This report explores the strategic marketing campaign of KFC, including market analysis, competitor analysis, customer analysis, and campaign objectives. It also discusses the tactics for strategy implementation, marketing mix, and the RACE model.
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Strategic Marketing- KFC Marketing Campaign
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Table of Contents INTRODUCTION...........................................................................................................................3 Market Analysis...............................................................................................................................3 Market size..................................................................................................................................3 Competitor analysis.....................................................................................................................3 Macro and Macroeconomic forces affecting the company.........................................................4 Customer analysis.......................................................................................................................5 Stakeholder analysis....................................................................................................................6 Key Strategic marketing (campaign) objectives..............................................................................6 Campaign strategy...........................................................................................................................6 Strategic goal of the campaign....................................................................................................6 Market opportunity.....................................................................................................................6 Target audience...........................................................................................................................6 General campaign messaging......................................................................................................6 Tactics for strategy implementation.................................................................................................7 Marketing Mix (4Ps)...................................................................................................................7 RACE Model...............................................................................................................................7 Marketing roll-out plan....................................................................................................................8 Channels......................................................................................................................................8 Gantt chart...................................................................................................................................8 Budget............................................................................................................................................10 Key Performance Indicators (KPIs)...............................................................................................10 CONCLUSION..............................................................................................................................10 RECOMMENDATIONS...............................................................................................................11 REFERENCES..............................................................................................................................12
INTRODUCTION Strategic marketing can be referred to as the process by way of which an entity distinguishes itself from its rival firms within same or different industry by rolling out key strategies and focussing on the ability to ensure provision of superior quality offerings to customers. The current report seeks to comprehend the concept and basics of strategic marketing by taking an example of Kentucky Fried Chicken. This is a fast food giant chain based in America. The following report throws light upon market analysis of the organisation to gain knowledge of the key facts pertinent to the micro and macro environment of the corporation. Further, it includes objectives, strategy, tactics, roll out plan and timeline of the marketing campaign. Lastly, recommendations are provided on the basis of the overall discussion. Market Analysis Market size KFCisarenownedfastfoodgiantwhichisthesecondlargestacrosstheglobeafter McDonald’s. The outlets of the respective company are present in over 23000 locations across the global periphery. This entity is famous for the chicken which it incorporates in the various items pertinent to its menu. This has provided KFC with extensive brand recognition and customer loyalty across the world. Within the fast food industry, McDonald’s holds 19% of the total market share while KFC holds 9% share. The entity is engaged in online and offline delivery of offerings to people. Internet marketing is especially taken into use for the expansion of food marketing worldwide. Competitor analysis KFC is a renowned name within the fast food sector of the globe. Its biggest rival firm is acknowledged to be McDonald’s as the product line of both the organisations is almost same. Some other top notch competitors of KFC are recognised to be Burger King and Domino's Pizza. Looking at the statistics of its biggest rival, it is analysed that McDonald’s has more than 35000 franchise outlets across the world with the help of which it operates in more 38000 locations. In terms of brand value of companies in quick service restaurants market, KFC is ranked third after McDonald’s and Starbucks with a brand value of $17205 million.
Figure1: Brand value of 10 most valuable quick service restaurant brands worldwide in 2019 Macro and Macroeconomic forces affecting the company Business environment consists of macro as well as micro factors which are important to be studied by an entity before devising sound strategies and tactics. The environment analysis provides entity with information regarding the positives and negatives linked to it. By identifying these, entity can take actions through positives can be leveraged to counter the negatives. Thus, the macro and micro environmental analysis of KFC is given as follows:- Macro-economic forces: Political factor:The principle political factor for KFC within the bounds of United Kingdom is Brexit which has resulted into the reduction of value of pound over the course of time.This tends tocause adverse situations for the company. Economicalfactor:KFC getsbrilliantchanceof economicalfactorsinceUKhashigh joblessness rate approx 3.9% that is the reason association gets opportunity to recruit top capable representative in organization and leads high efficiency of worker at work environment.
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Socio-cultural factor:In the marketplace of UK, customer conduct changes towards delivery of online food which gives productive chance to KFC for selling huge amount of cheap food by online locales. Technological factor:E-commerce innovation is most remarkable innovation for food industry where KFC additionally utilizes this innovation for selling food on the web. The entity provides instant payment solution to customers to ensure their comfort as well as convenience at all times. Legal factor:KFC focuses on sanitation so that empowers to consent to administrative guideline and gets high benefit in organization. Environmental factor:It gives negative effect on association on the grounds that getting ready chicken requires high warmth of coal which produces carbon accordingly contamination turns out to be high. Micro-economic forces: Strength:KFC is present within several locations across the globe making it extensively popular among the world. The brand has its distinct image in market place for meeting all the promises that it makes to the customers at the time of marketing. Weakness:Franchise operation of KFC is considered as the most prominent challenge for KFC as the entity is not able to provide quick service to its customer base. Opportunity:The fast food giant has the chance to gain access into emerging markets like China and Russia in order to inflate its existent market share and brand value across the globe. This will give a boost to the financial performance of the entity and build its loyal customer base. Threat:McDonald’s is considered as the biggest threat for KFC looking upon its market positioning and likelihood of customers towards this brand. Further, BREXIT is another factor that needs to be taken into consideration by the firm to make sure that it does not have to face repercussions because of the political phenomenon. Customer analysis KFC targets customers belonging to age group of 22 to 36 years. This customer segmented is targeted by the respective company looking upon their likelihood towards the consumption of fast food items. Looking upon the tastes and preferences of selected target segment, organization offers varieties of foods such as chicken, sandwich, dessert, drink, sauce, etc. For the social media marketing campaign also, the entity would be targeting this segment only because it consists of the individuals who are most active on social media platforms.
Stakeholder analysis KFC is a renowned brand in the fast food industry across the globe. It maintains strong relation with its diverse set of stakeholder groups like shareholder, customer, community, government, supplier, press etc. PepsiCo is the primary shareholder of this fast food company. KFC sets communication with its stakeholders by way of its own website, media statement and social media platforms. Customer is regarded as the most important stakeholder group which are kept at the heart of the company. The marketing of the entity is done with the aim of grabbing the attention of customers and satisfying them with the superior quality products. Key Strategic marketing (campaign) objectives To increase the number of likes on social media platforms by 20% by the end of 4 weeks. To enhance the number of brand mentions by 15% in the upcoming 4 weeks. Campaign strategy Strategic goal of the campaign The strategic goal of the social media campaign of KFC is to increase the footfall of customer over the online platforms of the company. This will assist the organisation in creating awareness about the brand and its offerings among the wide base of audience. Market opportunity The population of UK is health conscious and this is why it prefers to eat fried chicken instead of red meat. This makes KFC one of the most preferred chicken offering companies. Further, the entity has the opportunity to leverage social media marketing in order to capture the attention of large base of audience and retain it for a considerably long period of time in future context. Target audience KFC is focussing over maintaining the quality standards of chicken used within the items mentioned in its menu. Thus, it targets the health conscious individuals of UK who belong to the age group of 22 to 36 years.With the strategy of company, KFC strives to put pressure over its competitors within the confines of same industry. General campaign messaging The slogan set forth by KFC for the campaign is “KFC commits to new chicken welfare standards”. With this campaign, the entity seeks to create awareness of the need to comply with quality standards of food. The entity further promotes itself in front of public as a firm which abides by all the quality standards while offering chicken items to customers. Further, entity has
entered into collaboration with European animal protection group in welfare standard strategy so that chickens’ lives enhance, and they are able to maintain welfare standards till 2026. Tactics for strategy implementation Marketing Mix (4Ps) Product/brand: KFC offer wide variety of food offerings such as sauces, sandwiches, burgers, chicken, etc. in order to appeal to the customers and satisfy them with organisational offerings. Price: KFC offers product at reasonable prices so as to appeal to all the social economic zones of the society. This helps the entity in gaining the attention of large number of customers and retaining them for a long period of time in future context. Place: KFC offers its food and beverage offerings via online and offline mode. This aids the entity in capturing the attention of physical and online audience, thereby maximising its sales and profitability. Promotion: KFC uses lucrative marketing plans and campaigns to gain the attention of people towards the brand. It makes use of catchy phrases like “Tender chicken”, “Finger lickin’ good”, “Boneless banque”, etc. Further, the entity leverages promotion by way of billboard, poster, flyers, website, TV adverts, radio, print media etc. RACE Model RACE model can be referred to as a model that outlines step wise strategic course of action aimed at marketing in accordance with the customer behaviour. KFC in this relation makes use of several channels in order to reach out to the audience. The fast food giant applies this model to persuade the customers and make them undergo a purchase. The model consists of 4 stages which are briefly explained as follows:- Reach:This is the stage whereby the brand seeks to build its distinct image in the eyes of customers by making use of rigorous and lucrative marketing efforts and initiatives. In this regard, KFC makes use of social media platforms likeFacebook, Instagram, Twitter and YouTube to grab the attention of public and retain them for a considerably longer period of time in future context.
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Act:Hereby, the entity executes communication by way of making use of different channels. This stage is concerned with generation of online leads by KFC for the purpose of maximising its revenues and profits in the long run. Convert:This stage marks the conversion of potential leads into sales. For this purpose, KFC will roll out social media marketing campaign. This will aid in closing the prospective leads and building long term relations with them. As a result of this, online as well as offline sales of the corporation will get inflated. Engage:Hereby, marketing communication assists the entity in engaging the customers with the brand for a long term.For this purpose, KFC has collaborated with European animal protection committee and strived to make use of only European farmed chicken. This is aimed at instilling trust within people and making them exhibit loyalty to the brand. Marketing roll-out plan Channels For the social media marketing campaign, KFC will make use of channels like Facebook, LinkedIn, Instagram and Twitter. These channels are targeted looking upon the wide base of users that proactively surf these platforms. Gantt chart The social media campaign of KFC will run for 4 weeks. The detailed timeline for the campaign is mentioned as follows:- First Week PlatformMTWTFSS FB5am- 7am 10am- 11am 3pm- 7pm 9pm- 12pm Twitter7am - 9 am 11am- 7pm 8pm- 11pm Instagram7am - 9 am 11am- 7pm 8pm- 9pm 1am- 5pm YouTube10am- 11pm 7pm- 9pm 11pm- 1am LinkedIn11:30am - 12:30pm 7pm- 8pm 11am- 3pm 5pm- 9pm Second Week
Budget Key Performance Indicators (KPIs) This is a kind of performance activity indicator that examines the success of a channel or campaign used by an entity. KFC mainly makes use of social media for the purpose of establishing long term relations with the customers. This helps the entity in inflating its revenue and profit over the course of time. The KPIs used to measure the results of social media marketing are clicks, likes, comments, shares, brand mentions, profile visits, etc. These will provide assistance to the corporation in determining the deviation existing between the actual and desired outcomes. If the deviations of outcomes of social media marketing campaign of KFC exceed the acceptable limit, then the corporation will take corrective actions. CONCLUSION It has been inferred that strategic marketing allows a business entity to achieve its long run goal and objectives in predefined course of time. This assists a company in planning, developing and implementing a course of action which can lead the organisation to attain extensive revenues as
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well as profits. Besides this, it is summarised that clicks, likes, shares, comments, brand mentions, profile visits are some of the KPIs against which the performance of strategic marketing campaign is measured and evaluated. If the deviation between actual and targeted numbers is beyond the acceptable limit, corrective actions are taken by the entity to attain success in future course of time. RECOMMENDATIONS Following suggestions have been provided to KFC following the discussion done over the facets of strategic marketing campaign of the company:- KFC should leverage celebrity endorsements for creating awareness about the marketing campaign. The entity should provide the chat facility to customers so that individuals can express their concerns and grievances to the corporation and get quick resolution for the same. KFC must use HIPPA and other kinds of standard quality tests in order to ensure that the quality of its food offerings matches the industrial standards and thereby meet the expectations of people prevailing in market place. The company should proactively make use of digital media tools and techniques in order to set healthy relations with customers and retain them for a long period of time in future context.
REFERENCES Books and Journals Abratt, R. and Bendixen, M., 2018.Strategic Marketing: Concepts and Cases. Routledge. Achola, M.A., 2016. Franchising as a Market Entry Strategy by Kentucky Fried Chicken into Kenya.Unpublished MBA Thesis, University of Nairobi.\ Alalwan, A.A and et.al., 2017. Social media in marketing: A review and analysis of the existing literature.Telematics and Informatics.34(7). pp.1177-1190. Andaleeb, S.S. and Hasan, K. eds., 2016.Strategic marketing management in Asia: case studies and lessons across industries. Emerald Group Publishing Limited. Bororing, T., Lapian, S.J. and Tumiwa, J.R., 2017. Comparative Analysis of Perceived Price, Perceived Quality and Perceived Value Between Male and Female Customers of KFC in Manado.Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi,5(3). Latasha, K., Tooraiven, P., Monishan, B. and Randhir, R., 2016, January. Analyzing the Impact of Sensory Marketing on Consumers A Case Study of KFC. InProceesings of the InternationalConferenceonTourism,HospitalityandMarketing(IC16Mauritius Conference)(pp. 21-23). Mahmoud, B.H. and Hamid, M.M., 2019. The Contribution of Marketing dimensions for service excellence in mental status, building strategies and their impact on customer satisfaction A casestudy in a fastfood restaurantKFC branchesin Erbil.Tikrit JournalOf Administrative and Economic Sciences,4(44), p.60. Omer, S.K., 2018. SWOT analysis: The tool of organizationsstability(KFC) as a case study.Journal of Process Management. New Technologies,6(4), pp.27-34. Randhir, R., Latasha, K., Tooraiven, P. and Monishan, B., 2016. Analyzing the impact of sensory marketingonconsumers:AcasestudyofKFC.JournalofUS-ChinaPublic Administration,13(4), pp.278-292.