Marketing and Management Strategies of KFC in New Zealand Market

This report offers a comprehensive analysis of KFC New Zealand's marketing and management strategies. It begins with an executive summary and an introduction to the company's history, overview, mission, values, and product portfolio. The report delves into the current market environment, utilizing PESTLE and Porter's Five Forces analyses to assess political, economic, social, technological, legal, and environmental factors, as well as competitive forces. It explores market segmentation, targeting, and positioning strategies, followed by an examination of the marketing mix (product, price, place, and promotion). The report includes budget estimations, a marketing action plan, and marketing controls, concluding with key findings and recommendations. References are also provided.

Running Head: Marketing and Management
Marketing and Management

Marketing and Management 1
Executive summary
The report throws light on the marketing and management of the KFC which is based in New
Zealand. The report includes the current market environment, for a company the market
environment consists of internal and external market environment. There is a critical evaluation
of the external market environment of KFC NZ.
Marketing strategies play a vital role in the business who deals with an international market.
These marketing strategies include the segmentation, targeting, and position; KFC decides which
segments to whom they can offer the product or services. The company decides target to which
they want to target on a primary basis and the stated for the position of a company.
Marketing mix analysis includes 4p’s of the company, this analysis talks about the combination
of factors that can create an impact on the decision of the customers. The budget is estimated
considering the marketing and sales of the company. The marketing controls are discussed in the
report that evaluates the performance in terms of sales, customer and the customer readiness to
buy.

Marketing and Management 2
Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................5
Brief background of company.....................................................................................................6
History.....................................................................................................................................6
Overview of KFC New Zealand..............................................................................................6
Mission/ Vision........................................................................................................................7
Value and beliefs.....................................................................................................................7
Current goals............................................................................................................................7
Product portfolio of the organization...........................................................................................8
Current market environment............................................................................................................8
Pestle analysis..............................................................................................................................8
P-Political factors.....................................................................................................................9
E- Economic factors................................................................................................................9
S- Social/Cultural factors.......................................................................................................10
T- Technological factors........................................................................................................11
L- Legal factors......................................................................................................................12
E- Environmental factors.......................................................................................................12
Porter’s five forces analysis.......................................................................................................13
Threat of substitutes – High...................................................................................................13

Marketing and Management 3
Intensity of competitive rivalry – High.................................................................................14
Bargaining power of buyers – Medium.................................................................................14
Bargaining power of the suppliers- Low...............................................................................15
Threat of new entrants- Medium...........................................................................................15
Market situation.............................................................................................................................16
Competitor analysis...................................................................................................................16
Marketing strategies.......................................................................................................................17
Market segmentation analysis....................................................................................................18
Geographic segmentation......................................................................................................18
Demographic segmentation.......................................................................................................18
Psychographic segmentation.................................................................................................19
Behavioural segmentation.....................................................................................................19
Target market analysis...............................................................................................................20
Market positioning analysis.......................................................................................................21
Marketing Mix analysis.................................................................................................................22
Product strategy analysis...........................................................................................................22
Price strategy analysis................................................................................................................23
Place strategy analysis...............................................................................................................23
Promotional strategies analysis..................................................................................................24
Budgets..........................................................................................................................................25

Marketing and Management 4
Marketing action plan....................................................................................................................26
Marketing controls.........................................................................................................................28
Conclusion.....................................................................................................................................29
References......................................................................................................................................30

Marketing and Management 5
Introduction
The report talks about the marketing strategies of KFC New Zealand KFC. Each and every
company perform marketing strategies that help the company to achieve the strategic goals of the
company. A KFC New Zealand market strategy along with the environmental analysis is
discussed in the report. The internal, as well as external environment creates an impact on the
working of the company. The role of the marketing manager in the company is to propose the
future marketing strategies of the company which is discussed in the paper. The marketing
strategies are proposed by the manager after analyzing the market of the New Zealand. The
implementation of the strategies needs the estimation of the budget and action plan of the
company which is discussed in the report.

Marketing and Management 6
Brief background of company
History
The company came into the existence in the year 1896 in Sander’s family kitchen. The colonel
son of sander's loved to cook after his dad passed away his mother started working and he
himself started cooking food. After performing the experiment with 11 herbs and spices he made
chicken. Gradually he started the business, the quality of the chicken was so good that gradually
he was becoming famous and then he started expanding the business in approximately 600
outlets in US and Canada. This shows the beginning of the KFC; currently, there is availability
of more than 9,000 KFC stores in approximately 86 countries across the world (Restaurants
Brands New Zealand Limited, 2011)
Overview of KFC New Zealand
KFC came in New Zealand in the year 1971; first store opening took place in Auckland with its
original chicken recipe that consists of Kiwis and coated with colonel's famous 11 herbs and
spices. Since then the KFC introduced a huge range of new taste experiences that consists of
Wicked Wings, Hot and Spicy Chicken, Chicken Fillet Burger, Krushers, Twisters, and Quarter
packs which became popular with Kiwis (KFC, 2017).

Marketing and Management 7
Mission/ Vision
The company has opened 68 stores in New Zealand and now the company is planning to
transform the stores with special features that include booth seating, outdoor seating, and plasma
screens. The mission for the New Zealand KFC is to update all stores. The vision of the company
is to provide the quality food that satisfies the need of the customers.
Value and beliefs
 KFC believes that food safety and quality is a top priority, this is the reason the company
commits to highest standards of food safety and quality.
 Nutrition is required, the nutrition strategy that the company emphasis on consist of
nutritional improvement in product ingredients and transparency in product nutrition
(Moeng, 2015).
 KFC believes that employees have right to work in safe environment and company
recognizes the importance of employees (KFC, 2017).
Current goals
Each and every organization performs the business activity to accomplish the strategic goals. The
KFC New Zealand aims to provide tasty, health-conscious, and the chicken-based products that
customer can buy again and again. KFC’s objective is to provide the quality food, a hygienic
environment and to maintain the dynamic and positive customer experience. Talking about the
corporate strategy of the company, the aim of the company is to attract more and more customers
towards their outlets so that they can increase the profitability of the company. The major aim of
the company is to expand the business and to grow in the international market.

Marketing and Management 8
Product portfolio of the organization
The KFC Company provide the wide range of products in the market. The major product of the
company is pressure fried chicken with 11 herbs and spices. The large portion of the fried
chicken is served in a cardboard bucket; this is a well-known feature of the chain which was
firstly introduced by Pete Harman in the year 1957. The KFC New Zealand has expanded its
product range, the company has started offering Snacks, Burgers, Toasted Wraps, Chicken, Box
meal, Rice Bowlz, Krushers, share a bucket and much more.
Current market environment
The market environment consists of macro and micro market analysis. In a macro analysis,
Company makes use of Pestle analysis and Porter's five forces analysis.
Pestle analysis
This analysis helps the organization in identifying the external factors that can affect the
working of the organization. KFC Company also gets affected with some of these factors which
are discussed below.

Marketing and Management 9
P-Political factors
 Trade regulations- KFC provides the services at different places across the world. The
government policies, laws and policies can change the business strategy of the company.
This affects the working of the company and the entry of the company in the different
countries. Across the world, the different government has different laws and regulations
(New Zealand Foreign Affairs and Trade, 2017).
 Entry mode regulations- The regulations on the entry mode can affect the entrance of the
company in different countries and company will not be able to expand the business
(McCammon, 2016). The change in the government of any country will bring the
changes in the trade regulations. There is a need for the stability that helps the company
to perform the smooth working.
E- Economic factors
The Economic factors consist of GDP, purchasing power, income, population, and inflation.
 Disposable income of the buyers: - Talking about New Zealand, the GDP per capita of
the country is 39,426.62 USD (2016) and the gross national income is 177.7 billion PPP
dollars (2016). The disposable income of the country shows that the people of the country
can afford the prices of the products offered by the KFC. People of New Zealand find it
worth spending amount on KFC, as they are satisfied with the product they are using.
 Unemployment rates: - The unemployment rate in March 2017 quarter was 4.9, the
unemployment is growing in a country but with the expansion of the KFC outlets in a
country, there are changes of decline in the unemployment (Kelsey, 2015).

Marketing and Management 10
S- Social/Cultural factors
The social factors can create an impact on the working of the KFC Company. The products of
KFC are in demand by the people of different age group; the company targets the people having
the age group of 6 to 65.
(Source: McCammon, 2016)
 Population demographics- The distribution of wealth is clear with the diagram which
shows that the New Zealand us having the most unevenly distributed over the decade. In
the latest survey of household wealth, New Zealand richest individual in top 10 % held
60% all wealth by the end of 2015. The 40% of the poorest hold the 3% of the wealth and
middle 50% people hold 47% wealth. The company provides the products to the people
having middle and rich class. The company is able to earn the good profit out the New
Zealand outlets (McCammon, 2016).
 Lifestyle trends- The lifestyle of the people is not specific for the company like KFC, as
it doesn't target the customers believes in lifestyle, though there is a possibility of the
changes of the target in the near future. Customer behavior can create the negative effect
on the sales of the product of the company. There are many people across the world who
don’t like to eat chicken those people don’t visit the outlets. This depends on the

Marketing and Management 11
preference of the customer; most of the people don't like to eat chicken all the time this
shows the buying pattern of the customers. In the near future, it is assumed that more and
more people will like to eat chicken so the demand of the product will increase but it
depends on the customer preferences. This affects the business of the KFC New Zealand
(Hasan, 2013).
T- Technological factors
Technology advancement is enhancing the competition among the food companies.
 New technological platforms- The new technological platform use is increasing in the
market. KFC launched a new app which is an ordering and payment app, this app helps
the customers to place the order with the use of the cell phone and customer can make the
online payment. If the customer wants to dine in or take out then they have to check in to
let the employees know they are present in the outlet physically and they don’t want to
wait in the lines. This app was introduced by the KFC because they found due to
technological use many companies tried to stop potential customers to visit the store.
There are many people in New Zealand who want to dine out after work at the nearest
place where they can good food to it; through technology, they can check the nearest
place where they can get the food according to their needs.
 New discoveries and innovations- The use of new discoveries and innovation is
becoming important for this business as they want to make the profit and they don’t want
to leave their customers or potential customers (Samnani, 2014). The technology
advancement takes place frequently to face the same KFC New Zealand need to adopt the
technology so that they can keep attracting the customers towards the company.