Strategic Marketing for KFC

This report discusses on marketing strategy for KFC, including market analysis, competitor analysis, and campaign goals. It also provides recommendations for building strong customer relations.

STRATEGIC
MARKETING
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Executive Summary
This report discusses on marketing strategy for KFC. The report had
been covered the complete analysis of market like size, macro, micro
factors and competitor analysis. In the respect of that report identified
campaign goals and strategy to work in a market in recommendation
form. This has implemented with marketing strategy and SOSTAC model
for gathering complete knowledge. This has covered action plan, budget
and key performance indicators for analyze performance of company. At
the end of report highlighted with recommendations for KFC should make
strong relations with customers.
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Table of contents
Executive Summary....................................................................................................................2
Introduction...............................................................................................................................4
Market analysis..........................................................................................................................4
1. Market size & Competitor analysis.................................................................................4
2. Macro & Micro economic forces affecting the organization..........................................4
3. Market size and trend data.............................................................................................4
4. Customer analysis...........................................................................................................4
5. Stakeholders analysis......................................................................................................4
Key strategic marketing objectives............................................................................................4
Marketing campaign strategy....................................................................................................4
1. Reason for the campaign and the goals..........................................................................4
2. Market opportunity.........................................................................................................4
3. Target audience...............................................................................................................4
4. General campaign messaging.........................................................................................4
Tactics for strategy implementation..........................................................................................4
Marketing roll-out plan..............................................................................................................5
Budget........................................................................................................................................5
Key performance indicators (KPIs).............................................................................................5
Conclusion..................................................................................................................................5
Recommendations.....................................................................................................................6
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List of references........................................................................................................................6
Appendices.................................................................................................................................6
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Introduction
Strategic marketing is the process of planning, developing and implementing
resources to obtain a competitive edge within the marketplace. This process is very
important and in effective for outlining a direct map of the company objective to achieve
them. The present report is based on “KFC” which is an American fast food restaurant. The
company is specialized in serving chicken. It is world’s second largest restaurant chain in
world. The reports will analysis complete market by covering market size, competitor
analysis, environment, customer analysis and stakeholder. This will identify strategic
marketing objectives and strategy. This will implement the strategy by covering key areas as
well as marketing roll out plan. The Report will attach some budget document and key
performance for analysis performance of the company. At the end of report will highlight
the recommendations.
Market analysis
Market size
The market size of KFC is the 30%, which is analyzed by knowing segmentation, targeting and
positioning of the company is as follows:
Segmentation: company follows geographical segmentation which is divided markets as
geographic. As per that company have menus and food offering to suit regional tastes and needs.
Target market: company is targeted to non vegetarian and vegetarian customer segment. As
well as, company severs to adults and young audiences (Armstrong and et.al., 2018).
Position: company have positive market position which is help to attract more customers
towards product and services.
Competitors analysis:
The main competitor of KFC is McDonald’s both are serves fast food to their customers by
establishing strong and largest fast food chain. Both have their effective product, promotion, place
and pricing strategy which are as follows:
KFC McDonald’s
Product Company offers ample product
range to its customer such as
potato fries, dessert,
beverages, burgers, wraps and
salads as well as chicken zinger
burger etc.
Products are Hamburgers,
chicken and fish, salads,
desserts.
Price Company offers affordable Company use psychological
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price to its customers. The
company is use bundle pricing
strategy by setting lower price
of product with combo sets to
its customers (Chaffey, 2019).
pricing strategy; in that
company uses a price appear
more affordable.
Place Company operates in both
market online and offline
services. This help to customers
for reaching to products.
Restaurant, kiosks, online
platform
Promotion Company promotes to social
networking websites like
Facebook, Twitter, Instagram
and YouTube.
Advertising, sales promotion
and direct marketing.
Micro and macro factors analysis
Micro analysis of KFC by using SWOT analysis:
Strength:
 Strong global presence.
 Parent company
 Secret recipe
 Veg. And non veg. Offerings
 Trained staff
Weakness:
 Weakness is unhealthy fats.
 Managing franchisees
Opportunities:
 Penetrating to current market.
 Rise in health conscious population need
organic foods (SWOT analysis of KFC, 2019).
 Specialization into vegetarian menu by
adding one special dish into menu card.
Threat:
 Hard competition.
 Changing customers eating habits.
 Raw material prices
 Closures of current franchisees
Macro analysis of KFC by using PESTEL analysis:
Political factor Political factor is consisting with various tax rates like corporate tax, interest
rate and other tax rate. If the tax rate is increase than it is affect to business
in a negative manner because through product price is increasing. On the
other side, have an opportunity when tax rate decreases.
Economic factor Economic factor refers to the economic stability of the country. When an
economic condition of the country is stable then it is beneficial for companies
to earn more profit from business. On the other side, it is not good, then it is
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affect to business in a negative manner (PEST analysis of KFC, 2019).
Social factor Social factor refers with taste, attitude and preference of the customer.
Present day customers more hygiene product to eat from KFC than it is
affected by business in a negative manner if the company is not taking care of
hygienic food.
Technological factor Technology is more advanced in present days through that business required
to use technology within their business. KFC adopts newest technology for
the worker improving environment for employees, customer services is
helping to attract more customers towards the company in an effective
manner.
Environmental
factor
Environmental factor is consist with the supplier has affected the personal
opinion of the barn. The company is linked with deforestation in a negative
impact to the health of the planet. This is contribution to endangerment
similarly ready to the brink of extinction.
Legal factor Legal factors are consisting with laws and regulations which are established
by the government of the UK. In that company need to follow laws at each
location. This includes filling proper amount of taxes; labor laws and ensuring
about the restaurants are up to code. As per that KFC need to follow all the
rules and regulations which are helping to make effective and valuable
growth of the company.
Customer analysis
Customers of KFC are people from the different age group all who want to satisfy their taste
with finger licking delicious chicken menus. The most of customer can be defined as the youngsters
and adults can shell out a minimum amount of money to have delicious meals . KFC customers locked
out of their preferred chicken restaurant in many parts of the country, but that is not necessary
means will be popping into the fast food chicken.
 Customers have the more progressive attitude because they are standing out and interested
into financial services advertising. For example customers are likely to believe that there is
too much concern with environment and less likely to be willing to sacrifice family time in
the name of work.
 Customers less youth focused and London concentrated than those of other fast food
chicken restaurants.
 KFC customers less likely to go elsewhere for their chicken. As per the research 5% of KFC
customers do so, whilst 29% of those who use other chicken restaurant regularly go to KFC.
Stakeholder analysis
Stakeholders are divided into parts internal and external stakeholders of KFC are as follows:
Internal stakeholders are includes employee, staff, manager and owner who are completely
responsible for setting goals and objectives of company (Duan, 2017). Additionally, Employee have
role to give hard contribution for achieving goals and objective by offering best quality of product
and services to customers.
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External stakeholder are includes customers, supplier, dealers and government. Government
has various norms which company have needed to follow within the work place by considering
needs of customer. Suppliers supply raw material and product to customer at another place.
Key strategic marketing objectives
Marketing campaign promote product and services through different types of media like
television, radio, print and online platform. This help to promote product and services of company as
well as attracting customers towards company in effective manner. For that here is add some key
strategic marketing objectives in context of marketing campaign are as follows:
 To increase sales of product and services till the end of 2021.
 To build best brand awareness and grow market share.
 To improve stakeholder relations.
 To enhance customers relationship by targeting new customers.
 To lunch new product and services added into their menu card.
Marketing campaign strategy:
Marketing campaign is very important for company in order to increase their sales of product and
services.
Reason for marketing campaign:
Through that company is able to make and build brand awareness in customers’ minds which is
more effective and better for the company to target new customers. With the help of this KFC is able
to enhance customer relationship as well as improve stakeholder relationship. This will also effective
and valuable for increasing sales of product and services by launching new product and services. The
main reason for this campaign strategy for KFC is to increase sales and profit margin of company in
effective manner. This creates more effectiveness for business by managing work at working place.
Market opportunity:
The marketing campaign strategy is creating various marketing opportunity for KFC. Those
opportunities are as follows:
 First and foremost opportunity for KFC is to build a better brand image at the market place.
 Increase customer base for company in an effective manner.
 Other opportunity for KFC is to expand market and emerging economic with their changing
lifestyle resulting in more of outing with families and friends (Hult and Ketchen, 2017). This
helps to increase presences of the market place in an effective manner by getting more
effective at the market place.
 Specialising into vegetarian menu is another opportunity for business KFC. Present days
customer are more hygiene their needs are changed as per situation and market trends
which is effective and more valuable for business in effective manner.
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Target audiences:
KFC is target to every age group people but mostly target to youngsters and young adults.
Most effective for business to target new market like company target to non vegetarian people, now
company should target to vegetarian people is help to increase customer base.
General campaign messaging:
The Campaign message of KFC is “finger licking good”. The main concept of KFC to build and
organize campaign is to build brand image by attracting more customers towards the company. To
promote the KFC new lunched product and services by analyzing market needs as per current trends
at the market place. After analysing market Trends Company is adding new taste within the menu
and added dish into menu card.
Tactics for strategy implementation:
In order to implement strategy here is important to discuss with marketing mix and communication
mix are as follows:
Marketing mix of KFC:
 Product: product is the main element of company which is help to attract more customers
towards company. The product of company is adding new dish into menu cards which is Grill
chicken burger and for vegetarian people Grill potato fries burger (Kennedy, Kemper and
Parsons, 2018). Those are help to attract to new customer base like vegetarian people.
 Price: in that KFC follows competition pricing strategy which is help to sets price of lower in
industry. With the help of this customers are more attracted towards company. in this
pricing strategy KFC sets price of their product after analysing price of tyheir competitors at
market place.
 Place: company offers both products on their physical store, restaurant and office or college
campus. In respect of that company have chance to get extra customers (Kingsnorth, 2019).
On the other side, offer their product on online platform.
 Promotion: for promoting product and services at market place company need to done
online marketing like social media and networking sites as well as offers combo sets for
customers.
 People: for that KFC is trained to their employee by organizing training and development
program. In that provide training to serving product as well as making dish with new taste.
 Physical evidence: for the physical evidence company is provide best taste by taking care of
hygiene and organic product. Through that customers are like to eat and purchase more and
more with company in effective manner (Morgan and et.al., 2019). that is give best physical
evidence on customer mind.
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 Process: KFC is booked online orders, in that Process Company is track people order by using
technology. This help to make better impress on KFC. The outlets offers drive through as well
and dine in other options. That is delivers better services in very limited coverage.
Communication mix:
This includes various methods of communication like advertising, sales promotion, direct
marketing, public relations, interactive marketing.
 Advertising is the best part of communicate about idea, product and services with customer
by paid from the non personal presentation. In that company use advert on television and
social sites with picture of product as well as some details.
 Sales promotion: this is short term incentive to encourage the purchase or sales of product
and services (Olson and et.al., 2018). In that KFC is providing buy one get one free as well as
price appears.
 Direct marketing: in this business talks with targeted customers to obtain an immediate
response and cultivate lasting customer relationship.
 Public relation: company already have better and effective customer relations with their
customers. Through the campaign company is able to build better and strong customers’
relation is help to attract more customer towards company and its products and services in
effective manner (Osano, 2019).
 Interactive marketing: this involves marketing initiatives which are triggered by the
customer behaviour and preference through the traditional campaign based marketing.
SOSTAC analysis:
 Situation: this refers with current situation of company by knowing market analysis.
Through the PEST analysis is analysis company is lacking with digital marketing. in that
management need to make better campaign strategy to build and attract more customer to
manage digital platform. This creates more advantages for company in effective manner.
 Objectives:
o To increase 20% sales of product and services.
o To increase 40% investment on research and development department.
o To organize training and development program for employees
 Strategy: strategy for company to build effective campaign for attract more customer
making complete focus on porter generic model are as follows:
o Cost focus is help to make complete focus on price of product and services which
are severs by company to its customer (Palmatier and Sridhar, 2017).
o Differentiation strategy is refers with adding new product line into business.
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o Focused strategy refers with cost focus as well as differentiation strategy. This is
help to make better services to company in effective manner.
As peer that company have focus on focused strategy for business in order to attract more
customers towards company.
 Tactics: product of KFC is added product line as well as digital marketing services to its
customers (Palmatier, 2018). Price strategy of company is competitive pricing strategy. For
promoting products company use social media and place is online and offline. Both the
services at market place.
 Action plan: this is using various actions like advertising, direct marketing, sales promotion.
 Control: in that business take feedback from customers about product and services uses.
This help to make better relations with customer by satisfying needs and wants of customer.
Marketing roll-out plan (Use a Gantt chart here)
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Budget –document all budget assumptions as per below example.
KFC marketing budget Monthly
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Total Marketing budget 5,000
Marketing automation 500
Advertising campaign 800
Online Display advertising 400
Social advertising 300
Total online advertising 2000
Emails 600
Search Engine optimization 900
Management & training 400
Training and development 800
Marketing technology 300
Total digital marketing budget 3000
Key performance indicators(KPIs)
 KPIs is the key indictor which is measurable value which is demonstrate effective a company
is achieving key business objective.
 It is the quantifiable measures which a company uses to gauge its performance over the
time.
 This is the way of measuring effectiveness of organization and its progress towards achieving
its goals.
 This is the best and effective tool which is help to the analysis and track complete
performance of company as their standard or valuation at market place.
 With the help of this, company analysis performance through using KPI. KFC is uses KPIs at
multiple level in order to evaluate their success at reaching targets (Zhu and Gao, 2019).
 This help to higher level of focus on performance and processes in departments like sale,
marketing, support, human resources and other.
 With the help of this, company analysis employee performance level like employees are
working that have outcome that is sales rate of company.
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Conclusion
From the above study it had been concluded that the strategic marketing had been
more important and effective for business. With the help of this business has able to
increase their sales by targeting new customers towards company. In respect of that report
had been analysed through complete market like its size, competitors and other. This had
been billed by marketing objectives for campaign which had been helped to complete their
target. Going through the action plan helped to maintain complete working steps and stages
of business at market place in effective manner.
Recommendations
As per the above, here is mention some recommendations for KFC to build effective
brand image and awareness of company to use digital marketing. This helped to reach out
various customers by using effective marketing strategy. As well as company need to more
invest on research and development department for analysis current trends at market place
in effective manner. Company should build strong customer relation will help to promote
product and services at market place by using more effectiveness for business. by using
digital platform company able to connected with their customer, in company should hire
candidates who have knowledge of online working and organize training and development
program to use technology.
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List of references
REFERENCES
Books and Journals
Armstrong, G.M. and et.al., 2018. Marketing: an introduction. Pearson UK.
Chaffey, D., 2019. Digital marketing. Pearson UK.
Duan, M., 2017. Coordination of Supply Chain in the Choice of Strategic Consumer
Behavior. Advanced Management Science. 6(1). pp.20-23.
Hult, G.T.M. and Ketchen, D.J., 2017. Disruptive marketing strategy. Ams Review, 7(1-2),
pp.20-25.
Kennedy, A.M., Kemper, J.A. and Parsons, A.G., 2018. Upstream social marketing
strategy. Journal of Social Marketing.
Kingsnorth, S., 2019. Digital marketing strategy: an integrated approach to online
marketing. Kogan Page Publishers.
Morgan, N.A. and et.al., 2019. Research in marketing strategy. Journal of the Academy of
Marketing Science. 47(1). pp.4-29.
Olson, E.M. and et.al., 2018. The application of human resource management policies within
the marketing organization: The impact on business and marketing strategy
implementation. Industrial Marketing Management. 69. pp.62-73.
Osano, H.M., 2019. Global expansion of SMEs: role of global market strategy for Kenyan
SMEs. Journal of Innovation and Entrepreneurship. 8(1). p.13.
Palmatier, R.W. and Sridhar, S., 2017. Marketing strategy: Based on first principles and data
analytics. Macmillan International Higher Education.
Palmatier, R.W., 2018. Advancing marketing strategy research.
Zhu, G. and Gao, X., 2019. Precision retail marketing strategy based on digital marketing
model. Science Journal of Business and Management. 7(1). pp.33-37.
ONLINE
PEST analysis of KFC. 2019. [online]. Available through: <https://pestleanalysis.com/pestel-analysis-
of-kfc/>
SWOT analysis of KFC. 2019. [online]. Available through: <https://www.marketing91.com/swot-
analysis-of-kfc/>
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