Marketing Analysis of KFC and McDonald's

This marketing analysis compares the extended marketing mix of KFC and McDonald's, including product, price, place, promotion, people, physical evidence, and process. It also provides a marketing plan for McDonald's, including internal and external analysis, SWOT analysis, and recommendations for improvement.

KFC and Mcdonald
Marketing analysis
Marketing analysis
Name of the author-
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Table of Contents
PART A.................................................................................................................................................2
PART B.................................................................................................................................................8
EXECUTIVE SUMMARY...............................................................................................................8
COMPANY OVERVIEW.................................................................................................................8
CURRENT MARKETING SITUATION ANALYSIS.....................................................................8
OBJECTIVES.................................................................................................................................10
STRATEGY....................................................................................................................................10
SEGMENTATION, TARGETING AND POSITIONING..............................................................11
TACTICS & ACTION....................................................................................................................11
BUDGET.........................................................................................................................................11
CONTROL......................................................................................................................................11
CONCLUSION/RECOMMENDATIONS......................................................................................12
REFERENCES....................................................................................................................................13

PART A
For the purpose of this research paper based upon extended marketing mix, the business
chosen is McDonald’s. The competitor business chosen is KFC. The extended marketing mix
comprises of the components being product, price, place, promotion, people, physical
evidence, and process. The marketing mix has been used to analysis the marketing factors
and other benefits which could be used by organizations to strengthen its business output in
effective manner. The comparison of the extended marketing mix is laid as follows:
PRODUCT McDonald’s The business’s profile of products comprises of beverages,
vegetarian menu, non-vegetarian menu, and frozen
desserts. The characteristics of the products on which they
are being prepared and sold comprises of the fact that the
production is undertaken after keeping in mind that the
customers’ feelings are taken care of and every culture is
valued. For the vegetarian and non-vegetarian food, the
food chain has distinct areas for cooking and tools (Sinha,
& Sheth, 2018). This company has been following the
standardized business strategy in which all the products
sold by company is done at the set standards (Madar, &
Neacşu, 2014).
KFC The main `product offered by KFC is “pressure fried
chicken”. The other products are wraps, chicken burgers,
finger foods, popcorn, nuggets, flaming crunch chicken,
salad, French fries, bread rolls, frozen beverages, etc. This
product has been designed and customized as per the
client’s needs and demand which is the most attractive
among clients. It is used by company as product
differentiation strategy which will keep its newly offered
pressure fried chicken product different and tasty those of
others offering in market (Madar, & Neacşu, 2014).

PRICE McDonald’s The pricing of the products is done quite affordable on the
entire range. The chain has marketed its products
extensively with the tag, “happy price menu”. The
company has established several franchisees on lower cost
basis (Adams, 2017). The price of the company is very
low which will not only attract the clients but also allow
company to grab those clients who are more prices
sensitive (Grant, 2016).
KFC The business uses different pricing strategies for different
markets. The strategy depends upon the situation that
prevails in a particular market. Generally the pricing
strategy used is of price skimming. Resultant the products
are highly attractive to the consumers hailing from middle
or higher income level (Harrington, Ottenbacher, &Fauser,
2017).The price of the products sold is very less. Company
has been following the cost leadership in effective manner.
It will not only lower down the business complexity but
also strengthen the business outcomes. However, company
has created core competency in its business by following
the cost leadership skill which will add value for the
business outcomes (Grant, 2016).
PLACE McDonald’s The placing of the food chain is done mainly in locations
that are prime, i.e. shopping centres, malls etc. The stores
are placed in all the developed cities and are accessible
very comfortably. All the prominent residential areas are
completely covered (Konwar, et. al 2017).
KFC The business has successfully established over 18,875
outlets in more than 118 countries globally. Originally it
has risen as a subsidiary of Yum!. The distribution channel

that the company adopts is franchisee based. Along with
online channel is also used for order placing. The food
delivery speed has even alarmed the situation for the Pizza
Hut. The price charged by company is high but company
do not compromise with the quality of the food product. It
is analyzed that company has been winning over the
clients by its advance products and quality offering. It has
also strengthened its logistic supply chain by strengthen
the advancement in its technologies.
PROMOTION McDonald’s The promotional techniques adopted comprises of
advertisement through cinema, television, online, radio,
newspapers, etc. the rest of the promotional tactics include
merchandising, door drops, point of sales display, e-
mailing etc. the company’s hoardings have been placed at
all the prominent places (Luca, Hibbert, & McDonald,
2016).
KFC The advertising is done mainly through online channels,
and through advertisement on television. In the outlets the
promotion is done via LCDs and provision of add-ons like
kid’s meal, i-shirts, and gift coupons in the existing menu.
PEOPLE McDonald’s The employees have been provided a regular uniform to
wear at work in order to treat them all equally. The
services offered are friendly as well as fast. The aim of the
whole working team is to treat the customers with utmost
quality with provision of an environment that is clean, and
consumer friendly (Mukherjee, & Shivani, 2016).
KFC The training of the staff that shall work in the outlets is
undertaken separately by the company to ensure provision

of good quality services. Every staff is trained on how to
communicate and behave with the customer. Separate
guidelines have been laid by the company for the same.
PHYSICAL
EVIDENCE
McDonald’s There is cleanliness and transparency in all the operations
of business. The working is done speedily and in a
qualitative manner. The business place is kept well
maintained in the terms of its location and designs (Ismail,
2015). The physical evidences of company are strong and
related to its brand image and qualitative offering. It is
analyzed that company should focus on locating the
business functions and design in effective manner which
could add value to gain more market share. The
advancement in the technologies and transparency in its
business functions are the main factors for its economic
growth. Nonetheless, company should focus on strengthen
the business outcomes by hiring more effective efforts and
customizing its business marketing plan effectively (Grant,
2016).
KFC It is all about the environment in which the outlets have
been placed and which the consumer reaches to get the
food. The parent company that controls KFC have made
guidelines for the kind of interior that every franchise
needs to maintain. Having the same kind of environment
in every store that a consumer visits provides him with a
higher level of satisfaction and helps in boosting the
company’s sales. The technological equipments used are
also good and well innovative (MIRANI¸&FARAHANI,
2015).
PROCESS McDonald’s The process that McDonald’s entails is transparent in

terms of food production, innovative for distribution and
packaging, and efficient at an overall basis. The consumers
have an option to enter the food production area to have a
look upon how the edibles are prepared and what is being
used to prepare the same (HAN, 2015). The process
functions of the McDonald is based on the cyber
computing logistic work chain in which all the procedural
works are interlinked and related to each others.
KFC The business follows processes that are easy, user friendly
and convenient. The process gets initiated right from the
moment when any customer comes to visit the store or
makes an online order to get his food. This company has
focused on customizing its value chain based on the
client’s needs which could attract more clients in market. It
is used by company as core competency to win over the
market (Madar, & Neacşu, 2014).
The marketing mix has been used to analysis the marketing factors and other benefits which
could be used by KFC and McDonalds to strengthen its business output in effective manner.
After assessing the marketing mix of these both companies, it could be inferred that
McDonald Company has been following the standardized business strategy in which all the
products sold by company is done at the set standards on the other hand, KFC is more
focused to sell customized chicken and developing different items for the client’s satisfaction.
These will not only straighten its market share but also result to effective brand image on
international level(Madar, & Neacşu, 2014). In addition to this, physical evidence of
McDonald is way stronger due to its high legal and procedural transparency. It will lower
down the business competition but also effectively manage the business in market. KFC has
also been managing its business effectively based on its intellectual property in market but
the value chain of company is apparently weak which needs more focused technologies
advancement. The marketing plan of these two companies will be different from each others
as they will be more focused on customizing the business more clients oriented. It could be
inferred that the main factors of the marketing mix would be price, production, process and

people which need to be customized as per the clients need if company wants to win over
other rivals in market (Grant, 2016).

PART B
The marketing plan for McDonald’s is laid out below which shall provide a description of the
objectives and strategies of the marketing scenario followed by McDonald’s and the related
aspects. The marketing plan of company is based on the client’s need and possible factors
which could be by company to strengthen its business process. The below given is the
marketing plan which could be used by company to attract more clients and grabbing more
market share.
EXECUTIVE SUMMARY
The following marketing plan shall have focus upon the overview of the company
McDonald’s. It shall specify the current marketing situation analysis of the company that
shall specify the internal analysis, external analysis and the SWOT analysis of the company.
The objectives and strategies of the proposed marketing plan are discussed to inculcate what
the basis of the company’s marketing plan is. Further, a discussion about the segmentation,
targeting and positioning of the company’s working is looked. The tactic required to be
adopted and the action needed to implement the same are discussed. A light is thrown upon
the budget requirement and the control areas of the marketing plan. The plan is ended with a
conclusion providing upon the recommendations for improvement.
COMPANY OVERVIEW
Being a fast food company, McDonald’s was founded in California in San Bernardino. The
company has been named as the largest revenue generating chain of restaurant. The best
known and sold products of McDonald’s are French fries, cheeseburgers, and hamburgers.
However the other featured products comprises of milkshakes, breakfast edibles, soft drinks,
chicken food items, desserts, wraps, smoothies, salads, fish, etc. The other revenue sources
than food product sale comprises of royalty, rent and fees received from the franchisees
operating globally. Moreover, the company has been renowned for being the second largest
employer in the private sector (Rowley, &McMurtrey¸2016).
CURRENT MARKETING SITUATION ANALYSIS
The current marketing situation analysis of McDonald’s provides a research and analysis into
the target area of the market. The analysis is done into the internal and external environment

of the company. The current marketing conditions are evaluated by making an analysis of
their strengths, weaknesses, opportunities and threats of the company.
INTERNAL ANALYSIS
The internal strategic factors are studies in the internal analysis of McDonald’s. These
strategic factors comprises of the strengths and weaknesses of the company. The internal
strength that helps the business to beat the competitors comprises of the fact that the company
because of its years of successful business operations have been able to maintain a strong
brand image. The most important strength that the business has is its strong diversification in
the market of its product range. The company follows a standardised process which helps in
provision of satisfied and qualitative services to the customer round the clock (Grant, 2016).
The main weaknesses which hampers the business quality comprises of lack of flexibility in
the process that the company follows and high vulnerability to the downturn in the restaurant
business in the western countries.
EXTERNAL ANALYSIS
The external analysis of the business studies the external strategic factors that determine all
the opportunities and threats that the business faces in its working scenario. The main
opportunities that marks the external strategic factors comprises of the fact that the business
has a lot scope to expand its horizon yet in the developing countries. Even when the
diversification is followed in the market, the business yet has a place to diversify itself more
into the product range (Ayling, et. al 2015).
The main threats that harm the business are marked by extreme competition that is faced by
the business by the different restaurant chains. The people nowadays are more concerned
with the lifestyle pattern that is healthy as well as balanced. This could hamper the business
as the product range offered is not so healthy but is involving junk and fast food.
SWOT ANALYSIS (STRENGTHS, WEAKNESSES, OPPORTUNITIES AND
THREATS)
 The strengths of the business are:
o Largest player in the revenue generating parameter as compared to the competitors.
o Business existence and franchisee operation at a large number of locations.

o Provision of a food menu that is strongly diversified and comprises of different types of food
items and beverages.
o Use of marketing techniques that are aggressively innovative and consumer attention seeker.
o Successful setting up of a strong brand name because of years of successful operation in the
restaurant line.
o The placement of outlets in areas that are in easy reach of the consumers and are highly
visited by people providing an opportunity to make huge sales.
o Maintenance of consistency in the quality and taste of the food and the range of the supply
helps in keeping the customer base satisfied.
o The company has maintained a strong partnership with the brands that are famous and well
settled (Sachdeva, 2015).
 The weaknesses of the business include:
o The main weakness in the business is the inclusion of food items in the menu that are highly
unhealthy and not accepted by the population that is health conscious.
o There stands a need to innovate the product range.
o There is a scope of improvement in the way services are provisioned to the customers.
o There is a high turnover of the employees which raises the training costs in the expenses of
the company(Brentari, Dancelli, &Manisera, 2016).
 the opportunities that has hit the business are:
o The online medium of placing orders has raised a place to boost the sales and provide the
company with extensive sales.
o There is a scope to add new products in the menu (DANIELS, 2016).
 the threats in the business are:
o Fluctuation in the currency is highly dangerous.
OBJECTIVES
The objectives of the market plan are to cut down the operational costs and to add customers
to the existing business line.

STRATEGY
The strategy is in the line of development of market by increasing the consumer base through
the planning and implementation of short term goals to achieve the overall long term goals
(Madar, Neacşu, 2014).
SEGMENTATION, TARGETING AND POSITIONING
Segmentation: the segmentation of the consumers is done on the basis of working class, age
and income.
Targeting: the target is global acquisition. There is a strategy to increase the market share by
opening up franchisee all over the world.
Positioning: the positioning of the brand is done through the maintenance of sponsorship for
the sports and other entertainment events. Many social events are being sponsored to create a
positive brand image (Sawhney, et. al 2017).
TACTICS & ACTION
The tactics that McDonald’s should adopt must focus on cost cutting and further brand
marketing. The action required for same is reduction in the sales price of the food items
offered, bringing new diversification in the products and publicising through helping in
several social events and activities (Anaf, Baum, Fisher, Harris, & Friel, 2017) .
BUDGET
The budget confirmed for the marketing plan must keep in mind the resources the company
already have. Only the resources that are not present and must to be acquired by expensed for
in the budget. The budget needs to be prepared by keeping in mind the trend that the business
has till date followed.
CONTROL
The control of the marketing plan needs to be in the hand of the marketing manager, but must
be influenced in by what the consumers demand and need. If only the customers are satisfied,
then only the marketing plan can attain success.

CONCLUSION/RECOMMENDATIONS
 The use of digital services must be made extensive. This could be done by encouraging
online platforms for order placing by the customers.
 The policy of customisation of order must be extended to the entire product range and not just
a single product.
 The main weaknesses which hampers the business quality comprises of lack of flexibility in
the process that the company follows and high vulnerability to the downturn in the restaurant
business in the western countries. Therefore, company needs to focus on making the process
more advances by installing new cyber computing enterprises resources planning.
 It will also have to focus on hiring expert employees who have strong experience in its
working marketing field.
 Mobile food truck could help in covering a large number of populations than just operating
through outlets.
 Use of social media must be made extensive to promote the business (Ceil, 2017).
After assessing all the details, it could be inferred that the process system of organization
needs to be more customized and effective.

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