Strategic Planning for KFC: Market Audit, Competitors Analysis, and Stakeholder Analysis

This presentation provides an in-depth analysis of KFC's market audit, competitors analysis, and stakeholder analysis. It also discusses the strategic planning process and the SOSTAC strategic model used by KFC. Learn about KFC's strengths, weaknesses, opportunities, and threats, as well as its customer analysis and the role of stakeholders in the company.

Business management -
Strategic Marketing

Table of Content
INTRODUCTION
Background of KFC
Market Audit
Competitors Analysis
Macro and micro economic factors
Customer Analysis
Stakeholder analysis
Strategic Planning
KFC Strategic Planning
SOSTAC Strategic Model
Strategy
Conclusion
References

INTRODUCTION
 Strategic management can be defined as the process of setting objectives, monitoring, analysis,
assessment of all necessary resources for business to achieve it’s goals and objectives.
 Strategic management supports organization to get success in change according to business
environment.
 The management plays essential role within organization such as they involve various
functional areas while setting objectives and ensures that these functional areas get work well.
 Another role of management is to focus on the goal and objectives of the company constantly.
 To understand role of strategic management, have an example of KFC.
 The main purpose of the presentation is to provide understanding about internal and external
environment of KFC and it’s strategies which they adapt to promote it’s brand image as well as
products.
 It will be included market size and trend data for KFC, competitor analysis, customer analysis
and stakeholder analysis. SOSTAC model will be covered in the presentation.

Market Audit
 Market Size and trend data: The market size of KFC can be
analysed by the fact that the company has huge functioning
operations in varied business segments within various
international countries which has given it global brand
position.
 The market data explains KFC has been recognised as one of
the best company serving various food products and
beverages which are high in quality standards which gives it
competitive edge and benchmarks.
 KFC stands highly competitive in food industry among
various brands and companies where the data explains its
online marketing channels, multi media promotional business
activities have made it one of the biggest brand serving
customers.

CONT…
 There are various competitors for KFC brand
with various new food brands and companies
coming up in food industry where the external
forces also play impactful role to play in giving
KFC tough competition.
 The recent market arenas and data explains how
KFC has brought varied customer satisfaction
services on online portals and websites which
makes its position among food industry and the
customers very satisfied.
 The recent trends of KFC analyzes varied
research technology usage , innovation within
products which makes the products highly
attractive and fresh ingredients used always are
highly recognised as one of the biggest
strengths

Background of KFC
 KFC is an American fast food restaurant chain which is
headquartered in Louisville, Kentucky.
 It has specialization in fried chicken. It comes in
world’s second largest restaurant chain after McDonald.
 It operates in136 countries across the world and offers
its products. It is famous for fried chicken which helps
company to capture large market share.
 It is subsidiary of Yum. Even this company has own
other brands i.e. Pizza Hut, Taco Bell and Wing Street
chains. Organization has large variety of products i.e.
fried chicken, wraps, soft drinks, French fries, soft
drinks, salad and others.
 KFC has adopted its menu internationally so that easy
to meet regional taste.

Competitors Analysis
 KFC is main line of fast food restaurant because it offers wide variety products in
which fried chicken is more famous product of company.
 Popeyes is American multinational chain of fried chicken which is famous as the
second largest, quick service chicken restaurant group.
 Popeyes has similar menu like KFC so it makes it one of main competitor.
 The McDonald is one of the most company that comes in world’s largest fast food
chain restaurant.
 It has captured largest market share and highly famous across the world.
 Domino’s is another competitor which gives tough competition to KFC because it
also serves pizza in different verities along with taste.
 It causes KFC unable to improve market share of KFC’s pizza.

CONT…
Comparison with competitor
 McDonald is located in Oak Brook, US and
famous as a largest chain of hamburger fast food
chain across the world.
 Organization does not have numerous varieties in
it’s menu but they provide food supply along with
good quality, low cost and good environment
while KFC has wide variety in it’s menu.
 Organization operates into 34,000 location across
the world which is quite high as compared KFC.
 The revenue of the McDonald estimates 27.56
billion US dollars while KFC generates its
revenue of 15 billion US.
 McDonald captures 21.7 market share on their
products so become as market leader in fast food
industry as compared KFC.

Macro and micro economic factors
 Macro-environmental are those factors that
gives directly impact on organization
performance and supports to analyse external
business environment.
 Macro environmental factors includes
business strategy, political, economic,
technological and social. Whereas micro-
environmental encompasses those factors,
which helps to analyse internal environment
of company.
 Micro environmental factors are internal
factors such as customer, suppliers and
competitors etc.

Pestle Analysis
Political factors
 It includes government instability, changes in policies, taxation and trade restriction etc. are
political factors which gives impact on KFC.
 For example, organization handles all government policies very well in overall location where it
operates.
 Flexible policy strategy supports organization to promote it’s products across the world without
any restriction even it is foreign company for other countries.
 Organization operate it’s business in multiple countries that causes they have to pay high taxes
which directly impact on KFC’s profitability negatively.
Economic factors
 KFC use to focus on upper class customer so that they can sell premium products to them.
 To improve growth of business starts to focus on middle class by KFC and adds affordable items in
it’s menu that influences purchasing behaviour of customer.
 Organization can get negative impact on it’s operation due to Brexit.
 The reason behind is that Brexit leads change in policies, taxation charge and others that causes
income level of people become weak and increase unemployment rate.
 Due to lack of cash flow liquidity, KFC cannot offer premium products for the customer as result
gets impact on it’s selling revenue.

CONT…
Socio-cultural factors
 KFC gets negative impact of social factors because nowadays people becomes health concern
so they avoid high calories fast food.
 Another reason is this KFC’s menu has non-vegetarian items instead of vegetarian which
declines purchasing behaviour of customers.
 It causes organization gets negative impact on its productivity, operation and performance.
Legal factors
 Organization operates more than 140 countries across the world and complies with the local
laws and regulation which is one of the essential factors to get constant success as well as
operation.
 From past few years gets numerous cases about KFC that they has offered low quality and
unhealthy fried chicken to the customer which impacted brand image negatively in the
customer market.

CONT…
Technological factors
 Emerging technology leads profitability within organization because they get chance to deliver
it’s products across the world without any restriction.
 KFC offers home delivery services to customer which improves business activity and assists
company to generate high revenue on it’s products.
 Apart from this, organization provides number of software facilities i.e. self-order kiosks, voice
automated machine and online platform to the customer for increasing profits and sales.
 By social media management and promotion has improved digital presence by KFC.
Environmental factors
 KFC kills animals to use in food production which gives negative impact on global nature.
 Another is organization uses unhealthy chicken for producing fried chicken which harms
people as well as environment because they use meat of animal and throw unwanted waste that
release alkalis and gives rotten smell.
 It causes government takes strict action for KFC that directly impact on profitability.

SWOT Analysis
 It is strategic tool that is used to analyse internal environment of business and determines it’s
strengths, weaknesses, opportunities and threats.
Strengths
 KFC has high brand image in global market because it comes in the world’s largest fast food
chain restaurant. In addition, it has 15000 establishment in 120 countries that gives access to
focus number of people.
 KFC has high product portfolio as compared others and designs international menus as per
regional state which is major strength of company.
 KFC has traditional employees who are loyal for organization and love to give their best
services due to organizational culture.
Weaknesses
 KFC spends long journey with market along with old products portfolio which causes unable
to attract new customers.
 Operational cost is too high which causes organization get negative impact on profit ratio.
 Franchises management is poor in the KFC.

CONT…
Opportunities
 Currently fast food industry does not have sustainable products while customer starts to
demand low calories products from few years. So, it is golden opportunity for the KFC to
practices sustainable practices in their food that helps to meet changing customers needs and in
return generate high revenue on products.
 Organization can develop foundation of youth because they are fond off fast food. so it is also
good opportunity for the KFC.
Threats
 Food quality becomes big challenge for the KFC because people become concern for their
health.
 Organization can get tough competition from the global and local players which impacts
market share of company negatively.

Customer Analysis
Organization adapts customer segmentation strategy that
segments market into on the basis of culture, sub-culture
and social class.
Company focuses on young people because they are fond
of fast foods instead of traditional food.
Customer gives preference to KFC in the non-vegetarian
food because organization has own premium products
i.e. fried chicken which is liked by most of the young
customer.
Pizza of KFC is not too much famous as compared
Domino’s because they give more variety in pizza along
with different taste.
KFC has good brand image in market because it offers
high quality products along with different flavours that
attracts customer towards KFC.

Stakeholder analysis:
 Stakeholders can be understood as internal
strength of company which are diversified into
various departments such as employees, the
management experts and functional operations
being highly focused towards gaining huge
efficiency.
 The stakeholders play an important role for strong
working cooperation and KFC stakeholders are
given huge importance, where their grievances
related to work issues are given huge importance
and keenly focused towards their satisfaction
levels.

CONT…
 The stakeholders are vividly the face of brand which are responsible towards main functioning
operations which are highly varied and focused towards integrating high optimum excellence
through which global benchmarks can be reached for long term.
 Stakeholders are at an optimum position at KFC which gives an important functional leverage
among other competitors which are hugely present at an utmost responsibility to provide
customers high end goodwill enhanced services.
 Stakeholders are highly important and have huge responsibility towards business functions in
company through which customers are strongly served among market share, delivery of goals
is strongly accomplished which constructs various benchmarks to achieve on various grounds

CONT….
 Stakeholders analysis matrix is process
assessing system which evaluates interests of
stakeholders, their rational involvement in
company. The stakeholders within company are
huge and focused towards gaining huge optimum
business function where KFC posses high
parameter of relative energy to improve
functional operations efficiency.

Strategic Planning
Strategic planning is defined as a process to form operational
strategies in order to achieve the overall objectives of an
organisation.
Strategic planning also aims to implement and control the strategies
drafted to achieve the business objectives.
Strategic planning supports company’s in meeting all expectations
associated with the company’s stakeholders.
Strategic planning process involves activities like strategy
formulation, strategy implementation and also the evaluation of
strategy.
In order to implement the first aspect of strategic planning company
assesses its current position and situation.

KFC Strategic Planning
 KFC is among the first fast food chain operated in United States of
America.
 It is also among the first chain that has expanded globally at international
level by operating in more than 130 countries across the globe.
 Strategic planning of KFC Company is based on franchise business.
 Company aims to provide franchise in order to expand the business
operations.
 Franchising is an effective strategic tool which also not required much
investment of company’s resources local entity’s mostly engaged in
initiating company’s operations in the respective market.

SOSTAC Strategic Model
Situation
KFC is among the leading company is fast food restaurants across the
globe.
Company is operating its business operations in more than 130 countries
by operating its restaurants chain in more than 22000 business locations.
Company is currently dealing in fried chicken, chicken sandwiches,
wraps, French fries, soft drinks, salads, desserts, breakfast and krushers.
KFC is the subsidiary company of Yum brands which also owns Pizza
Hut, Taco Bell and Wing Street Chain.
Objectives of KFC Company
Objectives of the company is to achieve the dominate position in the fast
food market.
 Objective of the strategic planning is to improve the market share.
Company also aiming to improve the service quality.

Strategy
Diversification
Company will follow the diversification strategy to achieve the business objectives.
Company will focus over improving the product quality.
Product expansion strategy
Product expansion is also an effective strategic tool company will channelize to achieve all business objectives.
In this strategy company will aim to launch new products in the market.
This strategic tool will support company to improve the customer loyalty of all existing customers.

Cont..
Social media marketing
Branding is an important tool that supports company in achieving all business objectives.
Company will channelize effective marketing campaigns at all social media networks.
Company has researched that almost majority of company’s potential buyers are active over different social media networks.
Low cost strategy
KFC has also launched the low cost strategy in its strategic planning.
Low cost strategy will focus over catering all products of KFC at the most affordable price range.
Search engine optimisation
Search engine optimisation is also among the crucial part of the strategic planning.
This is an effective concept company will channelize more aggressively.

Cont..
Tactics
Company has formed different teams based on the needs of different
strategies.
All team will focus over individual strategy.
Action
Company will channelize all strategies with the support of individual team
formed for each strategy.
Company will make strategic partnership with other effective mediums in
order to channelize all strategies.
Control
Company has formed teams for all individual strategy.
Teams will monitor and control individual strategies based on the situation
analysis and review system.

CONCLUSION
The report has provided the brief history about the KFC Company.
Market Company has an effective market seize and its growing at the rate
of 5%.
The report has discussed all key competitors for the KFC Company.
It is stated that company has different strengths like effective brand value,
market share, quality products and other strengths.
Weaknesses, opportunities like market expansion and threats like
competition has also concluded in this report.

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