Value Propositions of KFC and McDonald's

Running head: MARKETING
Marketing
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Table of Contents
Assignment 1..............................................................................................................................2
Question 1...............................................................................................................................2
Value propositions of the two brands.................................................................................2
Question 2...............................................................................................................................4
Two brands engages in customers online...........................................................................4
Question 3...............................................................................................................................6
Impact of macro environment forces on the product category of the brands.....................6
Question 4...............................................................................................................................9
Describe an advertisement of the two brands using Maslow’s hierarchy of needs............9
Question 5.............................................................................................................................13
a. Examples of a company not complying with the ethical principles.............................13
b. Potential long run consequences of the communications.............................................14
Assignment 2............................................................................................................................15
Question 1.............................................................................................................................15
Primary target market of the brands.................................................................................15
Question 2.............................................................................................................................17
Product life cycle of the brands........................................................................................17
Question 3.............................................................................................................................19
Positioning of the two brands and its effectiveness..........................................................19
Question 4.............................................................................................................................22

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Overview of the pricing, marketing communication as well as the distribution strategies
of the brands......................................................................................................................22
Reference..................................................................................................................................24

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Assignment 1
Question 1
Value propositions of the two brands
McDonald’s and KFC serve many products to the customers all across the world. The
value proposition of the two brands has been considered in the course of this research
proposal. According to Lovelock and Patterson (2015), the value proposition refers to the
value that is to be delivered, communicated as well as acknowledged. It can also be
considered from the point of view of the customers so that benefit can be derived, acquired as
well as experienced. Thus, as per Kotler et al. (2018) it can be said that for the development
of value proposition in the organisations such as KFC and McDonald’s, their business
strategy should be considered. The aim of the restaurants is to ensure a source of sustainable
value creation.
In the case of KFC, the value proposition of the restaurant can be attributed to the
development of the products as well as the customer base (Kfc.com, 2019). The application
of the product concept in this regard should be considered so that KFC can enhance its
products in the market (Kfc.com, 2019). For example, production of the chicken preparations
that are served by the company is usually prepared by a simple method that is hardly
disclosed. Thus, it can be said that improving the preparation of the chicken can be
considered as a process for improvement of KFC itself (Kfc.com, 2019). This can help the
restaurant to ensure that it maintains a strong customer base for the development of its
products.
For example, the need of the customers is that KFC should aim to satisfy their wants
with the aid of the range of variety of products (Kfc.com, 2019). It has often been criticised

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that KFC manufactures and produces only chicken related products and provide less variety
of other food products (Kfc.com, 2019). Over the years however, the problem has been
addressed by the introduction of burgers, rice meal as well as variety of drinks and dessert
items. Thus, it can be said that the restaurant has met the customer needs of a range of
products and it is for this reason that KFC is considered as one of the best fast food retail
restaurants in the world (Kfc.com, 2019).
In the case of McDonald’s the value proposition that the restaurant provides involve
the analysis of the selling concept (Mcdonalds.com, 2019). The selling concept needs to be
understood in respect to the products sold by the restaurant so that aggressive selling of the
products can be made. As stated by De Mooij (2018) the focus is to create selling transactions
rather than establishing long-term customer relationships. Thus, it can be said that the aim is
to sell products that are manufactured by the companies rather than just fulfilling the demand
of the market. For McDonald’s, the application of the selling concept can add value to the
restaurant so that organisational goals can be achieved (Mcdonalds.com, 2019).
Like KFC, McDonald’s also focuses on the development of a strong customer base as
well as on the development of market (Mcdonalds.com, 2019). However, the application of
the selling concept does not allow the restaurant to be acquainted with the development of
proper customer relationship since the focus is mainly on the development of the costs and
benefits of the restaurant. Therefore, it can be said that for McDonald’s the application of the
selling concept since is necessary since the restaurant aim to re-develop its brand in the
market (Mcdonalds.com, 2019). Close competition from KFC and Burger King can force
McDonald’s to shift its base of attention towards attaining the customer satisfaction in lieu of
its quality of products (Mcdonalds.com, 2019).

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The customer needs of McDonald’s can be attributed to the fact that the restaurant
focuses on the costs of the products. The demand of the customer from McDonald’s is for a
proper sized burger as well as products other than burgers (Mcdonalds.com, 2019). The fact
that KFC provides burgers along with other variety of products may provide McDonald’s
with a disadvantage in the market (Mcdonalds.com, 2019). Despite this, McDonald’s have
not been able to change its strategies and thus recently have seen a dip in the revenue stream.
Thus, the value proposition of McDonald’s is focused more on the selling of its products
rather than developing customer relationship (Mcdonalds.com, 2019).
Question 2
Two brands engages in customers online
In the modern world, engaging customers in the online platform is a trend and it is
necessary that customer-relationship building tools be developed which would help in
forming online communities as well as major social networks. In the words of Tuten and
Solomon (2017), it has been observed that the companies of yesterday focused mainly on
mass marketing to broad segments of customers. However, companies have managed to shift
the focus from traditional marketing towards a more online marketing profile (Baker, 2016).
In the case of KFC and McDonald’s customer engagement as well as the marketing efforts
need to be aligned with one another so that proper satisfaction of the customers can be
attained.
In the case of KFC, it can be seen that the online customer engagement marketing can
be associated with the development and promotion of the products in the markets (Kfc.com,
2019). The manner in which the customers are lured online can be associated with the manner
in which online customer engagement can be maintained. KFC ensures that online
availability of products is available so that customers do not have to wait in long queues