KFC marketing analysis free essay sample

KFC is highly popular international fast food chain restaurant in Bangladesh. KFC stands for high quality fast food in a popular array of complete meals to enrich the consumer’s everyday life. KFC strives to serve great tasting, â€Å"finger licking good† chicken meals that enable the whole family to share a fun. Uninhibited and thoroughly satisfying eating experience, with same convenience and affordability of ordinary Quick Service Restaurants. 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. In the coming days, KFC plans roll out more restaurants in Bangladesh STP Marketing Strategy Running a successful business is not like a field of dreams; you can build it but they might not come true. You have to let people know about the product or service you offer, and persuade them to buy or use it. We will write a custom essay sample on KFC marketing analysis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page And you have to let people know about your product or service repeatedly. For this, marketing strategy is very important. Your marketing strategy consists of: The what has to be done. Inform consumers about the product or service being offered. Inform consumers of differentiation factors. So it helps the company to decides which customers it will serve (segmentation and targeting) and how (differentiation and positioning). It identifies the total market, then divides it into smaller segments, selects the most promising segments , and focuses on serving and satisfying the customers in these segments. And this marketing strategy provides the goals for your marketing plans. Figure: Marketing Strategy KFC has marketing strategy emphasis on the following facts: Market Segmentation Market targeting Differentiation Positioning A) Market Segmentation: Dividing a market into distinct groups of buyers who have different needs, characteristics or behaviors and who might require separate products or marketing programs. KFC mainly focus on following market segments. Figure: Market Segmentation Demographic Segmentation: Demographic segmentation consists of dividing the market into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality. As one might expect, demographic segmentation variables are amongst the most popular bases for segmenting customer groups. Also, for practical reasons, there is often much more data available to help with the demographic segmentation process. KFC give their concern in following demographic segmentation:- Age: One of the first variables of demographic segmentation is age. This is because consumer needs and wants change with their age. In KFC Generally there is no age limit focus by the KFC. The target and focus is on each and every individual in a society. KFC finds its largest demographic in the young of any society. Figure: Age Life cycle stage: Closely connected to age, the life cycle stage of a consumer group defines what will be the need of that particular customer. For this KFC offer kids meal with toys and veggi burger for old age people. This demographic segment cannot be said as an â€Å"Age† segment because these customers are in specific phase of their â€Å"Life†. Income: Another popular basis for segmentation is income. A person’s income level combined with its accumulated wealth is the major determinant of the consumers’ willingness to purchase a product. Income is the main decisive factor that influences consumers purchasing power. Consumers with low incomes may not be able to purchase their desired products whereas consumer with higher incomes may not be satisfed with the existing product. In KFC 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. Figure: Income Social Class: This plays a vital role in the demographic factor of the KFC. Generally they target upper class, upper middle class, middle class and middle lower class. Because the items KFC sell are very expensive. Figure: Social Class Family size: This plays a vital role in the demographic factor of the KFC. Generally they target whole families rather than single persons. This being the reason for their Family Meals which are basically bundled items served at a nominally cheaper rate. Figure: Family Size Religion: Bangladesh is a country of religious group. The two main groups are Muslim and Hindu. KFC offing items which are make by chicken and other drinks that are totally alcohol free. So every religious group can have their products. Geographic segmentation The market is segmented according to geographic criteria—nations, states, regions, countries, cities, neighborhoods, or zip codes. Geo-cluster approach combines demographic data with geographic data to create a more accurate profile of specific. With respect to region, in rainy regions you can sell things like raincoats, umbrellas and gumboots. In hot regions you can sell summer wear. In cold regions you can sell warm clothes. KFC in Bangladesh only focus following geographic segmentation. These are:- City: Because Bangladesh is a developing country and the fast food business highly profitable in only Dhaka and Chittagong city that’s why KFC only focus on this two city. Key Spots: Tourist spots Commercial Areas University Canteen Psychographic Segmentation: Psychographic segmentation is dividing a market into different groups based on social class, lifestyle, or personality characteristics is called psychographic segmentation. KFC divides market on the basis of psychographic variables like: Life Style (Lifestyle is not specific) Personality (Personality is ambitious and authoritarian) Behavioral Segmentation In behavioral segmentation, consumers are divided into groups according to their knowledge of, attitude towards, use of or response to a product. It is actually based on the behavior of the consumer. Occasions: The first form of behavioral segmentation is selling product in different occasions. In Bangladesh KFC can permit their customer to celebrate various occasions. They also offer their customer on cricket match â€Å"KFC Popcorn Chicken†, on Valentine’s Day special couple discount offer. Benefits: Several products are targeted towards the benefits sought by the customer. For this KFC only focus some social class. Loyalty Status: There are two ways to grow a business. First is to acquire new customers and second is to retain your existing customers. The more loyal your customer is to you, the more your customer base will increase. That’s one more kind of behavior which marketers target. In case of KFC, they have some advantage because they are well known chain international fast food company. B) Market Targeting: Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. After a company has defined market segment it can enter one or many of these segments. A company should target segments in which it can profitably generate the greatest customer value and sustain it over time . A Company with limited recourses might decide to serve only one or a few special segments. A company with a great number of recourses might decide to serve two or more segments. C) Market Positioning: Positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers. After a company has decided which market segments to enter, it must decide how it will differentiate its market offering for each targeted segment and what positions it wants to occupy in those segments. A product position is the place the product occupies relative to competitors products in consumer’s minds. Marketer wants to develop unique market positions for their products. If a product is perceived to be exactly like others on the market consumers would have no reason to buy it. KFC promotes a â€Å"high quality poison† for its products. It produces high quality products, chargers a high price, distributes through high class dealers and advertises in English newspapers with a high circulation. KFC is communicating through physical sighs and ques that people use to judge quality. For KFC management the image their customers carry in their mind is the most important factor. That is why for them the product quality, which is almost, standardizes the entire world except little differences because of local requirements the promotions are very critical factor. The people which are their customer and the physical evidence, the environment customers get in the KFC are the focus that built KFC’s image in the customer mind that is why they are always trying to bring positive changes in the environment so that every time their customer enter the KFC, can feel the difference. They think that trough continuous efforts they have developed such a brand image in their customer’s minds that their customers have become brand loyal. I order words they have got brand equity. 4P’S Marketing Mix The marketing mix is a business tool used in marketing. The marketing mix is often crucial when determining a product or brands offering, and is often synonymous with the four Ps: Product Price Place Promotion Fig: Marketing mix a) Product: A product can be defined as anything that can be offered to a market for attention, actuation, use or consumption that might satisfy want or need. KFC is specially dealing in the chicken products; Basically, KFC has the special recipe for chicken products that is why, KFC is known as a chicken specialist all over the globe. KFC target the Asia and east side because they observe that these people like the chicken products, so they enter in the market due to the demand of their chicken products. c) Place: Place includes company activities that make the product available to target consumers. High quality product, attractive pricing, huge promotional activities is of no use if the product is not available to the consumer. In our country, there are 11 outlets of KFC. They are located in convenient place so that the customers can easily go and enjoy delicious foods. The outlets are: 1. KFC Gulshan 2. KFC Banani 3. KFC Dhanmondi 4. KFC Mirpur 5. KFC Eskaton 6. KFC Baily 7. KFC Paltan 8. KFC Uttara 9. KFC Chittagong 10. KFC Coxs Bazar D) Promotion: Promotion means activities that communicate the merits of the products and persuade consumers to buy it. It 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 An organization finds most of its meanings and survival through promotion. At KFC, Promotion is the main tool to bring all chicken lovers attention towards its delicious one-of-a-kind product, the Fried Chicken. a) 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. It also does the following activities as advertisements: Figure: Advertising media b) Public Relations: It is a communication effort that is designed to favorably influence attitudes toward an organization, its products and policies. KFC is not just a quality food restaurant, but also a socially conscious corporate citizen. It has been equally involved in promoting and funding several community welfare projects through aggregate KFC revenue. To enhance public relation KFC does different types of seminars and employee training classes. c) Sales Promotion: 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, which the customer must cut and bring along. SWOT Analysis: SWOT analysis is an overall evaluation of the company’s strengths(S), weakness(W), opportunities (O) and threats(T). The SWOT analysis begins by conducting an inventory of internal strengths and weaknesses of an organization and the external opportunities and threats that may affect the organization, based on market and the overall environment KFC is the strongest brand in the fast food industry in the world. For knowing about situational market analysis and identifying market opportunities, lacking, getting knowledge about future threats, and evaluating their overall market growth KFC always make a SWOT analysis. Figure:SWOT Analysis STRENGTHS: Strong franchises all over the world. Taste and food quality are better than other food corner They are successful in maintaining their loyal customers. They serve variety of items under single menu. Variety in menu Interactive relationship market. It doesn’t have any core competition in chicken serving. KFC outlets are available. KFC secret recipe of herbs and species. Large market share. Large multi brand in the world KFC is the market leader in providing different products of chicken They are specialized in chickens Existing in the local market for years, therefore , knowing people’s tastes and whims They are ISO ( International Standard Organization) certified WEAKNESSES: Its major weakness is the presence of multinational competitors in the market like Pizza hut. Lack of relationship building with employees customers and suppliers. They only focus higher income level people but in our country most of the people are middle class. Lack knowledge about their customer. Inflexibility of price making. Lack of knowledge about their customer. Weak packaging They has higher overhead costs, as a result of KFC higher prices must charge They are over confident of loyal customer OPPORTUNITIES: They can include new product in their menu. KFC plays an important role in increasing employment in country. KFC gives many facilities for part time jobs. They can open temporary outlets in university. Increased and efficient services specially home delivery and office orders. They can update their restaurant with facilities like play stations, LCDs, children zone and booking the outlets for parties and other customer. They can open more outlets to get maximum market share. They can advertising their product in media. Maximum customer are student so they can sale their product in resalable price. Give more focus on nutrition. Focus on packaging, serving food. THEATS: Day by day change in food habits Diseases like bird flu are the big threat for KFC. Lake of promotional advertising. Less variety of products High rate on prices as compared to the other brands selling same items may cause the customer’s shift, People become health conscious day by day. Changing customer demand. The threats faced by KFC are the entering of many new competitors into the market that maybe local or international brand. Less consciousness about packaging.