MG529 Strategic Marketing: KFC Company Audit Presentation

This presentation provides a comprehensive strategic marketing analysis of KFC, examining its internal and external environments. It begins with an introduction to strategic management and its application to KFC, followed by a market audit that includes market size and trend data. The presentation delves into competitor analysis, comparing KFC to McDonald's and Popeyes, and explores macro and microeconomic factors using a PESTLE analysis. Customer and stakeholder analysis are also included, providing insights into KFC's target market and key stakeholders. The presentation then outlines KFC's strategic planning, covering the SOSTAC model and strategic recommendations. The analysis incorporates SWOT analysis to identify KFC's strengths, weaknesses, opportunities, and threats. The presentation concludes with references and a group log detailing individual contributions, fulfilling the requirements of the MG529 Strategic Marketing assignment. The presentation highlights KFC's brand image, product portfolio, and competitive landscape within the fast-food industry.

Business management -
Strategic Marketing

Table of Content
INTRODUCTION
Background of KFC
Market Audit
Competitors Analysis
Macro and micro economic factors
Customer Analysis
Stakeholder analysis
Strategic Planning
KFC Strategic Planning
SOSTAC Strategic Model
Strategy
Conclusion
References

INTRODUCTION
 Strategic management can be defined as the process of setting objectives, monitoring, analysis,
assessment of all necessary resources for business to achieve it’s goals and objectives.
 Strategic management supports organization to get success in change according to business
environment.
 The management plays essential role within organization such as they involve various
functional areas while setting objectives and ensures that these functional areas get work well.
 Another role of management is to focus on the goal and objectives of the company constantly.
 To understand role of strategic management, have an example of KFC.
 The main purpose of the presentation is to provide understanding about internal and external
environment of KFC and it’s strategies which they adapt to promote it’s brand image as well as
products.
 It will be included market size and trend data for KFC, competitor analysis, customer analysis
and stakeholder analysis. SOSTAC model will be covered in the presentation.

Market Audit
 Market Size and trend data: The market size of KFC can be
analysed by the fact that the company has huge functioning
operations in varied business segments within various
international countries which has given it global brand
position.
 The market data explains KFC has been recognised as one of
the best company serving various food products and
beverages which are high in quality standards which gives it
competitive edge and benchmarks.
 KFC stands highly competitive in food industry among
various brands and companies where the data explains its
online marketing channels, multi media promotional business
activities have made it one of the biggest brand serving
customers.

CONT…
 There are various competitors for KFC brand
with various new food brands and companies
coming up in food industry where the external
forces also play impactful role to play in giving
KFC tough competition.
 The recent market arenas and data explains how
KFC has brought varied customer satisfaction
services on online portals and websites which
makes its position among food industry and the
customers very satisfied.
 The recent trends of KFC analyzes varied
research technology usage , innovation within
products which makes the products highly
attractive and fresh ingredients used always are
highly recognised as one of the biggest
strengths

Background of KFC
 KFC is an American fast food restaurant chain which is
headquartered in Louisville, Kentucky.
 It has specialization in fried chicken. It comes in
world’s second largest restaurant chain after McDonald.
 It operates in136 countries across the world and offers
its products. It is famous for fried chicken which helps
company to capture large market share.
 It is subsidiary of Yum. Even this company has own
other brands i.e. Pizza Hut, Taco Bell and Wing Street
chains. Organization has large variety of products i.e.
fried chicken, wraps, soft drinks, French fries, soft
drinks, salad and others.
 KFC has adopted its menu internationally so that easy
to meet regional taste.

Competitors Analysis
 KFC is main line of fast food restaurant because it offers wide variety products in
which fried chicken is more famous product of company.
 Popeyes is American multinational chain of fried chicken which is famous as the
second largest, quick service chicken restaurant group.
 Popeyes has similar menu like KFC so it makes it one of main competitor.
 The McDonald is one of the most company that comes in world’s largest fast food
chain restaurant.
 It has captured largest market share and highly famous across the world.
 Domino’s is another competitor which gives tough competition to KFC because it
also serves pizza in different verities along with taste.
 It causes KFC unable to improve market share of KFC’s pizza.

CONT…
Comparison with competitor
 McDonald is located in Oak Brook, US and
famous as a largest chain of hamburger fast food
chain across the world.
 Organization does not have numerous varieties in
it’s menu but they provide food supply along with
good quality, low cost and good environment
while KFC has wide variety in it’s menu.
 Organization operates into 34,000 location across
the world which is quite high as compared KFC.
 The revenue of the McDonald estimates 27.56
billion US dollars while KFC generates its
revenue of 15 billion US.
 McDonald captures 21.7 market share on their
products so become as market leader in fast food
industry as compared KFC.

Macro and micro economic factors
 Macro-environmental are those factors that
gives directly impact on organization
performance and supports to analyse external
business environment.
 Macro environmental factors includes
business strategy, political, economic,
technological and social. Whereas micro-
environmental encompasses those factors,
which helps to analyse internal environment
of company.
 Micro environmental factors are internal
factors such as customer, suppliers and
competitors etc.

Pestle Analysis
Political factors
 It includes government instability, changes in policies, taxation and trade restriction etc. are
political factors which gives impact on KFC.
 For example, organization handles all government policies very well in overall location where it
operates.
 Flexible policy strategy supports organization to promote it’s products across the world without
any restriction even it is foreign company for other countries.
 Organization operate it’s business in multiple countries that causes they have to pay high taxes
which directly impact on KFC’s profitability negatively.
Economic factors
 KFC use to focus on upper class customer so that they can sell premium products to them.
 To improve growth of business starts to focus on middle class by KFC and adds affordable items in
it’s menu that influences purchasing behaviour of customer.
 Organization can get negative impact on it’s operation due to Brexit.
 The reason behind is that Brexit leads change in policies, taxation charge and others that causes
income level of people become weak and increase unemployment rate.
 Due to lack of cash flow liquidity, KFC cannot offer premium products for the customer as result
gets impact on it’s selling revenue.

CONT…
Socio-cultural factors
 KFC gets negative impact of social factors because nowadays people becomes health concern
so they avoid high calories fast food.
 Another reason is this KFC’s menu has non-vegetarian items instead of vegetarian which
declines purchasing behaviour of customers.
 It causes organization gets negative impact on its productivity, operation and performance.
Legal factors
 Organization operates more than 140 countries across the world and complies with the local
laws and regulation which is one of the essential factors to get constant success as well as
operation.
 From past few years gets numerous cases about KFC that they has offered low quality and
unhealthy fried chicken to the customer which impacted brand image negatively in the
customer market.

CONT…
Technological factors
 Emerging technology leads profitability within organization because they get chance to deliver
it’s products across the world without any restriction.
 KFC offers home delivery services to customer which improves business activity and assists
company to generate high revenue on it’s products.
 Apart from this, organization provides number of software facilities i.e. self-order kiosks, voice
automated machine and online platform to the customer for increasing profits and sales.
 By social media management and promotion has improved digital presence by KFC.
Environmental factors
 KFC kills animals to use in food production which gives negative impact on global nature.
 Another is organization uses unhealthy chicken for producing fried chicken which harms
people as well as environment because they use meat of animal and throw unwanted waste that
release alkalis and gives rotten smell.
 It causes government takes strict action for KFC that directly impact on profitability.