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Kentucky fried chicken marketing plan

T he UK f ast-f ood market is worth an estimated 8.02 billion annually, amounting to an average spent of 22 per month per adult. Motivations f or purchasing f ast f oods were predominately speed and convenience, f lavour value of money and quality of ingredients used. Fast f ood giants like McDonalds, Subway, Kansas, with Kentucky Fried Chicken (KFC) in the lead, dominate the f ast f ood market in UK. KFC is able to please the UK palate with its Finger Lickin Good; chicken that is part of the well-established dietary habits of the British. T he British who until the1965s, were used to untidy restaurants and unf riendly service, have embraced the ambience, unique f lavour, f riendly and f ast quick service(FQS) of KFC. As of 2009, KFC had more than 760 stores and outlets with 22,000 employees, this show its continuous growth since 1965. KFC, It is also the f irst f ood chain to introduce a drive-through restaurant in UK. Despite of heavy competition f rom other counterparts like McDonalds, Subway and Kansas UK s other f ood chains like T he Chicken Cottage ,Burger King ,Nandos, KFC maintains its leadership in the f ast f ood market .

MARKETING PLAN:
A Marketing Plan describes necessary actions in achieving specif ic marketing objectives within a time limit, these actions intend to carry out to interest potential customers and clients identif ying your products and /or services and convince them to buy the product and/or services you of f er.

EXECTIVE SUMMARY:
T he f ollowing marketing plan of Kentucky Fried Chicken (KFC) describes as a major Quick Service Restaurant (QSR) operator in UK .It mainly serves chicken related items with some side dishes.KFC competing the competitors and maintain a strong relationship with its customers under consideration of its Macro and Micro environment very ef f iciently . KFC has segmented its market on the basis of segmentation like; Demographic, Psychographic, Geographic, and Behavioural . KFC is showing certain buying behaviour .KFC is f ollowing of market penetration, marketing development and product development f or increase of its customers. It f ollows production, marketing and social marketing strategies f or increasing its market share and growth.KFC listen its customers to help them to evolve their menu and the choices they of f er.KFC has strong demand f or HALAL products.

WHAT DOES HALAL MEAN? ( ,)

HALAL is an Arabic word meaning lawf ul or legal or permitted according to Islamic Law.

SITUATIONAL ANALYSES:
New products and innovations are likely to draw customers attention, so each company requires f ocusing on developing and reinventing their menu... KFC will be pioneering in the f ast f ood chain thats why its needs to be highly sensitive towards cultural demands. KFC attempted to liven their menu with HALAL Chicken.

SWOT ANALYSIS:

According to Philips Kotler and Kevin Keller, T he overall evaluation of a companys Strengths, Weaknesses, Opportunities and T hreats are called SWOT ANALYSIS. It also involves monitoring the external and internal marketing environments. Strengths and weaknesses represent companies internal capabilities, i.e. operating producers, operating costs, human resources and products producing strategy. Opportunities and T hreats arise f rom outside the organization, i.e. competition and poultry supply in our case.

STRENGTHS:
HALAL KFC is the BOMB KFC will be the latest f rom the UK f ast f ood chain which will introduce HALAL chicken in its menu. T he market f or HALAL f resh meat is estimated at 400m, equal to 11% of meat sale, so there is more space f or KFC to play and won. KFC is the 3rd one f rom UK s f ast f ood chain who signed up f or the list of calorie contends in f ood. KFC has Secret Recipe of 11 herbs and spices become strong trademark recipe.KFC ranks highest among all chicken restaurant chains f or its original recipe, convenience and its variety in menu. Because of all this KFC will be most popular among UK Muslim community. T here is a huge growth in KFC sales because consumers consider that white meat is healthier than other one.orld.e world. KFC will get licence f rom HALAL FOOD AUT HORIT Y (HFA), so no doubt anymore about the chicken. KFC believe that all employees should f ollow the SMILE, which is on their stage programme, which means: Stand up straight, don t lean Turn to f ace your customer Act on what your customer wants Greet your customer like they are your f riends Eye contact! KFC becomes World s First Brand visible f rom space. Close up of the world's largest logo - Colonel Sanders - in Area 51 Close up the World Largest LOGO

WEAKNESSES:
Lack of relationship building with employees, they are young, unskilled and they are working at or just above minimum wage.

KFC only sells chicken Most commonly KFC cooks its chicken in vegetable oil (Trans f at).T his is unhealthy method of cooking and it hits health and educated conscious people. KFC s independent strategy about f ranchises may ef f ect on its new market segmentation because their target market in a particular area.

OPPORTUNITIES
Need big stockrooms and f reezers and chillers as well KFC will hope that the HALAL chicken range will help in attracts a new range of customers. Starts Home delivery Online order service (like www.justeat.co.uk Consumers are looking f or f ast f ood alternatives to red meat that is one of the best opportunities f or KFC because of its white meat. Service and cleanliness could be increased Need more varieties in menu, to embrace healthier choices To meet the market demands like having roasted or stream chicken which have less oil content. Introduce a brand new selling concept like having a buf f et style where customers are able to choose the f ood f rom the shelves and make the orders. Going into burger businesses

THREATS
KFC is not alone; moreover it is f ollowed by its wealthy competitors, including McDonalds, Burger King and Subway. Increase of trends of more vegetarians T here is always a threat f rom new competitors trying to take some Market share. Bird f lu risk can be increase any time.

COMPETITIVE STRATEGIES
Porters Generic Framework KFC is using dif f erentiation strategy while McDonald f ocusing on the cost leadership strategy as their competitive advantages in order to gain broad target. T he above mentioned shows that KFC are more concentrated on their special recipes , chicken and sides order to gain market share by concerning healthy f ood. Nevertheless, McDonald of f ers cheap price, f ast service to attract more customer and to gain market share by building up unique restaurant.

DEVELOPMENT STRATEGIES
Ansof f Products/Markets Framework

Ansof f s matrix assesses KFC and McDonalds marketing objectives and strategies which related to their products and markets. Penetration and product development are more concentrated to run their market. Besides, they are on the procedure of entering to market development. As a conclusion of this, it demonstrates that McDonalds has had and continued to create and develop new products satisf ying the existing of new target expectations f or great taste and great value. Meanwhile, KFC keep improving its products and launching new types of product f or attract new target market. It is considered to support its market penetration f or the company

Marketing strategy KFCs objectives would be to:

To expand their business and equal to McDonalds To achieve customer satisf action To increase on the prof it margin each year by beating their standards of last year. To have a larger market share as compare to their competitors.

Organizational
T he strategy to enter into HALAL shall be through f ranchising as avoid the risk committing resources into an unf amiliar market. To grant f ranchises to the only highly motivated and talented entrepreneurs with integrity and business experience and train them to become more active and aggressive owners f or KFC. A revision of f ranchise contracts would support to KFC to protect itself f rom expanding other KFC f ranchises in the area of other existing nearby f ranchise of KFC to one another and the prevent f ranchisees f rom conducting dif f erent standards. T he traditional Colonels way of lif e philosophy would be inf lected back into KFCs mission and goal statements to improve relationships and to reduce management turnover and internal discontentment. In addition, it is very necessary to have well trained marketing staf f , with suf f icient knowledge of the evolution of halal market, halal laws and regulations.

Product
KFC will increase its product line to include new menu items in several locations to test acceptability and possible sales in relations to demographics. While, the expansion of its menu is very crucial and be f ocused in continuing its product on the healthy f oods they domestic customers is demanding as target market. KFC could reach the objective of healthy f oods by adding new additional items such as grilled chicken and grilled chicken sandwiches and dinner and steam chicken.

Place
For achieving the goal this kind of industry, distribution channel f or new product introduction are the keys to success. T hus, KFC shall expand into more non-traditional locations in those hospitals area, gas stations, convenience stores, malls, airports, concert halls, amusement parks, and college campuses. T hey need to implement new culturally specif ic procedures such as serving beer in German restaurants, more Asian chicken dishes, f amiliar dress in Asian restaurants, and a pub-type atmosphere f or London restaurants with a leisurely atmosphere conducive to long conversations and others depending on the Birmingham and Manchester.

Pricing

Price is a f actor needed f or customer decision to make on the f irst purchase. T he price should be considered as a reasonable and competitive with other local restaurants who of f er chicken menus. T heref ore, the price of the initial launch must be reasonable in terms of low price setting.

Promotion
Promotion of all the three divisional products combining advertisement and reducing cost f or individual advertisements. Of f ering special introductory bargain f or newly opened locations attract customers attraction. Celebrity promotions of KFC should be continued. Promotion of benef icial societal programs by continuing its neighbourhood grant programs and expanding opportunities f or more neighbourhood youths as new restaurants are built up as the outreach and advertisement of Pepsi Cos traditional values and caring attitude. However, this strategy will show its result in long-term periods, thus, considering this matter and opportunities f or expansion, I argue that KFC must f irst f ocus its resources to def end its market position in the cities where KFC had already gained superior brand pref erence such as in London, Birmingham and Manchester. Failure to def end its market because of too much f ocusing in early entry strategy, will expose KFC to the risk that the existing market will slip away, while the new markets are doubt-able successf ul. T he national market, though attractive, were also exposing some risks, including political risks, economic risks, competitive risks, and behavioural risk; beside those external risks, KFC were also exposed to the internal f inancial risk since there were some periods where KFC lacked the f inancial cash f low needed f or expansion. KFC rules the world when it comes to serving the chicken considered as the worlds largest f ast-f ood chains, everyday more than 12 million customers are served at KFC. T he company owns and f ranchises more than 15,000 outlets in more than 109 countries and territories across the world (About 5,200 locations are in the US and 760 in UK) T he restaurants of f er the Colonels trademark f ried chicken sandwiches, chicken (In both original recipe and extra tasty crispy varieties) along with chicken sandwiches, chicken pot pies, crispy chicken strips, popcorn, hot and spicy wings, and gravy, coleslaw, beans and corn on the cob and cheese cake. Most of the locations can be f ound operating as f ree-standing units and kiosks in high traf f ic area. Manuf acturers and businessmen are scrambling to satisf y the craving of Muslims, as the global demand f or HALAL-certif ied products increases day by day. Furthermore, the rise of Halal market is considered by the Asian Leadership and Strategy Institute as one of the latest trends and opportunities together with the: Internet Social networking and Viral marketing Demand f or the Halal f ood is greater than the Muslim population, but can be a choice f or non-Muslim. Halal f ood products are perceived to be hygienic and healthy. In marketing, Qualif ying to the Halal standards KFC can now be considered as a strategy to widen the target market.

Certif ication is key to Muslim f ood market, Without the Halal certif ication, KFC can only target the usual consumers, while getting the certif ication it will target at least two market segments, T he Muslim consumers and T he health-conscious people According to UK Food Saf ety Authority, there are 6 million Halal meat consumers in UK Marketing to Muslims, sees the f aith group as Britain's largest untapped niche market, and one that is certain to grow: it comprises 3% of the population, is Britain's second largest f aith group and has the youngest age prof ile. When advertising to Muslims, a more modest approach than that used f or a non-Islamic audience is pref erable. Because UK Muslim communities are not homogenous, and have a variety of ethnic, linguistic and cultural characteristics, interpretations and attitudes dif f er, so variations in the portrayal of women in advertising can be expected.

KFC vs MacDonald and Subway:

Nearly 9,000 new jobs in a recession are not to be snif f ed at, even if they do come with a "f inger lickin' well" herb and spice coating. Colonel Harland D Sanders, the late American f ounder of the original Kentucky Fried Chicken business, can f or once is excused his ever-optimistic grin on the signs that still adorn his bearded image at group restaurants. KFC is not alone, moreover. Fellow US f ast f ood chain Subway is creating 7,000 new positions at 600 new stores in the UK and Ireland. McDonald's is adding 1,000 jobs af ter seeing European sales surge 7.6pc during the last quarter of 2008 and this week Domino's Pizzas got in on the act, announcing 1,500 new posts on the back of a 10pc boost in takeaway orders

Controls:
T he KFC tasks of marketing research is to assess the inf ormation which needs and provide management with, Relevant Accurate Reliable Valid Current inf ormation To help in market decision making process Company need to conduct and use these market research to stay competitive and to avoid high costs associated with making poor decisions based on unsound inf ormation. Marketing research plays a signif icant part in the development of marketing plans because it allows the organisation to become less isolated f rom the key trends and changes, which covers their product. To

continue to be successf ul, KFC must receive inf ormation f rom the researcher that is clear and accurate .It also has to satisf y its pre-determined goal f or its research. But why is KFC enjoying a hike in UK sales when other f ast-f ood brands are experiencing a dip? And how will KFCs marketing keep sales buoyant and sustain the chains expansion plans? One reason is the shif t in peoples dietary pref erences as the medias promotion of health awareness has steered people away f rom f atty and red meat toward white meat. Dominick Nasalise, market analyst at Data monitor, says: People who are meat reducers are on the rise. T hey are cutting back predominantly on red meat, and chicken is generally seen as a healthy option. Whether KFC is better f or you given what it is f ried in, is arguable. T he f ast-f ood industry has historically attracted criticism. While McDonalds is widely acknowledged to use processed meat, KFC sells real cuts of chicken. But as a mass-producer of f ood it is still not immune to negative publicity. KFC is investing more than 100m in its plan, with a target of 1000 by 2012. T his comes as McDonalds is to close down 175 restaurants in ten countries. In 2001 the US burger giant had 1184 outlets in the UK (according to Mantel). On the KFC website its f ounder and brand icon Colonel Sanders speaks f rom beyond the grave, saying: You, like my chicken so much that were growing f aster than any of them other big restaurant names including them Burger Boys. And its those burger boys who had better watch out as KFC proceeds to carve a chunk out of the market. But why is KFC enjoying a hike in UK sales when other f ast-f ood brands are experiencing a dip? And how will KFCs marketing keep sales buoyant and sustain the chains expansion plans? One of the reason is this the shif t in peoples dietary pref erences as the medias promotion about health awareness has steered people away f rom f atty and red meat toward white meat. Dominick Nasalise, market analyst at Data monitor, says: People who are meat reducers are on the rise. T hey are cutting back predominantly on red meat, and chicken is generally seen as a healthy option. Whether KFC is better f or you given what it is f ried in, is arguable. older employees rather than hiring people f rom external sources T he recommendations that I would of f er KFC is to maintain its current low turnover rates and incorporate even more practices in its culture which provide recognition to employees and make them f eel valued. As f or selection and recruitment practices, age should not be a bias f actor and the principle of promotion f rom within should be adhered to. T his is because f or companies like KFC, it is very important to promote a certain employee culture; hence, it is better to promote HALAL KFC s growth strategy is to be successf ul KFC will need to broaden its target market and this is where marketing and the BBH appointments will come into their own. KFC is not going to overthrow the burger giants yet, as McDonalds and Burger King have f ar greater market penetration. But as consumers continue to seek f ast-f ood alternatives to red meat, KFCs ambitions couldnt come at a more opportune time.

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