Kentucky Fried ChickenFour P’s Of Marketing Mix

Presentation by:1. Md. Tanveer2. Aman Ullah Aman3. Tanbin Sultana4. Shah Saymom Mohammed

About KFC• KFC Corporation, or KFC, founded and also known

as Kentucky Fried Chicken, is a Chain of fast food restaurant based in Louisville, Kentucky.

• KFC is a brand and operating segment, called a “concept” of Yum! Brands since 1997 when that company spun off from PepsiCO.

• KFC primarily sells chicken in from of pieces, warps, salads and sandwiches.

 

• While its primary focused is fried chicken, KFC also offer a line of roasted chicken, side dish and desserts.

• Food, fun & Festivity, this is what KFC is all leading the market since its inception, KFC provides the ultimate chicken meals for a chicken loving nation.

About KFC

KFC Today

• Today, KFC is the world’s largest and most well known chicken restaurant chain, with more than 10,000 locations worldwide, in 78 countries. KFC and its franchisees employ more than 200,000 people worldwide.

• KFC serves more than 4.5 billion pieces of chicken annually, to approximately 12 million customers enjoy their “finger lickin’ good” chicken a day, worldwide.

KFC In Bangladesh

• Transcom Foods Limited, a concern of Transcom Group is the franchisee of KFC in Bangladesh.

• The first ever KFC restaurant has been opened in September at Gulshan, Dhaka with a seating capacity of 178 persons.

• KFC restaurant has been opened in 2009 at Lalkhan Bazar circle, Chittagong with a seating capacity of 120 persons.

• In the coming days, KFC plans roll out more restaurants in Bangladesh.

Mission Statement

“To establish in Bangladesh our position as the leading

WQSR (Western Quick Service Restaurant) chain, serving good value, innovative chicken-based products. Consistently providing a pleasant dining experience, with fast friendly service, in a clean and convenient location. At all times, we must be dedicated to providing excellent service and delighting customers.”

Objective’s

• Build an organization dedicated to excellence.• Consistently deliver superior quality, and value in

our products and services.• Maintain a commitment to innovation for

continuous improvement and growth, striving always to be the leader the market place changes.

• Generate consistently superior financial returns and benefit our owners and employees.

Values

• Focus all our resources to our restaurant operations because that is where we serve our customers.

• Reward and respect the contributions of each individual at KFC.

• Expand and update training with time and be the best we can be and more.

• Be open, honest and direct in our dealings with one another.

Values

• Commit ourselves to the highest standards of personal and professional integrity at all times.

• Encourage new and innovative ideas because these are the key to our competitive growth.

• Reward results and not simple efforts.• Dedicate ourselves to continuous growth in sales,

profit and size of organization.• Work as a team.

The CHAMPS Program

Champs stands for the six universal areas of customer expectation common to all cultures and all restaurant concepts. They are:1. Cleanliness2. Hospitality3. Accuracy4. Maintenance of Facilities5. Product Quality6. Speed of Service

Four P’s Of Marketing Mix

The marketing mix is generally accepted as the use and specification of the 4P’s describing the strategic position of a product in the marketplace.1. Product2. Price3. Place4. Promotion

Four P’s Of Marketing Mix

• Individual communication

• Mass communication• Brand management • Corporate identity

• Distribution channel• Direct sale • Indirect sale• E-commerce

• Cost recovery pricing• Penetration pricing• Price skimming

• Product variation• Product

differentiation• Product innovation• Product elimination

Product

Price

Promotion

Place

Product

Anything that can be offered to a market to satisfy a want or need.

• KFC’s specialty is fried chicken served in various forms

• KFC’s primary product is pressure-fried pieces of chicken made with the Original Recipe®.

• KFC also offering Extra Crispy™, Colonel's Crispy Strips®, Zinger burger and Veggie burger.

Geographic Segmentation

KFC has outlets internationally and sells its products according to geographic needs of the customer.In Bangladesh KFC focuses how geographically its customers demand different products. In Dhaka Chicken is the main selling product, while in the Chittagong Zinger burger item sell more than the Chicken.

Demographic Segmentation

In demographic segmentation, the market is divided into groups based on an age, gender, family size, income, occupation, religion, race and nationality.

KFC divided the market on demographic basis in this way:• Age is between 6 to 65.• Family size is 1 to 2, 3 to 4, 5+• Income is BDT. 15,000 n above.• Family lifestyle is almost all.

Psychographic Segmentation

Dividing a market into different groups based on

social class, lifestyle or personality characteristics is called psychographic segmentation.

KFC divides market on basis of psychographic variables like:• Social class-Upper and Middle class• Lifestyle is not specific.• Personality is ambitious and authoritarian

Target Market

“The process of evaluating each market segment’s attractiveness and selecting two or more segments”

As the outlets of KFC are in posh area and prices are too high( overhead expenses-rent, air-conditioning, employees), so KFC targets upper and middle classes. Target market depends upon size and growth rate of population, company resources and structural attractiveness of market segment.

Market Positioning

• KFC uses its attributes to Position its Product.• For a product to occupy a clear, distinctive and

desirable place relative to:“Competing products in the mind of target consumer.”• In KFC feedback is taken from the customer in order

to know the customer demands and then improvements are made in products KFC focuses on pure and fresh food in order to create a distinct and clear position in the minds of customers KFC has a strong brand name and they are leading the market in fried chicken.

KFC Menu

The secret of KFC's world-wide success is due mainly to three key benefits - quality, taste and convenience.

KFC now offers a diverse and interesting menu which includes:

KFC Specials:• Original Recipe/Hot & Crispy• Zinger Burger• Spicy Thai Chicken Rice• Tower Zinger

KFC Menu

Tasty Fillers :• Strips Chicken • Colonel Fillet Burger• Veggie Burger• Add-Ons• Beverages• Desserts• Hot Wings

Tempting Meals:• Combo 1 to 8

Price

Price is the any amount of money that customers have to pay while purchasing the product. More broadly, price is the sum of all the values that consumers exchange for benefits of having or using the product or services.

Demographic Factors

• Age: generally there is no age limit focus by KFC. The target and focus is on each and every individual in a society. KFC finds its largest demographic in the young any society.

• Gender: Both male and females are focused by KFC, gender dose not play any role here.

• Household Size: This plays a vital role in the demographic factor of the KFC, generally they target whole families rather than singles. This being the reason for their Family Meals which are basically bundle items served at a nominally cheaper rate.

Economic Factors

• Income: income is an important key factor for KFC. This factor decides which class is to be targeted. In the early rise of KFC they focused on the upper class but slowly are introducing economy meals that attract the lower to middle classes.

• Consumption Behaviour: it estimates the behaviour of people their liking and disliking towards the pricing of the products.

Geographic location preference:• Urban• Semi urban

Behaviour segmentation:• Taste conscious• Quality conscious• Class• Combination of product and quality

Price Strategy

Market skimming: KFC globally enters the market using market skimming. KFC products are priced high and target the middle to upper class people. Gradually they trickle down the prices focusing on the middle to lower class people to penetrate both sides of market.

Competition

• We can compare the price of their products with McDonald, Dominoes And Pizza Hut if the competitor provides the same product at a lower price then the organization usually lower the price of its product too.

• In the case of KFC, fried Chicken is its main selling point and controls a monopoly over the Bangladeshi fast food market. It prices its burgers, French fries and soft beverages with relation to its competitors.

Cost Base

• KFC price their product keeping different points in view. they adopt the cost base price strategy.

• Pricing of the product includes the govt. Tax and excise duty and then comes the final stage of determine the price of their product.

• The product are bit high priced according the market segment and it is also comparable to the standard of their product. In the cost base method we include the variable and fixed cost.

Place

Target Areas• “Free home Delivery” strategy is provided by KFC in

select countries.• Accessibility resulting in several outlets to cater to

the needs of people in & around he city.• Hectic lifestyle of office going individuals the fast

food concept saves time of preparing food and give a consumer a full meal quickly.

• Economically convenient to the pricing appeals to the many classes of a society.

Location

• Hectic lifestyle of individuals-giving them more time at work and less stress about waiting for food.

• Commercialization of urban an sub-urban markets leading to more mid-sector people that find high-end eating joint very to expensive.

• Mid-sector people are always looking for change which KFC provides in their range of fast food,

• Quality conscious people in urban areas are more conscious about the quality of food than rural areas.

• Urban areas are more populated therefore they help with attracting higher revenues.

Placement of Outlets

• Due to KFC placing itself close to school, colleges, cinemas and markets which are mostly populated by the young and those who are in hurry, KFC enjoy a large number of footfalls everyday.

Strategy

Given the competitive nature of fast food joint, KFC uses the “push Strategy” to them crate:• Awareness• Be different• Sound attractive

Channels

KFC believes in First Level Channels in the order given below:• Manufacturers• Retailers• Consumers

Channel Process

KFC works on the flow of operation techniques i.e.Good Operating Manager > leads to Good Tam Selection > Good Service > Good Targets > Good Revenues through the following internal strategies:• Training• Incentive based targets• Recognition for good work• Performance based bonus• Employee benefits to keep them motivated • Promotion

Promotion

Promotion is the method used to inform and educate the chosen target audience about the organization and its products. Using all the resources of promotion:• Advertising• Sales Promotion• Public Relations• Events and Experiences• Coupons, Discounts and Bundled packages

Advertising

The logo of the smiling Colonel is probably one of the most recognized faces in the world and instantly brings the image of fried chicken to one’s mind.KFC and its new company jingle, “finger lickin good” is a frequent announcement on:

• Television and Radio, • Print & Electronic Media• In House publicity and by phone• Media Broadcasts i.e. Billboards, Flyers, News

papers• Internet i.e. Website, Social site

Sale Promotion

• KFC uses the following tools to further enhance its sales

• Premiums• Exhibits• Coupons• Entertainment

• All KFC outlets offer its customers with various forms of incentives to buy its Chicken. Using coupons that one can acquire after spending a particular amount over a period of fixed time, customers can enjoy the benefits of free meals or free add-ons. Additionally they provide meal vouchers and exciting offers in their print ads.At KFC, Promotion is the main tool to bring all chicken lovers attention towards its delicious one-of-a-kind product, the Fried Chicken.

Print Promotion

Competitor

The analysis of the competitors activity is and important to do as to know the need and wants of the customers.

Worldwide KFC’s major competitors McDonalds, but the statement of marketing manager of KFC is that at this time we have few major strong competitors:• Pizza hut• Sugar bun• Boast Cafe• MFC

Market Share

33%

27%

18%

14%

8%

Percentage of Market share

KFCSugar BunPizza HutBroast CafeMFC

Positioning Map

SWOT ANALYSIS

Strengths

• Quality of products.• Leader in almost every

market.• Finger licking taste as

the other international fast food restaurants in Pakistan doesn’t have that kind of specialty in Fried Chickens.

Weakness

• KFC menu as it serves only chicken related products but its competitors like pizza hut and Sugar bun, Broast cafe offer fish and cow meat based food also.

• Due to huge expansion by growth strategy there is much pressure on management department in terms of HRM etc.

Opportunities

• KFC plays an important role in increasing employment rate of a country as it hires persons from local place to fill its staff. So this gains public attention and generates good will of the organization.

• Financially KFC is going very stable and sound organization so still it has much opportunity of opening new outlets in different areas of Pakistan and the rest of the world by reinvesting its profits.

Threats

• Prosperity of KFC with in a given region depends upon its economic condition of the country so if some thing bad happens to it, it can be troublesome for KFC.

• KFC recipe is still a secret, and if some one gets this secret then this can play havoc with this organization.

Conclusion

On the whole KFC is the name of trust for the customers because there is no compromise on the quality of the food. KFC fully concentrate on the quality of food that’s why it is the hall mark of excellence among the customers. The supplier of KFC is Transcom Foods Ltd. They have good and fully furnished places for Chicks to grow and finally to provide there valued customers.

Conclusion

By following such practices, KFC is providing a just and equitable environment for work and through its diversity programs, giving back to the community at various levels. Doing business internationally means taking stock of the local population and molding your menus and work practices to suit local tastes, laws and regulations.The best maxim here is: Think Globally, Act Locally.

KFC Commercials

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