Sunday, September 1, 2019

An Analysis of Kfc’s Marketing Mix

| | | | | | AN ANALYSIS OF KFCs MARKETING MIX MEMORANDUM OF TRANSMITTAL DATE:September 6, 2011 SUBJECT:AN ANALYSIS OF MARKETING MIX OF KFC Here is the report you requested on the marketing mix of KFC with special emphasis on the youth. The study included both primary and secondary research. The primary study focused on the students of GIM. From our analysis we conclude that no particular competitive strategy is guaranteed to achieve success at all times. The â€Å"four P’s† of marketing (product, price, place and promotion) provide a good starting point for consideration of the requirements of strategy implementation in the marketing function.The mix of these marketing elements should be appropriate and the plans for each of the elements should also be appropriate. Promotion is more than advertising. The location, size and nature of markets which the business strategy defines will guide promotion mix decisions and should indicate the content of promotional material as w ell. Pricing is a complex issue because it is related to cost, volume, tradeoffs etc. and because it is frequently used as a competitive weapon. ii TABLE OF CONTENTS MEMORANDUM OF TRANSMITTAL†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ i EXECUTIVE SUMMARY †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ iv AN ANALYSIS OF KFCs MARKETING MIX †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 1 THE KFC STORY – HOW IT ALL BEGAN†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 2 KFC INDIA AND MARKETING MIX OF KFC†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3RESEARCH METHOD†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. CONCLUSIONS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 11 RECOMMENDATIONS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 12 APPENDIX†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 13 REFERENCES†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 14 iii EXECUTIVE SUMMARYPurposes of the report The main purpose of the report is to (1) Analyze the marketing mix of KFC and (2) perform a thorough market analysis by mainly targeting the youth through a consumer survey. The analysis incorporates â⠂¬â€œcompany analysis, competitor analysis, marketing mix analysis, corporate strategies and our recommendations. The data was collected from students in GIM and around 100 responses were collected in all. Main Marketing Strategy of KFC The main finding of the research was that there is no particular success strategy which can guarantee success of an organization.Every organization has to formulate its own strategy to be successful. The marketing strategy of McDonald’s is consumer oriented which is the reason for its success in India. Recommendations To become a more desirable employer McDonalds should aim to provide better working conditions, allow the existence of unions, and increase the number of training schemes. Also, McDonalds’ workforce has a high share of teenagers, although there is no requirement for employees to be of this age. iv AN ANALYSIS OF KFC’s MARKETING MIX1To analyze and study the marketing mix of KFC that it has used to establish its positi on in the Indian market today. The main purpose of this report is to understand the various marketing strategies applied by KFC to establish itself as a successful brand in the fast food industry. The analysis has been substantiated by collating information collected through online surveys. The report attempts to understand the positioning, segmenting and targeting methodologies used by KFC in order to acquire considerable market share.The report is significant in understanding the focus of the marketing strategies and the importance of a consumer oriented approach in the Indian scenario which is the primary reason for KFC’s success in the Indian market. The recommendations suggested by this report can be considered for improving the work environment of the various outlets. The scope of this report is limited to consumption preferences of the students in GIM. The KFC Story – How it All Began KFC Corporation (KFC), founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky, in the United States.KFC has been a brand and operating segment, termed a concept of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc. KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of grilled and roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, 2 pork based products such as ribs and other regional fare.The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, though the idea of KFC's fried chicken actually goes back to 1930. The company adopted the abbreviated form of its name in 1991. Starting in April 2007, the company began using its original name, Kentucky Fried Chicken, for its signage, packaging and advertisements in the U. S. as part of a new corporate re-branding prog ram; newer and remodeled restaurants will have the new logo and name while older stores will continue to use the 1980s signage.Additionally, Yum! continues to use the abbreviated name freely in its advertising. Born and raised in Henryville, Indiana, Sanders passed through several professions in his lifetime. Sanders first served his fried chicken in 1930 in the midst of the Great Depression at a gas station he owned in North Corbin, Kentucky. The dining area was named â€Å"Sanders Court & Cafe† and was so successful that in 1936 Kentucky Governor Ruby Laffoon granted Sanders the title of honorary Kentucky Colonel in recognition of his contribution to the state's cuisine.The following year Sanders expanded his restaurant to 142 seats, and added a motel he bought across the street. When Sanders prepared his chicken in his original restaurant in North Corbin, he prepared the chicken in an iron skillet, which took about 30 minutes to do, too long for a restaurant operation. In 1939, Sanders altered the cooking process for his fried chicken to use a pressure fryer, resulting in a greatly reduced cooking time comparable to that of deep frying. In 1940 Sanders devised what came to be known as his Original Recipe.The Sanders Court & Cafe generally served travelers, often those headed to Florida, so when the route planned in the 1950s for what would become Interstate 75 bypassed Corbin, he sold his properties and traveled the U. S. to sell his chicken to restaurant owners. The first to take him up on the offer was Pete Harman in South Salt Lake, Utah; together, they opened the first â€Å"Kentucky Fried Chicken† outlet in 1952. By the early 1960s, Kentucky Fried Chicken was sold in over 600 franchised outlets in both the United States and Canada. One of the longest-lived franchisees of the older Col.Sanders' chicken concept, as opposed to the KFC chain, was the Kenny Kings chain. The company owned many Northern Ohio diner-style restaurants, the last of which closed in 2004. 3 KFC India KFC is the world’s No. 1 Chicken QSR and has industry leading stature across many countries like UK, Australia, South Africa, China, USA, Malaysia and many more. KFC is the largest brand of Yum Restaurants, a company that owns other leading brands like Pizza Hut, Taco Bell, A;W and Long John Silver. Renowned worldwide for its finger licking good food, KFC offers its signature products in India too!KFC has introduced many offerings for its growing customer base in India while staying rooted in the taste legacy of Colonel Harland Sander’s secret recipe. Its signature dishes include the â€Å"crispy outside, juicy inside† Hot and Crispy Chicken, flavorful and juicy Original Recipe chicken, the spicy, juicy ; crunchy Zinger Burger, Toasted Twister, Chicken Bucket and a host of beverages and desserts. For the vegetarians in India, KFC also has great tasting vegetarian offerings that include the Veggie Burger, Veggie Snacker and Veg R ice meals.In India, KFC is growing rapidly and today has presence in 11 cities with close to 50 restaurants. 4 Marketing Mix of KFC – 4Ps of marketing Product Streetwise: Veg Snacker, Chicken Snacker, Snack Box, Rizo Rice, Rizo Gravy, Mini Krusher Snacks: Popcorn Chicken, Hit Wings, Boneless chicken strips Veggie Selection : Veg Snacker, Veg Zinger, Veg Strip with Salsa Toasted Wraps Burger: Veg Zinger, Chicken Zinger, Tower Zinger Box Meal Chicken Delight : Fiery Grilled, Hot and Crispy, Original Recipe Bucket Chicken Signature sides: Corn on the cob,  Coleslaw, FriesKrusher: Frappe, Iced Mochaccino, Iced Kappucino Desserts: Soft wirl, Choamor, Brownie Sundae Price KFC follows both optional  pricing  and mixed  bundling  pricing. A consumer can buy dishes from the basic menu and go for add-ons (Optional pricing) and there are combo offers which comprise a mix of items. The pricing of products ranges approximately from 25 Rs. to ~675 Rs. KFC has variety of options i n each category, For e. g. : In Bucket, there are menus with 8pcs, 12pcs and also 12pcs variety bucket(Hot ; Crispy Original Recipe and Chicken Strips). PlaceKFC initially opened its outlets in metros and Tier I cities, now it has gradually moved to Tier II cities where the buying power is one the rise due to rapid urbanization. KFC has its outlets in all major cities and has overtaken Pizza Hut in Quick service restaurants. By the year 2015, KFC is expected to have 500 outlets in India. Promotion KFC does promotional activities by offering add-ons to the existing menu, gift coupons, T-shirts, Kids meal etc. KFC promotes its products through LCD displays kept inside its outlets which promotes their products and kindles desires among consumer.India being the country with largest youth population has favored the growth of KFC and it has become the fastest growing fast food chain in India pushing aside McDonalds’ and Pizza Hut. 5 Competitors Analysis KFC has been a leading fast- food outlet in the country. But it has a lot of competition and these are eating away into its market share. It has its traditional rivals like McDonald’s, Dominos, Pizza Hut and the firm encounters local challenges like Burger King, Smoking Joes. Burger King competes on the fact they serve jumbo burgers at a very competitive price and also use an approach to serve burgers quickly.In the current scenario with such competition only convenient and fast service is not sufficient to differentiate the firm. And for this differentiation a need to enrich the overall experience is required. This is done by providing the customers a holistic experience at the outlets. The outlets are no more only mere eating joints but are a place for recreation and are an important destination for family dinners. To stay in the competition it is essential to continuously keep reviving your product and its lifecycle. This should be done keeping in mind the customer requirements and the changing trends .The new Krushers which have been introduced in four different flavors is a technique to increase their product reach and thus customer satisfaction. 6 Research Methodology Objective of the research The main purpose of the report is to (1) Analyze the marketing mix of KFC and (2) perform a thorough market analysis by mainly targeting the youth through a consumer survey. Scope of the study The scope of the study is limited solely to about 100 students of GIM selected as a sample for the purpose of research. This may hence not be a total reflection of the whole population of KFC’s consumers. Sources of data Primary sources: The primary data was collected through questionnaires. They were filled using the scheduled method of data collection by the researcher. * Secondary sources: The secondary sources like the internet were used for collecting information regarding the sample and were also used for analysis. Limitations of the research The limitations of the research were as fol lows: 1) Lack of proper experience on the part of the researcher in conducting such studies in the past. 2) The time period for carrying out the research was short as a result of which many facts have been left unexplored. ) The area for study which is quite a large area to judge out the consumer preferences 4) Only 100 respondents have been chosen which is a small number to represent the whole of the population. 5) While collection of the data many consumers were unwilling to fill the questionnaire. 7 Survey Questionnaire Q. Which city do you belong to? * Kolkata – 10% * New Delhi – 20% * Pune – 15% * Mumbai – 18% * Others – 37% 8 Q. Which is your beloved KFC product? * Zinger Burger – 32% * Chicken Strips – 11% * Chicken Wings – 15% * Krusher – 18% * KFC original Recipe chicken – 24 %Q. Concerns faced at KFC Outlet? 9 * Long Queues – 19% * Congestion – 10% * Delay in service – 11% * No probl em – 28% * Others – 32% 10 Q. Is the range offered at KFC adequate? * Yes – 21% * No – 42% * Satisfactory – 37% 11 Q. Suggestions for Improvement? * Delivery on time – 17% * Product variety – 11% * Capaciousness – 28% * Prices – 12% * Offers and discount – 14% * Others – 18% Q. What is the first thing that comes to your mind when you think about KFC? 12 * Burger – 29% * Service – 5% * Value for money – 11% * Special KFC Chicken – 44% * Others – 11%Conclusion 13 * The competitive strategy be varied according to the dynamic customer demands and there is no guaranteed formula to achieve success at all times. * Various internal and external factors affect the risk attitudes of the industry. Thus the â€Å"four P’s† of marketing (product, price, place and promotion) provide a good starting point for consideration of the requirements of strategy implementation in t he marketing function. * A great deal of research is required to arrive at the right mix of these marketing elements. Market research forms the basis of marketing decisions catering to consumer needs and appropriate marketing are designed to meet those needs. The distribution system brings the product or service to the place where in can best fill customer needs. * The distribution channels can make a lot of difference between success and failure of a new product. Integration of distributors, wholesalers and retailers is extremely important. * Promotion and advertising form the core of marketing. The location, size and nature of markets is defined by the business strategy and that also guides the promotion mix as well as content of promotional material. 4 Recommendations * Menu diversification to accommodate more healthy foods could be regarded as necessary in the future. * Better working conditions and training schemes to ensure higher employee productivity. * The environmental pol icies need to be communicated to the public at large. * The key to KFC’s success will be a continuation of their product consistency, better location choices and improved retail business model execution, particularly with regard to the training of employees. * Also, they should work on the capacity of their joints. 15 References Bibliography KFC – Yum! Brands – Defining Global Company that Feeds the World. n. d. ). Retrieved from KFC – Yum! Brands – Defining Global Company that Feeds the World: www. yum. com/brands/kfc. asp Welcome to KFC. com. (n. d. ). Retrieved from Welcome to KFC. com: www. kfc. com Wikipedia. (n. d. ). Retrieved from Wikipedia: en. wikipedia. org/wiki/KFC http://www. kaizencoaching. com. au/articles/basics_marketing_PLC. htm. (n. d. ). Kotler, P. , Jha, M. , Lane, K. , ; Koshi, A. (2009). Marketing Management. Pearson Education. 14 Appendix Exhibits 1. KFC Menu in India SAMPLE QUESTIONAIRE: The online survey questionnaire can be viewed at the below mentioned link

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.