KFC Marketing Report: PESTLE, SWOT Analysis and Strategic Overview

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Added on  2023/01/11

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This report provides a strategic marketing analysis of KFC, a major player in the fast-food industry. The analysis begins with a PESTLE framework, examining the political, economic, social, technological, environmental, and legal factors impacting KFC's operations. The political factors include the influence of unhealthy food concerns, leading to brand adjustments. Economic factors highlight the challenges of maintaining profit margins, particularly with the high costs associated with unhealthy menu items. Social factors address issues like employee wages and animal cruelty allegations. Technological advancements like click-and-carry options and digital marketing are also discussed. Environmental concerns include deforestation and the adoption of eco-friendly practices. Finally, legal factors involve adhering to food quality and health guidelines. The report then proceeds to a SWOT analysis, identifying KFC's strengths, such as its global presence and non-meat options, and weaknesses, including an unhealthy menu and franchise system issues. Opportunities include expanding vegetarian meals and market expansion, while threats involve increasing competition and rising raw material prices. The report concludes with references to supporting literature.
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Strategic marketing
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Contents
MAIN BODY..................................................................................................................................3
PESTLE.......................................................................................................................................3
SWOT..........................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................5
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MAIN BODY
PESTLE
In the pestle analysis of the KFC, there will be the six critical macro factors will be focusses
which have the clear impact on the success of their world most fast food industry. These factors
will relieve a detailed level of description for each factor which is playing major role in growth
and success of KFC.
Political Factor
One of the major political factors which is affecting the fast food industry is been shaped and
influences with associations of unhealthy food laden with have the consistency of high calorie
diet (Nguyen and et.al., 2016). As result of this Kentucky Fried Chicken have changed it named
to KFC for change in identification by the intension of dropping fried chicken from the company
name along with making more level of internal changes.
With the effect of this firm have their clever move over franchises in order to have inclusion of
various nutrients in menu as it will be helpful in capitalizing their psychological vulnerability of
target consumers.
Economic Factor
In the fast food industry, the firm are failing to have increase the rate of profit a sustainable level.
This is having key reason which is been identified as the key level of associated in with
unhealthy diet and lifestyle. As per KFC major menu have the fired chicken in the list is main
reason as high content of calories and healthy food (Hisrich and Ramadani, 2017). The firm
have recently entered the market with more vegan opinions by promoting more level of healthy
approach to overcome it reputation in market. The firm is also known as the high budget menu
which have high value for money which have resulted in declining customer base.
Social Factor
As the other fast food industry brand, KFC have also struggled the major level of social issues
which ae such as paying employee less level of wages and salaries which have results in negative
connotation to the brand. In addition to that’s, firm has been accused that’s employee in major
outlets as being paid only minimum wages without any specific benefit or perks.
The firm have accused for the animal cruelty as chicken farms are mistreating the animals by
packing teams in the more level of unhygienic environment and facilities.
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Technological Factor
The firm have adopted more level of new technologies in order to operate in more than 22000
locations as to meet up the current changing trends and respective preference of customers. The
firm a different location has opted he click and carry option which will be helpful in saving the
time wasted in standing queue (Hamzeh, and Bataineh, 2019.). The firm have also entered in
more digital presences for promoting their production through social media management.
Environmental Factor
The firm has been identified as the major contributor on environments as KFC paper supplier
have ben linked to large level of deforestation along with destruction of wildlife which have
resulted in enhardening the environment. In addition to that’s self-order kiosks, voice automated
machines, and online platforms are some of the changes they have adopted to increase profits
and sales (Wijaya, 2019).
Legal Factor
The firm has bene accrued for them volatise local level of law and regulation which have proper
adhering to the food and health quality guidelines and laws in order to avoid lawsuits and
penalties. There are several cases which have said the KFC is serving low quality and rotting
foods to customer which have resulted in negative publicity.
SWOT
Strength
The firm have the major inclusion of strength such as global presence, the ultimate unique level
of option and any more which is not be accused to internets
The firm is well known hub areas as the internationally recognized one which have more clout
of their non meat option (Anand and Yeung, 2018) .
The firm non beat option is growing more level of attention and contributing in sales growth and
revenue generation.
Weakness
The firm have flawed menu which have major consisting of tasty but unhealthy food the
customer more health conscious are moving away from KFC.
There is Questionable franchise system as there are following the standard level of guideline
which have resulted in volatile system of poor management and qualities of food which result in
negative publicity of firm.
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Opportunities
The firm have opportunity to introduce more vegetarian meals as more level of healthier options
which will be helpful in dipping toes in market.
Market expansions as the emerging level of economies and change in customer preference will
be turned out be major opportunities expand in different market.
Threat
The increase level of market competition with new innovation and creating to emerge in market
trends and customer preference will be turned out toe major companion for flourishing in market.
The increase in prices of raw material have effect the profitability of business s which is not an
expectation part of KFC.
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REFERENCES
Books and Journals
Online
Anand, D. and Yeung, D., 2018. Employee development and its effect on employee performance
at KFC Restaurant Brands.
Hamzeh, A.A. and Bataineh, A.Q., 2019. Exploring and Analyzing (Go) Decision for Burger
Makers to Enter Singaporean Market. INTERNATIONAL JOURNAL OF ACADEMIC
RESEARCH IN BUSINESS AND SOCIAL SCIENCES, 9(11).
Hisrich, R.D. and Ramadani, V., 2017. Entrepreneurial Businesses Growth. In Effective
Entrepreneurial Management (pp. 135-157). Springer, Cham.
Nguyen, N.and et.al., 2016. IMPLEMENTING McCAFÉ IN SARATOV: MARKET AND
STRATEGIC ANALYSES. Редакционная коллегия, p.26.
Wijaya, S., 2019. Indonesian food culture mapping: a starter contribution to promote Indonesian
culinary tourism. Journal of Ethnic Foods, 6(1). p.9.
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