This presentation provides a comprehensive analysis of KFC's history, market size, competitor analysis, micro and macro analysis, SWOT analysis, PESTLE analysis, customer analysis, stakeholder matrix, and strategic planning. It concludes with insights on KFC's success and references for further reading.
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TABLE OF CONTENTS HISTORY OF KFC MARKET SIZE COMPETTITOR ANALYSIS MICRO AND MACRO ANALYSIS SWOT ANALYSIS PESTLE ANALYSIS CUSTOMER ANALYSIS STAKEHOLDER MATRIX STRATEGIC PLANNING CONCLUSION REFERENCES
HISTORY OF KFC KFC is the fast food restaurant which has specialization in chicken. It was founded in 1930 by Colonel Harland Sanders in Salt Lake City. Hestartedsellingfriedchickenfromaroadside restaurant at the time of great depression. Later he identified the potential of franchising which lead to the first ‘Kentucky Fried Chicken’ franchise which was opened in Utah in the year 1952. KFC is the one who popularized chicken in fast food industry which has diversified its market by challenging the already established dominance of hamburger.
Cont.. He has branded himself as ‘Colonel Sanders’ and Harland became the prominent figure of American culture. Also, his image was used in the KFC advertisement. By 1964, Colonel had around 600 franchise of its outlets across US and Canada. It was the first American fast food chain which expanded globally by mid 1960s. The original product of KFC was pressure fried chicken pieces which was seasoned with 11 herbs and spices a part of Sander’s recipe which is represented as trade secret.
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MARKET SIZE It has been seen that KFC UK sales has increased up 19% in Q2 of 2019. The UK’s market performance has accounted for approximately 6% KFC system sales worldwide. KFC has the brand value of $17.205 million in the year 2019 which was below McDonalds and Starbucks. In the year 2017, KFC has the total number of outlets as 847 with the revenue of £791 million in the year 2017.
COMPETITOR ANALYSIS Difference between the competitive factors of KFC and its competitors Basisof comparison KFCMcDonaldsSubway ProductMajorfoodoffered is chicken. Focussesonthe ageandalsothe occupational backgroundofthe customers. Itinvolves hamburgerand beefproductsin itsfood categories. It follows product standardization in all its outlets. Itonlyoffers submarinesand sandwiches. Theorganization alsofollows standardization strategyinits outlets. Market positioning KFCismostly focussingon attracting families. Workingclass peopleandhave createddinning environment for its customers. McDonalds mainlyattracts young people. Also, its products arefocussed towards children. Ithasaimedat attractingbusy professional people along with health-conscious customers. Italsooffers working atmosphere to its customers.
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Cont.. Service standards KFCfollows certain parameters withrespectto hygieneinits outlets. However,there werefew complaintsabout sanitationinthe washrooms in few of its outlets. McDonald followsstrict service standards inallitsoutlets across the world. The hygiene and cleanliness maintainedby restaurantis appreciatedby customers. Atsubway,its productsand ambienceis widely appreciated becauseofthe obedienceshown towards maintaining cleanlinessand also the usage of healthy products. Pricing strategy KFCmostly introducesitsnew productsatthe higherpriceusing priceskimming strategywiththe objectivetoearn maximum profits. McDonald’s mostlyoffersits productsata reasonable price in ordertoattract theirtarget customer segments. Subwaymostly usesvaluebased pricingstrategy forpricingits products with the objectivethat customersare payingwith respecttothe productand quality of service.
MICRO AND MACRO ANALYSIS Business environment is the surrounding within which business organization operates. There are different factors that closely surrounds the business. It is divided into two types-micro environment and macro environment. MICRO ANALYSIS:- It refers to the environmental factors within which business operates and has a direct control over it. It includes competitors, suppliers, customers, employees, intermediaries and other stakeholders. It has the tendency to influence the daily business operations and is mainly for the short term only.
Cont.. How it helps analysing the organization? Theanalysisofenvironmentalfactorshasa significantroleinachievingthesuccessofthe organization. It helps the organization in identifying the factors that has potential to affect the business functioning which can be used while preparing the strategic marketing plan. As a result, it will help in reducing the negative impact of these factors over the business operation.
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SWOT ANALYSIS Strengths Strong brand equity. Strong and widespread global presence. Excellent customer service. Innovative in terms of menu. Weaknesses High fat and calorie food menu. Supply chain and logistics issues. Poor franchise management system
Cont.. Opportunities Using latest technology for logistic management. Focusing into veg menu. Introducing healthy food stuffs. Threats Increasing competition along with operational costs Changing habits of consumers. Closure of franchise affecting the brand image.
PESTLE ANALYSIS Political factorsEconomic factorsSocial factors Criticizedall over theworldfor sellingunhealthy food. Government controloverthe marketingoffast food restaurants. Controloverthe licensefor opening fast food restaurant. Fastfood restaurants not able togenerate sustainable profits. Payingits employees,a minimum wage. Increasingdemand ofhealthyand hygienicfood products. Usinglucrative advertisementto lurechildrenand others. Mistreatofanimals and packing them in unhygienic facilities.
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Cont.. Technological factorsLegal factorsEnvironmental factors Upgradationin technology. Implementation of automation. Increasingthe digital presence. Complyingwith healthandsafety standards. Casesagainstits paper supplier. Employmentof underage children.
CUSTOMER ANALYSIS Customers of KFC are the people from different segments and age groups. These are those who wants to taste buds with the delicious chicken menu. Most of the customers are the youngsters or the young adults who can afford to take out minimum amount of money in order to have a delicious finger licking meals. The perception of the customers is that only KFC is highlighting and attracting the all age group of customers including families to dine out. It has also set standards based on which different hygiene and health and safety of the customers and employees are taken care. Also, based on the sayings of KFC that ‘nobody cooks chicken like it and they are the chicken experts which differentiates it from others.
STAKEHOLDER MATRIX Stakeholder analysis is a process that evaluates and analysis stakeholders such as consumers, employer, and director’s interest, level of participation and importance in decision making of company. Stakeholder analysis of KFC helps in identify people that have high interest and power so that it can formulate strategies in order to meet needs and requirements of such stakeholders. Stakeholder analysis of KFC is classified into four bases as per their power, level of participation in the level of functioning.
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Cont.. Meet their needs: Directors and top management have power and interest in functioning of KFC so all activities and function are performed as per needs and demand of such stakeholders. Thereby company satisfied need of such stakeholder on priorities basis so that it can enhance its market share. Least important: Such as distributors are least important as they have low power and power interest in performance and operation of business. Thus, KFC play less attention in meeting needs and demand of such people.
STRATEGIC PLANNING Strategic planning Strategic planning includes setting goals, objectives, analysing and evaluatingenvironmentalfactorsaffectingthebusiness,planning, implementation and measuring and monitoring the progress. Strategic planning provides a direction through which business cam achieve desired goals. Strategic planning KFC is pursuing Based on the marketing audit, the KFC’s marketing plan is to introduce new product range exclusively for vegetarians.
CONCLUSION It can be summarized that KFC has made continuous efforts in order to attain this success. It has been in top three in terms of brand value. Also, the competitor analysis has been drawn with McDonalds and Subway, which has helped in identifying the operational practices used by them such as pricing, promotional activities, supply chain etc. This has helped in identifying the unique position in the industry.
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REFERENCES Adom, A., Nyarko, I. and Som, G. N., 2016. Competitor analysis in strategicmanagement:Isitaworthwhilemanagerialpracticein contemporarytimes.JournalofResourcesDevelopmentand Management.24. Backhaus, K. and Awan, A., 2019. The Paradigm Shift in Customer Analysis: Marketing or IT-Driven?. InThe Art of Structuring(pp. 337-349). Springer, Cham. Cuppen, E., 2016. 15 Stakeholder Analysis.Foresight in Organizations: Methods and Tools. p.208. Griffiths,M.,Fenton,A.andFletcher,G.,2019.4.1Competitor analysis.Strategic Digital Transformation: A Results-Driven Approach.