Strategic Marketing for KFC

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.