dependent on their client’s
data. This will greatly tip the odds of success in their favour.
The Customer support cycle is an internal part of CRM system, when a client sent complaints;
they must be handled efficiently and in a timely manner. The corporation should also seek to make
sure those mistakes are not repeated. When sales are complete, they should be tracked so that the
corporation can analyse them from various aspects and produce reports. The analytical aspect of
CRM system deals with analysing client’s information and using if for business intelligence
purposes.

Thus, we can say that the customers can be satisfied to the fullest through discharge of the
effective customer relationship management and will help the organisations to develop of sense of
well-being among the persons.

The enterprises are also well aware of the customers’ needs and preferences and can fulfil them in
due course of time.

This CRM introduction aims to explaining what the CRM is in a nutshell and making it easier to
realize the tremendous benefits of purchasing a Customer Relationship Management software that
will help drive more customers thus more profit towards you and makes your life easier.

1
CRM is a strategy and technology that is used to build stronger relationships between
organizations and their clients. An organization will store information that is related to their
clients, and employees will analyse it to use it in forecasting and making reports. Some of the
strategies of CRM software are planning for targeted marketing campaigns towards specific
clients. The strategies used will be relying on the information that is coming from the CRM
system. CRM software solution is commonly used by all kind of corporations that focusing on
maintaining a strong relationship with their customers.

There are many reasons why CRM software has become the most important software in the last 10
years. The competition has become highly competitive in the global market, and it has become
easier for clients to switch companies if they are not happy with the service they receive or want
the product with the low price. One of the primary goals of CRM solution is to retain clients and
protect them from competitor’s temptations. When CRM is used effectively, an organization will
be able to build a relationship with their clients that can last a lifetime. It is so important to realize
that CRM system solution is more than just software.

This CRM introduction aims to explaining what the CRM is in a nutshell and making it easier to
realize the tremendous benefits of purchasing a Customer Relationship Management software that
will help drive more customers thus more profit towards you and makes your life easier.

Today growing businesses manage customer connections and information in a variety of ways.
Some use old fashioned note cards and Rolodex. Others store information on their mobile phone
while on the go or while having no means of accessing a Personal Computer or a laptop. Others
use Excel spread sheets or Google documents and that is the most common case. While that may
help in the short term when you have a small team and don’t plan on scaling up your business, if
you want to scale up for fast growth, it may be time to consider a CRM system to help you collect
your precious business data in one place, make it accessible via the cloud, and free up your time to
focus on delighting customers rather than letting valuable insights and information fall through the
cracks while you are on the go. A Cloud CRM System would be perfect for satisfying all of your
business needs while being able to access the important data you need from anywhere with an
internet connection available.

There are many things the ideal Cloud Based CRM Client Relationship Management systems
should have; it should enable the organization to find the factors that interest their clients the most.
Any corporation must realize that it is impossible for them to succeed if they do not cater to their
client’s desires and needs. Online CRM software solution is a powerful system that will enable
them to do this.

2
 Objectives of the Project
Title of the Project

Comparative Analysis of the Customer Relationship Management of the Two Companies KFC
and MC Donalds

Objectives of the Project

The objective of the project is

 To make a comparative analysis of the companies with respect to their ability to maintain
the relationships with the customers.
 To study their effectiveness in doing their obligations in order to satisfy their customers
and maintain healthy relations with them.
 Both the companies’ tools used for maintaining the customers’ relationship would be
analysed through the questionnaires from the customers
 To analyse whether CRM has any impact on the sales of the organisation

Scope of the project

The project is entirely based on the boundaries of the two companies to understand the customer
relationship strategies of the two company viz. KFC and MC Donalds and also to analyse the
relative effectiveness of the two companies in maintaining their customers along with increasing
sales volume and thereby making quantum profits.

3
 Research Methodology
Research Design

Research Design means adopting that type of technique of research which is most suitable for the
research and study of the problem.

In my project in order to know about the effectiveness of the customer relationship

management of KFC & MC Donalds I need to approach the customers it was necessary to
interact with the customers. The sample comprised of the respondents from the city of
Kolkata mainly consisting of my relatives, cousins, friends.

A Questionnaire has to be designed in order to collect the relevant information related to the
project efficiently and effectively. The questionnaire was so designed as to meet the objective
of the research work.

Nature of the Research

In this project I have undertaken the quantitative type of the study wherein the charts and
graphs have been effectively used in order to present the analysis in the picturization
format.

Type of Questions asked

The questions asked in the questionnaire to the visitors of KFC & MC Donalds (who are
apparently my cousins, relatives, and friends.) are straight forward and limited probing

Type of Questionnaire

The questionnaire asked in the project is straight forward and formalized

Type of Analysis

The analysis done in this particular project report is statistical where the data analysis and
its interpretation has been done by way of charts and tables.

Sample Size

The sample size of the project has been confided to the 100 respondents who are my
friends, relatives and cousins. They are also the frequent customers of the companies
taken in the projects

4
 Chapter- 2

Conceptual Framework
Customer relationship management (CRM) is a term that refers to practices, strategies and
technologies that companies use to manage and analyse customer interactions and data throughout
the customer lifecycle, with the goal of improving business relationships with customers, assisting
in customer retention and driving sales growth. CRM systems are designed to compile information
on customers across different channels -- or points of contact between the customer and the
company -- which could include the company's website, telephone, live chat, direct mail,
marketing materials and social media. CRM systems can also give customer-facing staff detailed
information on customers' personal information, purchase history, buying preferences and
concerns.

CUSTOMER RELATIONSHIP MANAGEMENT MODEL

CREATE A DATABASE

ANALYSIS

CUSTOMER SELECTION

CUSTOMER TARGETING

RELATIONSHIP MARKETING

PRIVACY ISSUES

METRICS

Customer relationship management starts with the creation of the database of the
customers, containing their names contact details and their analysis and selecting the
customers making the targets and handling their issues and grievances and also
seeking their loyalty towards the firms.

5
 Advantages of Customer Relationship Management

Maintaining customer’s loyalty towards the firms

Customer relationship management helps in proper discharge of the customers responsibilities

and binds them effectively with the firms. Customer relationship management helps in accessing
the needs and aspirations of the customers and also helps in satisfying the needs of the
customers.

Increasing the worth of consumer basket

A satisfied customer in 10 years will bring 100 more customers to the company thus it
automatically increases the worth of customer basket. The consumer basket gets worthy just
because of the healthy relationship with the existing customers.

Contribution to Revenue

20% of the company’s loyal customers account for 80% of its revenues. (Pareto’s principle).
Parteos principal says that the 20% of the companies loyal customers account for bear 80% of
the revenues because the companies loyal customers become regular buyers of the product.

Economical
It is economical in the sense that the new customers required a lot of attention and efforts, but the
old customers do not required that time and effort. Moreover old customers know the policies
and procedures of any set of activities so they are well acquainted with the producers’ way of
doing things.It costs 7 times more to attract a new customer than to serve an old one.

Chances of selling

The chances of selling a particular goods to an old customers are 5 in 6 but the chances of selling
the same goods to a new customers is 1 in 16, thus there is a greater probability of sales to old
customers

6
 DATA COLLECTION

Sources Of Data

The data for the project report has been collected through the method primary data
collection since I need to evaluate the personal views of each and every person concerned
and we cannot rely on the secondary data. Often at times I personally have been to one of
the outlets in Kolkata city just to have a taste of the food quality and their services.

Primary Data

Research Technique

As a researcher, I adopted the survey method for collecting and gathering the
information for this particular project report

Contact method

The respondents mainly comprised of my relatives and cousins so I did not have any
problem for making personal interviews

Sampling plan & size

The size of the survey is limited 100 persons who most probably regularly visit the KFC
and MC Donalds for refreshments

Research Instrument

The research instrument is Questionnaire in which their replies would be taken.

7
 Data Analysis

Introduction of Companies

KFC

KFC Corporation is the largest fast-food chicken operator, developer, and franchiser in the world.
KFC, a wholly owned subsidiary of PepsiCo, Inc. until late 1997, operates over 5,000 units in the
United States, approximately 60 percent of which are franchises. Internationally, KFC has more
than 3,700 units, of which two-thirds are also franchised. In addition to direct franchisingand
wholly owned operations, the company participates in joint ventures, and continues investigating
alternative venues to gain market share in the increasingly competitive fast-food market. In late
1997 the company expected to become a wholly owned subsidiary of Tricon Global Restaurants,
Inc.

Foundation of KFC

Kentucky Fried Chicken was founded by Harland Sanders in Corbin, Kentucky. Sanders was born
on a small farm in Henryville, Indiana, in 1890. Following the death of Sanders's father in 1896,
Sanders's mother worked two jobs to support the family. The young Sanders learned to cook for
his younger brother and sister by age six. When Mrs. Sanders remarried, her new husband didn't
tolerate Harland. Sanders left home and school when he was 12 years old to work as a farm hand
for four dollars a month. At age 15 he left that job to work at a variety of jobs, including painter,
railroad fireman, ploughmen, streetcarconductor, ferryboat operator, insurance

salesman, justice of the peace, and service-station operator.

Franchisee Problems with New Parent

Company

Imperative to the success of Kentucky Fried

Chicken was the establishment of successful
relations with the numerous franchisees. Most of
them lauded parent PepsiCo's international
strength and food-service experience; KFC had
its own inherent strength, however, according to
franchisees, which the parent company would do
well to handle with care. That strength was the
sharing of decision-making.

8
 In 1966, for instance, the Kentucky Fried Chicken Advertising
Co-Op was established, giving franchisees ten votes and the
company three when determining advertising budgets and
campaigns. As a result of an antitrust suit with franchisees, in
1972 the corporation organized a National Franchisee Advisory
Council. By 1976, the company worked with franchisees to
improve upon contracts made when Brown and Massey took
over. Some contracts even dated back to when Colonel Sanders
had sealed them with a handshake. The National Purchasing
Co-Op formed in 1979, ensured franchisees a cut of
intercompany equipment and supply sales. All of these councils
had created a democratic organization that not only served the franchisees well, but
helped keep operations running smoothly as Kentucky Fried Chicken was shifted from
one corporate parent to another. As time passed, however, PepsiCo's corporate hand
seemed to come down too heavily for franchisee comfort.
International Success in 1990s
Though KFC may have had problems competing in the domestic fast-food market,
those same problems did not seem to trouble them in their international markets. In
1992 pretax profits were $92 million from international operations, as opposed to $86
million from the U.S. units. Also, in the five-year span from 1988 through 1992, sales
and profits for the international business nearly doubled. In addition, franchise relations,
always troublesome in the domestic business, ran smoothly in KFC's international
markets. To continue capitalizing on their success abroad, KFC undertook an
aggressive construction plan that called for an average of one non-U.S. unit to be built
per day, with the expectation that by 1995 the number of international units would
exceed those in the United States.
International sales, particularly in Asia, continued to bolster company profits. In 1993,
sales and profits of KFC outlets in Asia were growing at 30 percent a year. Average per
store sales in Asia were $1.2 million, significantly higher than in the United States,
where per store sales stood at $750,000. In addition, profit margins in Asia were double
those in the United States. KFC enjoyed many advantages in Asia: fast food's
association with the West made it a status symbol; the restaurants were generally
more hygienic than vendor stalls; and chicken was a familiar taste to Asian palates. The
company saw great potential in the region and stepped up construction of new outlets
there. It planned to open 1,000 restaurants between 1993 and 1998.
New product introductions were part of the company's plan to keep up with competitors. Having
allowed Boston Market to grab a significant portion of the chicken market, KFC tried to catch up
with the introduction of Rotisserie Gold Chicken. The company's new CEO, David Novak, also
decided to test Colonel's Kitchen, a clear imitation of the Boston Market format. To counter
McDonald's and Burger King's "value meals," KFC brought out the "Mega-Meal dinner":
an entire rotisserie chicken, chicken nuggets, mashed potatoes, macaroni, cole slaw,
biscuits, and a chocolate chip cake for $14.99. In 1995, KFC expanded the idea to "Mega-
Meal-For-One," and decided to test chicken pot pie and chicken salad.

9
 MC DONALD’S

The McDonald family moved from Manchester, New Hampshire to Hollywood, California in the
late 1930s, where brothers Richard and Maurice McDonald began working as set movers and
handymen at Motion-Picture studios. In 1937, their father Patrick McDonald opened "The
Airdrome", a food stand, on Huntington Drive (Route 66) near the Monrovia Airport in in
the Los Angeles County city of Monrovia, California with hot dogs being one of the first items
sold. Hamburgers were later added to the menu at a cost of ten cents with all-you-can-drink
orange juice at five cents. In 1940, Maurice and Richard ("Mac" and "Dick") moved the entire
building 40 miles (64 km) east, to West 14th and 1398 North E Streets in San Bernardino,
California. The restaurant was renamed "McDonald's Bar-B-Que" and had 25 menu items,
mostly barbecue.

In October 1948, after the McDonald brothers realized that most of their profits came from
selling hamburgers, they closed down their successful carhop drive-in to establish a streamlined
system with a simple menu which consisted of only hamburgers, cheeseburgers, potato chips,
coffee, soft drinks, and apple pie. After the first year, potato chips and pie were swapped out for
french fries and milkshakes.

In 1960, the McDonald's advertising campaign "Look for

the Golden Arches" gave sales a big boost. Kroc believed that
advertising was an investment that would in the end come back
many times over, and advertising has always played a key role in
the development of the McDonald's Corporation. In 1962,
McDonald's introduced its now world-famous Golden Arches
logo. A year later, the company sold its millionth hamburger and
introduced Ronald McDonald, a red-haired clown designed to
appeal to children.

Roland McDonalds, an appealing craze for pic

shoot for children

10
 Chapter-5
ANALYSIS & INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

ANALYSIS OF RESPONDENTS

Constituents of Respondents

Normally the respondent comprises of my family members only but yet there can be some sort of
classification which are done as follows

Businessmen Housewives Students Collegiate

15 20 45 20

20 15
Businessmen
20
Housewives
Students
45
Collegiate

Interpretation

The pie chart and table shows the composition of the respondents taken up for the sample size of
the project. We see that out of the 100 persons selected for the sample size for the project, 15 of
them are businessman, 20 of them are housewives, 45 of them belong to the school student
category&20 of them belong to the college going students. It is necessary to know the social
status of the respondents as it determines the money they are likely to spend on the consumption.
For e.g. the consumer category of school and college going students represents more liking for
the product of KFC and MC Donalds but they are unlikely to spend as they have to rely on the
earning member of the family.

11
Classification of the Respondents

VEGETARAIN NON-VEGETARAIN
45% 55%

45
VEGETARAIN
55
NON-VEGETARAIN

Interpretation

The above data gives a picture of the vegetarian and non-veg classes of the people. Forinstance the
non-veg classes of the persons will find more delightful in KFC whereas the veg people would
generally like to go for MC Donalds because the KFC delights are mostly good for non-
vegetarians. To make a meaningful analysis of their perceptions it is evident to classify to which
category the sample class belongs. According to the data we can se that 45 per cent of the
respondents are from the vegetarian class and the 55% of the respondents are from the Non-
vegeteranian class

12
 ANALYSIS OF QUESTIONNAIRES

1. Do they actively seek to the customers as soon as they enter?

When the customers are addressed as soon as they enter the outlets they feel a sense of
importance, which builds up the loyalty of the customers towards the concerned enterprise

In favour of KFC

YES NO
35% 55%
Interpretation
35 per cent of respondents are of the
opinion that the staffs of KFC attend
35 to the customersin due time and they
try to avoid delays for preparing the
55 arrangements for customers. 55 per
YES NO
cent of respondents feel that they have
a poor sense of welcoming the
customers this may be surely because
of the different tastes and likings of
the services by the customers and also
of the differences in the abilities of the
persons in giving the services. Rest 10
persons who belong to the vegetarian
category don’t visit the KFC outlet they
prefer MC Donalds

In favour of MC Donalds

YES NO
52% 48%
Interpretation

The above diagram and chart shows

that 52 per cent of respondents are
satisfied with the welcome services of
48 YES McDonalds. 48 per cent of
52 respondents are not satisfied with the
NO
welcome services of McDonalds. 48
persons are of the opinion that they do
not actively seek to the customers as
soon as they enter the outlet. While the
majority of the persons are satisfied
with the welcome services, still there
are some drawbacks which needs to be
improved.

13
2. Do they timely attend to the Customer?

Timely attending to customers is of grave importance, customers feel happy and contented if they
feel that they are being timely looked after by the staffs.

FOR KFC

YES NO
36% 54%

Interpretation

In KFC we find that 36per cent

36 of respondents are of the opinion
that the time we attend to the
YES customers there is no undue
54
NO delay in welcoming the
customers. On the contrary there
are 54 persons, who are of the
opinion that they do not attend
the customers timely. Rest of the
10 per cent of respondents who
are vegetarian don’t like to visit
the outlet.

FOR MC Donalds

YES NO
60% 40%
Interpretation

McDonald's has gained favourable

public opinion where are out of
100 persons 60 per cent of the
40 respondentsare of the opinion that
McDonalds staff attend the
YES
60 customers timely and they look
NO after the customers well. 40 per
cent of the respondents are of the
opinion that the staff are not good
and do not attend the customers
timely. This might be owing to
difference in the capabilities of
providing the service at different
places the staff so totally
indifferent to each other so there can
be differences in the quality of
services obtained at outlets.It is the
main reason why 40 persons might
have a bad opinion of McDonalds.

14
3. Do they have proper sitting and refreshments arrangements for the customers?

Proper arrangements for customers is a good asset for an enterprise to maintain customer
relationship easy and better way. Making proper provisions for food sitting arrangement and their
taste and preferences is inevitable for enterprise to maintain good customer relationship with the
customer

FOR KFC

YES NO
60% 30%
30

Interpretation YES
60
NO
For sitting arrangement majority of the
persons are of the opinion that there is
proper sitting arrangement in case of
KFC 60 per cent of the respondents say
that there is proper sitting arrangement
for KFC while 30 per cent of the
respondents are of the opinion that there
is no proper sitting arrangement for the customers

FOR McDonalds

YES NO
99% 1%

Interpretation
1 McDonald's has a well-established
YES proper sitting arrangement for
the customers it is clearly evident
NO
from the table and the pie chart that
99 per cent of the respondents are of
99 the opinion that McDonalds has a
proper sitting arrangement for the
customers and the customers are
well looked after by the stars only
one person is of the opinion that
there is not a sitting arrangement so majority of the statements give importance to the fact that
McDonalds has a proper sitting arrangement for the customers

15
4. Do they provide for any welcome drinks when customers have a group visit?

Welcome drinks serves as the good method of welcoming the customers some restaurants offers
cold drinks at the very beginning normally for its potential customers. These can by an effective
measure to maintain the loyalty of the customers towards the company. Moreover, it ensures
greater satisfaction to the customers.

FOR KFC

YES NO
65% 25%

Interpretation
KFC outlets have the
provisions for the welcome 70
drinks for regular customers 60
and group bookings. Since 50
every outlet is not equally YES
40
efficient with the available NO
with the resources and the 30

persons so some might not 20

provide that services. 10
0
YES NO

FOR Mc Donalds

YES NO
25% 75%
Interpretation

Normally, there are no

80 provisions in MC Donalds for
70 the group bookings as these are
60
not formally restaurants but
50 YES
only meant for small dine-outs,
40 NO
30
yet some of the outlets provide
20 the facility of the group outings.
10
0
YES NO

16
5. Do they properly arrange for extra spices on the food table?

Extra spices are necessary so that each individual can have his own taste of food. Every individual has his
own taste and style of eating some need more spices while others need some extra cheese and all. Thus,
extra spices should be there for each of the table so that the customers get proper taste of the food.

FOR KFC

YES NO
80% 20% 80
70
Interpretation 60
80 percent of the respondents are of the 50 YES
opinion that KFC outlets provide for 40 NO
spices that are necessary for having a test
30
of food. 20 percent of the respondents
think that they do not get the spices 20
required spices along with the food or on 10
the table.
0
YES NO

FOR MC Donalds

YES NO
95% 5%
100
90
Interpretation 80
70
Majority of the persons are in the favour of 60 YES
McDonald's that they give spices on the table 50
NO
40
not only when the customers ask for it but it is
30
all time ready on the table the customers need
20
not to have to ask the stops or the persons in 10
charge to provide for the spices on the table, 0
thus they can have a better taste of food YES NO

17
6. Do they provide proper services in the restaurants?

These services are related with the proper serving the foods in proper dishes within proper time
and providing water and other required things demanded by the customers.

FOR KFC

YES NO
90% 10% 90
80
70
Interpretaation 60
YES
50
Majority of the persons are satisfied with NO
40
the proper services at KFC outlets they are
30
of the opinion that KFC staff deal with the
20
customers at a greater pace or they make
10
the product available to the KFC customer
0
as soon as possible from their end.
YES NO

FOR MC Donalds

YES NO 90
90% 10% 80
70
60
Interpretation YES
McDonald's is also no less in providing 50
40 NO
proper services to the customer at the
restaurants the customers are of the 30
opinion that they get proper services at 20
the restaurant that they get timely food 10
and the stars are well adapted to 0
customise the foods also YES NO

18
7. Are the men fully aware of the responsibilities towards the customers?

Until and unless the men in charge of the restaurants are fully aware of the responsibilities towards
the customers, the customers cannot be fully satisfied with their services. Thus, the men should be
properly aware of the responsibilities and should also shoulder their responsibilities in the best
possible way.

FOR KFC

YES NO 80
80% 20% 70
60
50 YES
Interpretation 40
NO
30
80 percent of the respondents say that the
20
stocks of KFC or well acquainted with their
duties they have sense of responsibility towards 10
the customers and they carry out the 0
YES NO
responsibilities and obligations very diligently
there will delegated to work delegated to work
and are fully sensitive towards the responsibilities while 20 percent of the respondents think that
the staffs are not doing well with their jobs.

FOR MC Donalds
100
YES NO
100% 0 80

60
Interpretation
40

20
McDonald's have got much favourable opinion
of 100 percent of the respondents that is all are 0
of the opinion that McDonald's stores have a YES NO
greater sense of responsibility and they are
much delegated towards the work.

19
8. Have they conducted any customer satisfaction surveys?

Customers’ satisfaction surveys are conducted often so as to know whether the company is able to
satisfy the customers or not or how much sensitive is the company is towards the customers

FOR KFC

YES NO
80
20% 80%
70
60
Interpretation 50 YES
With respect to customer satisfaction survey the 40
NO
persons are of the opinion that KFC does not 30
pay much attention to the customer satisfaction 20
surveys they just concentrate on the food 10
qualities and the spices but customer 0
satisfaction survey is equally important to YES NO
ascertain the utility of the services rendered to
them.

FOR MC Donalds

YES NO
40% 60%

Interpretation
In this aspect persons are of the opinion that
McDonalds also does not pay much attention
to the customer satisfaction survey still there 60
are some departments that pay attention 50
towards the customer satisfaction. Besides the
40
basic aim of the business is to ascertain the
profit but the inclusion of customer 30
satisfaction surveys may deviate their 20
potentiality 10
0
YES NO

20
9. Do they take the customer feedback?

Taking customers’ feedback is extremely important so that they can modify and change their
products and accordingly they can be able to satisfy in a better way. Customers feel a sense of
importance while they are being asked about the services and those database are maintained with
the company these help in proper evaluation of the regular customers.

FOR KFC

YES NO
80% 20% 80
70
60
Interpretation 50 YES
KFC take customer feedback through 40
NO
feedback form to be filled up by the customers 30
with their names addresses some tests on food 20
items etc. 10
0
YES NO

FOR MC Donalds

YES NO
90% 10%

Interpretation

McDonalds take customers feedback

basically face to face interactions with them 100
they also give feedback forms to be filled up
by the customers having some closed ended 80

and open ended questions with the customers 60

as to answer answers of the customers are
kept in record and there is also a space for the 40
customers where about in that form 20

0
YES NO

21
10. Are their services flexible with respect to quality of foods?

The services of the men are appropriate with he quality of the foods or not. This question throws
light on the parity of the services with the quality products

FOR KFC

YES NO 70
70% 30%
60
Interpretation
50
The 70 percent of the respondents are of the 40 YES
opinion that the services are flexible with the 30 NO
quality of foods. Usually all the staffs are 20
well trained enough for the proper 10
maintenance of food. Serving the food in the 0
best way and being in conformity with the YES NO
foods provided.

FOR MC Donalds

YES NO
100% 0
100

80
Interpretation
60

All the persons have given their views in 40

favour of MC Donalds they are of the
20
opinion that MC Donalds staffs are effective
in each of the departments. 0
YES NO
They give importance to the food quality and
customer satisfaction.

22
11. Do they customise their ready finished products to suit the customers’ needs and preferences?

The above question throws light on the flexibility of the staffs with respect to the customers’ needs
and tastes. Each individual has his own taste of eating so we need to see that they can modify their
finished product to suit the tastes of the preferences of the customer.

FOR KFC

YES NO
40% 60% 60
50
Interpretation 40
The 40 percent of the respondents are of the YES
30
opinion that generally they cannot customise NO
the ready finished products as according to the 20

tastes of the customers while ordering the food 10

they give a glimpse of the food and as 0
accordingly the staffs will prepare the foods. YES NO
While 60 percent of the respondents feel that
the they are generally not customising the ready products.

FOR MC Donalds

YES NO
40% 60%
60
50
Interpretation 40
The respondents are also of the opinion that 30
they cannot customise the ready finished 20
goods due to in flexibility in making those
10
things and adding something extra without
0
baking would lose the quality of the food. YES NO

23
12. How do they hear to customers complaints?

This refers to the methods taken by the customers to hear to the complaints to the customers. The
company can use face to face conversations which can be on spot removal of grievances of the
customers or through the telephones or
else can use any other means.

FOR KFC 80
Face to face
Face to face Conversation 80% Conversation
60
Telephone Conversation 20% Telephone
Any other means 0 Conversation
40
Any other means
20

0
Face to face Conversation
Telephone Conversation
Any other means
The grievances of the customers are normally removed through the face to face conversations.
Often at times they have a call over the telephone with the customers. Thus the complaints of the
customers are removed on spot and as quickly as possible. They insist on taking immediate
feedback and take remedial measures immediately.

FOR MC Donalds

Face to face Conversation 20%

Telephone Conversation 80%
Any other means 0

100

50

0
Face to face Telephone Any other
Conversation Conversation means

MC Donalds uses telephonic conversations for interactions with the customers the regular
customers are called through the phones to take their orders and they are also asked about their
likings and disliking for the product.

24
13. Do they have any provision for discount for regular customers?

This question enquires about the relationship of the company with the regular customers. If
regular customers are being looked well and given attractive discounts it will bind their
relationship with the company

FOR KFC
60
YES NO
50
40% 60%
40
YES
30
The customers are of the opinion that there NO
are no adequate provisions for regular 20
customers rather all the customers are treated 10
in the same manner and they have a same
0
yardstick of measuring each customer.
YES NO

FOR MC Donalds

YES NO
40% 60%
60
Here the customers are of the opinion that 50
they are not providing any extra discount to 40
the regular customers. Indeed the look every
30
customers in the same manner and they are
not sincere and delegated towards the regular 20
customers 10
0
YES NO

25
14. Is there any provision for Home Delivery?

FOR KFC

YES NO
40% 60%
60

50
KFC outlets have not much provision
for home delivery. Often there are 40
YES
just the outlet staffs and no other extra
30 NO
men are kept under provision for
providing the extra services to the 20
customers 10

0
YES NO
FOR MC Donalds

YES NO
90% 10%
100

80
MC Donalds has the provision for home
delivery, where the most ordered food is MC 60
Donald’s Burger and Hamburger. The
40
customers just need to have a phone call to
the MC Donalds outlet nearby and the food 20
will be delivered to them.
0
YES NO

26
15. How often they can offer any ancillary services or products (e.g. sachet of sauce, Margareta)?

The extra spices no only add up to the tastes of the product but also these are necessary for having
the product in the right way. Thus this enriches the customers’ likings for the product

FOR KFC

Each Time the customer Asks 75%

Only for the first time with the main product 15%
Usually not more than two time 10%

All the outlets of KFC are not equally 80

efficient in their obligations towards the 60
customers some outlets provide each time
40
the consumers ask for some provide for only
the first time and somewhere they geat only 20
twice one with the main product and the 0
second time when they ask. Each Time Only for Usually not
the the first more than
customer time with two time
Asks the main
product

FOR MC Donalds

Each Time the customer Asks 90%

Only for the first time with the main product
Usually not more than two time 10%

The MC Donalds outlets give each

time the customers asks for the 90
ancillary products rather they just 80
70
keep a small basket of the sachet
60
of sauce, margarita and pepper so
50
customer need not to asks even the 40
staffs they can just fetch it from 30
the basket. 20
10
0
Each Time the Only for the first Usually not more
customer Asks time with the than two time
main product

27
16. How do they obtain information about customers?

The companies need to obtain information about the customers inorder to maintain the
relationship with the customers

FOR KFC

By Form fill-up 60
Face to Face conversations 20
Any other means 10
Does not take information 10

60
50
40 By Form fill-up
30
20 Face to Face
10 conversations
0 Any other means

Does not take information

The company get the information by the various ways which vary from outlet to outlet. There are
some outlets that insists on have a from fillup method of collecting the information while others
are of the opinion that the consumers contact details are merely to be taken. Appropriate form
fillups can give a relevant and reliable data

28
FOR MC Donalds

By Form fill-up 80
Face to Face conversations
Any other means
Does not take information 20

80
70
60
50 By Form fill-up
40
30
20 Face to Face
10 conversations
0 Any other means

Does not take

information

MC Donalds have forms for the customers which the customers can fill up which enquires about
their contact details and likings for any particular product. Indeed they are good at maintaining
the database of the customers. MC Donalds’ staffs take necessary information from the
customers by the closed ended question which the customers are required to answer and their
contact detail is also obtained through that form. But all the outlets of MC Donalds are not
equally efficient some of the outlets do not take the information at all.

29
17. How often do they communicate about their special offers with their regular customers?

FOR KFC

Once in a month 40 40
Twice in a month 35
35
Thrice in a month 10
30
Very Frequent 15
25
20 Once in a month
Interpretation 15 Twice in a month
10 Thrice in a month
KFC normally are quite frequent
5
enough with maintaining the Very Frequent
0
contact with the customers but
they often talk once in a month.

FOR MC Donalds

Once in a month 10
Twice in a month
Thrice in a month 10
Very Frequent 80

70

60

50
Once in a month
40
Twice in a month
30 Thrice in a month
20 Very Frequent

10

0
Once in Twice in Thrice in Very
a month a month a month Frequent

MC Donalds are very frequent in maintaining the communication with the consumers.

30
SALES & PROFIT COMPARISON OF MC DONALDS

Years 2016 (in $ bn) 2015(in $ bn) 2014(in $ bn) 2013(in $ bn) 2012(in $ bn)
Total Revenue 24.62 25.41 27.44 28.11 27.57
Profit 4.69 4.53 4.76 5.56 5.46

30

25

20

15 Total Revenue
Profit
10

0
2016 (in $ 2015(in $ 2014(in $ 2013(in $ 2012(in $
bn) bn) bn) bn) bn)

The table and the charts show that the sales of MC Donalds sales have decreased in the years 2015
& 2016 with respect to the sales in the year 2013& 2012 the profit has also reduced due to the
reduction in sales. Besides the operational causes and legal issues with the countries in which it
operates the main reason underlying the facts can be discharge of responsibilities irregularly.
Though the company has tried its level best in discharge of the responsibilities but yet there are
some loopholes in the company. The table in the charts show that MCDonald's sales have
tremendously gone down with respect to the year 2012. The comparison of 5 years of sales and
profit data give the picture of their inappropriate customer relationship management in the 5 years.
Profit and revenue both have gone down in 2017 which is not a good indicator. MCDonalds
should to improve its customer relationship management not only by merely contacting the
customers but also by the quality of the goods produced by it.

There is a sharp requirement to improve its customer welfare services and the quality of the
goods it offers.

31
SALES AND PROFIT COMPARISON OF KFC

Year 2017(in $ bn) 2016(in $ bn) 2015 (in $ bn) 2014 (in $ bn) 2013(in $ bn)
Total Revenue 23,498 25,062 25,214 19,333 17,042
Profit 1870 1494 1228 320 (159)

30,000

25,000

20,000

15,000
Total Revenue
Profit
10,000

5,000

0
2017(in 2016(in 2015 (in 2014 (in 2013(in
-5,000 $ bn) $ bn) $ bn) $ bn) $ bn)

KFC has been a remarkable positive growth trend in the revenue from the sales as well as profits
over the years. Indeed the revenue has decreased from $ 25,062 in 2015 to $ 23498 in 2017 but
yet the company somehow have strived to make the profits. This can be a warning signal to the
company to adhere to the customers properly otherwise it will see a decline in the recent years.

The need for the hour is to have an effective team of workforce in each and every department
and that can take up the responsibility of maintaining the effective workforce.

32
 Chapter-5

FINDINGS
From the project we can find that multinational companies KFC and McDonalds insist on
creating profits through customer satisfaction their ultimate aim is to satisfy the customers with
their proper services and proper discount schemes for customers for regular customers both the
companies have special offers.

The sample size of the project was confined to 100 persons comprising mainly of my family
members relatives, friends who are the regular customers of KFC and McDonalds since they daily
visit the outlets they will be able to give a better picture of the outlets rather than by survey of the
staffs thus, this project is a consumer approach for measuring the responsiveness of the two
companies towards the customer satisfaction.

It is clearly evident that both the companies give priority to the customer the basic aim of the
companies operating on multinational basis is to expand the sales Horizon of the company by
satisfaction of the customers to the full extent.

The data procured through the company’s customers (at a sample of 100) clearly shows the results
in favour of both the companies. They are of the opinion that most of the outlets provide more or
less a satisfactory and required level of services that are desirable for the efficient maintenance of
the customers. They also say that both the companies has its good taste of the products that
provides a good taste to their tongue and refreshes them to the fullest. The data normally shows
that they try hard to maintain healthy relationship with the customers.

Both the companies have given a whole hearted support in shouldering their responsibilities
towards the customers and have strived hard to maintain a good and healthy relationship with the
customer. Now let us see are their services and products really helpful in fostering the sales and
profit and there by expansion of the companies

Indeed both of the companies started as local companies and were confined to the single state. But
their delegation towards work and maintaining their food quality and relationship with the
customers have made the companies emerge as multinational corporations

33
Reasons for shortcomings
Through the data we can see that there are some shortcomings which are responsible for the
decrease in the revenue and thereby the profits of the company. Apart from the operational
inflexibilities and other hindrances we can make out through the customers’ opinion the reason for
the decrease in the revenue and the profits of the firm.

Uneven Efficiency of Staffs

The staffs at each outlet at worldwide are not equally efficient this accounts for the unevenness.
This is clearly depicted by the uneven answers given by the customers they give a two sided
opinion whereby one side becomes in favour of the company and the other side saying that it
needs to improve.

No uniform application of rule or procedure

There is no uniform rule or procedure for the work for across the various outlets. This creates
confusion among the staffs. Often at times it is seen through the questionnaires that the
information are contradictory to each other as in each of the department does not have any
uniform applied principles and practices.

No uniformity in the services

Another thing we can find in the data is that the services provided by the outlets are not uniform as
in the question some are of the opinion that they provide home delivery while others say that
home delivery is not provided.

Lack of effective trained personnel

There is a lack of effective trained personnel and the ineffective staffs. The staffs are not well
trained to provide the food to the customer efficiently and effectively.

34
 Significance of the study

The CRM (customer relationship management) is an integrated effort to strengthen the network of
relationship for the mutual benefit of both the parties. The biggest management challenge in the
new millennium of liberalization and globalization for a business is to maintain good relationship
with the king – the customer. This study is of great significance because

A 5% increase in the customer retention will increase the profit up to 125%.

It costs seven time more to attract a new customer than to serve an old one.

20% of the company’s loyal customers account for the 80% of its revenues.

To study on customer relationship management would enable the researcher to know about the

CRM practices adopted in the MNC’S food sectors

35
 Chapter-6

CONCLUSIONS AND RECOMMENDATIONS

McDonald’s and KFC are two of the most popular fast food chains loved by many around the
world. When it comes to hamburgers, McDonald’s is always the top option whereas when it
comes to fried chicken; KFC is always the first thing that springs to mind. The reason for this is
because the very products of these two chains have become their trademarks and thereby, their
identities. The difference between McDonald’s and KFC comes down to mainly the cuisine that
they serve

Similarities
Both the companies are MNC’s operating in more than 100 countries as fast food outlets.

Popular among the customers with relation to the delicious fast food

KFC and MC Donalds sell Halal food. It means that their products do not consist of pork and
alcohol because they are concerned on sociocultural in their beliefs.

In a nutshell, KFC and MC Donald provided a variety of fast food that fit the customers’ needs
and wants nowadays. With their hard work in continuing providing quality food, and will always
remain in the first choice in customers preferences when it comes to fast food.

36
Differences between KFC and MC Donalds
McDonald’s and KFC are both popular fast food chains that have gained immense popularity
over the years. Differentiating between the two will help obtain the best out of the products that
the two brands offer their customers.

• McDonald’s is popular for its hamburgers. KFC is popular for its fried chicken.

• KFC was initiated in 1930. McDonald’s was launched in 1940.

• The logo of KFC features a caricaturized image of Colonel Sanders. The logo of McDonald’s is
a large yellow ‘M’

37
Suggestive Measures

Both the companies have shouldered their full-fledged support towards customer satisfaction but
still there are some hurdles is which are lingering with it. These hurdles should be corrected as
soon as possible by these suggestive measures

Creating an active workforce

An active workforce should be created who are quite dedicated towards their work and
responsibilities. They should be clear and precise rules for maintaining the discipline and the
decorum in each of the departments across the nations. Thus, a single piece of rule delegated by
the authority at the top designed by the management and should be followed in each and every
department

Explaining the responsibility clearly to each of the staffs

The staffs should be made clear of their duties in each of the departments they should be clearly
explained the job profile and the responsibilities to be taken by them.

Conducting surveys of the staffs

Management should often employ executives to visit the outlets as customers (surprise visit) so
as to determine the effectiveness of the staffs and the roles played bythem in satisfying the
customers and maintaining the relationship with them.

Occasionally conducting Customer services.

The executives of the companies should also have a talk with the customers as it would be an
effective way of identifying the effectiveness of the staffs in maintaining the responsibilities of the
customers and also to have a direct personal interactions with the customers helps the management
make perceptions about the customers

38
 Chapter 6

LIMITATION OF THE STUDY

The project work has been carried out in conformity with the information obtained from the 100
persons who represent the sample size of the project and all the data and its interpretation has been
carried out with respect to the information I got from the persons and the Financials I got from the
internet. Though the information is fully correct and I have been capable of making out correct
relationship between the opinions of my sample size and their reflections in the Financials but I
am not totally sure of any misstatements since we as students can not have any direct interactions
with the executives and somewhere we have to rely on the secondary sources concerned.

39
 Chapter-8

Bibliography
The data has primarily been obtained through the cooperation of the 100 persons constituting the
family members and relatives and my friends it was due to their support I had overcome all the
difficulties. The data of the companies were available through the internet. The rest all analysis
part was done by the best of my own perceptions regarding the answers given by them.

Wikipedia was the main search engine to obtain the required information of both the companies

The financials of the companies has been obtained from

financials.morningstar.com/income-statement/is.html?t=3420&region=jpn

www.marketwatch.com/investing/stock/3420/financials

www.nasdaq.com/symbol/mcd/financials?query=income-statemen

40