Marketing Plan Assigmnt I

Marketing Plan, by Aurel Brahimi Page

Assignment I

Instructor: Andy Zdan-Michajlowicz

Course: Marketing Management

Students: Aurel Brahimi

M


1. Executive Summary

KFC Corporation is the most admired chicken restaurant chain worldwide; they serve

many different tastes of fried chickens,

with the best ingredients and its secret

recipe of 11 blend herbs. KFC is

famous for its dishes like Extra Crispy,

Kentucky Grilled Chicken, the Honey

BBQ Wings and it’s freshly

sandwiches. More than 12 million

customers are served daily at KFC’s

restaurants in 109 countries globally, and with its operations of more than 5200 restaurants in

USA and 1500 outside of it.

KFC was funded in Louisville, Kentucky, in the United States by Colonel Harland Sanders in

1952, though the idea of KFC goes back to 1930. When the funder died in 1980 his reputation and

outstanding work is still an important part of the company’s branding.

In 1964 the KFC was bought by John Y Brown and Jerry Messy for $2 million and from that

time KFC becomes a corporation. After a few years its 1't share were bought from the Colonel, and in 1986

PepsiCo purchased the company and the logo was changed after the purchased occurred.

A year after the KFC 1000 restaurant was opened in Japan and in 1994 the 9000 restaurant was

opened in China. The KFC is part of the Tricon restaux group which is a well known globally too.

The purpose of this marketing plan is to be able to open a branch in Albania by giving to the KFC all

M


the data required in order for them to have a clear vision of how and where they are going to launch the new

restaurant branch.

2. Mission statement

To ensure that each guest and staff is treated with respect and dignity they deserve, with

our professional, friendly and well-mannered service, and to make them feel recognized and

happy in our new restaurant in Albania.

3. The SLEPT Analysis

Despite of the transitional years that Albania had in 1990, when the communist regime

felt, Albania have had its remarkable social, legal/

political, economical and technological growth.

Throughout the last twenty years Albania have had

huge effects on the social and economical factors,

where 15% of its population is between the ages of 0

to 9 years old. Comparing Albania with many other European countries with its young

population that are keen on going out and enjoying a fresh and delicious dish food with the

specialty that the KFC offers to its customers, which once again gives a great opportunity for the

KFC to be in Albania.

M


The organization’s macro environment forces are composed of a broad variety of forces

that do have the impact on the organization’s main goals, mission, vision and its strategies too.

Even though the macro environment forces are external forces, they do have impact on the

organization’s performance.

Macro environmental forces are composed of:

Political Factors

Albanian has an open economy nowadays, comparing it with many years ago where that

the country were in a total economic isolation. Changes have

been made and now Albania’s political factors are influencing

in having as many multinational companies as possible, as

Albania is a candidate of European Union.

Legislations

The legal policies are complicated and it has a direct influence on the company. The

Company‘s political concerns are always made in some agreement

with all the laws and related legal political policies of that country

that the company have established its self. In order for KFC in

avoiding all the risks, appropriate legal laws have to be taken into consideration. In order for the

company to have a positive correlation with the community and the public they must comply

M


with the legal law requirements, which are directly linked with corporate political contributions.

In addition the company must have an annual report with all the corporate social

responsibility events that the company has to take in consideration, in order to have its clients on

their sides.

Economic Factors

According to (INSAT), from 2000 that the GDP of Albania was € 4.02 billion, reached €

6.08 billion in 2004 that represented an annual average increase

of 6%, whereas the first quarter of 2006 it was an annual

increase of 30%. On the other hand according to the Institute of

International and European Affairs (IIEA) the unemployment

rate decreased from 16.8% to 14.2 represented an average

decrease of 3.1%, meaning that the social and economical forces in Albania made a huge

progress. By looking at the progress of the economical factors the social class can afford and be

ready to welcome a new branch of the KFC in Albania.

Albania is classified as a Middle Developing Income Country. The economical factors

are separated into various sub points;

Business Cycle

The economy fluctuates due to some economical

activities or the productions during a period of time, and this is

called the business cycle of a company. The company is usually

M


measured by the growth rate it could either have an expansion or a boom. Moreover the

purchasing of the raw materials in different periods of time has a direct impact on the company

itself. Albania is experiencing an economical growth, as a result it boost the availability of the

employment, profit and the productivity of opening a KFC branch.

Social-Cultural Factors

The social-cultural factors for an organization is essential, it includes the culture of the

country, their lifestyles, and the level of education and

their demographic forces, are all important to kind of show

ones cultural and social status for a society. All of these

factors are important for a company to operate, to foresee

how their future objectives and plans should be, by

adopting by the fluctuations in the country.

Population

"Population" has a huge impact on every organization, if it can be broken down into age,

nationality, job skills, education, race etc. All of these

components can be utilized to inform the targeted

audience, whom will be the costumers of the products that

is on the market, at the time the company is about to

M


launch the product. In our case, by having all the information needed, about a certain region in

advance is another key factor for an organization. By knowing the fluctuation of the population,

the company is able to forecast the future, by supplying the products according to the changes

due to their target customer groups, and the dishes each of the targeted group prefer. Albania is

one of the countries in Europe with 15% youth, and that increases with the consumptions of the

products that KFC in Albania is going to have.

Education Level

Education is another key factor that improves the productivity of the company, even

though sometimes it is misunderstand from the company’s point of view. Populations with

higher education have a higher income rate, and this is directly linked with the probability of

being a potential buyer.

Another vital point by having higher education is that the more educated the more skilled

and more qualified the workers are going to be when working for the company. Moreover by

having educated people, the company has no need to train them, and actually, recently Albania

has increased the education level dramatically. Taking in consideration all of the factors above

Albania fulfills them as the number of educated and skilled people is increasing dramatically,

moreover the number of the private universities that are opened in the country is around 54.

4. Micro-environment

M


The Micro environment factors are the internal forces that the company uses in order

reach their objectives. They are all connected with each other, and they influence in decision

making process, and they have a direct impact on the company’s strategy. These forces are

customers, employees, media competitors, and the distribution channels.

Customers

Companies survive on the basis of meeting the customer’s needs wants and satisfaction,

and try to fulfill their needs and trying to provide benefits for their

customers in order to attract them, by their loyalty and high quality, in

order to have them for a long period of time. The KFC always raises

enormous costumer’s interest, by evaluating the customer’s response, and

by making the brand and its products affordable for them. These are some of the main reasons

they have achieved the loyalty for so many years; that’s why the company is without doubt one

of the most the leading company worldwide.

Employees

Having recruited the right staff and keeping them motivated is the essential for an

organization, and in the case of KFC, they spend a lot of

money on training their employees and make them feel a

part of the company too. The credibility that the company

M


gives to their employees by making them happy, healthy, treating them fairly, and let their voice

heard and by letting them work on an open working environment, makes them work feel a part of

the company and they are more efficient.

Media

Media do play double role for the company, it can be either helpful or harmful. KFC is

the sponsor of many media activities, which is a positive

side from the media point of view. A few years back all

the information in Albania was done through promotion

and TV advertising, until lately where the internet plays a

major role as well.

Competitors

KFC have been in the market for long, so does the McDonalds and the Subway too but

looking at the Albanian market, there are not any of them. In our case KFC won’t have many

competitors where it comes to spicy dishes. The Albanians consume a great deal of spicy food.

The only competitor that is at the moment in Albania is the Kolonat, but still they do not offer

the same food, they do offer the same food as mentioned in the table above under McDonalds.

KFC with its secret 11 herbs and its especial dishes is going to have a success in the Albanian

M


market. According to KFC: “No body’s cooking like KFC today and we are the chicken experts, there is no

competitor for spicy chicken which is made by KFC”

Distribution Channels

KFC has been in the market for a long time, due to their

experience the company has built strong relationship with its

distribution channels. For the new coming companies it will be a hard

time, to form the same allies as they have done through the years. The

distributing channels are an important factor that does have the influence the sale through the

customer’s satisfaction that they provide during the distribution. In Albania the distribution

channels have high technology as the numbers of competitors are high too. Therefore the

distribution should always be informed with the latest technology, and providing a faster and

safer delivery to the customers.

5. Type of market

The market type in Albania for the KFC is a differentiated oligopolistic market, with its

independent suppliers which in our case are not many in numbers and not necessary acting in

conspiracy together.

6. Market dynamics – Porters 5 forces

M


Bargaining Power of suppliers:

The bargaining power of suppliers is also described as a contribution in the market.

Suppliers of raw materials, components,

labor, and services such as expertise to

the firm can be a source of power over the

firm, when there are few substitutes.

Suppliers may refuse to work with the firm,

or, e.g., charge excessively high prices for

unique resources. So it is very important that

the firm have a good relationship with its

suppliers in order to get the raw materials and the other components as cheaper as possible with

the highest quality.

Bargaining Power of customer:

The bargaining power of customers is also described as the market of outputs: the ability

of customers to put the firm under pressure, which also affects the customer's sensitivity to price

changes. As the “customers are value maximisers” the new branch that KFC is going to open

take into consideration the customer’s AIDAS theory in order to get the biggest market share.

Threat of new entrants:

M


The new entrants are a major threat that gives the consumers broader alternatives to

switch to other companies. In the coming future other competitors like McDonalds, Subway and

some other domestic companies should be taken into consideration, from KFC.

Threat of substitute:

The existence of products outside of the area of the common product like qebaptore,

pizzas, sandwiches and other domestic products that can be a threat to KFC. Due to the

technological advantages the quality or the costs effectiveness can be a threat to substitute

products, at the same time KFC can afford to keep up with the high technological factors.

7. Key stakeholder by interest / power

matrix.

The key stakeholders can be many in this case as and the new KFC managers must be

sure to identify and list all potential stakeholders of the company. In order to be successful for

KFC they must work together, as the business is new in the country. Among the ones that should

be taken into consideration must be; the shareholders, the local communities, the labor unions

suppliers, the Government and the employees as well. They all play an important role with their

interests, involvement, importance, influence and the impact that they can do to achieve the

organization’s goals.

M


Market Penetration

KFC is famous for its dishes like Extra Crispy, Kentucky Grilled Chicken, the Honey

BBQ Wings and it’s freshly sandwiches with these existing

products to will keep the existing customers. This means

increasing the revenue as well, by promoting the products,

repositioning the brand, and so on. However, the products are

the same and KFC do not seek any new customers.

Market Development

With the existing product will try to enter in new markets. This means that the product remains

the same, but it is marketed to a new audience. Exporting the product, or marketing it in a new

region, is examples of market development.

Diversification

When KFC represents completely new products to new customers, and tries to come up with new

dishes taking into consideration the Albanian food culture, will be another advantage for KFC.

Strengths & weaknesses of major competitors

M


The main competitors that are in Albania right now are Kolonat and some other domestic

small restaurants. The only strengthens that is in favour of Kolonat is the fact that it has existed

for a few years and have a strategic place, which is essential in business in the 4-Ps.

The weaknesses on the other hand are many, comparing Kolonat with KFC. Kolonat is an

Albanian brand that is hardly known domestically, and comparing the brands together, KFC is

far ahead. KFC have been built the brand for many years ago and have a strong brand with its

prestige reputation and loyalty with their competitors.

Factors affecting purchases

Taking into consideration the Albanian food, the KFC’s dishes are very likely to be liked,

as we like spicy food, and do use many different kinds of herbs. The target audience for the spicy

dishes are the old generation, but the others do enjoy it too. In addition the KFC have many big

portions for families, and this fits into the Albanian culture as we are very close to each other.

8. Objectives

The new branch and its delicious dishes have to be launched in Tirana, Vlore, Shkoder, Durres, and

Gjirokaster, because these cities have the largest population, with a culture of dining often outside.

M


9. Conclusion

KFC Corporation is the most admired chicken restaurant chain worldwide; they serve

many different tastes of fried chickens, with the best ingredients and its secret recipe of 11 blend

herbs. KFC is famous for its dishes like Extra Crispy, Kentucky Grilled Chicken, the Honey

BBQ Wings and it’s freshly sandwiches. More than 12 million customers are served daily at

KFC’s restaurants in 109 countries globally, and with its operations of more than 5200

restaurants in USA and 1500 outside of it.

Looking at all the macro and micro environment, that have a direct influence on

launching the new KFC restaurant in Albania, I come to a conclusion that Albania is the next

place out of 109 that KFC operates. In other words KFC with its specialties, unique and secret

recipe and its delicious food will be successful.

References:

http://www.iiea.com/home

M

http://www.iiea.com/home


www. instat .gov.al/

Dervishi,Zyhdi;2007 ; Sociologji kulture 1;Shtepia Bot.Jeruzalem;Tirane

M

http://www.instat.gov.al/

Marketing Plan Assigmnt I

Documents

Transcript of Marketing Plan Assigmnt I