Comprehensive Analysis of KFC's Marketing Principles and Strategies

This report provides a comprehensive analysis of KFC's marketing principles, starting with an introduction to marketing processes and the 4Ps. It examines the benefits and costs of KFC's marketing orientation, followed by an identification and analysis of its macro and micro environments using PESTEL and SWOT analyses, respectively. The report then proposes a segmentation, targeting, and positioning strategy for KFC's Kids' Burger Meal, discusses how buying behavior affects marketing activities, and explains the products and services that sustain its competitive advantage. Furthermore, it details KFC's distribution strategy for customer convenience and its pricing strategy. Finally, the report outlines marketing mix plans for different segments, discusses promotional activities, and concludes with a summary of the key findings. The report covers various aspects of marketing, including market analysis, environmental factors, segmentation, targeting, positioning, buying behavior, competitive advantages, distribution, and pricing strategies.

Marketing Principles
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
Explanation of the various elements of the marketing process of KFC..........................................3
Evaluation of the benefits and costs of a marketing orientation for KFC.......................................3
Identification and analysis of Macro and Micro environment of KFC............................................4
Proposition of the segmentation, targeting and position of Kids' Burger Meal of KFC..................5
Discussion of the buying behaviour affects marketing activities in different buying situations.....6
Explanation of the products and services which developed to sustain competitive advantage.......6
Explanation of the distribution of KFC which is arranged to provide customer convenience........6
Explanation of a pricing strategy of KFC as per marketing conditions...........................................7
Planing and recommendation of marketing mixes along with additional elements for the two
different segments............................................................................................................................7
Discussion of promotional activity should be integrated to achieve marketing objectives.............8
CONCLUSION....................................................................................................................................8
REFERENCES...................................................................................................................................10
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INTRODUCTION
Marketing principles is defined as the process of formulating company's strategies and plans
for achieving future goals in order to fulfil consumer’s needs and requirements. These are based on
4P's which are classified as price, product, promotion and place. Kentucky Fried Chicken (KFC) is a
fast food restaurant chain that specializes in fried chicken. The company has 785 outlets in the United
Kingdom (KFC, 2015). In this research, the report covers KFC's marketing elements and its process by
analysing its micro and macro environment through segmentation, targeting and positioning of the food
products by various market mix strategies of the products according to the consumers' tastes,
preferences and lifestyles.
TASK 1
Explanation of the various elements of the marketing process of KFC
Marketing process is based on activities of product design, strategies, pricing, promotional
activities etc. (Henley and et.at., 2011). Various elements of marketing process in the context of KFC
are: Examine the market and environment: To introduce any company or product to the customer,
market research is to be conducted. Likewise, complete analysis of the market should be done.
To examine the market and environment of KFC, analysis can be conducted through various
marketing tools.
 Capturing the market: To achieve the strategic goals, company should focus on marketing plan
to achieve their targets. KFC has definite market share in the UK and now the main target is to
expand its business globally (Pahl and Richter, 2009).
 Developing market strategies: Every business has some marketing objectives like profit
maximization, enhancing their brand image, etc. KFC has some marketing strategies to
accomplish marketing goals which assist them in expanding its business in UK market.
 Enhancing the Marketing mix: The marketing mix is an important tool for marketers to
market their products and to sell them to the desired customers. In context to KFC, each aspect
of marketing mix should be contented by the customers.
Evaluation of the benefits and costs of a marketing orientation for KFC
Marketing orientation is defined as the products and services which are designed in such a
manner that they can meet the requirements of the customers through production orientation. KFC
marketing orientation is all about unique combination of various marketing tactics and strategy which
fulfil the operational opportunities of company through fulfilling customer’s needs. The benefits of
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marketing orientation of KFC will increase the profitability level of the organization. By achieving the
benefits, customer loyalty level will rise and long lasting customer’s relationships for the business
enterprise will be established. The marketing approach can get competitive advantages by which the
firm can achieve long term goals and objectives (Dooley and et.at., 2012). It forces the customers to
keep abreast from their competitors' new food which shows that its marketing has a greater influence
on the strategic planning. The cost of marketing orientation of KFC includes cost for regular researches
and analysis. If the company sets the marketing focus structure for the food products, then it also
comes under the cost of company. The other costs which are needed for the market orientation are
product development cost and promotional activities cost for advertising and other media.
Identification and analysis of Macro and Micro environment of KFC
Macro environment of KFC can be evaluated through PESTEL analysis and they are as follows: Political: There are no political factors which restricts consumer from purchasing KFC
products. Political factors have no direct impact on KFC business in UK. Economic: The credit crunch and slow down of economic growth of UK does effect
consumer’s buying power and KFC businesses (Cockburn and et.al., 2014). The company may
be positively impacted if the reduction in the interest rates helps the consumer to spend more. Social: KFC business may be affected by health reasons such as fat and obesity which will
influence the sugar, fat, nutrition and ingredient content of its product and ultimately the
formulation and taste. Technological: The internet has also brought consumers closer to companies such as KFC, who
now have faster feedback from consumers about their products (Jobber and Ellis-Chadwick,
2012). These have both positive and negative impact to the working of KFC. Environmental: KFC practices zero discharge to the environment which increases company's
manufacturing costs. The firm also uses bio-degradable packaging material which is a
requirement as per the restriction of EU.
 Legal: The use of artificial colours considers increasing hyperactivity in children which has
forced KFC to find alternatives at higher costs. Whilst this is good for society but it has
negative impact to KFC businesses.
Micro environment of KFC can be analysed through SWOT analysis and they are as
follows:
Strengths
 Popular brand name.
 Good advertising and
marketing.
 Strong trademarks recipe.
Weaknesses
 It is highly depended on fast
food market.
 Franchise management globally.
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Opportunities
 Acquisitions of other fast food
companies.
 Ability to introduce new
product extensions.
 Introduce better vegetarian
products.
Threats
 Social impact from consumer
groups on health related issues
(Pahl and Richter., 2009).
 Threat from competitors like
McDonald's, Taco Bell, Burger
King etc.
Proposition of the segmentation, targeting and position of Kids' Burger Meal of KFC
Segmentation of Kid’s Burger Meal of KFC:
Market is divided on the basis of demographics, geographic or on the specific characteristics of
the products to meet the consumer’s needs in the target markets are known as market segmentation.
They are demographic, behavioural, geographical and psychographic segmentation (DeSarbo and
et.al., 2009). To plan future marketing strategy, KFC applies segmentation analysis to 'Kids Burger
Meal' which has segmented on the demographic segmentation criteria. KFC deals with all the age
group because the company offers wide varieties of products which are suitable for all the customers.
Organisations have all types of the customers such as family, professionals, university students and
children. Products like Robinsons Fruit Shoot and Innocent Fruit tube, medium size burger etc. which
are coming in Kids' Burger Meal are for the children in the age group of 8-15 years.
Targeting Strategy for Kids Burger Meal of KFC:
KFC is targeting customers of all age group through their wide range of food products
according to their needs and requirements. For professionals, they can start delivery services by which
the products can easily deliver to their offices or at their homes and by this they can get benefits like
they can save time and their wok culture does not get affected. To target the family, KFC has applied
differentiated targeting strategy which develops products and services with separate marketing mix
strategies for each of the segments. KFC can give their customers economic range of products which
are easily affordable and can attract more customers. Furthermore, they can also offer vouchers or
some discount on their few food product (Bowie and Buttle, 2011). To attract children, the enterprise
can provide burgers with small toys. Moreover, since parents always need clean and healthy
environment for their children thereby KFC can work on maintaining the same as well. KFC also
targets university going students and youth from middle and upper class families because the prices of
products are low as compared to others.
Positioning of Kids Burger Meal of KFC:
The marketing strategy which focuses on their brand value to stand high in the market from
other competing brands is known as positioning. KFC is the low cost family restaurant in fast food
joints which targets all types of customers (Hassan and Craft, 2012). Organization’s positioning
strategies focuses on children through Kids' Burger Meal by giving free toys and access to the
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playground. The company can expand their outlets in the city so that consumers can easily access and
can locate malls for their children during weekend’s outings.
Discussion of the buying behaviour affects marketing activities in different buying situations
Buying behaviour affects the company's sales and its performance by analysing customers'
needs and requirements and their purchasing power to buy the products. One of the situations can be in
context of recession where the company is facing tough time because of low sales and less people are
visiting KFC. Therefore, it is affecting the performance of the company (Dooley and et.at., 2012).
Because of the recession, the demand of product decreases which leads to less profits and less market
share of KFC in UK. Buying behaviour of the buyer plays major role in influencing the sales as well as
profitability of the organisation. When the market is good, then the company can provide new and
innovative products to the customers because the organisation can take risk for innovative products and
will not affect company's profitability (Lilleker, 2013).
Explanation of the products and services which developed to sustain competitive advantage
If the company provides good quality products at lower price, high benefits to the customers,
then it is known as competitive advantage. To keep the prices low, the organisations has to keep their
prices at suitable rates for the efficiency of their productivity (Von der Heidt and Quazi, 2013). By
doing this, KFC will become superior to other in food joints which leads to good sales performances
and will further increases the customers. It also raises the profitability of the organisations and also
helps in expanding the market share in UK (Bose, 2010). To examine the customer needs, the company
should conduct market research in order to develop sustainable product which is beneficial for
competitive advantage. KFC serve various competitive advantages such as excellent food quality,
brand value, cleanliness and great service quality. KFC meets needs and requirements of the customers
to accomplish their objectives and to become one of the best distributors of food products in the world.
Explanation of the distribution of KFC which is arranged to provide customer convenience
In order to better perform in the competitive market, it is required for firm to focus on its
distribution strategies so that right product reaches to customers on time. Company can also set up their
retail outlets in centre of the city to attract more customers and to expand its market share. KFC can
run their business on e-commerce and builds more distribution centres located at the nearest place. The
organisation can start their delivery services for its food products at free of cost (Blythe and et.al.,
2008). Location is the major factor to attract customers and the cost related to leasing facilities and
building plays a crucial role in the organisation's profits. Customers can become dissatisfied with the
company's products or services for a wide variety of reasons. Therefore, it is convenient and
comfortable for the target market in every possible manner and satisfies their need in the best possible
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manner.
Explanation of a pricing strategy of KFC as per marketing conditions
Main goal and objective of KFC is to strengthen its customer base and enhancing sales volume
along with profitability. So for attaining this objective, moderate prices are required to be set by firm
which represents the overall objectives of enterprise (Yu and Ramanathan, 2008). KFC focuses on
“Product Bundle Pricing” strategy to combine various food products in one bundle. The company is
offering this pricing strategy on some of the KFC products, one of the products is Kids' Burger Meal.
Once it occupies strong position in the market, then KFC hike their products price because of good
quality loyal customer’s base. By conducting research, they can also analyse the current price of the
market products. By giving loyalty cards and discounts, company can retain their customers and meet
their organisational objectives and market conditions.
Planning and recommendation of marketing mixes along with additional elements for the two different
segments
Marketing mix is a combination of vital factors that make up the marketing strategy for a
product which helps the company to successfully achieve the set marketing objectives (Definition of
'Marketing Mix', 2015). The recommendation of 7P’s of marketing mix is described for the youth and
the children segment as follows:
 Product: KFC should emphasize on colourful packaging and which should be attracted to the
children, teenage and young adult market. In segmentation, product range should target child’s
taste such as sweet, low chilly and salt, with nice colours, attractive carvings and chocolate
mixed drinks into the meal. Whereas, for youth, there should be more sauce and cheese. KFC
should offer coke or Fanta as fantastic drink for the youth.
 Price: Company is offering product bundle pricing on some of the KFC products, one of the
product is Kids' Burger meal which includes burger, French fries and juice but the company can
offer other different options in same price as well. In segmenting for children, price should
target the family pack as well. It should be based on child’s demand which should try to capture
both parents and guardians towards the meal pack (Martin, 2009). On the other hand, prices to
influence youth should be attractive. KFC can offer quantity discount as group of people who is
having the same meal at same time.
 Place: KFC should focus on the branches at Hyper and Supermarkets as well as at convenient
stores and at prominent locations within the stores. For children, the outlets should be placed at
malls where they can go with their family. Whereas, outlets can set at university campus and
sports malls for youth customers.
 Promotion: KFC can create number of websites for its popular brands for consumer to be
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active. These websites comprise of education information, games, good associates, cocoa
partnership and fair-trade. Promotional activities should directly target the child segment
(Henley, and et.at., 2011). KFC should be conducting the promotion campaign with the Disney
Walt cartoon characters and music. Also, outdoor promotions should target kid schools and day
care centres. On the other hand, promotions for youth can be done through teenage magazines
and websites. KFC can also use Facebook as the more interesting promotional tool.
 People: In KFC, employees are undergoing service trainings. The company can provide cooks
who have proper training on cooking and additional concern on making of exact taste.
 Process: KFC should quickly ask the customer’s requirement and settle payments very quickly
(7 P's of marketing mix, 2015). They can keep some fast moving food item in stocks or else
cater within 10 minutes of time.
 Physical Evidence: KFC can introduce music and televisions to each outlet and creating nice
experience for each customer.
Discussion of promotional activity should be integrated to achieve marketing objectives
For accomplishing the marketing objectives of the firm, it is required for enterprise to design
effective promotional tool as through this, large number of customers can be attracted easily. Further, it
is well known fact that promotion plays a key role in marketing due to which every organization
concentrates on this element for accomplishing overall aims along with objectives (Schlissel, 2015).
KFC promotional activity is incorporated into marketing objectives which can be advertise about its
products through mass media, short-term sales by using money coupons. The other can be vouchers or
special offers, personal selling, online services by seeking feedbacks, personalising advertising through
emails etc. (Talwar and Ali, 2013). Without effective marketing promotional tool, company cannot
achieve marketing objectives of the firm behind carrying out its operations in the market.
CONCLUSION
From the entire study, it has been found that marketing plays an important role in the
organization and it is a beneficial for KFC as well in every possible manner. Promotional and other
marketing strategies being designed by the company are strong and help company to attract more
customers. Apart from this, firm operates in competitive market due to which main stress is on
promotional and marketing tools as it provides competitive advantage to the organization.
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REFERENCES
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Microsimulation Modelling. Contributions to Economic Analysis. 293. pp.275 – 304.
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Pahl, N., and Richter, A., 2009. Retail Marketing. Excel Books India
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Verlag
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Definition of 'Marketing Mix'. 2015. [Online]. <Available through:
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