Marketing Essentials: KFC vs McDonald's

This report provides an in-depth analysis of the marketing strategies and objectives of KFC and McDonald's. It explores their marketing mix, including product, price, promotion, place, people, process, and physical evidence. The report also includes a SWOT analysis of KFC and discusses the strengths, weaknesses, opportunities, and threats faced by the company. Additionally, it provides an overview of KFC as a company and highlights its mission statement. The report concludes with a discussion on the challenges and threats faced by KFC in the fast-food industry.

MARKETING ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Part 1................................................................................................................................................3
Part 2................................................................................................................................................8
Overview of the company............................................................................................................8
Marketing objectives:..................................................................................................................9
Segmentation and Targeting........................................................................................................9
Allocation of resources..............................................................................................................10
Evaluation and monitoring........................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing is an essential function for all type of businesses to promote its products and
services and also create a positive relationship with audience (Blythe and Martin, 2019). With
the help of marketing organization can create, communicate and deliver the value for its
customers and the clients. KFC is a fast food restaurant having second position in the restaurants
chain globally. There are number of competitors in the market for KFC. This report will evaluate
the comparison ways for KFC and its competitors to make use of marketing mix 7Ps to reach the
common goal. Further more marketing plan for KFC is developed keep in mind the marketing
mix.
Part 1
Marketing mix: The marketing mix are the combination and collection of activities as well as
tactics which are being used by the company to promote its commodity in the market. This is set
of techniques and tools that KFC uses to achieve the marketing objectives. Marketing plays a
vital role in success of every company by developing the strength and avoiding the weaknesses.
With this practise the KFC can easily compete in the market and develop internally and working
of all the department are efficient (Capon and Singh, 2018). The marketing 7 P's explanation of
KFC and its competitors are given below:
Marketing Mix 7P's KFC McDonald's
Product: This is an
element which have
ability to satisfy need and
desire of any individual
in this both type of
product are involved
tangible or intangible
KFC is one of the most popular fast
food provider in the market. They
are having number of different
varieties of its product range.
Basically their main product is fried
chicken having more the 11
ingredient in it. They are offering
McDonald's is on the most the
biggest competitor of KFC all
times. They are offering a
larger number of fast food
products such as food
products, cheeseburgers, filer-
o-fish, different type of

(Saidani and Sudiarditha,
2019).
varieties of chicken which is crispy
chicken, chicken fillet, burgers,
wraps and many more. KFC is
providing its product as per the
geographical areas and the demand
in that area. They are also done
association with large organization
to enhance the profit and awareness
about the product to the customers.
chicken sandwiches, wraps and
French fries. The company is
selling number of secondary
product such as salads,
oatmeal, soft drinks of coffee
and desert products. They are
recently announced to new
product to higher level of
nutrient. They are mostly be
perceived as unhealthy and not
good for health.
Price: The price element
in the marketing mix
defined as the amount
which is being charge
against the sale of per
unit of the product or
services offered by the
company to the
customers. This is the
variable which implicate
the revenue and also
communicate about the
value of the brand.
The KFC menu is offered its
product at very affordable prices,
and they also use different pricing
strategies to compete in various
markets. In the year 2013 the
annual sales of KFC had reached up
to $23 by targeting youth
generation all over urban and
nearby areas. When they entered
the market at that time the pricing
was comparatively higher so to
attract its customers they use price
penetration approach to target
lower class segment for the society.
KFC is currently using differential
pricing to its customers when they
purchase bundle of product
together.
The McDonald's is using cost
leadership style, so they are
offering their products at
competitive prices. When the
prices of its competitors drops
then automatically their
products prices are also
reduces. With this their
existing customers retain with
the company, and they are able
to focus on the new customers
in the market (SOFICĂ and
Cosma, 2018).
Promotion: covered in

PPT.
Place: This is being
refers to the way in which
organization is
distribution its products.
This can be any physical
location or place where
the products are available
to the customers in the
market (Abedi and
Abedini, 2017).
KFC able to know about the
importance of different outlets at
different location when they opened
their primary restaurant in Utah.
After that they are continuously
opened different restaurant at
different location to attract the
customers. After so many years
currently the organization is having
international presence in more than
125 nations. In every restaurant
there are more the 250 orders are
taken in the day. They are having
their outlet where the youth are
present every time so that they can
attract them every time.
McDonald's is distributing its
products where they can sale
maximum number of products,
they also have those kiosks
where they are selling only
limited and selecting products.
They are also selling their
products their official
application where anyone can
make their orders of the
products. This application is
supported in all type of user
whether it is IOS or android so
it becomes easier to order the
products. They also sale their
products with their official
websites and the third party
application as well.
People: the people
elements in the marketing
mix is the employees who
are participating in
services of production
and distributing to the
final customers. They are
only the people who are
interacting with the final
customers of the brand.
To gain competitive
KFC is regularly trying to provide
the best products and the services
when customers visit the restaurant.
KFC employees are being trained
on regular basis so that they have
know need ideas to interact with the
customers (Mahmoud, 2018). As
the KFC also provide online
products, so they also set the
assessment factor for qualify. Their
staff is being qualified and have
The people in McDonald's are
being servicing their best
services to the customers. They
are morely concern with the
quality and cleanliness where
customer are seating. They
have trained their staff in a
way that they have a friendly
nature with the customers
visiting in the restaurant. They
are having particular standards

advantage this element
must be supporting and
able to contribute
maximum.
many skills to perform their
activities effectively. They are
appointing female on majority basis
to encourage them they are using
different programmes such as
colonel's community grant program
and different sponsorship they use
to donate to non-profit companies.
in their employees who are
working to serve the products
to the customers. They also
focus on the customers'
satisfaction, so they try their
best that customers are
engaged when they visit the
restaurant and fulfil their needs
as well (Thabit and Raewf,
2018).
Process: This is basically
manner in which the
activities and action are
being performed to
distribute the brand
product to the final
customers.
KFC is having subsidiary named as
Yum. When the y have developed
their franchise then they have
modified different aspects as they
are not being experienced at that
time. They also acquire lots of
investment at initial stage. KFC
process involve different
department who are working to
produce the products and delivering
the products to the final customers.
As their delivering services are not
vast they are having limited number
of delivery. The use telephones to
take orders and their website is also
had facility to pick the order. In
which customer have to choose
their order and then fill their
personal details and make the
orders.
The process of McDonald's
include a transparent working
of their staff who are preparing
their product to develop an
trust in the mind of customers.
They also have different type
of packaging as per the
customers availability. They
use most effective cooking
equipments by which products
is made efficient and more
attractive. The customers can
easily check what is putting in
the product they order for as
the staff are visible to the
customers. So that customers
can view how their product has
been prepared.

Physical evidence: This is
basically the place where
the brand use to offer its
products. This is some
place where the
customers and the staff of
brand use to
communicate with each
other. s
KFC has started to deliver its
product in the cardboard material
which is further known for its
tradition. The KFC is preparing its
products with chicken which is
totally muscled chicken which does
not content any steroids or some
medicines. They are purchasing the
chicken from the best quality in the
local supply chain of suppliers
(Sohail, 2017). KFC also involve
the practise of KFC foundation
where the candidate are train to
become future employee for KFC.
The organization is having
attracting restaurant where
customer are willing to come and
buy the products.
The organization have focus on
the over view as well as innver
view of the restaurants they
have to serve their customers.
They are also having capable
employees who serve the
customer with the best services
and location of its restaurant
are where people uses to come
most of the time. They are
regularly checking the place
where they uses to interact
with its customers to satisfy
them.
Marketing objectives of KFC
The main objective of KFC to do their marketing is to aware all the customers and audience
about the products and their brand (Efanny and et. al., 2018). To develop higher level of
goodwill in the market so that more customers are will be purchase the product prepared by
KFC. They are having demographic segmentation in the international market to serve their
customer. Mostly they are focus to youth to develop a strong image in front of them.
The marketing strategies they follow are per their marketing mix help organization to
achieve the goal because they are doing their marketing according to the product they have. They
are also marketing by providing information about the prices they offer in the market so that all

are willing to buy the product. They also market the distribution channel they have as they
explain that they have online as well as physical restaurant to sale their products.
Marketing objectives of McDonald's
Mcdonald's is focusing to its customers and having objectives to become the most favourite of
their potential and new customer in the market. They need to serve the best in provide quality
food and services to their buyers they are having strategy called “plan to win”. Therefore, they
are try to give the best experience to their customers when they visit the restaurant or order an
product online (KUSUMAWARDANI, 2019). They are having geographical and demographic
segmentation of their customers, and they are trying to provide the food products at lowest price.
The marketing strategy of McDonald's uses to follow the marketing mix in which their
product involves this aspect which is being pre decided by the company. They have the expand
their profit and also reduce the prices of the product they offers.
Part 2
Overview of the company
KFC is a fast-food restaurant which belongs from America and is headquartered in Louisville,
Kentucky and speciality of it is in fried chicken. It is world’s second largest restaurant chain and
has 22,621 locations in 150 countries. The chain is subsidiary of Yum! Brands which is a
restaurant company. KFC was founded by Col Harland Sanders and later saw potential in
restaurant franchisee concept with the first franchise in Utah in 1952. Company since then has
grown in a large multinational chain across various nations with its original recipe of chicken
growing eminent among customers.
The mission statement is “To sell food in a fast, friendly environment that appeals to price
conscious, health-minded consumers.”
SWOT analysis of KFC
Strengths: KFC is the second-best brand globally in fast food industry in value terms $6 billion.
KFC is known as a brand which is trustworthy due to franchising and expansion internationally.

The original chicken recipe is trade secret and is source of positioning which has made name of
the company amongst the competitors. KFC has a strong presence in Asia apart from America.
KFC is market leader in world which promotes chicken as the primary product offering
(Chernev, 2020).
Weaknesses: KFC contract with suppliers, with some of them suppling poultry contaminated to
KFC has resulted in sales falling and reputation getting damaged. KFC received criticism from
PETA over conditions of how chickens were raised. The menu at KFC is largely high calorie
based with fat meals and fizzy drinks. Thus, the menu is unhealthy which is not in line with the
trend of health-conscious youth of today. High employee turnover is present in KFC which leads
to training costs going unutilised optimally.
Opportunities: KFC can inculcate healthier options in its menu and increase in demand for
healthy food will lead to the strategy being a success. Home delivery channels of KFC can be
increased to capture online food market. KFC can introduce vegetarian meals as there is a
growing segment which like vegetarian meals, and this can give KFC an eco-friendly image
(Hollensen, 2018).
Threats: Fast food market is growing saturated in market of developed countries and thus it can
lead to a loss in revenues for the company. Local fast-food chains have been also giving
competition to KFC with their own target segment. Lawsuits against the company have caused
losses for the company after losing them and decreased revenues.
Marketing objectives:
a) To launch a healthier meal option for the youth segment.
b) To increase market share by 20%.
Segmentation and Targeting
Segmentation: The segmentation is done through analysing various factors like psychological,
demographic, cultural and geographical factors. The demographic factors include the age group

and income factor. In Asia, there is a majority of youth population in age group of 20-35 years
with decent income belonging to middle class. For KFC, this can be the segment over which
company can lay focus on. Speaking of cultural habits, there is a growing trend of healthy eating
habits which the company can address with a change in menu (Chernev, 2020).
Targeting: The middle class or income group can be targeted as they are the majority in
percentage of population in Asian countries. Their habits are visiting outlets for eating outside on
weekends or simply ordering online. Company can take opportunity to provide service to them
and take feedback accordingly to incorporate more changes. The healthy eating individuals
would like to try something which is health conscious as well as coming from a brand like KFC.
Allocation of resources
The estimated time needed for allocation of resources has to be done in a pre-planned way. The
steps required for marketing plan are gathering customer data of Asian countries, then referring
for veg cuisines through different outlets and contracting with suppliers for material. For this, the
first task would be done through online queries being sent to customers through e-mail and chat,
which should be allotted a period of two weeks. After that, referrals for veg cuisines being
preferred in the countries to be made with allocation of staff for doing research through primary
and secondary measures. This can be allotted a time period of one week. Contracts made with
suppliers have to be done on the best quality material and it should be done within a week of
time. After that, comes the promotional part in which campaign has to be done. This will have to
be done for a period of one week through road shows by allocation of 5-6 marketing executives
who can bring on the differentiated qualities of the product (Hollensen, 2018).
Evaluation and monitoring
The evaluation has to be done through KPIs like customer response to the product, increase in
sales of vegetarian cuisines and people engaging on social media about the new launch of KFC.
Monitoring has to be done by managers about the steps being followed and provide assistance in
terms of resources or training for fine finishing and delivery of product.

CONCLUSION
It can be concluded that marketing requires a thorough evaluation of Ps of marketing and
inculcating those measures in the marketing plan of the company. Marketing plan can only be
successful if it is based on the right customer segment and follows proper monitoring.

REFERENCES
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Sohail, M.S., 2017. Green marketing strategies: how do they influence consumer-based brand
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