KFC Marketing Objectives Assessment - Case Study Example

XXXXXXX Number: XXXXXXX XXXXXXX XXXXXXX XXXXXXX XX – XX – Marketing Objectives Assessment Introduction: Kentucky Fried Chicken or commonly known as KFC, has been in the industry for a long period of time now. The company has been able to spread its operations to over 90 different countries across the world and has built a strong brand image and name for itself. KFC has become every house name and the recognition of the brand and its various products are wide and well known. The company caters to a niche market and focuses on customer satisfaction at all levels of the company. The main aim and focus of this paper is to analyse the company and to identify the issues being faced by the company due to the new focus and high levels of health consciousness within the society. The paper will provide two short term as well two long term objectives that the company can operate towards. The first section will deal with an overall analysis of the company. Strategic Analysis: KFC was first started in 1964. The company was moved through a number of hands, and finally was acquired by Pepsi Co, which brought the company to the current position with its excellent management style and corporate culture. This acquisition of the company was the significant turning point for KFC and their operations. With the management of Pepsi, the company was able to open as many as 4,258 restaurants across over 68 countries. The company is now the largest chicken selling restaurant and has been recognized to be the third largest quick service chain in the world. The company has expanded internationally and has also seen intense increase in its profitability and growth. Presently KFC works under two divisions and David Novak is the president of the company. Both the divisions of the company are located in Dallas. The main objective of the company is to take complete advantage of the potential growth in the countries and to develop and establish a strong market position and brand image. The company’s success factors clearly include the cost savings that the company has been able to achieve with the thorough research and development. The company also focuses on the low cost differentiation as the main focus of the company is on the original recipe. The mission and vision of the company as seen on the website has been defined as, “To sell food in a fast, friendly environment that appeals to pride conscious, health minded consumers” (KFC). The main objectives of the company include the following aspects, a) product development, b) Increased variety of products on menu, c) introduction of dessert menu and a buffet as well. The company’s website clearly indicates these objectives. Every aspect of the business revolves around these objectives. The company currently has built a strong brand name and image for itself and has been able to position itself in the market based on the product. It is evident from the website and the company history that the company focuses on building a clear and distinct place in the minds of the target consumers (KFC). Hence here the company has focused mainly on one of the main marketing mix, i.e. product. The company has positioned itself in the markets as a fast food chain which not only aims at providing high quality food but also includes health conscious choices as well. The company’s market positioning is clearly based on its product. SWOT Analysis: Strengths Strong Brand Name and brand image The company ranks high as 7 and owns as much as 50.7% of the overall markets The company has a USP, and the products provided by the company are differentiated. Expansive growth and presence in over 99 countries The company is customer oriented and focused on meeting the needs of the customers Weaknesses Numerous changes and instable management Focused or limited range of products Main focus and attention to one single type of product Opportunities KFC has a high chance for market expansion and development not only in the local but also the international markets. High chances for innovative ideas and new product development With the differentiated product, the company can build a strong product differentiation and can build its own performance to a great extent KFC can clearly improvise on their unique selling point and can develop a differentiated look within the markets. Threats High number of people focusing on the healthy living options Higher need for healthy foods and reducing demand for junk food Continuously growing competition both direct as well as indirect It is clear from the company information, that KFC does not waste its time or finances and ensures that the money is put to good use. The simple fact can be realized from the offer that the company makes to provide as much as$20,000 scholarship to high school students to help them take up college. Also, the company shows high levels of corporate social responsibility and KFC has been noted to contribute to major social factors like breast cancer and other such issues to a great extent. Also, there is a continuous effort of the company to research and develop and to use information from the markets to improvise on their products and product range (KFC). There has also been immense number of researches that the company has undertaken to ensure that their products healthy. A recent focus that the company has made to cater to the needs of the health conscious individuals is to include in detail the nutritional values of all the products. The company has also focused on the needs of these groups and has included a wide range of healthy options like salads, and also grilled food to reduce the unhealthy fats. This is clear evidence that the company spends a high level of its revenues in the research and development and focuses on the needs of the customers as well as the well being of the customers likewise. These aspects and gestures of the company clearly show a clear alignment to the values of the company and the main focus of the company, i.e. its customers. KFC is clearly a customer oriented company and is focused and providing the customers with the best. Hence all of their actions and approaches are all aimed and focused towards the same direction. Based on all these aspects and the above discussion of the company, the following objectives have been derived for the company growth. Recommendations: The following recommendations have been developed for the company post a thorough analysis of the company and after including a complete understanding of the current issues involved in the markets (Jobber). With the intense levels of increase and focus on the healthier living, companies like KFC and Mc Donald’s have been hit the hardest. Considering this, the following recommended objectives have been developed. Short Term: In the short run, when the company is focusing so highly on developing newer menus to meet the changing needs, it is crucial that the company uses a defensive marketing strategy. Using this method will allow the company to reach out to a wider range of customers as well as improve the overall customer satisfaction levels as well (Aksel, 2007). The same method and objective can be implemented across the various locations of the company. This objective is clearly in sync with the organisation mission and vision. This will assist the business meet its forecasted needs and will also help in better marketing of the newer menus as well. This also is a financially viable solution for the company as KFC already spends high amounts on their advertising (KFC Hurt by Challengers). Hence making the advertising more defensive and intense will help the organisation gain complete attention of the target markets and will also assist in bettered overall performance as well. One of the key indicators of the success of this objective is the revenues of the company. The revenues of the company will have a direct impact by this objective (Johnson, Scholes and Whittington). The second sort term objective for the company is to introduce more number of healthier options into their menus (MacArthur). This the company can clearly accomplish by improvising their menu and also doing pilot researches with the new menu to understand the needs of the customers more clearly. Long Term: In the long run, the company can focus on improvising their current list of products and focus on development of the same taste, and style of preparation with more nutrients and nutritional benefits (KFC). These will help the company still cater to the needs of the target markets while also ensuring a corporate social responsibility from their end, to keep up the healthy living. This is an ethical and considerate solution. It takes into account the company’s social responsibility and helps the company focus on their needs as well as the needs of the customers. Here in a financial sense, there is little or no changes since the company already focuses on high levels of research and development (KFC). The key indicators here in this case will clearly be the amount of customer retention as well as customer loyalty. If the company is able to effectively meet the needs of the markets, then without any doubt, the customer retention will remain high. Also, the customer loyalty will remain towards the company and their products, simply because the company focuses on the needs of the customers. Another major long term objective of the company can also include development of new menus for diabetics. This will prove to be very beneficial for the company as there are minimal or none fast food chains that cater to this part of society (KFC Hurt by Challengers). Here again the main areas of focus will be on the research and development which will help the company not only meet the needs of a fairly growing market but will also help in more diversified and wider product range. Conclusions: In conclusion, it is evident that the company focuses on the needs of the customers. With the above mentioned strategies, the products of the company will not be faced with any major issues. However the company will only be able to expand its menus and will be able to reach out the higher number of customers as well (KFC Hurt by Challengers). The main strengths of these objectives is clearly that KFC can then be recognized to be a place where mothers can take their children guilt free and know that the children still get complete nutrition although eating at a fast food (MacArthur). The marketing for these products does not require any other special form of marketing. The company can continue to use the same marketing budget and focus each promotion on different products, including the healthier options. The above recommendations are a safe option and can help meet the needs of customers to a great extent (battaglia). The threats or weaknesses of these recommendations are minimal and will prove to be very beneficial for the company to be able to meet up and cope with the changing customer needs and choices and changing needs of the markets. Works Cited Battaglia, Andy. "KFC." Food & Beverages (2010): 66. Jobber, David. Principles and Practice of Marketing. McGraw Hill Higher Education, 2009. Johnson, G, K Scholes and R Whittington. Exploring Corporate Strategy. Essex: Prentice Hall, 2006. KFC Hurt by Challengers. "KFC Hurt by Challengers." Restaurant Business (2002): 20. KFC. Menus. 2010. 5 October 2010 . —. Mission. 2010. 12 November 2010 . MacArthur, Kate. "KFC Snacker." Advertising Age (2005): Vol. 76, Issue 45. Read More