Subject: Marketing Class: M.Com (Master of Commerce)Semester: 2nd Session: 2012-2014Department: Department of CommerceInstitution: KFC Multan

Objective of Study

• To Review the Marketing Environment• Implementation of Marketing Tools i.e 4p’s • How KFC use Marketing Segmentation • How KFC offer differentiated Product • Where KFC stand in Positioning Map • Suggest concrete and feasible

recommendations to KFC

Mission Statement

“Our passion, as a restaurant company, is to put a YUM on people’s faces around the world, SATISFYING CUSTOMERS every

time they eat our food and DOING IT BETTER than any other restaurant company. The UNIQUE EATING EXPERIENCE at each

of our restaurants MAKE OUR CUTOMER SMILE and inspire their loyalty for lift. Toward that end, our associates around the world

re trained to be CUSTOMER MANIACS.”

• Founder Harland Sanders• Born in 1890

KENTUCKY FRIED CHICKEN

Started with “Sanders Court & Cafe” at a gas station1930

1939

Altered the cooking process to reduced cooking time

1940

• Devised what came to be known as his “Original Recipe”

• Contain 11 herbs and spices is still a trade secret

First Television advertisement

1980

Colonel Harland Sanders Passes away

1980

About the Secret KFC Recipe?

Written in pencil on a single sheet of notebook paper and signed by Sanders

Kept locked away at the KFC headquarters in Louisville

Only two executives have the key

Company uses different suppliers for their ingredients to keep their recipe a secret

LOGO

Changes: Red color to make it more vibrant, a Smiling face and a apron

Marketing Environment

• Macro Environment

Marketing Environment Cont.• Micro Environment

KFC

Competitive Analysis

• KFC adopted such sort of strategy that there is no competitor for spicy chicken

• KFC beats its competitors through the revising marketing strategy at every movement but the main competitor of KFC are Mc Donalds

Competitive AdvantageKFC Mc Donald’s

Spicy ProductPakistani People like spicy food rather than boiled food

French Fries and Burgers

Arabian Rice and Zinger Burger

Big Mac

Free Delivery

Chargers on Home Delivery

Chicken is eaten in very community Beef is banned is some community

Local stuff and highly qualified because local stuff can better deal with customers

Its stuff is consists of simple graduates and give them training

KFC uses Top to Bottom and Bottom to Top approach in their Management

Mc Donald’s use Top to Bottom approach in their Management

SWOT Analysis

Strength • Goodwill and reputation• Employee Loyalty• Customer Loyalty• Ranks highest among all chicken restaurant

chains• Finger licking taste

Change in Punch lines

Old Punch line: ‘Taste you'll just love to EAT‘Have to drop the word “EAT”

As "Finger licking’ is considered as unhygienic

SWOT Cont.

Weeknesses• Advertisement• High Prices• Serves only chicken related products• Due to huge expansion by growth strategy

there is much pressure on HR Department.

SWOT Cont.

Opportunities

• New Markets• Large Youth Population• Opening new outlets in different areas of

Pakistan• Offering new variety of food

SWOT Con.t

THREATS• Competitors i.e AFC and Papa Gino’s• Economical Conditions of Country • Recipe is Secret if Stolen then its havoc for KFC

Market Segmentation

• Consumer Market Segmentation• Market Targeting• Market Positioning• PRODUCT DIFFERENTIATION

Market Segmentation Cont.

Consumer Market SegmentationRegion Based: Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad and Islamabad.

Market Targeting• Young generations i.e. Youth of PakistanMarket Positioning

Market Segmentation Cont.

Mc Donalds

KFC

AFCMFC

Positioning Map

Positioning Map

Market Segmentation Cont.

Product Line CHICKEN• 1 Piece• 5 Pieces• 10 PiecesBURGERS• Mighty Zinger • Zinger Xtreme• Zinger Burger • Pizza Twister • Chicken Burger • Wow Meal• New Panini• Spicy Sub• Rice n Spice• Chicky Meal

Market Segmentation Cont.

Product Line Cont.

SNACKS & SIDE ORDERS• Nuggets 6 pcs.• Nuggets 15 pcs.• Regular Fries• Large Fries• Corn on the Cob• Arabian Rice• Dinner Roll• Hot shots• Cheese

DESSERTS & BEVERAGES• Regular Drink • Scoop of walls• Large Drink • Mineral Water Reg.• Mineral Water Lg.• Coffee• Tea

Product Differentiation

Features• Performance• Service• Image• Personal• Atmosphere• Symbol

Marketing Strategy

There are 4 P’s of Marketing tools for implementing marketing stragtegy:1. Product2. Pricing3. Promotion4. Placement

Product Anything that be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. KFC is specially dealing in the chicken products.

Marketing Strategy Cont.

Product List of KFC• Zinger Xtreme• Mighty Zinger • Zinger Burger • Pizza Twister • Chicken Burger

• Wow Meal• New Panini• Spicy Sub• Rice n Spice• Chicky Meal

PricingKFC prices of products are a bit high according to the market segment and it is also compatible to the standard of their products.

Marketing Strategy Cont.

Pricing at KFC • Zinger Xtreme Rs.320• Mighty Zinger Rs.380• Zinger Burger Rs.285• Pizza Twister Rs.225• Chicken Burger Rs.210

• Wow Meal Rs.555• Value Burger Rs.200 • Rice n Spice Rs.240• Chicky Meal Rs.325

Marketing Strategy Cont.Promotion• KFC always advertisement what they deliver actually to the

customer• KFC introduced their goods like watches, keychain, etc to

the customers for sales promotions.

Placement• In the case of the KFC the placement of the product is not

important because KFC having strong vision about ‘ if they opened KFC on any place then customer would be on that location ‘ But the placement of the restaurant is important.

Creative Marketing

• Filling potholes and stamping the fresh pavement with "Re-freshed by KFC”

Brand Development

• An idea for a new product or service, and only the brand name still needs to be devised

Introducing new brand in KFCBrown Cake

After reviewing the current situation of

Brownies having low sales turn over.

We suggest new Brown Cake

concept as sweet meal in KFC.

References

• http://www.google.com• http://www.kfc.com• http://www.kfcpakistan.com• http://www.scribd.com/• http://www.slideshares.com/• http://www.wikipedia.org/• http://www.yum.com• http://www.pizzahut.com