Strategic Marketing for KFC

This presentation focuses on the strategic marketing approach of KFC, covering its history, market size, competitors analysis, macro and micro economic factors, customer analysis, and stakeholder analysis. It provides valuable insights into developing effective marketing plans and strategies for attracting more customers.

STRATEGIC
MARKETING

 INTRODUCTION
 HISTORY OF KFC
 MARKET SIZE AND TREND DATA OF KFC
 COMPETITORS ANALYSIS
 MACRO AND MICRO ECONOMIC FACTOR AFFECTING KFC
 CUSTOMER ANALYSIS
 STAKEHOLDES ANALYSIS
 STRATEGIC PLANNING
 CONCLUSION
 REFERENCES
TABLE OF CONTENT

INTRODUCTION
Strategic marketing is a tool or a procedure by which
organisation aims at differentiating itself from its competitors
and other players in marketplace. Through strategic
marketing company focuses on its strengths and according
make plans to provider better goods and services and value
to customers. Strategic marketing tool is also used by
company to attract more and more individuals or people and
change them into potential customers or buyers of products
offered by the organisation. This presentation is based on
KFC and covers several aspects of organisation for
developing effective marketing plans and strategically
planning their strategies for reaching and attracting more and
more people (Chernev, 2018). The presentation covers brief
introduction of KFC, its history and its market size, trends
taking place in it and related data. Moreover, a competitor
analysis is also, conducting by comparing the products,
growth level, sales and revenue units of KFC with its most
potential competitors.

HISTORY OF KFC
KFC is an American fast food restaurant chain which was
founded in 1930 by Colonel Harland Sanders and
headquartered in Louisville, Kentucky, US and its global
headquarters are in Texas, US. KFC is the second largest fast
food restaurant chain in the world after McDonald’s which
KFC’s biggest competitor. It is a subsidiary of Yum! Burger
restaurant which also owns, Pizza Hut, Taco Bell and
WingStreet chains. KFC was started by the founder as a
street side fried chicken seller at the time of great depression.
It soon got famous and its popularity amongst people and
started challenging the established dominance of the
hamburger providers. It was one of the first American fast
food chains which expanded internationally in UK, Mexico,
Canadian and Jamaican markets.

MARKET SIZE AND TREND DATA FOR KFC
Market size refers to the maximum total number of sales or
customer a business can seek. Market size is measured over
the course of a year or annually. Foreign organisation it is
important to know its market size and potential market
segment before launching their offerings or any new product
line acid help them understand if it's a worthwhile
investment of money, time and available resources. The
market size of a business carries out the total potential of the
organisation it holds in a particular market inform of
customer and sales over a year.
KFC market size and its competitors
KFC is the first American fast food chain which is expanded
internationally and world's second largest restaurant chain
after McDonald’s. KFC contributes a huge share in fast food
industry of the world and around the globe. It stands on the
second place in the biggest fast food retailers having its
operations world wide and in huge business markets.

CONTINUE…
Evaluation
KFC is one of the most popular and innovative brand which
exist in fast food industry due to increasing competition and
new competitors entering the marketplace company faced use
problems and losses. KFC moved down to 9 position from 2
among the fast food chains and the reason was less variety of
products and slow innovation strategy. KFC conducted
market research analyse the targeted audience there buying
behaviours and accordingly developed new plans and
strategies for gaining its position and becoming the best fast
food producer amongst the world. KFC changed its
marketing strategies thanks it's advertisements main changes
in their operations by increasing options in the menu
changing their packaging and more importantly changing
brand image.

COMPETITOR ANALYSIS
KFC Competitors
The demand for fast food all over the world is continuously
increasing which implies that the competition in the food fast
food industry is also in enhancing with every passing day.
KFC specialises in best fried Chicken due to increasing
competition and added new products into its menu. These
products are some soft drinks, beverages, desserts, side
dishes such as French fries Donut’s and many more. the
company is established in international marketplaces and
faces competition and challenges in domestic and
international market place. Are numerous competitors of
KFC from which one of the potential is McDonald’s is its
international and domestic competitor.

CONTINUE…
Comparison of KFC and McDonald’s and Chick-a-fil
McDonald’s
McDonald's is another American fast food company that
gives KFC run from its money. It is world's largest restaurant
and fast food provider and always bin one step ahead of
KFC. McDonald’s serves over 69 million customers on daily
basis in more than hundred countries through around 40,000
outlets and restaurant in the world. The main products of
McDonald’s is hamburgers, various types of chicken,
chicken sandwiches, French fries, breakfast items and
desserts.

CONTINUE…
Chick-a-fil
Another computer of KFC is Chick-a-fil which sell three
times as much as KFC location and moving towards
becoming number one chicken chain in the industry. In year
2014-15 Chick-a-fil average sales per restaurant was greater
than any fast food chain in the US. The reason behind Chick-
a-fil dominating the market is a mix of excellent food and
superior customer service which is better than other fast food
providers and competitive present in the marketplace. it gain
success in a restaurant nearby restaurant basis bye
consistently ranking first in customer service surveys
conducted by many researchers.

Evaluation
Both competitors of KFC McDonald's and Chick-a-fil is potential competitors of KFC how many eggs national and international
business. McDonald's is present worldwide and considered to be the first fast food chain in various aspects on the other hand
chick a fil is gaining and expanding in the domestic market of KFC. The increasing competition international and national
marketplaces affecting the business and living standards of KFC in a prominent manner (Thrassou, Vrontis and Bresciani, 2018).
The company is making changes and adopting various strategies to maintain its competitive edge and stand as a great competitor
in front of McDonald's and chick a fil. Not only these two brands are becoming a biggest challenge for KFC but others retailers
and entrepreneurs bring the fast food industry or also becoming use threat for KFC. Is small businesses are gaining their presence
in market please bi server best quality and tasty food to people and attracting them by bringing new innovations.
CONTINUE…

Every business organisation and its operations are affected by two factors which are categorised into macro and micro factors. The
micro factors are those factors which are internal to organisation and exist business surroundings internally. These micro factors
are those which include the factors in the immediate area of operation affecting the performance and decision making of the
company. Micro factors includes competitors customers distribution channels suppliers etc. These micro factors can be e the
strength or weakness of organisation also bring opportunities and open new doors for the business with potential threats and risks.
On the other hand macro factors macro environment which affects the business are those features present in the whole industry
and effects all different kind of bridges operating in that particular industry.
MACRO AND MICRO
ECONOMIC FACTORS
AFFECTING KFC

SWOT ANALYSIS
The Swot analysis is basically used to interpretation and analysis of the internal and external factor of the company in terms of
strength, weakness, opportunity and threats by which it can influence the company’s performances.
STRENGTHS- It describe the factor that which emphasis about the positive features which influence the performance of the
company in better way.
 Effective global Goodwill- This company has a gaining of goodwill in over 130 plus countries and with having 21000 stores
as well it has 2nd world largest restaurant, where it is been famous is for the chicken food speciality at all over the world.
WEAKNESSES- This factor is create conflict between company performance and its growth it has stopped the optimum level
of performance as well as determine the lack of area improvements.
 Issues in demand and supply- As early decades KFC has faced many challenges which it occurred issues related with supply
and demand in terms of services lacking and facing difficulties to setup marketing strategies into the market due to their weak
management teams.
CONTINUE…

OPPORTUNITIES- The factors of opportunities refer the advantages of the company in the favour of the market as
in context of market share, sales, get the high retention of the consumers.
 Introducing new food products- By changing of market trends with consumers preferences in terms of food
items there is advantage of allowing the new invention related with food items which attract the consumers as
well as it will provides the growth.
THREATS- It refers about the harmful impact towards the company’s potential which can affect the company’s
growth.
 Changing the consumer needs and preferences- By this factor it can be threats as for the consumer perspective
of switching the food product and adapt of the new generation of restaurant where it can be happen because
consumer prefer the healthy and natural food which having low calories and fat arrears.
CONTINUE…

PESTEL ANALYSIS
The Pestle analysis is determine the factor of Macroeconomics where it consists of external environment sources which helps in
providing situation based outcomes and optimum scope of the market. This PESTLE analysis is basically utilise when a new
company enters into international market, similarly for KFC company this tools is been applied to identifying those Macro
environmental which are considered to unfavourable and favourable factor for KFC.
 Political- This factor is emphasis about the government intervention which contribute in the economy by generating the political
activities such as government norms, political stability, corruption, tax policies as well as foreign policies in terms of
investments, joint venture etc. where the government enhanced the nation which can influence the academic sector as well
financial sector.
 Economical- The economic factor enhanced the elements by which it can cause the conditions where it affects in the economy
performances. The factors which can considered for the influencing the business firm through Recession, economic growth
diminishes, Demonetisation, inflation in terms of decreasing the purchasing power of the consumer, excess of unemployment
rates.
 Social- This factor is consists about the demographic factors which includes the core values, customs, norms, which organisation
operates the targeting consumers as aspects of age, gender, religions, career, attitude and behaviour etc. by including all these
factor which are considering the targeting consumer segments where it can easy to dealing the product within the market.
CONTINUE…

PESTEL ANALYSIS
 Technological- This factor involves the new resources which are available in the market and as well as it emphasis about to
utilising those resource to optimum outcomes in aspect of company’s growth. KFCs have concerned of trending changes of
the market which has creates the benchmarks towards the productivity outcomes, they have major focus of technology
improvement is to communicate with consumers and clients into best alternative source of telephonic automation where they
can provides their services as per the convenience.
 Legal- The legal factors are involving the basic outlaws of the rules and regulations which can discriminate of laws, health
and safety as by taking considered for the further assurance security as well it derives the authentic follows abiding of
compliances regarding the governments rules which can influence into positive as well as negative, as KFC they have abiding
the international and national laws which can confronted the on-going trading of business should goes into regulatory basis.
 Environment- The environment factor enhanced the exceeding lack of raw materials which can impact into business in terms
of less productivity, polluted product prohibited, by all these factor are considered into ecological factor which can affect the
weather, climatic environment where it can directly effect to the economy surroundings, the supplies of KFC as in unhealthy
and illegal food such as Beef which is not considered and it has creates the internal illness as well the paper of KFC supplier
has affected the personal brands as deforestation of the trees and plants . So, this environment factor is not favourable for
KFC company.
CONTINUE…

KFC is present around the globe and one of the most largest and famous fast food chain available in different international
markets. KFC is famous for its non vegetarian snacks which are prepared by its secret recipes which is the key and most
attractive factor for its customers. The customers of KFC and its targeted audience is those individuals belonging to the age group
of 16 to 40 years uneven above or below it. The company most commonly targets those individuals and families who loves to
enjoy tasty non vegetarian fast food snacks. KFC is present in many international markets the biggest attraction of KFC is its
secret recipes and food products produced some those recipes (Dogu and Albayrak, 2018).
KFC target market includes both non vegetarian and vegetarian customer segments as it has items in its menu for adults as well as
young people looking for tasty vegetarian and non-vegetarian food.
CUSTOMER ANALYSIS

STAKEHOLDER ANALYSIS
Stakeholders are the parties and individual associated with
the organisation and business operations. there are many
different types of stakeholders associated with different types
of organisations depending on their size scope and nature.
KFC is a large internationally operated fast food producer
which implies it has number of stakeholders. The main and
most important stakeholders of KFC are its customers, other
stakeholders which are associated with KFC are its suppliers,
employees, government etc. Basically when it comes to
organisation all of the individual or internal people are
involved in and affects the operations of organisations are
called as stakeholders. All those parties which are having
impacts on the decision making and operations of KFC are
its stakeholders.

Stakeholders matrix of KFC
The stakeholders are categorised into the terms of their influence, interest they have in the business and the level of participation
in the operation. It is categorised into two grids which is power and interest. The stakeholder analysis of KFC will be including
four categories of stakeholders and divided into two grids.
High power, high interest- These are those parties and stakeholders which has huge influence and interest in the business of
KFC and are given huge priority. the main objectives of KFC will be keeping the stakeholders happy and properly informed for
the sake of progress of the organisation. the customers of KFC falls in this quadrant of stakeholders where it is important for KFC
to keep them informed about the different offerings of organisation and satisfied (Cotterill, 2019).
High power, low interest- This quadrant of stakeholder analysis old those individuals are stakeholders who have high power in
the business but very low interest. KFC has to keep these stakeholders satisfied as they hold huge power their hands. The
employees of the company holds high power as deserve people on behalf of KFC but have very low interest.
Low power, high interest- In this grid the suppliers of KFC exist who have low power over the operations but use interest in the
business. KFC has to keep their suppliers informed and be in touch with them regularly seeking information and making sure that
they are not facing any issues or problems. it is necessary for KFC to keep up with the suppliers because its operations depends on
them as the procure raw materials from their suppliers.
Low power, low interest- The external media and part time employees of KFC belongs to this grid where the organisation just
need to keep them informed that too not regularly as the business is least affected by them
CONTINUE…

SOSTAC Model
It is a planning model or a methodology which helps an organisation or business to effective marketing plans. SOSTAC model is
one of the most popular marketing tool rendering is and comfort to do marketers while structuring marketing campaigns for their
organisations. The SOSTAC planning system has 6 elements and acronym of situation analysis, objectives, strategy, tactic,
actions and control. With the help of SOSTAC model of marketing a plan is developed for KFC below.
 Situation analysis
Currently from the evaluation above of macro and micro factors influence over the business of KFC and conducting variance
analysis such as stakeholders, competitor and customer's it is evaluated that company is facing use competition and losses due to.
The swot analysis conducted above states that the customer base and Goodwill of KFC around the globe is very strong but it
supply chain and balancing of franchisees is very low.
 Objectives
After conduction through evaluation of marketplace the main objective of KFC is to maintain its competitive edge and give song
competition to its competitors like Chick-a-fil.
 Strategy
For developing effective marketing strategy ansoff matrix is used in which product development strategy and diversification. The
product development strategy suggest that KFC should innovate and develop new products according to the needs of its existing
customers and fulfil their desires. the diversification strategy is used for expanding into new marketplaces by new innovative
products which are developed according to the needs of that particular market.
STRATEGIC PLANNING

CONTINUE…
Tactics
Marketing mix tool is used here for conducting effective
tactics considering all different areas.
Products which are offered by KFC will be result of
innovation and invention company performs after conducting
potential market research.
Price strategy which is adopted by KFC is penetration as
companies entering into new market place and at the
beginning it will keep its prices low and which gaining brand
value and Goodwill KFC will modify its pricing structure
(French and Gordon, 2019).
Place refers to the distribution channel which company use is
the physical restaurants and online orders.

Promotion tool which is used by KFC is by investing large amounts in developing great advertisement with the help of advanced
technology and digitalization.
People human resource associated with KFC which is the experts who holds good knowledge about food and food industry.
Process indulged in KFC are online systems and physical restaurants, which are managed by experts. The restaurants are
managed by the managers good knowledge about food industry and trends.
Physical evidence are the authentic proof of the presence of KFC which are its advertisements physical restaurants and most
attractive logo present on packaging and delivery bags of KFC.
CONTINUE…

CONTINUE…
Control
For controlling and measuring the performance of KFC to
New Market please the company can make use of KPI's and
benchmarking. Through KPI's company can make evaluation
of its past and present revenues. With the help of
benchmarking system HSC cancer its target according to the
potential of a competitor which unofficial for KFC and
operations. Ny setting targets company will make its
operations according to them helping in attaining all its
objectives.

The above presentation controls that strategic marketing and planning tool are the most essential for business in order to attain all
its objectives and operate effectively. Strategic marketing tool enables the organisation to conduct thorough market evaluation
where customer analysis stakeholders analysis and competitor analysis is conducted. Also market is evaluated with the help of
macro and micro factors influence over the business and its operations. At the end a strategic plan is developed in favour of
company with the help of SOSTAC model of marketing and planning.
CONCLUSION

Books and Journals
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Sahaf, M. A., 2019. Strategic marketing: making decisions for strategic advantage. PHI Learning Pvt. Ltd..
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI Tourism Texts. Cabi.
Thrassou, A., Vrontis, D. and Bresciani, S., 2018. The agile innovation pendulum: A strategic marketing multicultural model for
family businesses. International Studies of Management & Organization. 48(1). pp.105-120.
Varadarajan, R., 2018. Advances in strategic marketing and the advancement of the marketing discipline: The promise of theory.
Journal of Marketing Management. 34(1-2). pp.71-85.
McCamley, C. and Gilmore, A., 2018. Strategic marketing planning for heritage tourism: A conceptual model and empirical
findings from two emerging heritage regions. Journal of Strategic Marketing. 26(2). pp.156-173.
Dogu, E. and Albayrak, Y. E., 2018. Criteria evaluation for pricing decisions in strategic marketing management using an
intuitionistic cognitive map approach. Soft Computing. 22(15). pp.4989-5005.
Cotterill, R. W., 2019. Competitive strategy analysis for agricultural marketing cooperatives. CRC Press.
Brown, T. and et. al., 2018. Twenty-five years and counting: an analysis of the Journal of Strategic Marketing. Journal of
Strategic Marketing. 26(2). pp.125-139.
French, J. and Gordon, R., 2019. Strategic Social Marketing: For Behaviour and Social Change. SAGE Publications Limited.
REFERENCES

THANK YOU