Strategic Marketing: Understanding the Internal and External Environment of KFC

This presentation provides an in-depth analysis of the internal and external environment of KFC, including competitor analysis, market trends, and strategic planning. It explores the history of KFC, market size and trends, competitors, and macro and micro economic factors. The presentation also covers PESTLE analysis, SWOT analysis, and strategic planning models used by KFC. Overall, it offers valuable insights into the strategic marketing approach of KFC.

STRATEGIC
MARKETING

INTRODUCTION
 Strategic management is the strategic approach which
involves in number of business activities i.e. sets
objectives, analyse internal business environment,
evaluates strategies and evaluates competitive
environment.
 The main goal of the presentation to provide
understanding about internal and external environment
of KFC.
 The Presentation includes competitor analysis, market
future and current trends includes in the presentation.

History of KFC
 KFC is an American fast food
restaurant chain which is
headquartered in Louisville,
Kentucky.
 It comes in world’s second
largest restaurant chain after
McDonald’s (Shi, 2016).
 KFC operates in 136 countries
across the world.
 Organization is famous for
fried chicken.

Market size and Trends data for KFC KFC captures large market share
estimates 83% of US market.
organization operates in global market
and expand it’s business in other
countries (Jain, 2019).
 Organization is subsidiary of Yam which
has own Pizza Hut and Taco Bell.
 KFC stands in world’s second largest
restaurant chain after McDonald.
 Organization segments consumer market
on the basis of culture, sub-culture and
social-class (Coester, 2019).

KFC’s competitors
 There are number of competitors i.e.
McDonald, Burger King, Pizza Hut,
Dominos’ Pizza, Starbucks and Taco
Bell.
 The reason behind is that it offer similar
product and it’s services to customer as
like KFC.
 The major competitor is the KFC is
McDonald because it is one of the
largest and highly recognize fast-food
chains in the world (Anand and Yeung,
2018).

Comparison between KFC and
McDonald
 McDonald’s restaurant expands it’s business more rapidly
and beats KFC in term of sales because McDonald has wide
product portfolio and good global presence.
 KFC is famous for fried chicken along with different flavour
but company offers other products i.e. burger, beverage and
snacks (Wijaya and Hermawan, 2018
 While McDonald offers hamburgers and fish sandwiches
along with chicken.
 McDonald sells more chicken so become largest seller of
chicken as compared KFC.

Macro and Micro economic factors
 Micro analysis is the process which includes external
factors i.e. technological, political, social and others and
affects business strategy, decision-making and
performance of company.
 While Micro analysis is the strategic approach which
helps to analyse internal environment of business.

Pestle Analysis
 It is analytical model which is used to analyse external environment
of company. KFC apply this model to analyse business environment.
The model is described below:
Political factors
 KFC gets chance to serve it’s fast food services in Indian market
because it give permission to international fast food restaurant to
expand it’s business (Rastogi and Trivedi, 2016).
Economic factors
 KFC focuses on middle class and offers variety of products on
affordable cost. It influences purchasing power of customer.

Technological factors
 Emerging technology gives positive impact on KFC’s productivity,
performance and operations.
Social factors
 Nowadays people concern for their health so they avoid fast food. Social
factor gives negative impact on organization performance (Bohari, Hin and
Fuad, 2017).
Legal factors
 KFC opens it’s franchises’ across the world and operates successfully. KFC
uses marketing campaign to aware customer about it’s products that gives
positive impact on organization performance.
Environmental factors
 Organization kills animals like PETA which can create problem for
environment. KFC uses unhealthy animal for producing roasted chicken which
impacts human health negatively as well environment.
CONT.

It is strategic model that is used to analyse strengths, weaknesses, threats and
opportunities of individuals or organization. The models designed to internal
environment of company.
Strength
 KFC has global recognition a good brand image in global market.
 Organization has emotional benefits because it has high brand recognition,
so number of customers like to buy food from the organization instead of
switching to rival.
 KFC has traditional employee who are more loyal as compared others. so, it
is major strength of organization (Kaur and Attanayake, 2018).
 Company has strong and experienced management.
Weaknesses
 Company has spent long journey to market with mew market.
 Organization have to pay high production cost as compared other companies
which impacts on profit ratio.
SWOT Analysis

CONT.
Opportunities
 Organization has numerous opportunity such as they
can increase demand in people by offering new
products along with different taste (Shi, 2016).
 Youths majorly fond of fried chicken and other fast
foods so company can develop foundation of youth.
Threats
 Inflation rate in the global market can give challenge
to company because they have to influence products
price as result decreases buying behaviour of
customers.

Strategic planning
 It is a process that is applied for directing day to day decision
and analyse progress and change approaches when move
forward.
 KFC uses strategic planning to set it’s goal and measures
them on time (Sibambo and Saadeh, 2018).
 The strategic plan for KFC is to enhance it’s market value
and market value as well in the world.
 Company continues focus on the strategic plan and takes in
practices by launching new products and innovation in
products portfolio for it’s customers

CONT.
SOSTAC Model
It is a planning model which is developed in 1990s. It is
widely used by business for marketing and business planning
purpose.
 It helps when developing digital marketing for promoting
products in global market (Jain, 2019).
 KFC uses SOSTAC model to create digital marketing to
promote it’s product Recommendation
 KFC cab adapt CSR strategy that helps company to
produce sustainable products and leads sustainability in
their operations as well.

CONT.
 This strategy overcome negative impact of
environmental and social factors an leads profitability
within company.
 Organization can use multiple suppliers’ strategy that
helps company to get raw material in low cost along
with good quality as result reduces operational as
well.
 Thus, company can gain competitive advantage from
the competitor.

CONLUSION
 The report has been concluded market size and
competitor analysis.
 It can be summarized SWOT, Pestle and strategic
planning model to analyse internal, external and
competitive environment in the food industry.

REFERENCES
Rastogi, N.I.T.A.N.K. and Trivedi, M.K., 2016. PESTLE technique–a tool to
identify external risks in construction projects. International Research Journal
of Engineering and Technology (IRJET). 3(1). pp.384-388.
Bohari, A.M., Hin, C.W. and Fuad, N., 2017. The competitiveness of halal food
industry in Malaysia: A SWOT-ICT analysis. Geografia-Malaysian Journal of
Society and Space. 9(1).
Shi, X., 2016. The future of ASEAN energy mix: A SWOT analysis. Renewable
and sustainable energy reviews, 53, pp.672-680.
Wijaya, P.K. and Hermawan, A., 2018. E-Marketing Applications Based On
Virtual Reality Using Sostac Planning Method On Sales Property. Tech-E. 1(2).
pp.16-25.
Coester, C., 2019. Competitive analysis of k-server variants and metrical task
systems (Doctoral dissertation, University of Oxford).
Kaur, M. and Attanayake, L., 2018. Strategies for the survival of ABC Produce.