Strategic Marketing for KFC

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This document provides an in-depth analysis of the strategic marketing process of KFC, including market analysis, campaign goals, campaign strategy, and marketing roll-out plan. It explores the market size, competitor analysis, macro and microeconomic forces affecting KFC, customer analysis, and stakeholder analysis. The document also discusses the campaign goals, campaign strategy, and the RACE model used by KFC. Additionally, it provides insights into the marketing roll-out plan, including the channels and Gantt chart.
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STRATEGIC
MARKETING
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAINBODY....................................................................................................................................4
LO1..................................................................................................................................................4
1. Market Analysis......................................................................................................................4
2. Campaign goals.......................................................................................................................6
LO2..................................................................................................................................................7
3. Campaign strategy...................................................................................................................7
4. RACE Model...........................................................................................................................8
LO3..................................................................................................................................................9
5. Marketing roll-out plan...........................................................................................................9
6. Budget...................................................................................................................................11
LO4................................................................................................................................................11
7. Key Performance Indicators (KPIs)......................................................................................11
CONCLUSION & RECCOMENDATION...................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Strategic marketing is the process through which business differentiate itself from other
competitors by introducing new strategies and focuses on potential to offer best services to
customers and meets to their objectives. Strategic marketing helps organization to design plan,
develop and implements on organization so that enable to lead profitability in company. It
supports to identify strength and achieves goal of the organization by applying various resources.
To understand strategic marketing there is an example of KFC company which utilizes various
marketing strategic to achieve mission of the company. It is American fast food restaurant chain.
It is also known as Kentucky Fried Chicken and headquartered in Louisville, Kentucky, US.
MAINBODY
LO1
1. Market Analysis
Market size
KFC is fast food restaurant which comes in second largest chain restaurant after
McDonald. It is started in 1952 in Kentucky and starts offers other products in 1990. The
products are fried chicken, salads, Krushers, desserts, French fries, soft drink and breakfast. In
1960, organization expands their business in various countries like Jamaica, UK, Canada and
Mexico. The restaurant chain of the KFC enlarges which is more than 22600 location around the
world. McDonald has own share 19% of the market, on other hand KFC has 9% market share.
Organization offers online food delivery services to customers by using internet services. KFC
widely uses internet and social media for expanding food marketing across the world (Lancaster
and Massingham, 2017). Thus, organization enables to take competitive advantage over the
competitive organization.
Competitor analysis
KFC is fast food restaurant chain which offers wide variety of products such as fried
chicken and other fast foods. McDonald is a big competitor for the KFC because it offers all
products which is offers by KFC. McDonald, Burger King and Domino's Pizza are the main
competitor of KFC. Organization has various subsidiaries such as Pizza Hut, Wine Street chain
and Taco Bell where Domino's pizza is the biggest competitor of the Pizza Hut because both
offers pizza. Due to the pizza specialization, Pizza Hut gets loss in 2017 while Domino's Pizza
enable to increases market shares (Rastogi and Trivedi, 2016). The main reason to enhance
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market share of Domino's pizza is that it uses E-commerce and fast food delivery system strategy
to attract number of customers. McDonald has 35,085 franchised and operates more than 37,885
location around the world. KFC generates high revenue approx $5.74 billion in 2018 while
McDonald revenue is dropped approx $21.085.
Macro and Macroeconomic forces affecting
Macroeconomic forces:
To analyse macro and microeconomic forces uses Pestle analysis. This framework helps
to analyse strength and weakness of organization in UK market.
Political factor : instability of government, employment law etc. are political factor. The
main political factor for KFC is Brexit which forces other KFC for terminating employment from
other European member states as result labour shortage in KFC. Thus, Brexit become big threat
for organization.
Economical factor: Foreign exchange rate, unemployment rate etc. are economical
factor where KFC gets golden opportunity of economical factor because UK has high
unemployment rate approx 3.9% (Abratt and Bendixen, 2018). That's why organization gets
chance to hire top talented employee in co0mpany and leads high productivity of employee at
workplace.
Sociocultural factor: In UK market, consumer behaviour change towards online food
delivery which gives profitable opportunity to KFC for selling large quantity of fast food by
online sites.
Technological factor: E-commerce technology is most powerful technology for food
industry where KFC also uses this technology for selling food online and provides credit, debit
and online payment facilities to customers.
Legal factor: KFC focuses on food safety so that enables to comply with governmental
regulation and gets high profitability in company.
Environmental factor: it gives negative impact on organization because to preparing
chicken requires high heat of coal which emits carbon as result pollution becomes high.
Microeconomic forces:
Strength: KFC has powerful global presence and more than 15000 restaurants operates
worldwide in 2015. KFC is brand name which is most famous franchise around the world.
Varieties of food is also a strength of organization.
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Weakness: Franchise operations becomes big issues for KFC Because organization unable to
give quick services to customers.
Opportunity: Russia and china are emerging market which is golden opportunity for KFC to
expand business and influences brand value (Alalwan and et.al., 2017). New chicken standard
welfare also a golden opportunity for KFC to generate high income.
Threat: McDonald and Brexit are threat for the KFC. Raw material cost also a big challenges
for organization.
Customer analysis
The main goal of the KFC to give the value each type of customers by meeting their
objectives. That why organization separate its customers according their requirements or menu
like what they want to buy. Based on customer segments, organization offers varieties of foods
such as chicken, sandwiches, meals, desserts, drinks and sauces (Andaleeb and Hasan, eds.,
2016). To access on the market, organization segments its subsidiaries companies such as KFC,
Pizza Hut and Taco Bell so that enables to achieve profitably from each segment.
Stakeholder analysis
KFC is American restaurant chain which offers products services across the global. That why
KFC has various type of stakeholders such as customers, shareholders, employee, community
member's and government. PepsiCo is main shareholder of KFC and it is own stakeholder of
KFC company. Organization interact with stakeholder by its own mediators such as own
website, media statement and social media. The main stakeholder of the KFC is customers where
communicates to their customers by offering wide variety of products and provides media
clarification. To marketing new products, organization uses print media, website and social
media etc. thus KFC uses various media to communicate their stakeholders.
2. Campaign goals
KFC is second largest restaurant chain in market which has main mission to maintain
new chicken welfare standards so that organization enables to put pressure on competitive
companies such as McDonald, Burger King and Large supermarkets i.e. Tesco and Sainsbury's.
That's why organization sign up with new European welfare standards for farmed chicken so that
enable to give value of human health and gets competitive advantage in global market. KFC'S
UK and Ireland organization gives statement that they will maintain welfare standards in the
food industry till 2026.
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LO2
3. Campaign strategy
Strategic goal of the campaign
To maintain new chicken welfare standard, organization collaborates with European
welfare standard so that they enable to farm chicken and enable to offer high standard with great
taste to customers. It is main strategy to influences campaign goal and take competitive
advantage of other competitors companies. Organization uses high quality raw materials that
enables to manufacture standard quality food. Through the strategy organization enables to cover
UK market.
Market opportunity
UK peoples become health conscious that's why they prefer fried chicken rather to red
meat. KFC is the largest food chicken chain in UK where uses 60 million chicken per annum
plus 900 outlets. Organization introduces new chicken standard strategy in UK market which
influences customers buying behaviour (Harbour, 2017). E-commerce and other media
marketing are the most popular strategies for the food industry where KFC gets golden
opportunity to promote their products around the global. Recently KFC converts burger into
chicken burger which also influences purchasing behaviour of customers.
Target audience
KFC has focus on stakeholder in which includes customers, competitors, government,
shareholder and community of European members. Customers are targeted audience for KFC
that's why organization introduces new chicken welfare standard strategy so that number of
customers meets their objectives. Generally UK's public becomes health conscious due to
obesity, illness and diseases which is occurred by chicken, that's why they require standard
quality chicken. While KFC focuses on their concerns and offers standard quality products.
Second targeted audience are competitive companies in which includes McDonald, Burger King
and Large supermarkets i.e. Tesco and Sainsbury's. Through the strategy organization wants to
put pressure on rivals so that capable to take competitive advantage and influences brand value
over the world.
General campaign messaging
KFC gives slogan for customers and competitors that “ KFC first fast food chain to
commit to new chicken welfare standards”. The main motive of the campaign to alert whole food
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industry about food quality so that customers gets specified quality products and gets values of
their money. KFC also wants give the message about pollution which occurs by overheating coal
as result carbon emission and gets impact on global warming. To reduce pollution organization
uses forms of energy which helps to reduce global warming. KFC collaborates with European
animal protection group in welfare standard strategy so that chickens lives enhances, and they
enable to maintain welfare standard till 2026. It is a big threat for the competitors by KFC in UK
market.
4. RACE Model
RACE model is strategic planning process which is utilized for digital marketing and
permits the action plan to be designed according to customer purchasing behaviour. In simple
term model is designed to offer nominal structure for business which helps to improve digital
marketing and various channel for communication plan so that enable to deal with challenges
relevant to reaching and engaging online audience and promotes transform online sale or offline
sale. KFC uses the model to promote digital marketing and improve commination through
multiple channel (McDONALD, 2016). Through the model organization enables to cover large
number of audience to alert about new campaign and its motive. The main goal of the framework
to show customer that brand is engaged with customers objectives. Model consist four steps
which helps for digital campaign planning.
Reach: It is awareness stage of model which helps KFC to differentiate brand from other
competitor brands where organization enable to access targeted audience online by various
website portal sites such as own website, microsites and social media (Facebook, Instagram,
Twitter and YouTube). This platform helps organization to convey campaign message and
influence brand value so that purchasing behaviour of customers influence in market. Through
the website portal, KFC enable to communicate large number of population. It helps to reach
target customers and attract new customers by offering wide variety of products. Thus,
organization can execute slogan of the campaign and KPI also can observe by company such as
number of unique customers, value of each customer and number of followers in digital media.
Act: This phases assist organization to communicate each type of customers and influences by
brand value over the year by offering various contacts information which can utilize for future
for growing product well-formed (David and David, 2017). The act phase helps organization to
set up digital platform for marketing of new campaign strategy so that customer keep notice of
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site updates about product quality. To influence the phase, KFC spends more time on digital site
and gives values to their customers by resolving their issues relevant to food quality.
Convert: It is third phase which plays vital role in marketing field . KFC attracts customers by
introducing new campaign strategy which generates sales from both media such as online and
offline. Organization offers online payment services i.e. E-commerce transaction to customers.
This phase not only supports to enhance revenue but also builds brand value in market (Biswas,
2018). Through the phase KFC capable to influences marketing in various countries and
communicating with large number of people. This phases assists organization to observe sales
ratio from both online and offline, estimation of profit generation and revenue and fair value of
order and purchase.
Engage: KFC has main motive to give values of their customers by offering high standard
quality food. That's why organization use campaign strategy so that enable build long-lasting
relationship with customers. To improve loyalty of customers organization collaborates
European animal protection committee and use European farmed chicken. The main motive to
retain customers and generate high profit long-term. To gain trust of customers organization
offers complaint and chat box services to customers where they can communicate and resolve
their issues. Thus, organization improves marketing and communication of public.
LO3
5. Marketing roll-out plan
(A) Channels : KFC uses digital platform for campaign planning where uses two media social
media and internet media. Social media includes Facebook, Twitter, Instagram, newsletter, you
tube, LinkedIn are utilized by organization communicate large number of customers. While
internet media such as own website page, microsites, print media, newspaper and brand logo etc.
are utilized for marketing purpose. Both media helps organization to influences digital campaign
and enhance power of brand in global market.
(B) GANTT CHART
It is horizontal bar chart which is utilized in project management while KFC utilize the
chart for executing digital campaign planning sophisticatedly (Chernev, 2018). In this chart
express time of channel to alert public about goal of the advertisement. The chart is applicable
for four months which can maintain for some years.
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First
Week
Monday Tuesday Wednesda
y
Thursda
y
Friday Saturda
y
Sunday
Facebook 6am to
8am
11am to
12pm
4pm to
8pm
10 pm to
12am
Twitter 8am to 10
am
12pm to
8pm
9pm to
10pm
Instagram 8am to
10 am
12pm to
8pm
9pm to
10pm
11am to
12pm
YouTube 11am to
12pm
8pm to
10pm
10 pm to
12am
LinkedIn 11am to
12pm
8pm to
9pm
12pm to
2pm
2pm to
4pm
Second
Week
Monday Tuesday Wednesda
y
Thursda
y
Friday Saturda
y
Sunday
Facebook 6am to
8am
11am to
12pm
4pm to
8pm
10 pm to
12am
Twitter 8am to 10
am
12pm to
8pm
9pm to
10pm
Instagram 8am to
10 am
12pm to
8pm
9pm to
10pm
11am to
12pm
YouTube 11am to
12pm
8pm to
10pm
10 pm to
12am
LinkedIn 11am to
12pm
8pm to
9pm
12pm to
2pm
2pm to
4pm
Third
Week
Monday Tuesday Wednesda
y
Thursda
y
Friday Saturda
y
Sunday
Facebook 6am to
8am
11am to
12pm
4pm to
8pm
10 pm to
12am
Twitter 8am to
10 am
12pm to
8pm
9pm to
10pm
Instagram 8am to
10 am
12pm to
8pm
9pm to
10pm
11am to
12pm
YouTube 11am to
12pm
8pm to
10pm
10 pm to
12am
LinkedIn 11am to
12pm
8pm to
9pm
12pm to
2pm
2pm to
4pm
Fourth
Week
Monday Tuesday Wednesda
y
Thursda
y
Friday Saturda
y
Sunday
Facebook 6am to
8am
11am to
12pm
4pm to
8pm
10 pm
to
12am
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Twitter 8am to
10 am
12pm to
8pm
9pm to
10pm
Instagram 8am to
10 am
12pm to
8pm
9pm to
10pm
11am
to
12pm
YouTube 11am to
12pm
8pm to
10pm
10 pm
to 12am
LinkedIn 11am to
12pm
8pm to
9pm
12pm to
2pm
2pm to
4pm
6. Budget
Activities Amount
Market analysis and research £1000
Content creation £500
Social advertising £1500
Social engagement £700
Software/ Tools £500
Promotions/ contents £100
Total £4300
LO4
7. Key Performance Indicators (KPIs)
It is a type of performance activity indicator which examine success of the organization
in which engage. KCF utilizes social media for establishes personal relationship with customers
and it also supports to enhance revenue of the company in global market. There are various KPI
of social media marketing campaign such as-
Clicks and likes: KCF can analyses campaign success by number of fans click on the link which
shows quality of image. In the campaign post gets large number of clicks along with very low
likes and shares etc. shows that post get attention on the public (Gürel and Tat, 2017). Thus,
KFC enables to influence their decision about campaign.
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Shares and comment: Shares and comment on the post shows quality of work where KCF
enables to evaluate favouring of campaign by the public. Based on the comment enable to
understand people objectives.
Brand mentions: Tags and mention elaborates that number of people aware about organization
new strategy. Thus, organization can maintain awareness about campaign.
Profile visits: it shows interest of brand of number of fans beyond of the latest post. Thus,
organization can check brand position in social media.
These KPI helps organization to understand brand position and effectiveness of campaign.
CONCLUSION & RECCOMENDATION
KFC can influence campaign popularity if organization uses celebrity endorsement. It can
improve customer loyalty for the product. Thus, organization can interact with customers
and influences purchasing behaviour.
Organization should alert customers about campaign policies such as animal protection
and standard food quality on social media. It attracts customers and establishes good
relation with customers.
Organization should offers chat box facilities to customers so that customer can interact
regarding their issues. Thus, organization can interact with customers prolong time in
company,
If KFC uses HIPPA and other standard quality test, it influences product quality and
helps organization to preserve food prolong time. It influences customers trust on
organization food.
To influences digital environment organization should be active and digital media and
offers values to customers by giving response and alerts them for discount.
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REFERENCES
Books and Journals
Abratt, R. and Bendixen, M., 2018. Strategic Marketing: Concepts and Cases. Routledge.
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.
Biswas, A., 2018. Effect of Strategic Marketing on Sustainable Business Performance–A Study
of Pharmaceutical Industries in India. Indian J Pharma Ed Res. 53(1). pp.21-27.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
David, M.E. and David, F.R., 2017. Are key marketing topics adequately covered in strategic
management?. Journal of Strategic Marketing. 25(5-6). pp.405-417.
Harbour, J.L., 2017. The basics of performance measurement. Productivity Press.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The
marketing book (pp. 108-142). Routledge.
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.
Lancaster, G. and Massingham, L., 2017. Evaluating and controlling strategic marketing.
In Essentials of Marketing Management (pp. 381-401). Routledge.
Kavoura, A., Sakas, D.P. and Tomaras, P., 2017. Strategic innovative marketing. Springer.
Lancaster, G. and Massingham, L., 2017. Strategic marketing planning tools. In Essentials of
Marketing Management (pp. 402-425). Routledge.
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