Marketing Strategies for Food Industry

The given study is about KFC's huge scope for growth in the future. By implementing effective marketing strategies, the entity will be able to enhance its revenues and meet with its marketing objective. The food industry is highly sensitive to its business environment, making it crucial for companies to understand customer taste and preference. Marketing teams must focus on proactive action than reactive action, as proactive action increases customer satisfaction intensely.

INTRODUCTION TO MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Company overview.................................................................................................................1
Advertisement aim..................................................................................................................1
Marketing plan........................................................................................................................1
Marketing theories..................................................................................................................6
Creativity in marketing...........................................................................................................8
Fast food market in UK..........................................................................................................8
Forecasting.............................................................................................................................8
Summary.................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is essential tool that helps business in order to promote its products and
services and raising demand of goods. Present study is based on KFC that is the leading fast food
brand (Kim, Jun and Lee, 2014). It offers testy burgers, sandwiches, drinks, desserts, breakfast
items to consumers across the world. It has around 20000 outlets in more than 125 countries.
Current study will explain advertisement aim of the firm and will prepare marketing plan.
Furthermore, marketing theories will be explained with reference to KFC.
MAIN BODY
Company overview
KFC (Kentucky fried chicken) is the multinational American fast food firm. Recently firm
has more than 20000 outlets in 125 countries. All its outlets are generating huge profit.
International expansion of business has supported enterprise in becoming the leading brand.
McDonald’s, Subway are main competitors of KFC. In the year 2017 it has generated 13.52
billion revenues and has become the fourth largest food chain business in this industry. Yum
brand is parental firm of KFC and KFC is subsidiary. In the year 2014 it was having 19420
numbers of restaurants whereas in 2016 it reached to 20643. In 2017 company has increased its
outlets ad has reached to 21487 restaurants globally ().
Advertisement aim
The main marketing or advertisement objective of KFC is to increase number of
consumers across the world and become the leading high profit generating firm in fast food
industry (Martensen, and Mouritsen, 2017). In addition, another advertisement aim is to expand
the business across the world.
Marketing plan
Situational analyses
Internal Analyses
SWOT analysis of KFC
Strength
 It has huge global presence.
 Trustworthy and standard supplier.
 Strong financial background
 Company has product diversification
Weakness
 High calorie food
 Poor CSR policies and it is criticised
for causing harm to animals and
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and differentiation.
 Hygienic food, clean stores
environment
Opportunity
 Introducing vegetarian products
 Globalisation
 Healthy eating perception of consumers
Threat
 change in government policy regarding
food law and regulation
 local fast food supplier can affect the
sale by provide same product in low
price
 Economic changes
External/ PESTLE analysis of KFC
KFC' s marketing team use PESTLE to get the knowledge of external environment factor
on which marketing's success lean on. Environmental scanning has been done with the help of
PESTLE analysis by team (McDonald and Wilson, 2016).
 Political factor: Currently UK business is effected by BREXIT and recent elections.
Due to BREXIT trade relation with other country has been changed. Per capita income
can be hurt by this. Strict the immigration law, hard foreign direct investment policy and
new barrier have been imposed on UK business organisation. KFC face lack of skilled
labour in organisation apart from it company's store location decision been affected
because government change in planning regulation. KFC has to make its strategic and
tactical plan with compliance of health and safety law.
 Economical factor: Customer's disposable income level. Change in tax, interest rate,
unemployment rate, education level affect KFC with huge intensity. Customer took fast
food as luxury expense, when UK faced 2008 economic crisis (Philip, 2014). In such
slow economy phase KFC's demand decreases because consumer have low level of
income, which they used to spend on food outing plan. Increased in tax rate, lower the
income level of consumer and it also higher the tax amount which organization has to pay
to government on its gross sale, which eventually lower retain earning of Firm. When
economy is happy it supports KFC by increased demand by consumer for fast food
services (Purvis, 2015).
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 Social factor: Product ingredients , packaging, store outlet design and decoration,
marketing campaign are the key area of KFC market function which is effect change in
social factor. KFC fact free is the best example of this, as company know that obesity,
life style deises condition getting worsen day by day in UK company take it as
opportunity as now it offers healthy fast food to its customers. UK also have large
working people quality. These working have lack of time to prepare food by themselves,
so company decide to restructure its supply chain management so that fresh food can be
deliver on time, which eventually increase the frequent purchasing of customer by KFC.
Cultural practice limits organisation to use certain ingredient in food. Marketing team
positing efforts focus on weighting loss with KFC (Romero-Gutierrez, Jimenez-Liso and
Martinez-Chico, 2016).
 Technological change: Technological change are brought to enhance the customer
satisfaction. KFC also make required technological change in the interest of its customer.
For instance now company put almost full menu online, customer can get full information
about product by scanning the bar code present on package, KFC store now have self
check out facility, more payment gateway options. The Best online practice of KFC is, it
gives opportunity to customer to customised food as per their taste preference. Negative
affect of technology on organisation is, It increases the operation cost. Technologies are
expensive to buy. KFC has to conduct frequent T&D program to make its employee
technical fit in industry (White Jr, T.H. and et.al., 2015).
 Legal factor: KFC is very obedient business entity. It follows almost all the legal
compliance to protract consumer interest. Food process of company has hygiene and
quality standards. They put all the information and warning for product and its ingredient
on label. Employees enjoys the benefit of equal payment act, workplace safety act so on.
These legal boundation increase the cost for KFC as it has to pay full salary to employee
who is not productive on temporary basis like a pregnant lady.
 Environmental factor: environmental factors which have effect over the KFC should be
understand thoroughly. So that company can build a healthy culture within the business
premises. Consumer's taste should be understand by the KFC so that they could prepare
their product accordingly and get more consumer satisfaction (Haryadi, 2018).
Marketing Mix of KFC
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 Product: KFC offers wide range of fast food items to the consumers. Company also make
proper diversification in products as it offer snacks, sandwiches, healthy salad, breakfast
items, drinks, Meals, biscuits, Veggie Delights, muffins, desserts, Chicken food.
Catering services of KFC are KFC to GO, Giant subs and Sandwich platters.
 Price: It will implement competitive pricing strategy in order to gain competitive
advantage and enhance it brand image.
 Place: KFC will open branches in high street places that will help in attracting more
people towards brand (SWOT Analysis / Matrix, 2012).
 Promotion: For promoting the brand entity will takes support of social networking sites.
Segmentation, Targeting and Position of KFC
Segmentation, targeting and position is one the most used marketing tool by marketing
manager. Segmentation helps in deep research about customer need. Through segmentation
process marketing team of KFC identifies the niche market which help it to grow more in
matured market. For instance fast food industry is a saturated market nowadays so, KFC decide
to go with product differentiation strategy. To develop a new product first company has to know
what feature, taste , quality is not present in market yet, so that it can take this gap as positive
opportunity.
Target is narrow form of segmentation, in segmentation KFC get large customer pool
and in targeting company clearly define its market based upon above process. Targeting include
analysis of cost associate with marketing plan, know the difference between two segments,
insure smooth accessibility of marketing efforts in customer.
Position are efforts to make different image in customer minds. Marketing team of KFC
practice targeting focused advertisement and promotion tools for this (Romero-Gutierrez,
Jimenez-Liso and Martinez-Chico, 2016).
Segmentation  Geographic: KFC food restaurants has global presence. Its geographical
segmentation covers middle east country, ASIA, US, Canada and
America.
 Demographic: company focus on 18 – 39 Age group people. Its
existence and potential customer include girls who are health and figure
conscious and boy who are obsessed with gym and fitness regimes.
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Children are the new market segment of KFC
 Psychological: its market segment have interest in healthy life style.
Targeting  KFC adopts different product and marketing strategy to target its
segmentation. Company enrich its fast food with healthy nutrition
content. Company replaced its carbon drink with healthy vitamin
juice and it uses sourdough bread which is The lowest calorie bread
till today, ranch dressing and mayo replaced with honey mustard
sauce. These healthy food product is part of its product differentiation
strategies (McDonald and Wilson, 2016)
 KFC offer its customer to customised their meal. It shows service
differentiation effort of company.
 Company make a separate section called “point to order” to help its
new customer, who do not have idea about its product.
positioning  KFC's segmentation having people who are health conditions so
company decide to change its image form traditional fast food supplier
to healthy fast food provider. Earlier company focused on “Eat fresh”
now it put its full attention on “appetite for better”.
 Company want to set its image as premium menu brand which can be
see by its rotisserie-style chicken and carved turkey breast product.
 KFC has good relation with American heart association. It helps
Company to earn customer trust and faith , Because this step reflect
serious concern of company towards its customer's health.
Budget
The entire cost of marketing the brand would be 25000 Pound. Company will have to
spend on rent, advertisement expenditure, administration cost, utility bills etc. and wall these
will be of 25000 Pound.
Monitoring and controlling
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In order to monitor the marketing plan KFC will look upon the sales performance and
will take continuously feedback from consumers. This will help in meeting with this
advertisement objective.
Marketing theories
Marketing mix theory is considered as most essential model that helps the firm in using
making effective strategies for 7P’s element. Product, place, price, promotion, physical evidence,
process and people are helpful in influencing the performance of business in market. Marketing
mix are sum of the effort use by an organisation to influence customer to purchase the product.
KFC marketing department know the importance of marketing mix so they put their serious
effort in formulation and design its marketing mix (Martensen, and Mouritsen, 2017). An
efficient and impressive marketing mix is half success of product, because product's sale heavily
relay on this marketing function.
Product:
An item and service offer to customer to satisfy their need, is called product. In Fast Food
industry a product must have sharp product differentiation because this difference influence
customer choice. KFC has so many products which is different from the product given by its
competitor. Company also make proper diversification in products as it offer snacks, sandwiches,
healthy salad, breakfast items, drinks, Meals, biscuits, Veggie Delights, muffins, desserts,
Chicken food (McDonald and Wilson, 2016). Catering services of KFC are KFC to GO, Giant
subs and Sandwich platters.
Price:
KFC's products are expensive as compare of its competitors because company believe in
quality rather than quality. Company do not losses its focus of offer health conscious food.
Company insure quality of product as well as quality of process. Organisation uses high quality
raw material and latest machine, in making its product. It also designs training and development
for its employee. These all efforts increases the cost of product. Although company also use
pricing differentiation policy as per value addition. For instance if a customer ordered simple
burger than he has to pay less amount than customer who demand extra vegetable and sauce in
burger (Kim, Jun and Lee, 2014).
Place:
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Place of marketing mix assure that customer have easily access of product. KFC has
efficient distribution channel and supply chain so that Customer can avail the required product
and service with minimum effort. KFC even give franchises. Company has its store in
airports ,malls, business centres, amusement parks. These outlets are situated at premium places.
Company now tie up with online food distribution channel. Customer can order food from KFC's
website and app.
People:
KFC;s people are its employee and customer. Company has 400,000+ working with it. It
not only take care of its customer, but company take care of its employee through its best HRM
practices. To make good relation with customer it uses CRM. To affectivity manage its human
capital company divided job into three part I.e. local restaurant jobs, regional jobs and
headquarter jobs. Company give career growth opportunities to its employee by sending them to
take participation in conferences and business get together. KFC's employee get exposure of
international market by international business tour facilitated by organisation (Malhotra, 2015).
Promotion:
Promotion are done by organization for specific marketing objective like to introduce
new product, improve awareness among customer, to enter in new market and give information
of value added or innovative product. KFC makes promotional effort by using Internet like social
media add, TV adds. Its advertisement are broadcast on sports' channel and music channel
because it targets 18-35 age group. Company had special marketing campaign on National
Sandwich day named ‘Buy one sandwich, Give one sandwich free. Company also sponsor
charity program, events, sports tournament to grab the customer attention (Romero-Gutierrez,
Jimenez-Liso and Martinez-Chico, 2016).
Process:
KFC's has standardised process series. There are two type of process working in food
industry, first one is customer oriented and second one is business oriented. Customer service
process help customer to get what they want. For instance store manager give proper training to
employee or make sandwiches , which must meet the standard set by company i.e. employee can
not touch bread without wearing the gloves, first they have to spread sauce than fresh veg and so
on. Apart from it business also have some standard in supply chain, procurement, storage and
warehousing,
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Physical Evidence:
Physical evidence is physical environment of KFC's store. Company has the proper
seating facilities, attractive store decoration, automated controlled temperature, enough
ventilation and lighting arrangement (White Jr, T.H. and et.al., 2015). Apart from it electronic
physical evidence of KFC is customer friendly website and app.
Creativity in marketing
In the recent time most of the companies are taking assistance of marketing. This helps in
making positive changes in business unit. Social media marketing is the most effective creativity
that helps in gaining attention of mass audience. Mobile marketing allows business in order to
circulate necessary information to consumers and enhancing interaction with them. Furthermore,
augmented reality supports in enhancing engagement of people and making them positive
towards brands (Haryadi, 2018).
Fast food market in UK
Over a period of time fast food market of UK has been grown well. It is dominated by
many global brands. In the year 2017 revenue generated by this industry was 18.2bn.Annual
growth of fast food industry in UK is 0.9%.there are around 40738 business in this sector those
who have employed approx 386599 employees. This industry helps in increasing employment
opportunities in the UK and helps in improving economic condition of nation significantly.
Industry is growing well and continuously making changes in its products and services. Fast food
business of UK have ability to attract more people and contributing in real household disposable
income (UK Food-to-go Market Report 2018, 2018).
Forecasting
Fast food industry has huge scope to grow well in future. It is expected that in next few
year it will increase its revenues by 2.8% more. Evolving consumer behaviour and increasing
growth opportunities will contribute well in success of this sector in the future (SWOT Analysis /
Matrix, 2012).
Summary
Study can be summarised as KFC has huge scope to grow well in the future. By
implementing effective marketing strategies entity will be able to enhance its revenues and
would b able to meet with its marketing objective.
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CONCLUSION
From the above study it has been surmised that food industry highly sensitive to its
business environment so food industry company has make its marketing plan very carefully.
Success of Food Company solely depend upon its understanding for customer taste and
preference. Marketing team must insure the accuracy and quality of information which is used
marketing team for making marketing mix. Food service provider must focus on proaction action
than reactive action because proactive action increases the customer satisfaction intensely.
Internal factor are effect more to this industry than macro because if organisation is weak in
internal factor it can produce quality product and service to customer.
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REFERENCES
Books and Journals
Haryadi, S., 2018. Applied Statistics for Assessment of the Regulation and Policy: case study in
Telecommunication Industry. DOI10, 13140.
Kim, K., Jun, C.H. and Lee, J., 2014. Improved churn prediction in telecommunication industry
by analyzing a large network. Expert Systems with Applications. 41(15). pp.6575-6584.
Malhotra, N.K., 2015. Essentials of marketing research: A hands-on orientation. Essex: Pearson.
Martensen, A. and Mouritsen, J., 2017. Prioritising marketing activities in different types of
marketing functions. Total Quality Management & Business Excellence. 28(11-12).
pp.1264-1284.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit from
them. John Wiley & Sons.
Philip, K., 2014. Marketing Essentials. A brief course: Translated from
English. Moscow:“Williams” Publishing House. 496.
Purvis, J., 2015. Human resources marketing and recruiting: Essentials of digital
recruiting. Handbook of Human Resources Management, pp.1-19.
Romero-Gutierrez, M., Jimenez-Liso, M.R. and Martinez-Chico, M., 2016. SWOT analysis to
evaluate the programme of a joint online/onsite master's degree in environmental education
through the students’ perceptions. Evaluation and program planning. 54. pp.41-49.
White Jr, T.H. and et.al., 2015. Improving reintroduction planning and implementation through
quantitative SWOT analysis. Journal for nature conservation. 28. pp.149-159.
Online
SWOT Analysis / Matrix. 2012. [Online] Available through: <http://fernfortuniversity.com/term-
papers/swot/1433/1182>
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UK Food-to-go Market Report 2018. 2018. [Online]. Available through < https://www.mca-
insight.com/market-intelligence/market-reports/uk-food-to-go-market-report-
2018/563094.article>
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