Preface This report focus on KFC marketing strategies, its
marketing environment , demographic factor ,marketing factors. We
designed a report to provide a brief description about its
marketing mix & its major competitors in Pakistan. We also
discuss four Ps of marketing & their marketing tools. In
addition to it, this report includes a research base survey on KFC.
We all have tried our level best to fulfill all the requirements
mentioned to us. Now its depend upon the reader to read it
carefully and understand what we want to communicate. This report
provides a brief knowledge about KFC in Pakistan.
Acknowledgement In the name of Allah, the most beneficent &
the Merciful. Firstly, we all likely to thank mighty Allah who
provides us knowledge, energy & skills to get opportunities
& to increase our knowledge & experience by completing this
project. Secondly, we especially thank to our instructor Ms.
RAHEELA ZULFIQAR who guides us at every step & every aspect of
this report, so thats competed successfully. Finally, thanking
management of KFC, for providing us with helpful knowledge needed.
After that we are able to complete this report with hard working
& cooperation.
EXECUTIVE SUMMARY In September 2007, Ms. RAHEELA ZULFIQAR
assigned us a project. We are asked to explain how our chosen
product is being marketed, and how environmental factors, buying
behavior, market segmentation, demographic trends, target market,
positioning strategies, marketing mix, market planning & brands
are relevant to their particular product. Following a massive
report, recommendations were completed & submitted on 5th of
November, 2007. The information used in the analysis of KFC came
from variety of resources, including the internet & different
KFCc outlets. The combination of these resources provides the basic
for a valid current analysis of KFC. The major findings of KFC are
as under KFC competing the competitors & maintaining strong
relationship with customers by taking under consideration its Macro
& Micro environment very efficiently. KFC has segmented its
market on the basis of segmentation variables like demographic,
psychographic, geographic & behavioral. KFC is showing certain
buying behavior. KFC is following of market penetration, market
development & product development for increase its customers.
IT is following production, marketing & social marketing
strategies for increasing its market share and growth.
1) HISTORY KFC (formerly known as Kentucky Fried Chicken) is the
project of Gray Mackenzie Restaurants International Ltd. Founded
first by Col Harland Sanders; KFC is known for its fried chicken.
More than 10,000 outlets in the world.
It was launched in 1997, Gulshan-E-Iqbal, Karachi. Presently in
Pakistan, it is been operated by Cupola, a Dubai based
multinational company involved in several business. In Pakistan,
currently it has 43 branches.
2) KFC VISION STATEMENT Food, Fun & Festival, this is what
KFC is all about. Leading the market since its inception, KFC
provides the ultimate chicken meals for a Chicken Loving Nation. Be
it Colonel Sanders secret original Recipe Chicken or the Hot &
Spicy Version, every bite brings a YUM on our face. At KFC we can
proudly say, We Do Chicken right .
3) KFC MISSION STATEMENT We are committed to customer
satisfaction through offering high quality with excellent services
and good value. We take great pride in serving each other, our
customer and our communities. We seek continuous improvement in all
that we do.
4) KFCs PRODUCTS a) Core Benefit The core benefit is To Kill
hunger. b) Products of KFC KFC have three main product lines. The
burgers, chicken meals and the snacks. The category of chicken is
relatively static. c) Burgers The category of burgers is 1. 2. 3.
4. 5. 6. Zinger Chicken Burger Zinger Xtreme Fish Zinger SUB
(60,80) *Col. Filled Burger Snack family has been various products.
1. 2. 3. 4. 5. 6. 7. Arabic Rice Fruit Salad *Corn on the cob
*Scoop of Walls Fries HOT SHOTS Rice Spice (*) These items are not
available at a few restaurants. e) Chicken Meals Chicken meals
include the different combinations of fried drum sticks. Features
Different and better taste Hot and Spicy version of chicken
Superior Quality
d) Snacks
5) MARKETING ENVIRONMENT There are certain forces, inside and
outside an organization that affect marketing managements ability
to build and maintain successful relationships with target
customers. Like all other companies, KFC also has such forces
around it; marketing environment is made up of Micro environment
and Macro environment. a) The Micro environmental Forces
This environment includes the factors that are close to the
company and are contollable by the organization. These factors
are:Company KFC is the multinational company that has chain of fast
food restaurants all over the world. In Pakistan it has 40 outlets
out of which, 22 are based in Lahore, 19 are in Karachi and the
remaining 8 are located in the other cities of Pakistan. KFC is
growing rapidly, by having their strong relationship with their
customers and the trust , which they have developed, in the past
years, employees are the main assets of the company, and so they
are very much concerned. The company has very organized check and
balance system, which is used for the evaluation of the employee
and the individual outlet as well. Suppliers As KFC cannot
compromise on the quality of food they provide, so sthw reliable
suppliers are very much important to them. There are two categories
of supplies. The Dry food supply and the Frozen food supply. For
the dry food , like a burger buns- they have established their own
warehouses and dry-stores for the South region. Where as for the
North region, they get dry material from the vendors like Dawn
Bread . For the Frozen food chicken they have agreement with the
K&N Chicken , for supplying chicken and fish is supplied by
Thiland and spices are supplied by Dubai to all over restaurants in
Pakistan. Cuctomers It includes five categories. => Csumer
Markets KFC has large chain of consumers. According to KFC, We are
growing only with our customer. KFC has great environment for their
consumers and families. They are concerned about the comfort and
satisfaction of their customers. That is why 40 million on a single
outlet. Midnight deals are there for the consumers with 50 %
discount, which is being appreciated by the individuals. Business
Market Business markets buy good and services for further
processing or for use in their production process. In case of KFC
there is no such business market. Resellers KFC is dealing in fast
food, and so they dont have any resellers as such. Government
Customers As such no govt. customer exist so far. KFC is not
expecting any govt. customer as such. International Customers KFC
is multinational company. They have outlets, almost in every
country. So they have international customers all over the world.
Competitors They are classified into direct and indirect
competitors. Direct Competitors It includes
Mc Donalds AFC Subway JFC Indirect Competitors It includes all
other restaurants. Like Salt & Pepper, Kabana, Village, Bundu
Khan etc. Publics Its main types are Financial Public KFC is an
independent company. It has not any long-term bank loan. For
short-term loan, it relies on Standard Chartered Bank. Media Public
KFC spends 8 % to 9 % of its revenue on advertisements. To have
more advertisement, they are of the view to increase their
advertisement. Govt. Public Taxes are always imposed by the govt.
public. KFC sales tax on each meal is 1.2 %. Internal Publics The
employees are greatly compensated by KFC. Employees get regular
bonuses and other benefits which are based on their performances.
Employees are assets and we reward them greatly, KFC says. Special
badges and pins are assigned to employees. General Public KFC wants
to know the attitude of the public about its products. So, it
always gets feedback from the customers whenever its going to
launch a new product. Marketing Intermediaries It includes the
firms that help the company to promote, sell and distribute its
products and services. As in KFC, the goods are manufactured
according to needs and wants of the customers and immediately
served to customers on their outlets. So no marketing
intermediaries are at KFC. b) The Macro Environmental Forces These
are not controlled by the company and are environmental forces. It
includes Demographic Factor KFC has designed its menu according to
taste of population. People of each age like to visit KFC. It has
deals for families as well as deals for the children. They also
visit their competitors to have better idea about changing trends
and taste of people as well as their competitors. KFC reconsider
its menu and taste after every three months. KFC always encourages
feedback and suggestions from its customers. Natural Factors KFC
always produces fresh food. The supply houses are well prepared and
well maintained for changing factors of weather. So it is not
affected by natural factors. Technological Factor Their machines
and boilers are according to latest technology and standards. After
every six months, technical checkup is conducted and that
equipment
is replaced which becomes useless. Efficient billing system is
implemented, to eliminate the redundancy and maintain the daily
ledger account. Political Factors It consists of laws, govt.
agencies and pressure groups that influence or limit various
organizations and individuals in a given society. But KFC has its
own strong links and politics, it is not been influenced by any
external factors. No pressure groups are there inside and outside
organization to pressurize in any aspect. Ethically there might be
certain forces that have been impact on the overall sale of KFC,
for that; it has also made certain strategies and road-maps to
overcome them. Cultural Factors KFC is always concerned about the
culture and ethical values of the community. As, the customer are
from the same community that they are serving in, KFC takes care of
ethical and moral values of the society. As Pakistan is an Islam
based country, so KFC serves Halaal food here. 6) SEGMENTATION
Dividing the market into distinct groups of buyers who have
distinct needs, characteristics or behavior or who have might
require separate products or marketing mix In case of KFC, we have
considered four variables for market segmentation which are
Geographic segmentation Demographic segmentation Psychographic
segmentation Behavioral segmentation Geographic Segmentation
Dividing the market into different geographical units such as
nations, states, regions, countries, cities or neighborhood. KFC
has outlets internationally and sells its products according to
geographic needs of the customer. In Pakistan, its geographic
segmentation is
World Region Country City
Asia Pakistan Karachi and Lahore primarily, while other cities
partially
Density Climate
Urban Not specific
Demographic Segmentation Dividing the market into groups based
on an age, gender, family size, income, education, occupation,
religion, race and nationality. KFC divides the market on
demographic basis in that way
Age Gender Family Size Income Occupation Education Religion
Generation Nationality Family lifecycle
6-65 Both Males and Females 1-2, 3-4, 5+ Rs. 10,000 above Not
Specific Not Specific Not Specific Not Specific Not Specific Almost
All
Psychographic Segmentation Social Class Life Style Personality
Middle class, Upper class and Lower class Not Specific
Authoritarians, Gregarious and Ambitious Dividing a market into
different groups based on social class, lifestyle or
personality
characteristics. KFC divides market on the basis of
psychographic variables as
Behavioral Segmentation Dividing a market into groups based on
consumer knowledge, attitude, use or response to a product KFC
divides the market on the basis of psychographic variables as
Occasion Benefits
Regular Occasion Quality, Convenience, Service And Speed
Potential status, ex-users, first time user and regular users
Medium and Strong Aware, informed, interested, desirous And
intending to buy Enthusiastic, Positive and Indifferent
User Status
Loyalty Status Readiness Status
Attitude towards Product
7) TARGET MARKET The process of evaluating each market segments
attractiveness and selecting two or more segments As the outlets of
KFC are in posh area and prices are to high, so KFC is targeting
upper class. Target market depends upon size and growth rate of
population, Company resources and structural attractiveness of
market segment. 8) MARKET POSITIONING Arranging for a product to
occupy a clear, distinctive and desirable place relative to
competing products in the minds of target consumer. In KFC feedback
is taken from the customer in order to know the customer demands
and then improvements are made in products.KFC focuses on pure and
fresh food in order to crate a distinct and clear position in the
minds of customers KFC has a strong brand name and they are leading
the market in fried chicken. IX-Marketing Mix: "Marketing mix is
the set of controllable tactical marketing tools, product, price,
place promotion that the firms blend to produce the response it
wants in the target market".
Product -Variety -Quality -Features -Brand name -Packages
-Services
Price -List price -Discount -Allowance -Payment -Period -Credit
term
Target Customer Intended Position Promotion -Advertising
-Personal Selling -Sales Promotion -Public relation Place -Channels
-Coverage -Assortment -Locations -Inventory -Transportation
-Logistics
Product: Product means goods and services combination that KFC
offers to the target market. Brand name: Brand name is the, KFC
(formerly know as, Kentucky Fried Chicken) . KFC is a powerful
brand name in the market Variety KFC offers provide variety of
products in case of size and taste. We can categories the product
as follows according to their size and taste. 1. Chicken
4. Quality:
2. Burgers 3. Desserts and beverages Snacks and side orders.
KFC believe in providing the, "Superior Quality" to the valued
consumers. . They use fresh ingredients and provide neat and clean
environment. Features: KFC is providing Different and better taste
with Hot & Spicy version of Chicken. Packaging: The packaging
is used for the burgers and snacks. The pictorial
view is given below.
Services: KFC is providing home delivery services. Also have
some special dinning facility for the business customers Price:
Price is the amounts of money customers have to pay to obtain the
product. List Price: KCF offer different products at different
prices. The list of prices is added in the Appendix. Discounts:
They provide special discounts to only employees. Payment period:
Customer pays when the services are delivered to them. Allowances
and credit terms: They provide no credit terms and allowances to
customer.
Place:Place includes company activities that make the product
available to target consumer. Channel: There are no market
intermediaries (reseller, wholesalers).They provide product
directly to the customer. Coverage: Pakistan has been divided in to
two regions
1. hi the North, KFC is serving Karachi and Hyderabad with 10
restaurants 2. hi the South, they have the large chain of 30
restaurants Assortment: KFC provides two types of meals in respect
of size. 1. Family meal. 2. Individual meal. Location: They have
certain outlets per market area. Inventory: Warehouses for
ingredients are in Dubai Transportation: Supplier uses their own
vehicles for supplying chicken and breads.
Promotion: Promotion means activities that communicate the
merits of the products and persuade target consumers to buy it.
Advertising: KFC was not much concentrating on advertising but now
they are making much effort on advertising through electronic media
like TV and newspapers. They are also advertising through
billboards, leaflets. Personal Selling: KFC use no personal selling
criteria. Public Relations To enhance public relations certain
seminar are conducted by their HR departments and employees are
trained through certain training classes. They are also giving the
concept of mobile KFC. . X-Consumer Buying Behavior "The buying
behavior of final consumers, individuals and households, who buy
goods and services for personal consumption" Characteristics
Affecting consumer behavior As we know that, consumers behavior is
strongly influenced by cultural, social, personal and psychological
characteristics. The description is given below. Cultural factors:
Cultural factor have further subdivision,
Culture: "The set of basic values perceptions, wants, and
behaviors learned by a member of society from family and other
important institution" Culture is the most basic cause of a
person's wants and behavior. Being in a culture of Pakistan, KFC is
concerned about the cultural shifts of the people. As being the
market leader in the Fried chicken, KFC was the first, in making
place in the market and attract people of local culture towards
their different meals. But, at the moment, KFC has spotted the
recent cultural shift, which is the people are most concerned about
their health and fitness. They are avoiding now junk food, and
relying on small snacks. In addition to that, the "Eat fresh"
phenomenon of the Subway, have highlighted the cultural shift, of
people for the healthier diet.
Subculture: "A group of people with shared value systems based
on common life experiences and situation" Subculture is group of
people with shared value system based on common life experiences
and situations. As in Pakistan, there are no any broadened
subculture boundaries, so in case of KFC; subcultures don't have
any significant role. Social class: "Relatively permanent and
ordered division in a society whose members share similar values,
interests and behaviors." As we know that, every society is
composed of social classes. KFC is targeting the middle and upper
classes. To be specific, the large segment of customers belongs to
upper and upper middle classes. Social factors; Social factors are
also important to be addressed. Social factors include consumer's
small groups, family and social role and status. Groups: "Two or
more people who interact to accomplish individual or mutual goals"
The person's behavior is influenced by many small groups. For the
marketers, reference groups are the main target markets, to
identify. For the KFC, the reference group is the upper class. They
keep on adding services to entertain the group. As being the
reference group, there are certain strategies that have been
followed by the management. As KFC has no such well established
marketing department, so, they don't have yet followed any buzz
marketing. But, the present KFC sign, the logo of Col. Harland
Sanders, is an example of having an opinion leader. Family: Family
is the most important consumer buying organization in the society.
KFC is much concerned with the concept of family. As parents are
mostly influenced by the children, so the KFC have designed small
kid's meal for them. In addition to that, the family meals are the
most favorite, deal. Just to involve the family, each member of the
family, KFC has placed various deals and meals in their hot menu.
Just to provide the best service, and earn value in return to
that.
Personal factors A buyers decision is also influenced by
personal characteristics such as, the buyer's age and life cycle
stage, occupation, economic situation and personality and
self-concept. Age and life-cycle stage Mostly, KFC is concerned
about serving the youth, but... they also have influence on the
older people of the families as well. Simply, they
have covered each segment of the family, and life cycle____as,
human cant live without food. And, KFC menu have all the variety
for entertaining any segment/person of the family. Occupation:
Occupation is a secondary factor for the KFC. As students, are the
main streams, so occupation of the consumer doesn't matter as such.
Again, food is necessity of every human, so people belonging to
upper and upper middle social classes are being the target market,
without any classification on the basis of occupation. Lifestyle:
"A person's pattern of living as expressed in his or her
activities, interests, and opinions." The marketers always
addressed the consumer interests, activities and opinions. How
consumer spends their time and money is the primary concern. KFC
have served the customers, by providing them soothing and
comfortable environment. The primary concern is the Innovators, for
the KFC. The lifestyle also includes the way of using the
technology, the internet. KFC have placed a well designed and well
maintained website, to capture the interest and attention of the
consumers. Personality and self concept: "The unique psychological
characteristics that lead to relatively consistent and lasting
responses to one's own environment" KFC have addressed the concept
of brandpersonality very efficiently. The visual color, of their
advertisements and franchise is red. It out-flowing the concept of
excitement. Particularly, for the youth the brand color is very
much amusing. That's what the KFC have done to target the
self-concept of consumers. The "Zinger Burger", is also an effort
to attract their valued customers. Psychological factor
Psychological factor are important to know, if the company wants to
know about the behavior of their customers. Psychological factor
include further four concepts. Motivation The concept of motivation
is been efficiently focused by the KFC. Factors towards motivating
the consumers include many factors. The good customer service,
provided at the restaurant, the soothing environment of the
restaurant, the attractive discount deals, and at the top, the best
food provided are the main sources of creating motivation for
consumers
'' The process by which people select, organize, and interpret
information to form a meaningful picture of the world" The
perception is the next process. The perception is created from
environment, the interlinked factors, that are been described
above. The best customer service ensures, to leave good impact on
the minds of the consumers. The perception is been mainly
manipulated by the advertisements, that are normally triggered at
different phases and conveying the feeling of Hot interactive
deals. Learning "Changes in an individual's behavior arising from
experience" Learning is one of the sensitive factors. As the change
in behavior occur at this stage. KFC is most concerned, about their
well and effective service to their customers. To provide the best
taste, the town and the worth remembering environment, at their
outlets. XI-Types of Buying Behavior: There are four types of
buying behavior
1. Complex buying behavior. "Consumer buying behavior in
situations characterized by high consumer involvement in a purchase
and significant perceived difference among brands" 2. Dissonance-
reducing buying behavior. "Consumer buying behavior in situations
characterized by high involvement but few perceived difference
among brands" 3. Habitual Buying behavior. "Consumer buying
behavior in situations characterized by low consumer involvement in
a purchase and few significant perceived brands difference" 4.
Variety-seeking behavior: "Consumer buying behavior in situations
characterized by low consumer involvement in a purchase and
significant perceived brands difference"
High Involvement Complex Buying Behavior
Low Involvement Variety-seeking Behavior
SignificantDiff. b/w Brands
Dissonancereducing behavior
Habitual Buying Behavior
Few Diff. B/w Brands
Decision Behavior Shown by KFC The buying decision process is
quite complex, in case of KFC___being a fast food restaurant. The
involvement could be high and low as well. But let take it
generally, the behavior could be complex buying behavior and
dissonance reducing buying behavior. Dissonance- reducing buying
behavior If we see KFC among the competitors, that provide fried
chicken, Like Fri-Chick, then the behavior will be dissonance
reducing. Complex buying behavior If, we take McDonald and Subway,
then there is a clears difference In the taste, as well as in the
meals and deals. It could be complex behavior. xn-Product or Market
Expansion Grid: "A portfolio planning tool for identifying company
growth opportunities through market penetration, market
development, product development or diversification." Market
Penetration:
"A strategy for company growth by increasing sales of current
products to current market segments without changing the product."
They are providing areas for birthday party celebrations to attract
more and more customers Market Development: "A strategy for company
growth by identifying and developing new market segments for
current company product." KFC is following market development
strategy as it is increasing its outlets in different cities. They
are trying to cover major market segments in order to get more
market share. Product Development: "A strategy for company growth
by offering modified or new products to current market segment" KFC
is following product development strategy as well. It has added
different new. products in its menu. Diversification: "A strategy
for company growth through starting up or acquiring businesses
outside the company's current products and markets" As KFC is
selling similar products with certain modification in menus only so
it is not showing diversification. Existing Products
Product Development
Existing markets
Market development
New Market
XIII-Growth Share Matrix A portfolio analysis method that
evaluates the companys strategic business units in terms of its
market share. SBU s are classified as star, cash cow, question mark
or dogs. Using Boston Consulting Group (BCG) approach, a company
classified its SBUs or products According to growth share matrix.
Vertical axis: market growth rate provides a measure of market
attractiveness. Horizontal axis: relative market share serves as a
measure of company strength in the Market. Products of KFC We will
like only those products of KFC which are their main products.
These are Zinger Zinger Xtreme Chicken Burger Fish Burger Sub
(60,80) Chicken Pieces Arabian Rice Fruit Salad HOT SHOTS Rice
Spice
Stars Stars are high-growth. High share businesses or products
In KFC, stars are 1. Zinger 2. Zinger Xtreme 3. Sub(60,80)
KFC is investing high to finance their rapid growth. The
products in star have lose their market sh Question Mark Question
mark is high-growth but low share businesses or products. 1. Fish
Burgers 2. Arabian Rice 3. HOT SHOTS Cash Cow Cash Cows are
low-growth, high-share businesses or products 1. Chicken Burger 2.
Chicken Pieces Dog Dogs are low-growth, low-share businesses or
products 1. Fruit Salad 2. Rice Spice
From above, its clear that KFC has 3 stars, 3 question marks, 2
cash sow and 2 dog products in BCG sho
XIV-MARKETING STRATEGIES There are five alternatives concept
under which organizations design and carry out their marketing
strategi Production concept Product concept Selling concept
Marketing concept Societal concept
Production concept: "The idea that consumers will favor the
product that are available and highly affordable" As for as KFC is
concerned it is not following the production concept as the outlets
of KFC are in pos hence their prices are also high.
Product concept: "The idea that consumers will favor products
that offers most in quality, performance, and feature improvements
in products Features KFC is providing different and better taste.
It is providing hot &Spicy version of Chicken and providin
Quality Level Quality level plays a vital role is, in providing the
satisfaction and giving the value to the consu so, believe in
providing the, Superior Quality to the valued consumers. K F C F R
E N C H F R IE S C O M P O S ITIO N P o ta to e s , p a r tia lly h
y d r o g e n a te d s o y b e a n o il, d e x tr o s e . S E A S O
N IN G S O r ig in a l R e cSip e : h e rb s a n d s p ic e s , g a
rlic p o w d e r. a lt, M ilk a n d EN o n fa t d r y m ilk , d rie
d w h e y a n d d r ie d e g g w h ite s . gg: H o t a n d S pC
oyrn s ta rc h , s o d iu m b ic a rb o n a te , s o d iu m , a lu
m in u m p h o s p h a te , D e x tro s e ic : M o d ifie d c o rn
s ta rc h , e x tra c tiv e s o f tu rm e ric . S H O R T E N IN G
re v e g e ta b le o il (s o y b e a n ). Pu : C H IC K E N A N D
IT S P R O D U C T S L o c a lly p ro d u c e d a n d p ro c e s s
e d c h ic k e n . S u p p lie d in fro z e n fo rm . 1 0 0 % a /a
/. H Figure 7
Selling Concept; "The idea that consumers will not buy enough of
the firm's products unless it undertakes a large scale selling and
promotion effort" Mostly the firms practice the selling concept
when they face overcapacity. As KFC provides fresh foods according
to the needs of customers and earn profit through customer
satisfaction, so it does not follow selling concept. Marketing
Concept; "The marketing management philosophy that holds that
achieving organizational goals depends on knowing the needs and
wants of target markets and delivering the desired satisfactions
better than the competitors" KFC is following market concept as it
is focusing on the customer and making improvements in the menus
according to the need and wants of the customer. It has added in
its menus as fish zinger, salad, Arabian rice etc according to the
demands of the customer.
Societal Marketing Concept; "A principle of enlightened
marketing that holds that a company should make good marketing
decisions by considering consumers wants the company's
requirements, consumer's long-run interest, and society long-run
interest" Like KFC Mall Road Branch is giving employment to
disables only, so its based on societal marketing concept. Society
Human welfare
Societal marketing concept
Consumers Company Want satisfactions Profits Figure 8 Three
considerations underlying the societal marketing concept KFC is
following societal marketing concept as it is considering company's
profits, consumer wants, and society's interests. Consumers: KFC is
making their customer satisfied by providing them high quality
fresh food. Company: KFC is earning profit as well through customer
satisfactions. Its sales grew by 10% in the current years and it
has about 60% market share in local market in fried chicken.
Society: hi Pakistan KFC is working for the human welfare also.
They are providing funds to different schools and training
institutes for the education of special children. Faryad is the
environmental campaign started by KFC. The main Project of Faryad
is tree plantation, creating awareness and cleaning the environment
and traffic rules and regulation. KFC Pakistan periodically visits
the under privileged children along with chick to entertain them.
Free food and gifts are provided KFC is also collecting donations
to kill hunger for UNO at Pakistan
Analysis & Recommendations
Analysis: KFC is market leader in providing Fried Chicken. As
KFC is addressing Fast Food, so it is competing with the prominent
market signs, like Pizza Hut and McDonalds. Product: KFC is doing
well so far. It needs improvement in their Hot-Menu. They should
make their menu dynamic, by introducing new meals_____after certain
period of time. New items should be introduced, by varying the
taste. Like, pizza hut has come up with "Chapli Kabab
Pizza"_____addressing the local taste; KFC should go for such
innovation, in order to increase their market share. Price___of KFC
is reasonable, if compared with other fast food restaurants. But
as, price is always the primary concern for consumers; so KFC
should adopt certain strategy to attract the consumers. Its not
only by lowering their prices. It could be by, introducing discount
packages, for families, employees, students and regular customers.
The membership cards can be used to, provide certain extra value to
the consumers.
Placement is very important factor, for a company to increase
its market share, by targeting the right consumers. KFC need to
have more outlets, at commercial areas. It will help in targeting
the actual customers and potential customers as well. Mobile
outlets can be effective addition as well. Promotion: KFC has a
large customer equity, but being a market symbol, a company should
strive for having more actual customers. KFC should work for,
having a solid marketing department. They should organize and run
advertisement campaigns. It would certainly be, incremental factor
for their sale. Different modes of advertisements can be used for,
triggering the community. KFC could use brand promoters. KFC can
setup, promotional campaigns. All what is needed is a well
established marketing department, in order to facilitate effective,
promotions.
Conclusion KFC is providing employment to 1200 Pakistanis which
adds up to 6000 Pakistanis directly dependant on KFC. KFC paying
Rs.10 million to Govt. of Pakistan as direct taxes. 95% of its food
and packing material is used in KFC Pakistan is produced locally
which sums up to purchase of 35 million per month. Each new outlet
developed by KFC Pakistan spends 40 million rupees thats a massive
amount for this industry. From above analysis, its clear that KFC
and Pakistan are growing together. So KFC is doing well at
Pakistan. KFC is also following marketing strategies, segmenting
the market to segmentation variables and increasing their market
share. KFC is leading in Fried Chicken. It gives quality, variety
and fresh meal as of its competitors.
References 1. 2. 3. 4. WWW.KFC.COM WWW.KFCPAKISTAN.COM NAVEED
IQBAL, BUSINESS UNIT MANAGER, KFC, MALL ROAD, LAHORE. PRINCIPLES OF
MARKETING by PHILIP KOTTLER & GREY ARMSTRONG
Project of Marketing
Page 27 of 27 National University of Modern Languages