Strategic Marketing for KFC

This presentation provides an overview of the strategic marketing approach of KFC. It includes discussions on SWOT and PESTLE analysis, market size and trends, competitor analysis, macro and microeconomic factors, customer analysis, stakeholder matrix, strategic planning, SOSTAC model, and conclusion. The presentation offers insights into KFC's strengths, weaknesses, opportunities, and threats, as well as the impact of political, economic, social, and technological factors on the company. It also highlights the target market and customer preferences of KFC.

STARTEGIC MARKETING
KFC

INTRODUCTION
An organization perform their operations in a business environment that include
different factors (Rahman, 2019). All the factors have direct and indirect impact
upon business operations. It makes entities to effectively evaluate all the prevailing
factors and develop strategies against it as to ensure success.
Present report has been conducted on KFC. Entity operate their services in
restaurant industry. In this report formative discussions has been made on SWOT
and PESTLE analysis of respective company.

HISTORY OF KFC
KFC ( Kentucky Fried Chicken) was established in the year 1952 by Colonel
Harland Sanders.
 He was an entrepreneur and at the initial stage of his life used to sell fired
chicken. He firstly started to cook for hungry travellers. With this 11-herbs-
and –spices recipe KFC enjoys massive global presence.

MARKET SIZE AND TREND
DATA FOR KFC
The global food service market size was worth US$ 3.4 Trillion in 2018 and is
expected to reach a value of US$ 4.2 Trillion by 2024.
It has been analyzed that target market segment of KFC is upper as well as middle
class. By this, they set prices of their products accordingly (Jain, 2019).
Company conduct their business functions with having more than 5,200 stores in
more than 3,6000 locations worldwide. In addition to this, it has been evaluated that
KFC is a world’s most popular chicken restaurant.

COMPETITOR ANALYSIS
Competitors of KFC are Subway, McDonald's,
Burger King, Starbucks, Pizza Hut and Dunkin
Donuts.
Main factor that are common in all these
Competitors against KFC is that, all of them target
Customers of all income segment while respective
Entity only target upper of middle income group.

CONT…
Mc Donald: Big Mac, quarter pounder, cheeseburger, chicken burger, french fries and more. In
addition to this, desserts, breakfast items soft drinks are also served by company. Further it has been
evaluated that company is having 59.13% market share holding.
Starbucks: hot and iced espresso beverages, cold brew, nitro, non-coffee blended beverages, Fresh-
brewed coffee, Coffee- and tea-brewing equipment, packaged goods are some of the products of star
bucks (Kiat, Jamal, Chen and Lin, 2019). In addition to this, company is having 39.8% market share
holding in US coffee marketplace.
Burger king: Salads and veggies, Beverages, Burgers, Sweets/Desserts, Sides are some of the
certain products of company. Along with this brand value of burger king is 130.4 billion U.S.
dollars.

MACRO AND MICRO ECONOMIC
FACTORS AFFECTING KFC
Macro analysis defined as macroeconomic conditions within which an entity conduct
their functions and it influence their operations. It mainly include factors like price
level in economy, spending pattern of customers and aggregate production. While on
the other hand, micro analysis include factors like competitors, suppliers, marketing
intermediaries of entity. In this as to evaluate macro analysis factors KFC by taking
advantage of PESTLE can effectively able to evaluate impact of factors on
organization performance.

SWOT ANALYSIS
STRENGTH WEAKNESSES
•KFC is having leading and strong brand
positioning in marketplace.
•Have strong presence even in local market
•High price range comparatively to rivals.
•Another weakness of company is weak scale
of operations.
THREATS OPPORTUNITIES
•Change of customer’s preference towards
organic and healthy food.
•Laws imposed by government to reduce
obesity.
•By expanding their business operations.
•Conducting CSR practices.

STRENGTH
•It has been evaluated that KFC is having strong brand
positioning in marketplace.
• Along with this, entity is offering high quality goods and
services to customers.

WEAKNESSES
KFC offer their products as well services
comparatively higher than other competitors in
marketplace (Srivastava, 2019).
This is the main reason for having less consumer
base in most of geographical locations.

THREATS
Due to shift in preference of customers towards organic and healthy eating habits
there is a possible threat that has been facing by entity.
Fluctuations in currency rate worldwide is posing threat in front of KFC as it
hampers entity to launch any new product and service in marketplace.

OPPORTUNITY
By taking using of organic products KFC and ensure
more competitive advantage as this will effectively allow
them to satisfy needs of customers in a well defined
manner (Murdana, Murdana, I.M., 2019 2019).
In addition to this company can expand in new locations
by offering different attractive offers to customers.

PESTLE ANALYSIS
Political: Political instability and labour law imposed by government can affect company
functioning.
Economic: Increase in tax rate of non-veg products may lead towards creating negative impact
over company operations.
Social: Tend of individuals are changing towards healthy food. In this company is required to
enter into organic products
Technological – With the adaption of high-tech technology KFC can serve its customers better.

CUSTOMER ANALYSIS
KFC is one of the top choice of customers.As products and services of entity is of
high quality.
KFC targets to almost all its customers aging from 16–40 or maybe above that
also.
KFC always try to introduce a new snack meal once in every 2–3 months.

STAKEHOLDER MATRIX
Stakeholders are defined as an individual or a
party who are having interest in company.
They get further affected by business decision
and operations of entity.

CONT….
It has been evaluated that KFC is having different types of stakeholders those who
are having certain set of expectations from company. In this stakeholders of entity
include suppliers, customers, contracted cleaning companies, employees, delivery
services and contracted vending companies.

STRATEGIC PLANNING
Strategic planning is defined as a process in which an entity develop strategy,
implement them into business process and evaluate their impact with an aim to
increase profitability.
At current KFC is taking use of demographic segmentation as to duly serve their
customers. As to increase their market share KFC by taking advantage of innovation
in their products can effectively able to attract attention of customers in best effective
manner.

CONT…..
Strategic planning is defined as an art to formulate strategies related to business
operations, implement them and further evaluate impact of those strategies upon
objectives of organization. With the help of strategic planning organization can operate
functions like accounting production, research and development, management, marketing
etc in a well effective manner as to accomplish organizational goal.
With the implementation of strategic planning within business organization managerial
decisions can be made in a well defined manner that further lead towards desirable
course of action

STRATEGIC PLANNING KFC IS
PURSING
KFC is taking advantage of demographic segmentation strategy in order to fulfill
needs and demand of customers as per in accordance with perceptions (Ciptagustia
and Kusnendi, 2019).
This has been evaluated that customers range of KFC include adults as well as
young adults thus in order to fulfill their demand KFC offering same menu all
around by undertaking advantage of undifferentiated strategy.

SOSTAC MODEL
Situation: KFC is having comparatively less stores in Asian markets.
Objectives: In order to maximize its profitability and market share in Asian
marketplace KFC have formulated objectives in which they are looking forward to
expand their business in market.
Strategy: In order to expand in the marketplace of Asian countries where there business
activities are still untouched KFC is taking advantage of market penetration strategy.
Tactics: As to expand business in Asian market KFC by undertaking use of introducing
new products and well as services is planning to attract attention of Asian customers.

CONCLUSION
As per the report it has been concluded that business operate their services in an environment
that involve different factors. All these factors are required to be evaluate by entity as to
ensure maximum success.
 In this with the help of SWOT and PESTLE analysis entity can develop strategies as to
ensure more prosperous growth along with high profitability.
By evaluating different models organization can effectively evaluate its strength and
weaknesses that allows them to them strategic plan in order to overcome weaknesses in a well
defined and effective manner.

REFERENCES
Rahman, M.M., 2019. Cultural Differences, Strengths, Weaknesses and Challenges of Kentucky
Fried Chicken (KFC)–A Comparison between and United Kingdom (UK) Malaysia. Global Journal
of Management And Business Research.
Jain, R., 2019. An Analytical Study of Customer Satisfaction towards KFC Restaurant chain in
Udaipur City. Journal of the Gujarat Research Society. 21(16). pp.999-1004.
Kiat, C.J., Kee, D.M.H., Siew, A., Chai, P.A., Jamal, G., Chen, S.M. and Lin, T.Z., 2019. Manpower
and Employees’ Attitudes Are Very Important in An Organisation. International Journal of Applied
Business and International Management. 4(3). pp.137-143.

Srivastava, D., 2019. STUDY ON CONSUMER PREFERENCES FOR JUICES IN DELHI
MARKET (Doctoral dissertation).
qadir Sofi, U., IMPACT ON MARKETING DUE TO POLITICAL INSTABILTY ON
PEOPLES FOOTFALL VIA TOURISM ON J&k INDIA. InTraders Uluslararası Ticaret
Dergisi. 2(1). pp.169-184.
Ciptagustia, A. and Kusnendi, K., 2019, May. Distinctive Capabilities: Can it be a source of
competitive advantage?. In 1st International Conference on Economics, Business,
Entrepreneurship, and Finance (ICEBEF 2018). Atlantis Press.

APPENDICES
Group Log
Group members student ID numbers 21807723 21807721
Company Name : KFC
Date Students Attending Activities/Issues Actions Requied by induviduals Target Date Achieved date
16.03.20 Elena Nicula Power Point Presentation History of KFC 08.04.20
Market size and trend data for
KFC 08.04.20 08.04.20
Competitors analysis 08.04.20 08.04.20
Macro and micro economics
factors 08.04.20 08.04.20
Swot analysis 08.04.20 08.04.20
Pestle analysis 08.04.20 08.04.20
16.03.20 Andreea Dobraniste Power Point Presentation Customer analysis 08.04.20 08.04.20
Stakeholders matrix 08.04.20 08.04.20
Strategic planning 08.04.20 08.04.20
Sostac model 08.04.20 08.04.20
Conclusion 08.04.20 08.04.20
8.04.20 Elena Nicula Power Point Presentation References 08.04.20 08.04.20
08.04.20 Andreea Dobraniste Power Point Presentation References 08.04.20 08.04.20