Strategic Marketing Report: KFC - SWOT, PESTLE & SOSTAC

This report offers a comprehensive strategic marketing analysis of KFC, a prominent player in the restaurant industry. It begins with an introduction to KFC, its history, and market position, including market size and trend data. The report then delves into competitor analysis, comparing KFC to rivals like McDonald's and Burger King, highlighting their strengths and weaknesses. A detailed examination of macro and microeconomic factors affecting KFC is provided through PESTLE analysis. Furthermore, the report conducts a SWOT analysis, identifying KFC's strengths, weaknesses, opportunities, and threats. Customer analysis and a stakeholder matrix are also included, providing insights into KFC's target audience and key stakeholders. The report concludes with a discussion of KFC's strategic planning, including its use of demographic segmentation, and the application of the SOSTAC model to analyze its strategic approach. The report is enriched with references and appendices, including a group log detailing the contributions of group members.

STARTEGIC MARKETING
KFC

INTRODUCTION
An organization perform their operations in a business environment that include
different factors (Rahman, 2019). All the factors have direct and indirect impact
upon business operations. It makes entities to effectively evaluate all the prevailing
factors and develop strategies against it as to ensure success.
Present report has been conducted on KFC. Entity operate their services in
restaurant industry. In this report formative discussions has been made on SWOT
and PESTLE analysis of respective company.

HISTORY OF KFC
KFC ( Kentucky Fried Chicken) was established in the year 1952 by Colonel
Harland Sanders.
 He was an entrepreneur and at the initial stage of his life used to sell fired
chicken. He firstly started to cook for hungry travellers. With this 11-herbs-
and –spices recipe KFC enjoys massive global presence.

MARKET SIZE AND TREND
DATA FOR KFC
The global food service market size was worth US$ 3.4 Trillion in 2018 and is
expected to reach a value of US$ 4.2 Trillion by 2024.
It has been analyzed that target market segment of KFC is upper as well as middle
class. By this, they set prices of their products accordingly (Jain, 2019).
Company conduct their business functions with having more than 5,200 stores in
more than 3,6000 locations worldwide. In addition to this, it has been evaluated that
KFC is a world’s most popular chicken restaurant.

COMPETITOR ANALYSIS
Competitors of KFC are Subway, McDonald's,
Burger King, Starbucks, Pizza Hut and Dunkin
Donuts.
Main factor that are common in all these
Competitors against KFC is that, all of them target
Customers of all income segment while respective
Entity only target upper of middle income group.

CONT…
Mc Donald: Big Mac, quarter pounder, cheeseburger, chicken burger, french fries and more. In
addition to this, desserts, breakfast items soft drinks are also served by company. Further it has been
evaluated that company is having 59.13% market share holding.
Starbucks: hot and iced espresso beverages, cold brew, nitro, non-coffee blended beverages, Fresh-
brewed coffee, Coffee- and tea-brewing equipment, packaged goods are some of the products of star
bucks (Kiat, Jamal, Chen and Lin, 2019). In addition to this, company is having 39.8% market share
holding in US coffee marketplace.
Burger king: Salads and veggies, Beverages, Burgers, Sweets/Desserts, Sides are some of the
certain products of company. Along with this brand value of burger king is 130.4 billion U.S.
dollars.

MACRO AND MICRO ECONOMIC
FACTORS AFFECTING KFC
Macro analysis defined as macroeconomic conditions within which an entity conduct
their functions and it influence their operations. It mainly include factors like price
level in economy, spending pattern of customers and aggregate production. While on
the other hand, micro analysis include factors like competitors, suppliers, marketing
intermediaries of entity. In this as to evaluate macro analysis factors KFC by taking
advantage of PESTLE can effectively able to evaluate impact of factors on
organization performance.

SWOT ANALYSIS
STRENGTH WEAKNESSES
•KFC is having leading and strong brand
positioning in marketplace.
•Have strong presence even in local market
•High price range comparatively to rivals.
•Another weakness of company is weak scale
of operations.
THREATS OPPORTUNITIES
•Change of customer’s preference towards
organic and healthy food.
•Laws imposed by government to reduce
obesity.
•By expanding their business operations.
•Conducting CSR practices.

STRENGTH
•It has been evaluated that KFC is having strong brand
positioning in marketplace.
• Along with this, entity is offering high quality goods and
services to customers.

WEAKNESSES
KFC offer their products as well services
comparatively higher than other competitors in
marketplace (Srivastava, 2019).
This is the main reason for having less consumer
base in most of geographical locations.

THREATS
Due to shift in preference of customers towards organic and healthy eating habits
there is a possible threat that has been facing by entity.
Fluctuations in currency rate worldwide is posing threat in front of KFC as it
hampers entity to launch any new product and service in marketplace.

OPPORTUNITY
By taking using of organic products KFC and ensure
more competitive advantage as this will effectively allow
them to satisfy needs of customers in a well defined
manner (Murdana, Murdana, I.M., 2019 2019).
In addition to this company can expand in new locations
by offering different attractive offers to customers.