Technological Change in KFC Singapore

This report discusses the impact of technological change on KFC Singapore and its response to the changing demands of customers. It explores the innovations and initiatives taken by KFC to enhance the dining experience. The report also covers the pestle analysis of KFC, competitors, customer segmentation, and the role of technology in the fast food industry.

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Marketing

Contents
About the Company (KFC Singapore).......................................................................................3
Pestle analysis of KFC...............................................................................................................4
Competitors of KFC...................................................................................................................5
Customer segmentation..............................................................................................................5
Communities..............................................................................................................................6
Technological change (chosen theme).......................................................................................6
Areas of improvement for KFC.................................................................................................8
Conclusion................................................................................................................................10
References................................................................................................................................11

Introduction: About the Company (KFC Singapore)
KFC has started its operation in the year 1977 by opening its first restaurant at the Somerset
Road. IN the recent time, KFC is serving around 1 million customers every month having 80
stores in Singapore. Due to this, KFC has proved itself to be the biggest food chain in the
country. KFC Singapore has proved to be the all the time best seller by ensuring its speciality
in the salted egg Goldspice Chicken. Due to the increasing demand of customers through
social media platforms it work with different concepts (Teo, Teik-Jin, Siang, Lin and Koh,
2009).
In Singapore, KFC has built a name by serving the people from last 41 years as the leader in
fried chicken. By using the grilled chicken in the menu, it tends to strengthen the KFC
leadership. for this, it has also launched the new campaign. It uses both digital as well as
traditional media under this campaign. Besides this, it has also ensured the partnership with
several influencers for its content marketing such as Smart Locals and Food King. Several
restaurants in Singapore are similar to the international development and some of them are
traditionally together with the KFC premise. It is also coming up with several new campaign
for ensuring its new product offering. The main goal behind such campaign is to create the
awareness regarding its new product. for example: “Zinger Chicken Rice” was created by the
Grey Singapore. The team members at Grey were committed for finding the innovative
solutions that will further help in delivering the tangible and meaningful results for the kFC.
About the report
It is true that fast food industry is bringing several changes due to the increasing government
policies and changing demand of the customers. Several factors are also responsible for
bringing the ups and downs in the demand of fast food industry. The discussion starts with
the discussion on PESTLE analysis of the report. Afterwards, it has also undertaken several
internal factors into account such as competitors, customer segment, and communities. From
the given themes, technological change has been selected due to the major influence on the
fast food industry. Technological aspect has been playing great role in the organisation due to
the increasing shift of the industries toward innovation and technological advancement.
Afterwards, some areas of improvement of KFC has been discussed where it can make
changes.

Pestle analysis of KFC
Political factors: it includes the entire policies, rules, and regulations made by the Singapore
government. These rules and policies tend to affect the enterprise. However, KFC is working
well in Singapore but then also the certain political setup affects it. The political set up is also
affected by the decision made by the government. Due to this, KFC adhere to the entire
regulations that are going on in Singapore. In this way, it can be stated that it is essential for
the fast food industries to adhere with all the rules and regulation properly.
Economic factors: By taking economy of Singapore into account, it can be stated that to has
huge economic independence that is relatively stable. In the recent report about Singapore
economy, it is seen that GDP of Singapore has increased by 1.2 per cent that is being down
slightly by 1.3 per cent. Due to the trade tensions between China and United States,
Singapore trade has been affected. Moreover, it is seen that in spite of the small land mass,
the fast food industry is thriving in Singapore. Around $4.3 billion to Singapore GDP has
been contributed by the fast food industry. It might be possible that GDP will go down in the
near future. This situation might affect the growth of the KFC in Singapore.
Social factors: It includes the lifestyle, and demand of customers. IN Singapore, people do
not have healthy eating movement as other countries have. As per the Nielsen survey, it is
found that the Singapore people eat on weekly basis (Wei, 2019). In the recent year, KFC
has also introduced KFC grillers with the Signature Grilled Chicken in Singapore. For
meeting the needs of customers, it has also introduced the concept of open kitchen. By
starting this concept, customers will able to see how the good friend chicken is prepared in
the restaurant of KFC. Its commitment to food safety and transparency is now can be fulfilled
with this concept. It is also seen that most of Singapore people prefer to eat outside rather
than cooking food at home (Lim, 2019).
The negative side of the changing demand of customers is that if it will not able to satisfy the
sudden change in the demand of customer, its market share will decrease. In addition to this,
if requirement will not be met properly, it might not be able to survive in the market for long
time. It is also seen that the KFC Singapore is also going ahead for the healthy menu such as
oven grilled chicken and salad. For bringing, some positive affects into the lives of people,
KFC also celebrates several things such as National Day.

Technological factors: due to the huge competition from local as well as several internal
competitors, it becomes essential for the firms to bring innovation. KFC is also doing
innovation by giving emphasis on its core product. In order to meet the demand and needs of
the customers, it tends to mix both international as well as local flavours. All these flavours
also depend on the occasion. For example: for the National Day, it came up with the cereal
chicken. As compare to this, for the Chinese New Year, it has come up with the little bit
cheeky concept. In addition to this, it has also started the modernise innovation in order ti
promote the services as well as its product.
Environmental factors: due to the increasing environmental concern of the government, KFc
has undertaken various sustainability measures in Singapore. The first sustainability approach
that is used by KFC is reusable basket. From the paper boxes, it has switched to the reusable
basket. Besides this, it has also reduced the use of foam packaging and switched to the paper
packaging for parridge bowls and breakfast platter. In addition to this, it has made itself as
“No Straws KFC.” This environmental initiative has reduced around 17.8 metric tons of the
plastic (Weaver, Jansen, Van Grootveld, Van Spiegel and Vergragt, 2017).
There are times when government suddenly make the changes in its environmental policies.
Therefore, in future, it might be possible that KFC have to face challenges in case of lower
resources or any environmental measures.
Legal factors: Food industry is Singapore is found to be supportive of the proposals from the
health Ministry in order ban the partially hydrogenated oils. KFC Singapore is also taking
several measures in order to adhere to the rules and regulations made by the government. For
this, it is reducing the single use plastic from its restaurants. IN addition to this, it has also
stopped serving the plastic straws. By taking the laws of the government into consideration, it
has decided to look upon different aspects that are in the favour of the rules and regulations.
Micro Factors
Competitors of KFC
Due to the increasing demand of customers for fats food, several new industries are coming
up with innovative ideas. Due to this, it has to face stiff competition from several players
such as McDonald’s, Burger King, as well as BBQ. These strong rivals are also able to gain
the market share due to their strong brand image in the market. Besides this, it is also true that

the fast food industry is highly saturated due to which it is not easy to do product
differentiation. In spite of the huge competition, it has given it best in order to differentiate its
products from other competitors. Each of the player in fast food industry is coming up with
innovative service so that it can bring the positive impact on the mind of customers to avail
its services. KFC is also providing several innovative customers to customer in order to gain
the competitive advantage over its competitors. Due to the increasing entry of new industries
with innovative services, it might be possible that the demand of KFC decreases to a huge
rate. KFC can achieve the positive growth by ensuring the advancement.
Customer segmentation
KFC has done the customer segmentation by diving the target market into different groups.
Customer segment is done to identify the several types of customer’s situation in the
particular area. In the customer segment of KFC, it includes those who want the comfort,
clean and are the high wage packs. They mostly ask for the taste and quality where KFC can
charge the higher cost. With the help of this segment, it tends to analyse the possible
marketing conditions that are implemented by some other fast food restaurants. For youth
also, fast food is the major beverage. However, women as well as men are becoming more
health concern due to this, it has changed the menu options. It has also decided to come up
with the exciting advertising campaign that has targeted the teens for strengthening the image
of company. In the recent time, customers are getting attracted toward the healthy ingredients
in the fast food. This has led the KFC to ensure innovation in its menu.
Communities
KFC has taken several initiatives for the society. It has committed itself to source the 100 per
cent of the reusable plastics and recoverable for the consumer facing product by the year
2025. It is also increasing its plan for improving as well as developing the sustainable
packaging. In order to serve the community in best manner, KFC is also taking several
sustainability efforts by reducing the waste as well as bringing improvement in the carbon
footprints. It has also committed itself to source the 100 per cent fibre based packaging from
the recycle and certified sources by the 2020. In addition to this, it is also helping the
community by its various community welfare programmes. Due to then global brand, it is
positioned itself by putting the real impact on how the industry approaches packaging

management as well as waste management. It has also ceased the plastic straws in most of its
restaurants (Hanson, Melnyk and Calantone, 2017).
Three Primary Factors
For the success of any organisation, several factors are responsible. The significant factors
are land, labour and capital. For starting any business, a land is required for the production of
products. Without proper land, it is not possible for the organisation to achieve success.
Besides this, a significant amount of capital is also required for primarily starting any
business. Without significant capital, it is not possible to work on the purchase resources and
material. In addition to this, Skilled and competent labour is also required at the primary
startup. This helps in ensuring the further production in effective manner.
Effectiveness of organisation response
Due to the increasing demand of fast food in Singapore, KFC is running its operations
effectively in Singapore. In spite of this, it is not able gain the market share equivalent to
McDonald’s. In Singapore, McDonald’s has around 40 per cent market share due to its
increasing demand. However, KFc has only 13 per cent. Due to this, it is also lacking in the
growth as compare to McDonalds.
Conclusion
In the limelight of above discussion, it can be concluded that the KFC Singapore has been
working well due to the increasing demand of fast food. It is able to generate demand mainly
from the youth class. These people prefer to eat fast food. Due to the stable political condition
and economy, it does not get too much disturbance. However, it increases the risk of
competitors due to the stable business environment.
Task 2
Introduction
It is true that technology has become an essential part in the fast food industry. When it
comes to the technological change, fast food industry is also taken into consideration due to

the changing demand of customers. If any technological advancement is seen in the
organisation, it pushes the organisation to work on its new policies. If it failed to ensure the
necessary changes in the policies, it will not be able to succeed in the organisation.
Firm response to the chosen theme: Technological change
The emergence of several technological innovations has been putting impact on the KFC.
Customers in the recent time want to explore the new technology at the time of taking dining
experience. Technology is playing a significant role in shaping the hospitality industry.
Several recent innovation has been coming up such as mobile ordering, Facebook ordering,
Tablet e-waiter and checkout as well as digital menu boards. As Singapore is known as the
foodie paradise, that requires the food and beverage industry to spend great time and money.
The demand of high degree of the consistency in the food and beverage industry requires
them to improve the production process. Effective use of machines in the food and beverage
industry is addressing huge number of problems such as energy usage and work force.
Technology helps the food manufacturers to produce more effectively. KFC also ensures the
technological change by improving the packaging and its processes. The use of effective
technological change by the workers also ensures the affordability and quality. It believes that
the affordability and quality are two significant element that help the company in achieving
success in effective manner.
KFC Singapore is also committing itself toward sourcing the 100 per cent reusable plastic by
the year 2025. By ensuring technological innovation, it is improving as well as developing
the sustainable packaging. Besides this, KFC has also used mobile location technology in
order to tempt the customers in its restaurants. KFC Singapore has also opened its door to the
first open kitchen concept. These kinds of innovations are also included in the technological
advancement of KFC. Under this initiative, KFC tends to encourage its guest who can watch
their cooks and can learn some of the interesting facts. The programme of open kitchen has
been available by the online booking where some of the sessions will be available across
some of the KFC outlets.
Technological changes affect the decision-making of the company by making information
available to them. As per the changes in technology, organisation is able rapidly formulating
and justifying their decisions. It also helps the fast food industries to improve the collection
of information that are needed for taking significant business decisions. Due to the varied

technological advancement, organisations are also able to collect the latest sales data and
make decision with the help of up-to-date information. As per the changing demand of
customers or any government policy regarding technology, firm is also required to do the
same by making new policies or making new changes in the policy (Badia-Melis, Mishra and
Ruiz-García, 2015).
In Singapore, KFC is upgrading the ERP solution in order to meet the expanded needs. By
switching to the Acumatica SaaS solution, KFC in Singapore is able to save around $50,000
IT resources. It is because the cloud model reduces the IT administrative cost such as the
installation of software and downloading. KFC Singapore was also too much impressed
because of the coming up of different modules with no extra fees of licensing. The browser-
based solution in Singapore has allowed the KFC to provide the access to each of its
employees. It is also not able to serve the customers for 24 hours whereas the biggest rival
McDonalds serve the customers for 24 hours (Fuertes, Soto, Carrasco, Vargas, Sabattin and
Lagos, 2016).
Social media is also one of the significant technological advancement done by KFC. From
the report, it is found that the KFC uses different social media promotional policy. KFC has
more of the feed having re tweets of the followers and less stiff promotion. It has linked it
directly to the account of Facebook for ensuring the promotion of its charity work. For KFC,
social media are the biggest technological advancement. In Singapore, several technological
changes are being seen due to the changing needs of the customers (Cook, 2015). Due to this,
several businesses are starting the mobile application in order to allow the customers for
placing food items through mobile app. These systems are growing very fast in the fast food
restaurant. KFC also uses the novel payment system. The significant reason behind the
popularity of the technologies is the designed experience and customer journey within the
restaurant. Self order kiosks is not only working in the Hong Kong. It is also seen that the
people of Hong Kong still prefer to do the order by paying cashier rather than ensuring the
self-order kiosks (Hayes, 2018).
Areas of improvement for KFC
Several improvements can be brought by the KFC by bringing some renovations. It should
give more emphasis on the differentiation products in order to compete with its rivals. It can
also add customer reward points for getting the loyalty form customers. This will help it in

building a long lasting and healthy relationship with its customers. It can also ensure the
advertisement of its brand by running the corporate discounts with its complements such as
Nestle or Pepsi. It can also give more focus on gathering the customer information (Ghaani,
Cozzolino, Castelli and Farris, 2016). Social media has been playing the major influencing
role for the companies n recent time. Due to this, it can also bring the changes in these
platforms.
In Singapore also, KFC can start the Alipay electronic payment platform efficiency that has
proved to be the best commercial application of the payment system. By using the face
scanned payment system, it can bring the effectiveness in its payment system. The “smile to
pay” application system will only take one or two second payment for taking the payment.
Due to the full insured technology, customers also have the option to enable or disable this
feature at any time. It is also required to bring several changes in terms of changing by
learning several things from the McDonald’s. It is seen that the McDonald’s continues to win
the heart of consumers. It is regularly expanding its restaurants in Singapore. It is also
commissioned by Enterprise Singapore found that at least one-third of food manufacturers are
already innovating, be it through the use of new ingredients or in developing products
catering to niche sectors. Due to this, it also presents the improvement area for the KFC. It is
true that the food industry has a tough job -to not only develop drink and food that taste good
but also provide consumers with nutritious products that are reasonably priced. This entails a
careful balancing act. In this way, KFC can generate more demand if it works on this element
at huge level (Whitton, Ma, Bastian, Chan and Chew, 2014).
It is also found that KFC is still distributing straws to the people who are asking for it. Due to
this, several industries have opposed it for breaching the laws. In order to satisfy the large
number of customers, it is essential for KFC to bring improvement in this area. Therefore, it
should give the strict guidelines to its operation team who work in this area. By investigating
on these kinds of issues, it can bring the several changes in this regard (Harrington,
Ottenbacher and Fauser, 2017).. At the same time, it will also be able to comply with the
rules and environmental measures that it has undertaken. Due to the increasing demand of
healthier option, customers are getting concerned about the ingredients included in fast food.
Due to such changes, it is required by KFC to innovative its products. KFC can also develop
such drinks and foods that taste good and provide the customers nutritious products at
affordable price (Chin, Edginton, Tang, Phua and Yang, 2019).

It is also found that most of the Singapore people eat out on the weekly basis. By keeping this
in mind, KFC can give discounts to the people in rest of the days. This will attract the people
to consume more fast food in rest of the days also. By adding the healthy items in all the
seven days it can grow the demand of younger generation for its products. In order to get the
huge demand, it is also significant for the KFC to deal with customers for 24 hours (le, ha and
khan, 2018).
Conclusion
It is true that technology is changing continuously. Due to the increasing competition in fast
food industry, every new industry is coming up with some new ideas so that they can sustain
them in the new environment and gain competitive advantage.
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