KFC's Market Position & Competitive Strategies

This assignment analyzes the market position and competitive strategies of KFC, a major fast-food chain. It explores factors contributing to KFC's positive brand image and examines its use of the Porter's Five Forces model to address industry competition and barriers to profitability. The analysis also considers how KFC adapts to changing market conditions through strategic approaches in areas like human resources, marketing, production, and pricing.

Individual report on KFC

Table of Contents
INTRODUCTION...........................................................................................................................1
Positioning strategies of KFC.................................................................................................1
Methods of dealing with competitor.......................................................................................3
Porter's five force of KFC......................................................................................................3
Methods of maintaining competitive advantage. ..................................................................4
Influencing factors(supply chain, HR, advertising and pricing) ...........................................5
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................7

INTRODUCTION
Market is a very dynamic approach or act as a continuous process in which various
changes occurs due to fluctuation in various other factors which have a greater impact on a
company performance (Meisel, 2012). KFC is an American fast food restaurant chain which is
expert or famous in fried chicken by having its headquartered in Louisville, Kentucky. In fact, it
consider as a second largest restaurant chain at global level after McDonald's by having around
20000 locations across international boundaries in around 123 nations. Therefore, assignment is
going to highlight its current positioning by analysing various necessary facts or figures which
always changes due to fluctuation in several other elements. Moreover, number of competitors
are also identifies which is outlining in this project as well as analysis of competitive
environment with the help of porter five force model. Along with this, several of factors are also
explaining in order to understand its influence on approaches that have a greater impact on a
company performance or recent status. Last but not the least, project is all about analysis of food
or beverages industry which plays a major role in serving millions of customers with the help of
qualitative or delicious products and its role of KFC in this sector.
Positioning strategies of KFC
In every business organisation whether related with small or large operation needs to
analyse customer perception by conducting proper positioning strategies. This will be helpful for
them to determine perfect idea about exact demand of customers or expectation they are asking.
Positioning is said to the client perception for a particular brand of products and services
a company is offering to them. It a systematic process of examine the image of a brand
recognition so that customer can easily perceive it in a specific manner. In other words, the place
that a brand such as KFC occupies in the mind set of children, young people as well as senior
citizen. Positioning is happens to be continuous market planning for the companies. It helps to
outline a patten for business that should be implemented in order to sell out its products and
services to its target audience. It can be done through using plenty of modes such as promotion,
price, place and products.
In case of KFC, it is termed as crucial aspects of a marketing plan. Product positioning
can guide a marketers to use best suitable communication channel in between company as well
as customers choice. As KFC(Kentucky fried chicken) is one of the best fast food restaurant
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chain which is associated in delivering best quality fried chicken to numerous customers. It is
considered as second largest restaurant measured in terms of total sales in 2013. It has been
found that KFC is offering wide range of food products in their menu. Some products are fried
chicken, burger and drinks in their plenty of food stores over different nations.
As per the brand positioning detail of KFC starts with theme which stands for ' Its Finger
licking good”. This will provide customer perceive about KFC food products which is very tasty.
Target positioning of KFC customers belongs to an age group of 4 to 50 years people. Some
useful aspects of market positioning is:
 KFC target on pure and fresh food quality in order to develop a distinct and clear position
in the minds of people.
 They has a positive and strong brand name and they are leading the market with its tasty
food recipes.
 The other important techniques of KFC is to collected customer feedbacks in order to
make changes in the food as per the requirement of the people demand.
Responses to the market:
According to the current market position status there products are occupy a clear
distinctive and valuable place in relation to other companies. It has been seen that with the
implementation of latest technologies such as booking of orders through using online mode as
well as cash on delivery payment option (Warner, 2012). They have changed toward
digitalisation. It has been seen that they are offering unique taste of products to its customers.
There are products are design for different age group of people. As per the latest menu, they are
focused mainly on quality and taste can be get changed. The prices charged for products are
under the budgets of customers. Few changes is been also seen in the product because of
production of new products in to the current menu. They are targeting maximum young people
through creating effective awareness among them.
Food and beverages industry are increasing day by day because of consumer demand as
well as changes in taste or preferences of distinct clients. Basically, it has been observed that
number of modification or alteration are occurring at marketplace because of which it become
difficult for company to respond towards changes . However, it is not easy to manage all the
things in an appropriate manner. Therefore an association need to take necessary steps as per
consumer demand in order to fulfils their desired by considering choice or preferences. For
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example; hiring of skilled employees, accumulation of necessary information or data,
considering choice or preferences of society, alteration in current policies or strategies and so on.
Methods of dealing with competitor.
KFC is now expending their business due to their qualitative product as they are offering
best quality stuff to consumers. People loving KFC's most of food item instead of others
therefore company are having many competitors in the market and they are required to opt
methods to dealing with competitor, which are as-
Competition with rival firm can be able to boost firm's business in order to give better
appeal to their main target customers. Hence for it, KFC needs to take certain steps towards
dealing with competitors.
Identify competition- KFC required to looks out for their competition cause it is a
signify part of dealing with rival of business. KFC's competitors majorly known as subway etc. if
both the firm are serving in the same market them KFC will bear losses. Hence it is important to
know the rivals and frame suitable strategy in order to dealing with them.
Analysing competition- it can be knowns as the second step as it helps in looking out
that how rival can bring firm's market share. It point refers to that part where KFC will know it's
rivals and their different types of advertising tools, offering product and using of innovation. If
firm knows it then KFC will be able to cop with their competitors.
Knowing customers- In order to deal with rivals in the demanded market then KFC
needs to know their buyers and their preferences cause this will helps the company to grow to
immense level with the helps of satisfy customers.
Strategies for competition- After all analysis and determinations. KFC required to frame
suitable strategy for facing market rivals and then they will adjust their operation of business.
Porter's five force of KFC.
In order to make market survey the porter's five force model is applied in the market.
KFC is a fast food restaurant chain.
Buyer power
 The KFC has many competitors like
McDonald,Pizza Hut and so on Hence
their customers may start reducing in
Suppliers power
 KFC has many suppliers for their raw
materiel hence they will have easy
availability of their chicken so they are
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numbers (Roxas and Chadee, 2011). In order to attract their buyers,
company will start their new policy of
pricing through all the prices of entire
range of product is reduces.
powerful to make effects on the
company.
Threat of new entry KFC has more rivals hence they have
chance to face new entry of product
that same as KFC.
Threat of substitute product
 There are larger number of products
which are available in the market that
are bit same as the product of KFC
which can be a threat for the company.
Form it firm bear losses.
 To reduce it, KFC needs to find
different alternatives to minimise
threats.
Methods of maintaining competitive advantage.
Every company have to operate in changing environment where there is number of
competitors available in the market place (Morris and Bromfield, 2015). Hence, it is the
responsibility of KFC to maintain competitive advantage in order to survive in difficult situation
and condition. There are various of maintaining competitive advantage.
Innovative: this is a process of coming up with new things, different from already
existing products. This helps in gaining competitive advantage as it helps in standing out from
other players.
Customer needs get full-filled: KFC always works towards full filling the needs and
wants of its buyers. This helps in gaining goodwill in the minds of people.
Problem Solution: Customers are known as king of market place. Every company works
for their customers. Hence, whenever their problems get arise they should be met properly and in
effective manner.
Cooperative: it is very important to maintain the healthy relationship between employer
and customers. It helps in maintaining collaborative links with prospective buyers and customers.
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Price: Company can enjoy their top position only when they offer products at affordable
prices to their customers. This helps in attracting more and more customers towards their
products.
First mover advantage: As there are number of opportunities and threats of business
that needs to be taken in order to stand apart from many other already established companies.
They have to scan environment accordingly so that proper results and outcomes can be achieved
in correct manner.
Influencing factors(supply chain, HR, advertising and pricing)
There are number of influencing factors that impacts organisation structure. There are
number of elements that need to be considered by management. These have influences in
different manner. Influencing factors that are included are management:
Human resource Factor- It is considered important aspect of any organisation as they
include aspects related to important assets of company that are employees (Russell, 2011). It
includes policies, procedures that are applied in accordance with human resources. Human
resource department focuses on aspects related to employees, workers of that particular
organisation.
Advertising- it is considered important function of marketing department that provide
messages regarding any product and services to their prospective buyers. Hence, advertising
plays a very important role in organisation. As it stimulates demand of customers of particular
products and goods. Customers need attractive advertisements so that they can motivated in
buying products. They only make purchases when believes that it is satisfying their demands and
wants.
Pricing: Company image is affected by value of goods and services defined by
management. This factor determine its attraction and influence buying behaviour of customers.
Hence, this impacts profitability of firm. Superiors required to have information about their rival
firms products and prices set by them, so that they are able to set competitive rate through which
they are able to induce people and retain them with firm.
CONCLUSION
From the above report it has been summarised that food or beverage industry is
developing in a fastest way because of consumer demands and act as a very useful business
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which helps an entrepreneur in gaining maximum profit. Along with this, it is key to economical
success because emergence of various business create a employment opportunities which
automatically raise the living standard of European people. Therefore, previous information is
totally based on KFC which is considered as a one of the major restaurant chain and serve in
millions of customers. Thus, it has been understood that this company is having a very positive
image at marketplace due to several factors that was explained in above report. Additionally, this
report also enhance the knowledge about current techniques which is used by an organization to
deal with their rivalries and uses Porter five force model for reducing other issues or barriers
which are hampering their profit. Lastly, it has been assessed that KFC are dealing with changes
in an appropriate manner by considering necessary factors which may influence success of an
enterprise such as; HR, Marketing, production pricing strategy and so on.
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REFERENCES
Books and Journals
Russell, C., 2011. Competition Law: NFPS-Are You Unwittingly Breaching the Competition and
Consumer Act? Keeping Good Companies. 63(3). p.166.
Morris, M.H. and Bromfield, D., 2015. An Exploration of Environmental Influences on Pricing
Behaviour in South African Firms. InProceedings of the 1994 Academy of Marketing
Science (AMS) Annual Conference (pp. 312-316). Springer, Cham.
Roxas, H.B. and Chadee, D., 2011. A resource-based view of small export firms' social capital in
a Southeast Asian country. Asian Academy of Management Journal. 16(2). pp.1-28.
Roxas, H.B. and Chadee, D., 2011. A resource-based view of small export firms' social capital in
a Southeast Asian country. Asian Academy of Management Journal. 16(2). pp.1-28.
Warner, M., 2012. Fragile and provocative: Notes on secrecy and intelligence. Intelligence and
National Security. 27(2). pp.223-240.
Meisel, J.B., 2012. The Law and Economics of Margin Squeezes in the US versus the EU.
European Competition Journal. 8(2). pp.383-402.
Marcel-Laurenţiu, R., 2013. Strategies Adopted by the Company Leadership in Different
Situations in Time. Ovidius University Annals, Series Economic Sciences 13(2).
Eltuhami, E.A.E., 2015. Impact of Applying ISO 26000 (Corporate Social Responsibility) on
Competitive advantage from the customers’ perspective (Doctoral dissertation, Sudan
University of Science and Technology).
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