Kentucky Fried Chicken (KFC) - Assignment Example

Research Company: Kentucky Fried Chicken (KFC) Executive Summary This case study addresses all relevant issues concomitant to the Kentucky Fried Chicken Corporation, commonly referred to as KFC. This confederation has been the world’s largest chain of chicken joints and is the third largest fast-food inn, as summarized by the researches in the year 2000. This discourse involves a brief description of the market operations this organization has undertaken so far and the marketing environment it functions in. Moreover, a description of the marketing mixes as utilized by the organization in order to target the segmentations of the market is examined. Lastly, this discourse recommends the ideologies for improvising the organization’s marketing efforts that can prove to be a share of positive assistance to its future. Introduction Kentucky Fried Chicken Corporation, as discussed above, is the world’s largest chain of chicken restaurants and is one of the paramount havens for fast-food round the globe. It is the most successful operator in United States as it has made significant ways to maintain its gradation in the international market. KFC offers a whole new variety of fried chicken products as it conjoins both stores as owned by the corporate and the franchise outlets. In response to the call for healthier cuisines from the consumers, the company has recently initiated with involvement in grilled chicken that has gathered enormous response. KFC is at present, owned by PepsiCo, which is also the owner of the Taco Bell fast-food operation. PepsiCo has installed its own management group on senior posts, whereas, the previous owners of KFC such as Heublein permitted senior managers to stay because of KFC’s minor existence and familiarity to the world market. This correlation between KFC and PepsiCo has enabled both the brands to endorse their products with a strong financial background assisting to drive the expansion that is the way to prosperity. Marketing Environment Though many countries of the world are new to franchising as a method of expanding business, KFC has enjoyed success through its stores as owned by the corporate. It has been successful in expanding its operations in the foreign markets by out-stripping the fast-food industry as a whole. KFC has learned to develop and introduce new products as it has efficaciously utilized the opportunities that have come its way so far. Since, introduction of new products are the key to a company’s prosperity, KFC has proved its metal in the international field as well. For several decades, where other fast-food corporations have recently introduced the expansion of their businesses in to the international market, KFC has witnessed its participation as a successful multi-national corporation. This has led to efficient familiarity with all the logistical and attribute complications as faced by the organizations which, in anyway, accompany to its operation as an international food functioning. It has, therefore, depicted its successful operations with host countries and businesses within the host country in order to establish an effectual strategy to work (LotsOfEssays.com). KFC has experienced success in availing enormous marketing opportunities in the US because of the recent relaxation of rules and regulations that could have hindered the American companies to conduct business. Though, franchising still needs to make a place within the world market, it is no longer a foreign concept to American markets and hence, KFC has senior operators available to evoke KFC for reaching new heights in the business field. For the organization, its basic strength is the facilitation of high-quality chicken meals that has led to strong identification for its products. Since, consumers are becoming more and more health conscious day by day, this has evoked KFC to introduce new variety of chicken meals, as it has become a popular food choice amongst them. Its strong international presence is rivaled only by McDonald’s fast food industry (Hume and Fisher, 1989, p. 1). As a result, it would not be a surprise to say that this organization can offset the market saturation prevailing in the United States with increment in sales in the international domain. Market Segments Targeted by the Organization KFC enjoys a hike in worldwide sales because of people’s dietary preferences because of the involvement of media into promotion of health awareness that has steered people away from health-ruining products. Even after involving criticism for mass production in the field of fast-food, KFC is still not immune to negative publicity. It has adapted its menu over the years and has always appreciated the developments of its products. The company preferably discarded the processed chicken and it introduced more convenient products to consume. KFC doesn’t involve any premium locations in city centers, however, if it plans to open new outlets, they are surely going to be in the premium locations. KFC yet looks forward to widen its target market, as it believes in allocating the way to get non-users to utilize the brand. KFC believes in drawing on its heritage in order to market its brands. It targets in introducing a comparatively stronger awareness in the minds of its customers regarding the brand of products as endorsed by it and to be more absolute and assured about their food. Last but not the least, it is looking forward to focus on the advertising of products with the utilization of a consistent campaign which would pull those products together so as to reach its customers. Behavior of Buyers It is, perhaps, focused on the consumer’s needs of individuals, groups and organizations as identified by the marketer. Buyers, particularly, require recognizing the brand and type of product they are longing to consume. The customers, often, refer to all information regarding the product which would assist the through their purchase. Consumers prefer the allocation of attribute factors to certain products which they work out in their mind referring to whichever brand they long to purchase. . This organization targets the lower demographic group of customers as they contribute to the paramount creed, which believes that KFC resides on the edges of town, and city centers, and as a result, attract buyers. Consumers, usually, carry some sort of product preference that includes the history with the particular brand and its reviews. The one major factor influencing the customers in order to buy KFC’s products is its ability to carry out the culture of respective regions it facilitates the customer service with. Such factors clout the customers’ purchase behavior that they may look up towards so that they can easily adjudicate the purchase of products. Marketing Mix used by the organization This is, perhaps, the most important phase in marketing of a company. In order to target the segments of market, marketer’s focus on the four dimensions of marketing that are product, price, placement and promotion, often referred to as the four P’s of marketing mix. These facilitate a marketer with the essentials of the channel energies into significant domains so as to address the requirements and wants of the consumer. Products, as discussed above, act as the core element for marketing mix as they provide the functional requirements as sought by the customers. KFC has developed its products in to brands that have helped them to create a unique position in the minds of customers. This brand superiority has led to high sales and rendered power in order to resist the distributor power. The product mix, which is the total set of brands marketed by the company, is the key element of its product strategy. KFC has kept it well in mind that strong products are significant for both the company and its consumers. It adds value to the company and positively affects the perceptions of consumers, thereby accentuating the profits and provides a base for extensions in the business. On the other hand, consumers gain quality certification and trust by the company. In context of pricing, KFC has altered the its products in order to reflect the life cycle of products for a well balanced marketing mix, and hence, pricing is the second most consideration for it. In order to set a price for the range of its products, KFC has ensured the recouping of overheads so as to efficiently compete with its rival companies and charge the price which customers are willing to pay. Lowering prices on a number of key chicken products so as to attract its customers to purchase them has always been its strength. In order to attract a segmented area f the market, KFC has involved Penetration Pricing for its products, which is used for the products identified as the introductory products in order to get a foothold in the market. This has discouraged the competitors from capturing the market and utilization for products that are produced massively. Also, KFC has involved the allowance of the same product to be price tagged differently, in accordance with the international market. In order to appeal to distinguish market segments with different economic climates and sold by differing channels of distribution, the prices are tagged accordingly. All the activities of KFC, which make its products available to the targeted segment of customers, are deciphered by the placement. Sales and communication are some of the ways as utilized by company that are available to the customers (Papers4You.Com). KFC has always concentrated on the distinguished channel decisions so as to choose between the direct access to customers or involvement of mediators. Also, it decides the mode of channel distributions as to whether it is single or multiple. Promotional strategies of KFC are inclusive of all means through which the company facilitates the benefits ad advantages the value of its products to its targeted customers so that they buy them (Kotler and Armstrong, 2004). KFC has involved groups of encompassing senders, message systems through media and information sources that have assisted the organization in promotion of its products. Media processes may include salesmen, newspapers, magazines, billboards, television resources, etc (Papers4You.Com). Such strategies of promotion as utilized by KFC are the advertisements to in order to reach to the potential consumers. Commendations for Improvising Marketing Efforts of the Organization Despite having a phenomenal work-out round the globe, KFC has come across many competitive rivalries and pressures. These rivalries include conflicts amongst the direct competition and competitive pressures generated from substitute products. Competitive pressures are often a result of suppliers’ bargaining power and the potential entry of new entrants in the market. Buyers’ power to bargain constitutes to another pressure undertaken by the organization as competition. Hence, KFC should focus on reducing such rivalries in an efficacious manner so as to maintain its position in the world as on of the top-most suppliers of fast food. KFC, as owned by several dominions including Sanders, Heublin and PepsiCo in current, has a strong future. Moreover, PepsiCo should be careful in maintaining its relationship with the franchisees as they contribute to the most crucial part of the operations of company. KFC should not be ignorant of the fact that its strong identification with fried chicken is its weakness as well. The customers, who are able to purchase a number of other products such as hamburgers and sandwiches etc., are limited to chicken cuisines at KFC. Hence, the company should be aware of this competitive disadvantage which, at one stage, allows the company to promote and maintain a high standard of quality in relation with the product, but on the other hand, limits the customers to so as to satisfy the different tastes in their families. Some researches refer to the method of preparation of chicken products in KFC as a drawback to the increasingly health conscious American market. KFC, as a result, needs to concentrate on the health requirements of its customers by including low-fat cuisines in its menu. No matter if it is one of the largest fast-food supply chains of the world, it should not forget that the domestic market is largely saturated with fast-food operations as the international market is just the commencement to provide significant opportunities to American fast-food. References Hume, S and C Fisher. 1989. Consumers Go Green. Advertising Age LotsOfEssays.com. "KFC Case Study", LotsOfEssays.com. http://www.lotsofessays.com/viewpaper/1694163.html. Papers4You.Com . "Marketing Mix", Papers4You.Com . http://university-essays.tripod.com/marketing_mix.html. Bibliography Kotler, P & Armstrong, G (2004), Principles of Marketing, Tenth Edition, New Jersey: Pearson Education Inc. Lauterborn, R (1990), New Marketing Litany: 4Ps Passe; C-Words Take Over, Advertising Age, Oct 1, 1990:26. Lazer, W (1971), Marketing Management: A Systems Perspective New York:  John Wiley & Sons. McCarthy, E J (1960), Basic Marketing - A Managerial Approach, Illinois: Irwin. Proctor, T (2000), Strategic Marketing: An Introduction, London: Routledge. Read More