CORPORATE MARKETING STRATEGY OF KFC COMPANY
The firm has stores in more than 109 countries, as well as run over 5200 restaurants globally. (Akan et al. The firm is used to handling 1500 units worldwide. The company is engaged in selling and distributing over 300 products. KFC is a popular global company that has rapidly expanded its marketing strategy through promotion and advertisements. The GDP actual growth rate was about 8. Pakistan is ranked number three according to countries with the highest GDP involving purchasing power equality. They are behind the U. S, as well as China and ahead of Japan. Foreign investment increased to about $16 billion from 5. Since most consumers` preference is “All under one roof,” the company has increased its sales turnover by adding or increasing served products. Market- Economic Factors Economic factors play a significant role in determining how organizations or business firm makes important decisions.
These include income of customers that KFC has targeted. Income is one of the most significant economic factor involving KFC company. It determines the class of customers the company is targeting (Dyson, 2004). 3 Greene et al. (1994) argues that the fundamental and primary threat that KFC company has faced is competition. This is due to the emergence of numerous new rivals who have entered the market arena in the form of local, as well as international brands. Pakistan as a state has experienced a high level of political instability. Political Factors These entail government policies since KFC is firm operating in foreign countries such as Pakistan. Since the culture of KFC firm is quite different from the from the culture of the Pakistan people, the firm has adopted their culture and religion (Helms, and Nixon, 2010).
This is meant to bridge the gap between the two diverse cultures and offer a common socio-cultural background where the two parties can interact fully. KFC offers its customers Halal foods as a sign of revealing that they have assimilated the Muslim religion approaches since the firm had to operate and serve in Muslim state, to the Muslim consumers. Internal Analysis Helms and Nixon (2010) describe internal analysis as strengths and weaknesses that are found within the business organization or firm. Internal analysis has helped KFC company to assess its existing business environment. (2005) argues that the company has the incentive being known to be a Multinational Cooperation. For instance, government incentives, as well as economies of scale. Strengths are activities that make the organization to be unique in providing its products or services to its consumers.
In this way, the organizations like KFC can offer a competitive advantage in the market. For instance, KFC offers discounts to its customers who purchase a lot of products and items. Therefore, SWOT analysis is fundamental in strategy formulation, as well as selection. A Company such as KFC should not be interested in pursuing or following lucrative opportunities. Although, it may be interested in providing competitive advantage through identifying the best opportunity between the strength of the organization and the forthcoming opportunities (Peng, and Nunes, 2007). Diagram of SWOT Matrix for KFC Company Objectives Financial Objectives • To expand the sales of the business of KFC firm by 10% annually between 2018-2020 to equal the Mc Donald’s. • To lower the cost of input of KFC firm by 6% by achieving customer satisfaction between 2018-2020.
7 The company through its advertisement try to transform people into people who consume boring, tedious fast food to visit KFC restaurants. The message relayed in the ads is acknowledgment for the company`s brand. The company is involved in a competitive advertisement with its close competitors such as Mc Donald (Lee, and Sai, 2000). As a result, the company utilizes pricing below competition approach or action plan. Ansoff`s matrix evaluates both KFC and Mc Donald company marketing objectives, as well as approaches that are associated with their markets and products. In this category, there are diverse possible segments such as taste conscious, quality, class, as well as the integration of both price and quality. Demographic segmentation entails categorizing buyers based on their characteristics like income, nationality, occupation, as well as ethnicity.
In this category, the first segment is composed of income factor like high, low and average income. Piercy and Giles (1989) suggest that geographic segmentation is used to partition market into regions according to location. In a geographic aspect, KFC company has partitioned its market into three major segments. For instance, the products of KFC company were first sold to upper socio-economic class. As time proceeded, they introduced discounts, as well as low price deals. Currently, they are dealing in masses. Thus, KFC firm has traded down. As a result, the company has utilized the same brand name, as well as products that are of high quality. Latest product ideas are drawn from customer services, as well as Gallops survey. Furthermore, the company contains Quality Assurance section that makes decisions on latest product innovation.
KFC utilizes print media, television marketing, telemarketing, as well as billboards in advertisement and promotion of its products (Yüksel, 2012). Pricing Strategies During its establishment, KFC firm entered the market through market-skimming approach. The price for their products was relatively high and was mostly targeted to upper class. KFC company unveiled its first mobile unit that surprised the streets of Karachi (Yüksel, 2012). This mobile unit was meant to serve customers that were on motion and did not have time to enter into a restaurant. This offered the unique convenience and experience of enjoying quality fast food that the firm offered anytime, anywhere and hence making fast food practically fast, as well as convenient. Promotion strategies KFC company spend 2% of its accrued profits on promotion and advertisement.
It utilizes logo that features Colonel Sanders as its main portrait and is viewed as the best logo worldwide (Yüksel, 2012). This is because most of them are young, inexperienced and are working at, as well as above the minimum wage. Also, the firm prepares its chicken in Trans-fat which is the unhealthy approach to cooking. In this case, it hits health, as well as educated, conscious individuals. Yüksel (2012) argues that the main function of marketing research of KFC firm is to evaluate information and give management information that is relevant, accurate, valid, as well as reliable. Timeline and resources Creating timeline helps the KFC firm to have a clear and well-planned marketing strategy which can be utilized to provide clients and management with more information.
From the assessment discussed in this report, it is crystal clear that both Pakistan and KFC company are growing strongly. The firm is offering employment opportunities to about 1200 Pakistanis citizens, and there are about 6000 Pakistanis citizens who directly or indirectly depend on KFC company. Yüksel (2012) explains that KFC firm pays Pakistan government Rs. 10 million as direct taxes. KFC use food, as well as packaging material that is produced locally by the Pakistani and is approximately 95% representing the purchase of about 35 million monthly. Strategic development and SWOT analysis at the University of Warwick. European journal of operational research, 152(3), pp. Greene, W. E. , Walls, G. Kotler, P. , Armstrong, G. , Cunningham, P. H. Principles of Marketing. Using PEST analysis as a tool for refining and focusing contexts for information systems research.
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