Strategic Marketing for KFC

This report assesses the strategic marketing operations of KFC, a global fast food restaurant chain, including market analysis, marketing objectives, campaign strategies, and implementation.

Strategic Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Market Analysis...........................................................................................................................3
Marketing Objectives...................................................................................................................6
Campaign Strategies....................................................................................................................6
Strategy Implementation..............................................................................................................6
Marketing Rollout Plan................................................................................................................9
Budget..........................................................................................................................................9
Key Performance Indicators......................................................................................................10
Recommendations......................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is a strategic business operation through which a business organisation
promotes and advertises about its manufactured goods and services to the consumers within the
markets. Strategic marketing is a business process through which business organisation
differentiates its own operations and products from those of its competitors within the
operational industries (Chernev, 2018). This report assesses the strategic marketing operations of
KFC, a global fast food restaurant chain, that was founded in 1930, an astonishing 90 years ago
and currently operates within the restaurant industries. KFC operates from its headquarters in
Texas, USA. Through its successful operations within the restaurant industries, KFC has had
ample opportunities to expand its operations to global markets, with KFC currently operating
around 22,621 distinct establishments across 150 different countries around the world.
MAIN BODY
Market Analysis
 Market Size:
KFC is the second largest restaurant chain in the entire world with its current market
share within the fast food industry account for 9% of the total industry. This allows for KFC to
operate successfully within the fast food industries and further expand their operations to global
markets.
 Competitor Analysis:
Competitor Analysis of KFC can be conducted by making use of the Porter’s 5 Force
model as follows:
Threat from Competitors (HIGH): As there are numerous business organisations operating
within the fast food industries of UK, all operating towards increasing their market share,
customer base and profitability, KFC faces intense threat from its competitors within fast food
industries.

Supplier’s Bargaining Power (LOW): The high number of suppliers within the fast food
industries of UK drives their bargaining power low for KFC, as KFC can easily switch suppliers
in cases of increased prices by their own supplier.
Threat from Substitutes (Moderate): Through many of the competitors of KFC offer products
that are similar to KFC’s, its own proprietary recipe of 11 herbs and spices differentiates its
products from those offered by its competitors, allowing for KFC to observe moderate threat
from substitute products within the fast food industries (Sahaf, 2019).
Threat from New Entrants (LOW): New entrant businesses entering the fast food markets of
UK find it hard to outcompete KFC on account of their high brand awareness, value and
reputation along with a loyal customer base, resulting in KFC facing low threats from new
entrant businesses.
Buyer’s Bargaining Power (HIGH): As the number of business within the fast food industries
of UK is high, bargaining power of consumers is increased as they have a lot of choice available
in relation to which business to financially interact with.
 Macro Forces:
There are several factors within the macro business environment which have an impact
on the operations, productivity and profitability of KFC within UK’s fast food industries. The
political instability due to Brexit can have a positive impact on KFC’s operations as this would
allow for current complex international trading laws to be replaced by transparent ones. UK
government announcing a reduction of their corporate tax levied on a business’s profits, from
19% to 18% also will have a positive impact on KFC’s profitability. Social trends such as
widespread adoption of healthy dietary preferences by consumers can have negative impact on
KFC (Agic and et.al., 2016). Technological innovations in KFC’s manufacturing equipment can
improve its productivity, performance and efficiency within fast food markets. Changes to
current legal and environmental laws and legislations, which are mandated by the UK
government and authorities, such as employee wages, health and safety or treatment of animals
by KFC can have a significantly negative impact on its overall operational productivity and
profitability.

 Micro Forces:
The micro forces within business environment of KFC can be assessed by evaluating the
strengths, weakness of KFC and the opportunities and threats it faces within the fast food
industries.
Strengths: The main strength of KFC is their high brand awareness, value and reputation within
the fast food industries.
Weakness: Weakness of KFC resides in their menu dishes generally being considered as quite
unhealthy by the public.
Opportunities: KFC has opportunity to increase its customer base, productivity and profitability
by introducing new items and dishes in its menu, which has gotten stale and predictable in the
last few years.
Threats: The recent social trend of increasing sects within the UK public steadily adopting
healthy dietary preferences poses as a big threat to KFC’s operations (Varadarajan, 2019).
 Customer Analysis:
The customers of KFC within the fast food industries of UK are quite diverse. The
customers of KFC belong to all economic sections of the UK population, allowing for KFC to
service a large base within the UK population. KFC customers belong to all genders, cultural
backgrounds, races, religions, nationalities, with the average age of KFC customers being within
the ranges 12-40 respectively.
 Stakeholder Analysis:
The stakeholders of KFC include all of its operational employees, managers, leadership
and owners in addition to its investors and shareholders. All these stakeholders of KFC possess
varying power and involvement towards the daily operations of KFC, with its owners having
maximum power and the employees having maximum involvement in the daily operations of
KFC.

Marketing Objectives
The key marketing objectives that KFC needs to achieve in order to increase their current
customer base, market share, productivity and profitability within the fast food industries are as
follows:
 Increase total sales of KFC by 15% in the next 12 months.
 Increase traffic on KFC website by 20% in the next 12 months.
 Increased focus on customer service through feedbacks and surveys
 Increase total customer’s serviced by KFC by 10% in the next 12 months.
Campaign Strategies
The main reason or objective of the marketing campaign strategy of KFC is to market,
promote and advertise of their goods and services to as large an audience as possible within the
UK population in order to attract increased number of customers to engage, interact and
financially transact with KFC. Using both traditional and digital channels of marketing, KFC has
significant opportunity to promote and advertise about their goods and services to a very large
base of audience at significantly lesser costs (Thrassou, Vrontis and Bresciani, 2018). The target
audience for the marketing campaign of KFC includes all consumers from lower, middle and
upper economic classes, all backgrounds, genders, religions, nationalities within the age ranges
of 18-35 in order for KFC to be able to service a large base of customers for increased
productivity and profitability within the fast food markets. The campaign messaging needs to be
engaging and interactive for the customers, providing them with reliable and relevant
information about the KFC goods and services, in order to increase their interest and convert
them to paying customers for KFC.
Strategy Implementation
 Marketing Mix:
Product: KFC menu items and dishes are its manufactured products which it sells to the
consumers within fast food industries. KFC is required to keep their product quality high in order
to effectively satisfy the needs and requirements of its customers.

Price: KFC has strategically priced its products to be highly competitive within the fast food
industries with the intention to attract as many customers towards its operations as is possible,
while also being able to maintain their profitability.
Promotion: KFC promotes and advertises of its produced goods and services using both
traditional and digital marketing tools such as online websites, social media platforms,
newspapers, magazines, TV and radio commercials etc., in order to market to a wide range of
audience.
Place: KFC establishments are strategically located in various busy urban locales across
different cities of UK, in order for KFC to be able to effectively attract and service a wide range
of customers within UK.
People: For its operations, KFC possesses highly skilled, talented, experienced and motivated
employees which belong to various operational posts within the hierarchical chain of command
within KFC, for all of its operations to be successful within the fast food industries.
Process: All operational processes within KFC are highly integrated and communicate with each
other effectively and efficiently in order for KFC to operate within the fast food markets with
increased performance, efficiency, productivity and profitability (Josephson, Johnson and
Mariadoss, 2016).
Physical Evidence: KFC places significant emphasis on the customer service that they provide
to their customers and train all their establishment staffs accordingly, for them to be able to
provide KFC customers with highly effective customer service in an effort to gain their long
term loyalty.
 Communication Mix:
Advertising: KFC advertises its goods and services to the public through the use of both
traditional and digital channels of marketing. Use of marketing tools provided by these channels
such as online websites, social media platforms, newspapers, magazines, billboards, TV and
radio commercials etc., allows for KFC to effectively promote and advertise its goods and
services to a large section of the UK population.

Sales Promotion: In order to promote the sales of KFC products and menu items by their
customers, KFC consistently comes out with discounts, vouchers and meal plans in their menu,
in order to effectively promote their products and make the KFC customers engage in financial
transactions with the fast food business. These discounts, vouchers and meal plans in the menu
effectively allow for KFC to attract great number of customers towards their operations.
Direct Marketing: KFC also engages in direct or internet marketing through the use of social
media platforms and online websites, which allow for KFC to engage and interact directly with
their customers in order to increase their interest in the business’s products and effectively
convert them into paying customers.
Public Relations: KFC also tries to engage in public relations in an effort to increase their
overall brand reputation, awareness and value within the fast food industries of UK (Hunt, 2017).
To enhance their public relations, KFC offers free breakfast meals to homeless individuals within
the UK. KFC also takes part in various charitable causes in an effort to enhance their public
relations.
Interactive Marketing: KFC makes use of interactive marketing through their personalised
packaging operations. All packaging of KFC which contains their products and drinks are
effectively made use of in order to interact with their customers and increase their overall brand
awareness in the public.
 RACE Model:
RACE model provides businesses with a simple strategic structure for them to plan their digital
marketing operations. It includes the following 4 key phases:
Reach: This phase involves the KFC marketers building their brand awareness and increasing
the awareness and interest of the consumers within the market in relation to their provided goods
and services (Abratt and Bendixen, 2018). During this phase, the KFC marketers are required to
optimise their search engines, create interactive websites and social media pages in order to for
them to reach as big an audience as possible for their marketing efforts.
Action: During this phase, the marketers of KFC are required to convert their reached audience
into effective leads for the business organisation, by creating engaging and interactive marketing

content that is able to convert them into paying customers for the operational success of KFC
within the fast food markets.
Convert: During this phase, the marketers of KFC are required to capitalise on the market
through the effective use of their products, prices, promotional activities and e-commerce
operations to convert as many customers into making financial transactions with KFC through
discounts, vouchers and meal plans etc.
Engage: This final phase involves the KFC marketers engaging and interacting with their
existing customer base through social media platforms and digital websites in order to gain their
long term loyalty and make these customers repeat their transactions with KFC in the future,
towards increased productivity and profitability of KFC within fast food industries.
Marketing Rollout Plan
Activities Jan Feb Mar Ap
r
May Jun Jul Aug £
TV and Radio Commercials 1000 £
Social Media Marketing 500 £
YouTube Sponsorship 2000 £
Online Website 300 £
KFC should use digital marketing tools such as social media(Feb-Aug) and online
websites(Jan-Aug) for their marketing purposes for significant period of time owing to their
ability to market to a huge range of audience through the internet, at considerably lesser costs.
KFC should use traditional marketing tools such as TV and radio commercials(Mar-Jun) and
YouTube Sponsorships for a limited period as although these tools can effectively promote and
advertise the KFC products to a large section of the population, they are also quite expensive and
their use should be balanced with the use of digital marketing tools for optimum efficiency.
Budget
The total monthly marketing budget for KFC’s operations includes the financial
resources needed for KFC to promote and advertise their goods and services to a large base of
audience within the fast food industries of UK. The budget is as follows:
Marketing Activities Monthly Costs Attached (£)

Marketer’s Wages 3000£
Search Engine Optimisations 400£
Social Media Advertising 500£
TV and Radio Commercials 1000£
Online Websites 300£
Training and Development 200£
Total Monthly Marketing Budget 5400£
Key Performance Indicators
KFC’s marketers can also make use of digital marketing software such as Google
Analytics and Hootsuite in order to increase the effectiveness and success rate of their marketing
operations (Kim, Shin and Min, 2016). These marketing software allow for KFC marketers to
monitor, record, store and analyse the key performance indicators (KPI) for their marketing
strategy in order to improve and enhance them. The KPIs for the digital marketing strategy of
KFC are as follows:
Total Traffic: This KPI details the KFC marketers about how many potential customers visited
their digital websites.
Time Spent by Customer: This KPI informs the KFC marketers of the average time spent by
each individual customer on their website. This KPI details to marketers how interesting,
engaging and interactive their marketing content is on their website.
Cost per Lead: This KPI details the KFC marketers about the total costs they had to spend in
order to attract a single customer through their marketing operations.
Recommendations
There are several recommendations and initiatives through which KFC can continue to
interact and engage with their customers in an always on digital environment. The most
significant recommendation relates to the marketers of KFC making use of multi channel digital
marketing operations in order to effectively interact and engage with various customers on
diverse social media platforms, websites, emails, mobile devices etc., together, in order to
effectively increase the productivity and effectiveness of their overall digital marketing

operations (Galati and et.al., 2017). Doing this would allow for KFC marketers to promote,
advertise, engage and interact with an even greater range of audience in an always on digital
environment.
CONCLUSION
Based on the findings of the report, it can be concluded that effective strategic marketing
is of immense importance for the sustained success of any business organisation such as KFC.
This report conducts thorough market analysis for KFC which includes its market size,
competitor analysis, micro and macroeconomic forces, customer analysis, stakeholder analysis.
The report evaluates the marketing objectives which KFC needs to achieve. The report also
creates a marketing campaign strategy for KFC. Further the report applies marketing mix,
communication mix and RACE marketing model to the operations of KFC. The report evaluates
financial budget for KFC’s operations and identifies the Key Performance Indicators of its
marketing strategy. Finally, the report recommends ways through which KFC can enhance their
digital marketing operations.

REFERENCES
Books and Journals
Abratt, R. and Bendixen, M., 2018. Strategic Marketing: Concepts and Cases. Routledge.
Agic, E. and et.al., 2016. Strategic marketing patterns and performance implications. European
Journal of Marketing.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Galati, A. and et.al., 2017. Social media as a strategic marketing tool in the Sicilian wine
industry: Evidence from Facebook. Wine Economics and Policy. 6(1). pp.40-47.
Hunt, S.D., 2017. Strategic marketing, sustainability, the triple bottom line, and resource-
advantage (RA) theory: Securing the foundations of strategic marketing theory and
research. AMS Review. 7(1-2). pp.52-66.
Josephson, B.W., Johnson, J.L. and Mariadoss, B.J., 2016. Strategic marketing ambidexterity:
Antecedents and financial consequences. Journal of the Academy of Marketing Science.
44(4). pp.539-554.
Kim, N., Shin, S. and Min, S., 2016. Strategic marketing capability: Mobilizing technological
resources for new product advantage. Journal of Business Research. 69(12). pp.5644-
5652.
Sahaf, M.A., 2019. Strategic marketing: making decisions for strategic advantage. PHI Learning
Pvt. Ltd..
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., 2019. Theoretical underpinnings of research in strategic marketing: a
commentary. Journal of the Academy of Marketing Science. 47(1). pp.30-36.