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JUNE 6, 2013

Report On Segmenting Targeting and positioning of KFC

Executive

Summary

Idea is the key of Business. Each business is established to accomplish something, KFC is not any exception. Starting from 1930 its journey from Colonel Harland Sander‘s small kitchen in the small front room of a gas station in Corbin, Kentucky, U.S.; to 2012 it have been serving complete friends and family meals at affordable prices. There are over 15000 KFC outlets in 105 countries and territories around the world. It has several outlets in Bangladesh also. KFC is an established brand image in our country, but in recent days various local competitors has been growing as threat to the KFC market share. So here is the solution with fresh new ideas to market and promote KFC and hold on to its profit share. Market is difficult to understand as it changes continuously in an un-definable mechanism. Changes in the

market are so rapid that marketers have to keep up refreshing their network to get prepared in advance to beat the competition. In this report we have chronologically divided market based on the marketing theories, and then we prepared a complete set of market plan. Plans are described both theoretically and mathematically, with budget diagram and financial projection. We defined our plan with description of detailed activities that we are going to take in order to keep pace with the changing fast food market in Bangladesh.

Table of Content Title
Chapter 01
Introduction Objective of the study Scope of the report Methodology 07 07 08 08-09 10 11 11 11 12 12 13 14 14 14 15 16 16-17 17 18 19 19 20 20 21 22

Page No

Chapter 02
Company Profile KFC in Bangladesh Current Market Situation Analysis Customer Needs and Demand Availability Reasonable Price Quality

Chapter 03
Current Product Cayan Grill KFC Twister KFC Rice Services of KFC Distribution Channel Analysis Competitive Analysis Current Situation Analysis

Chapter 04
SWOT Analysis Strengths Weaknesses Opportunities Threats

Chapter 05
Mission

Financial objective Strong Cash Flow Solid Balance Sheet, Attractive Returns Stable, Growing Market Marketing objective

22 22 23 23 23 24 25 25-26 27 27 27-28 28 28-29 29 29 30 30-31 32-35 36 36 37 38 39 39-40 40 41 42 42 42-43 43 44 44 44 45 45 45-46

Chapter 06
Marketing Strategy Market Segmentation Demographic Segmentation Geographic segmentation Psychographic Segmentation Behavioral Segmentation Market Targeting Market Positioning Differentiation Product and Branding Strategy Products Pricing Strategies Advertising, Sales Promotion, and Public Relations

Chapter 07
Marketing Mix

Chapter 08
Marketing Plan Market surveys Customer Feedback Guerrilla Marketing Seasonal offers Discount offers Participate in social activity, as part of social welfare

Chapter 9
Financial Projections Marketing expense Budget Sales forecast Mark-up pricing Breakeven Analysis

Chapter 10
Controls Establishment of Standards Types of KFC Standards Measurement of Performance Comparing Performance with the Standards Taking Correct Action

Chapter 11

with chains in more than 10 thousand locations and worldwide in 80 countries. Specific objective –  To know briefly about ―KFC‖  To find out target customer of ―KFC‖  To find out current market position of ―KFC‖  To find out target menu items of Bangladeshi people in major cities  To find out product variation. innovation  To find out what attributes to position its product  To find out flow of good operation techniques  To ensure that consumer leave the store with a pleasant smile . Pepsi company changed the logo from Kentucky fried chicken to KFC in 1991 and then in 1992 KFC 1000th restaurant opened in Japan and in 1994 9000th restaurant in china. KFC and its franchised employees are more than 200 thousand in all over the world. Tricon global restaurant is the world largest restaurant group. KFC franchised with Gray Mecanza International and started work in Pakistan. 1.01 Introduction 1.Conclusion and Recommendation 47 48 Chapter 12 Sources Chapter. KFC is the part of Tricon global restaurant. Rawalpindi branch started work in 1999 and in Islamabad in August 2002 and now in Pakistan. John Y Brown and Jerry Messy purchased KFC for USA for $2 million in 1964 that time KFC become a corporation. In 1997. and has now been renamed to Yum! Brands. In 1986. with in nearly 100 countries around the world. which in turn was spun off in 1997. After five years. differentiation. Pepsi Company purchased KFC. there are 45 outlets nation-wide.1 Introduction KFC is the world largest and most well known chicken restaurant. Colonel buys first 100 shares of KFC.2 Objective of the study Followings are the objectives of the study: Broad objective We took try to gather huge practical and realistic knowledge about ―Marketing management‖ of ―KFC‖ and us familiar with this course.

visiting website of ―KFC‖ to access their company background.4 Methodology We have used different types of method. differentiation. The target is on each and every society. interviewed some customer to collect information. services. From our text book. Sources of informationWe have used the concept of the course information of the term paper. we review the question generated before the information gathered. Presentation of informationAll relevant information is presented on graphical forms. It also expresses to current market position and company growth opportunity of the market. to prepare this report. Limitations of the study . visiting different blog sites to collect information about consumer behaviour. target market. articles. Both male and female customers are focused by ―KFC‖. features and articles published in newspaper and other journal. market segmentation. The results of KFC is concerned they use different approaches in different perspectives like they are highly committed to customer satisfaction. positioning. hectic lifestyle and what consumer perception about ―KFC‖. swot analysis. group discussion. The sources of data collection are primary. marketing strategy and mix. journal. Gender does not play any role here. situational analysis. Target population―KFC‖ target consumers are upper. Then organize the information according to relevant information that has been collected. personality.3 Scope of the report This report is about marketing plans of ―KFC‖ . We collect information from our text book of ―Marketing Management‖ by‖ Philip Kotller‖. Analysis of informationTo prepare this report. target population. Primary data sourceUsually primary data collected from the survey. personality. Secondary data source – Secondary sources had also used to collect information. 1. and hectic lifestyle. Also use another method like – objective. marketing mix.middle class. survey.1. We divided our group into some parts and we went various places and gathered through informal interviews of the employee working over under ―KFC‖ and gathered more information from group discussion and also used personal observation as resource. We have group discussion. marketing strategy. survey. visiting different website. asking different question from the people.This report focus on consumer behaviour. secondary. social class. financial statement. asking different question from people.

If no problem has seen the report would become more meaningful and well established.3 million 455000 Products: Revenue: Employees: . Kentucky. Brownlea. Key people: Roger Eaton. grilled chicken. COO James O'Reilly. Utah) Harland Sanders Headquarters: Louisville. Kentucky) 1952 (franchise) (South Salt Lake. VP for Marketing Fried chicken.1 Company Profile KENTUCKY FRIED CHICKEN (KFC) Type: Industry: Genre: Founded: Founder(s): Wholly owned subsidiary Fast food Southern fried chicken 1930 (original) (North Corbin. The limitations of our study are given below:  Time limitation    Lack of information Unavailable resources Less experience effort Chapter .This report has many limitations. U. President Harvey R.S. When we prepared this report we face many problems.02 2. related Southern foods $520.

―finger licking good‖ chicken meals that enable the whole family to share a fun. In order to that they have to increase the number of outlet they have to develop an excellent channel of distribution. especially as individual buyers. students and kids. KFC plans roll out more restaurants in Bangladesh 2. Dhaka with a seating capacity of 178 persons.2 KFC in Bangladesh Transcom Foods Limited.kfc. KFC restaurant has been opened in 2009 at lalkhan Bazar circle.com 2. Chittagong with a seating capacity of 120 persons.Parent: Website: Yum! Brands http://www. So if KFC wants to increase the selling rate of their product. Till now there are 9 branches of KFC in Bangladesh. There are total eight branches of KFC around Bangladesh whose are: . Dhaka with a seating capacity of 178 persons. a concern of Transcom Group is the franchisee of KFC in Bangladesh. with same convenience and affordability of ordinary Quick Service Restaurants. they must have to make their product available to the customers. The first ever KFC restaurant has been opened in 1997. The first ever KFC restaurant has been opened in September at Gulshan.The customers can demand for low prices or demanding higher quality and more incentives.8 of them are in Dhaka. KFC plans roll out more restaurants in Banglades 2.4 Customer Needs and Demand The customers of KFC.September at Gulshan. Transcom Foods Limited.5 Availability Consumers always purchase those restaurants which are available to them.3 Current Market Situation Analysis KFC is highly popular international fast food chain restaurant in Bangladesh. Uninhibited and thoroughly satisfying eating experience. a concern of Transcom Group is the franchisee of KFC in Bangladesh. family. In the coming days. KFC strives to serve great tasting. KFC stands for high quality fast food in a popular array of complete meals to enrich the consumer‘s everyday life. In the coming days. The following factors determine the bargaining power housed by the buyers and KFC seeks to fulfill the following needs that are important to consumers- 2.

com 2. SE(H) 1 South Avenue. Hence.7 Quality Consumers always want the best quality product and a justified price to that. Dampara Chittagong.transcombd. KFC Baily Road 10. KFC Mirpur Plot . Gulshan. price sensitivity gives a lot of power in the hands of the buyers 2. Dhaka-1212 4. Dhaka 7. Road 142. Gulshan Outlet South Avenue. Gulshan North C/A.3 (Main Road) Mirpur.03 Product & Service Analysis . 31. Dhaka -1212 E-mail : kfc@tfl. Dhaka. Uninhibited and thoroughly satisfying eating experience. NatokShoroni Gold Hunt Shopping Complex New baily Road. Road No. Plot No. KFC strives to serve great tasting. 53. 2. Bangladesh. Road-7/A Sat Mosjid Road. KFC Dhanmondi House-84.1. Dhaka 5. KFC stands for high quality fast food in a popular array of complete meals to enrich the consumer ’s everyday life. Dhaka-1212. 3. Kemal Ataturk Avenue Banani. KFC Chittagong 5.CDA Avenue IspahaniMoar. Gulshan .6 Reasonable Price The price is very sensitive issues.1. KFC Banani Bulu Ocean Tower. 8. Also. Road No.14. “finger licking good” chicken meals that enable the whole family to share a fun.. 6. Chapter. Restaurant Support Center House No 10/A. people would rather go for similar product selling for fewer prices than buying an expensive one.Corporate Office Gulshan Tower 11th Floor. with same convenience and affordability of ordinary Quick Service Restaurants. there are lots of alternatives to within and outside the fast food industry as a whole. Dhaka..

which is a blend of 11 herbs and species. mean the same as "southern" here in the States?) and then grilled on a hot plate. 3. To make it more refreshing.3. which gives it the flavor everyone is crazy about it. a delectable combination of crispy chicken fillet and fluffy white rice with Original Recipe sauce or spicy tomato sauce. product are KFC offering 3.1 Current Product Product is anything is offering in the market for sale. Extra Crispy white meat chicken strips with shredded iceberg lettuce.3 KFC Twister Two freshly prepared.2 Cayan Grill Cayan might be derived from an earlier form of the word "cayanne. warm tortilla. KFC Rice . fresh tomatoes.all wrapped together in a soft. KFC (Kentucky Fried Chicken) is the world's largest chain of fried chicken fast food restaurants which is offering its special product to their customer. 3. Kentucky Fried Chicken is famous for its chicken. and pepper mayo sauce .4 KFC Rice KFC‘s first-ever rice meal. Cayan Grill chicken is marinated overnight in "southern" spices (does "southern" in Australia." Regardless.

To provide good services they have a philosophy of CHAMPS Program. KFC trains its employees to give quick and efficient service to the consumers who are standing queues to take their order. as it is a self service restaurant. These all new sensations will give everyone the energy to excel! KFC also offer various items and meal box to their customers those are:         Krushers Game Box Box master Chicken Bucket Fries Corn on the cob Zing Kong Snacker(chicken & veggie)         Soft Drink Coleslaw Chicken Thali Veg Finger Snack Box Sundae Soft Twirl Brownie Sundae 3.Meals come with regular NESTEA® Green Tea. The CHAMPS these are: Cleanliness Hospitality Accuracy Maintenance of Facilities Product Quality Speed of Service       . KFC is providing excellent product sport services but the range of services is not complete.5 Services of KFC Service is a very important factor for KFC as its actual product consists of not only quality chicken but also satisfactory service. Champs stands for their belief that the most important thing each of them can do is to focus on the customer satisfaction. CHAMPS stand for the six universal areas of customer expectation common to all cultures and all restaurants concepts.

6 Distribution Channel Analysis A distribution channel consists of set of people and firms involved in the transfer of title to a producer. as the product moves from producer to ultimate consumer. This practice is adopted to have the product up to the standards of international KFC chain. a full meal at KFC ranges about TK 200. The most preferable brands are: 3. If KFC rise their price of their regular item people of Bangladesh cannot go there. on every occasions and you will be playing role in delivering CHAMPS to our customers. KFC distribute their products among their customer in South Avenue. everyday. FFC.8 Current Situation Analysis  Copyright Transcom Foods Limited (TFL) started its journey in 2003 as a franchisee of Pizza Hut. Marination is imported from California.CHAMPS is the philosophy to ensure that the customer has the consistent quality experience in every restaurant. The Suppliers of KFC include K & Ns. Nescafe and bread and bunsare produced internally. The drastic difference in price assures no price competition between these restaurants Many fast food restaurants exist in Bangladesh’s. in Eskaton from February 2010. Gulshanfrom September 2006. The primary reason is that their core products. Pepsi Co. Hilal. in Paltan in 2011. in Dhanmondifrom November 2008. 150. Mirpur DOHS and sea beach city of Bangladesh ―Cox‟sbazar‖. The suppliers within Bangladesh can compete in the industry by raising prices or reducing quality of produced goods or services. if KFC raised its price for chicken by a small amount. in Banani from December 2008. which are continuously satisfying the countrywide demand. KFC has many competitor with similar fastfood chains in Bangladesh. the first International Chain Restaurant in Bangladesh. and went on to sign the contract to become the franchisee of Kentucky Fried Chicken (KFC) in the year 2006. 3. This franchise buys all the ingredients it uses and fulfils all other requirements of the franchiser. Both Pizza Hut and KFC are subsidiaries of the world‘s largest restaurant company Yum! Restaurants .. The type of distribution channel KFC uses is called middleman involved in it – Figure: Distribution Channel KFC is using the service firm sponsored supplier franchise system. A&W and so on. For example.7 Competitive Analysis Unlike what one would expect. whereas a full meal at other fast food restaurants can cost over TK. Bangladesh chicken lovers may go in BFC.TFL has open another three new outlets in Uttara.For example. India and Dubai. 3.

For knowing about situational market analysis and lacking.  Market Share KFC has a very long history and has the most recognize able brand in chicken with over 50% of the market share. The GDP (Purchasing Power Parity) is estimated at2.real growth rate in 2007was 6.965 trillion U.7%.S. The GDP. The GDP. and evaluating their overall market growth KFC always make a SWOT analysis. Due to with over 50% of the market share in fast food industry KFC has recognition around the world and has been globally positioned for many years in Bangladesh and to capture the market share in Bangladesh adopts champs philosophy  Economic Though for last 1 year there was economic slowdown all across the globe butte sales of KFC and other fast food chains did not slow down to that extent that of other sectors in. Foreign direct investment rose in the fiscal year ended March 31 2007 to about $16 billion from just $5. Nando‘s.per Capita (PPP) was2700 U. This will lead to higher buying power in the Hands of the Bangladeshi consumers. TFL has opened 6 Pizza Hut and 11 KFC outlets so far throughout the country. weakness(W). In a span of Nine years.The SWOT analysis begins by conducting an inventory of internal strengths and weaknesses of an organization and the external opportunities and threats that may affect the organization.S. Chicken King or those who may want to enter in the market of fast food restaurants.5 billion a year earlier. dollars in the year 2010.1 SWOT Analysis SWOT analysis is an overall evaluation of the company‘s strengths(S).04 Strengths and Weaknesses 4. The only danger to it will be if there is a terrorist attack in Bangladesh and the victim is KFC. opportunities (O) and threats(T). based on market and the overall environment KFC is the strongest brand in the fast food industry in the world.S. getting knowledge about future threats. . Chapter.International. dollars as estimated in 2008. So taking into considerations the economic factors of Bangladesh KFC is safe. It becomes difficult for the companies like BFC. Bangladesh has the lowest GDP in terms of purchasing power parity just ahead Japan and behind U. and China. FFC.

therefore . Lack knowledge about their customer. Lack of knowledge about their customer. It doesn‘t have any core competition in chicken serving. KFC plays an important role in increasing employment in country. They serve variety of items under single menu. They only focus higher income level people but in our country most of the people are middle class. KFC outlets are available.2 Strengths Strong franchises all over the world. Lack of relationship building with employees customers and suppliers. Taste and food quality are better than other food corner They are successful in maintaining their loyal customers. They can open temporary outlets in university. Interactive relationship market. knowing people‘s tastes and whims They are ISO ( International Standard Organization) certified 4. They has higher overhead costs. KFC gives many facilities for part time jobs. Maximum customer are student so they can sale their product in resalable price. They can open more outlets to get maximum market share. Give more focus on nutrition.3 Weaknesses Its major weakness is the presence of multinational competitors in the market like Pizza hut. Large multi brand in the world KFC is the market leader in providing different products of chicken They are specialized in chickens Existing in the local market for years. .4 OPPORTUNITIES They can include new product in their menu.4. Increased and efficient services specially home delivery and office orders. Inflexibility of price making. They can advertising their product in media. KFC secret recipe of herbs and species. as a result of KFC higher prices must charge They are over confident of loyal customer 4.

Chapter. oversized biscuits. generously dressed coleslaw. Lake of promotional advertising. serving food.3 Strong Cash Flow . 4. potato wedges and wraps. Changing customer demand. Modern additions to the menu include oven-roasted renditions of its chicken sandwiches. .To afford well trained and well skilled executives and sales people. Kids and adults love the "little bucket" parfaits of pudding desserts. These characteristics include: 5.Focus on packaging. steaming-hot mashed potatoes and gravy. The threats faced by KFC are the entering of many new competitors into the market that maybe local or international brand.5 Threats Day by day change in food habits Diseases like bird flu are the big threat for KFC. So our KFC has some financial objectives as well. this fast-food restaurant still makes its legendary fried chicken with the closely guarded blend of 11 herbs and spices originally created by founder Colonel Sanders. Classic sides include flaky. -Hired famous lobbyists for advertizing their product. popcorn chicken. People become health conscious day by day. 5. High rate on prices as compared to the other brands selling same items may cause the customer‘s shift. So that they could gain more profit.2 Financial objective Every company has some financial objectives for every product. smoky-sweet baked beans and crisp. -Sometimes give some aggressive sales or advertize to increase their sales In this certain process there are also some financial characteristics that enable it to accomplish these objectives. They are given bellow-Their first objective is to increase their sales up to minimum 15% in next 5 years. Less consciousness about packaging.05 Marketing Objective and Issues 5.1 Mission Established in 1939.

5. and persuade them to buy or use it. KFC generates a strong cash flow from their operations. So it helps the company to decides which customers it will serve (segmentation and targeting) and how (differentiation and positioning).It identifies the total market. And you have to let people know about your product or service repeatedly. This gives KFC financial flexibility to fund its business needs while maintaining financial discipline and yielding attractive returns on assets and investments.tends to be less sensitive to the economic cycles faced by many other businesses. hotels and other office institutions . selects the most promising segments . Inform consumers of differentiation factors.5 Stable Growing Market KFC primary customer are . marketing strategy is very important. they are less susceptible to reduction in tough economic times. 5.1 Marketing Strategy Running a successful business is not like a field of dreams. Since KFC products fulfill basic hygiene needs. Inform consumers about the product or service being offered. For this.schools. restaurants.4 Solid Balance Sheet. And this marketing strategy provides the goals for your marketing plans. You have to let people know about the product or service you offer.Because of strong margins on most products. Attractive Returns KFC has attractive business and strong financial management which resulted in a solid balance sheet.06 6. then divides it into smaller segments. 5. Figure: Marketing Strategy . stable markets and low capital investment requirements. you can build it but they might not come true. and focuses on serving and satisfying the customers in these segments.Your marketing strategy consists of: The "what" has to be done.6 Marketing objective Marketing objective means the ‗goals‘ that the business must achieve in order to wider business objectives Clearer product differentiation Targeting their market consumer Increase their market share Long term brand value to customer Decrease customer acquisition costs 8% per year Creating and launching new products / services – ‗Innovation‘ meet its Chapter. This provides KFC with a relatively stable market in which to do business.

gender.3 Demographic Segmentation Demographic segmentation consists of dividing the market into groups based on variables such as age. Life cycle stage: Closely connected to age. for practical reasons. Income: . 6. education. In KFC Generally there is no age limit focus by the KFC.2 Market Segmentation Dividing a market into distinct groups of buyers who have different needs. race and nationality. Also. KFC give their concern in following demographic segmentation:- Age: One of the first variables of demographic segmentation is age. income. religion. As one might expect. there is often much more data available to help with the demographic segmentation process. For this KFC offer kids meal with toys and veggi burger for old age people. This is because consumer needs and wants change with their age. KFC mainly focus on following market segments. The target and focus is on each and every individual in a society. KFC finds its largest demographic in the young of any society. family size.    KFC has marketing strategy emphasis on the following facts: Market Segmentation Market targeting Differentiation Positioning 6. demographic segmentation variables are amongst the most popular bases for segmenting customer groups. characteristics or behaviours and who might require separate products or marketing programs. the life cycle stage of a consumer group defines what will be the need of that particular customer. This demographic segment cannot be said as an ―Age‖ segment because these customers are in specific phase of their ―Life‖. occupation.

Social Class: This plays a vital role in the demographic factor of the KFC. umbrellas and gumboots. Consumers with low incomes may not be able to purchase their desired products whereas consumer with higher incomes may not be satisfed with the existing product. Key Spots:    Tourist spots Commercial Areas University Canteen 6. KFC in Bangladesh only focus following geographic segmentation. These are:City: Because Bangladesh is a developing country and the fast food business highly profitable in only Dhaka and Chittagong city that‘s why KFC only focus on this two city. cities. upper middle class.5 Psychographic Segmentation Psychographic segmentation is dividing a market into different groups based on social class. With respect to region. Generally they target upper class. Because the items KFC sell are very expensive. A person‘s income level combined with its accumulated wealth is the major determinant of the consumers‘ willingness to purchase a product. or personality characteristics is called psychographic segmentation. 6.6 Behavioural Segmentation . In cold regions you can sell warm clothes. In hot regions you can sell summer wear. In KFC Income is an important key factor for KFC. neighbourhoods. countries.Another popular basis for segmentation is income. middle class and middle lower class. states. lifestyle.4 Geographic segmentation The market is segmented according to geographic criteria—nations. KFC divides market on the basis of psychographic variables like:   Life Style (Lifestyle is not specific) Personality (Personality is ambitious and authoritarian) 6. or zip codes. In the early rise of KFC they focused on the upper class but slowly are introducing economy meals that attract the lower to middle classes. Income is the main decisive factor that influences consumers purchasing power.. in rainy regions you can sell things like raincoats. This factor decides which class is to be targeted. regions.

A company with a great number of recourses might decide to serve two or more segments. First is to acquire new customers and second is to retain your existing customers. After a company has decided which market segments to enter. Marketer wants to develop unique market positions for their products. Occasions: The first form of behavioral segmentation is selling product in different occasions. If a product is perceived to be exactly like others on the market consumers would have no reason to buy it. . it must decide how it will differentiate its market offering for each targeted segment and what positions it wants to occupy in those segments. 6. After a company has defined market segment it can enter one or many of these segments.8 Market Positioning Positioning is arranging for a product to occupy a clear. attitude towards. use of or response to a product. consumers are divided into groups according to their knowledge of. on Valentine‘s Day special couple discount offer.A Company with limited recourses might decide to serve only one or a few special segments. Benefits: Several products are targeted towards the benefits sought by the customer. the more your customer base will increase. Loyalty Status: There are two ways to grow a business. they have some advantage because they are well known chain international fast food company. In case of KFC. A company should target segments in which it can profitably generate the greatest customer value and sustain it over time . They also offer their customer on cricket match ―KFC Popcorn Chicken‖. That‘s one more kind of behavior which marketers target. 6. In Bangladesh KFC can permit their customer to celebrate various occasions. A product position is the place the product occupies relative to competitors products in consumer‘s minds.7 Market Targeting Market targeting is the process of evaluating each market segment‘s attractiveness and selecting one or more segments to enter. distinctive and desirable place relative to competing products in the minds of target consumers. The more loyal your customer is to you.In behavioural segmentation. It is actually based on the behavior of the consumer. For this KFC only focus some social class.

which is almost. KFC differentiated their market offering for each targeted segment and what positions it wants to occupy in those segments. It produces high quality products. and publications.11 Products Pricing Strategies . I order words they have got brand equity.KFC promotes a ―high quality poison‖ for its products.properties. products. distributes through high class dealers and advertises in English newspapers with a high circulation. chargers a high price.9 Differentiation Differentiation is actually differentiating the market offering to create superior customer value. Once KFC chosen a desired position it has taken strong steps to deliver and communicate our position to target consumers. KFC is communicating through physical size and ques that people use to judge quality. standardizes the entire world except little differences because of local requirements & the promotions are very critical factor. Packaging The packaging for KFC products is chosen according to performance against three criteria: heat retention.10 Product and Branding Strategy Branding Brand identity was defined as the customer impressions of four different KFC identity elements . These findings support a model where differences in cultural frames of reference lead consumers to actively localize the brand identity of this nominally globalized product. 6. can feel the difference. presentations. Environmental concerns Over and above ensuring our packaging is supplied via recycled or renewable resources. KFC are enthusiastically complying with the new environmental directives on recovery and recycling of packaging waste. the environment customers get in the KFC are the focus that built KFC‘s image in the customer mind that is why they are always trying to bring positive changes in the environment so that every time their customer enter the KFC. 6. Brand identity impressions were correlated with overall customer satisfaction and with future patronage intentions for both groups. and grease absorption. The people of our country also have much more positive impressions of KFC. For KFC management the image their customers carry in their mind is the most important factor. They think that trough continuous efforts they have developed such a brand image in their customer‘s minds that their customers have become brand loyal. That is why for them the product quality. 6. moisture removal. The people which are their customer and the physical evidence. The packaging material and carton design are all adapted to maximize performance against these three criteria.

its availability etc. what kind of product. or services by an identified sponsor. Sales Promotion. In the cost based method we include the variable and fixed cost.KFC globally enters the market using market skimming. American Burger. And certainly. It prices its burgers. KFC persuade their customers to buy the products. The products are bit high priced according the market segment and it is also comparable to the standard of their product. Gradually they trickle down the prices focusing on the middle to lower class people to penetrate both sides of the market. discount and bundled packages and organization finds most of its meanings and survival through promotion. Using all the resources of promotion . In the case of KFC. and Public Relations Advertising Any paid form of non personal presentation and promotion of ideas. their customer will attract to buy the products. they will come again to buy the products.12 Advertising.  Premiums  Exhibits  Coupons  Entertainment .advertising. Their products are priced high and target the middle to upper class people. If the competitor provides the same product at a lower price than the organization usually lowers the price of its product too. tax and excise duty and then comes the final stage of determine the price of their product. 6. goods. coupons.  With the advertisement. KFC price their product keeping different points in view. So. They inform the customers about the new products. events and experiences. KFC uses the following tools to further enhance its sales. In order to do that. Chicken King and Pizza Hut. CFC. the price. They adopt the cost base price strategy. public relations. French fries and soft beverages with relation to its competitors. Fried Chicken is its main selling point and controls a monopoly over the fast food market (only with fried chicken). sales promotion. KFC will make a good and attractive advertisement. We can compare the price of their products with FFC.  KFC introduce the new products to the customers using many kind of advertising.  Using the good advertising will make the customers remember about the products. Pricing of the product includes the govt. There are some Media Types that KFC use for their advertising:  Newspaper  Radio  Magazine  Internet  Outdoor Sales Promotion Promotion is the method used to inform and educate the chosen target audience about the organization and its products.

building up a good corporate image. actuation. and events. customers can enjoy the benefits of free meals or free add-ons. Additionally they provide meal vouchers and exciting offers in their print ads. and is often synonymous with the four Ps:  Product  Price  Place  Promotion Fig: Marketing mix  Product A product can be defined as anything that can be offered to a market for attention. so they enter in the market due to the demand of their chicken products. Using coupons that one can acquire after spending a particular amount over a period of fixed time. stories. those products are  Product Categories There are different products divided into sections according to the differentiation in them. Basically.1 Marketing Mix The marketing mix is a business tool used in marketing. Public Relations KFC also building a good relation with the company‘s various publics by obtaining favorable publicity. The marketing mix is often crucial when determining a product or brand's offering. and handling or heading off unfavorable rumors. KFC is variety of product in the chicken. KFC target the Asia and east side because they observe that these people like the chicken products. which the customer must cut and bring along. use or consumption that might satisfy want or need. KFC is known as a chicken specialist all over the globe. KFC is specially dealing in the chicken products. 1) Chicken 2) Burger 3) Desserts & Beverages 4) Snacks & side orders .All KFC outlets offer its customers with various forms of incentives to buy its Chicken. KFC has the special recipe for chicken products that is why.07 7. Public Relations Tools are:  News  Speeches  Internet Chapter.

The pricing strategies of organization are different in the different countries due to different exchange rate. main concern of KFC is to sell in volume and maintain it on long term basis. They are charging a price which they think fair to customers. and all the other products of KFC are set by the Head Office by adopting the proper method. and different tax policies in the different countries. KFC provide special discounts to only employees and special customers. More broadly.Price of any product is equal to the cost plus desirable profit. Gradually they trickle down the prices focusing on the middle to lower class people to penetrate both sides of the market. Payment period. attractive pricing.i) ii) iii) iv) v) KFC‘s original recipe is fried chicken and French fries. In our country. Pricing Strategy: KFC globally enters the market using market skimming. Allowances are provided to employees. adopt cost base price strategy. customer pays when the services are delivered to them. Prices of Chicken PCs. Burger: It includes the following burger items: Mighty Zinger Zinger Extreme Fish Zinger Veggie Burger Colonel Fillet Burger  Price Price is the any amount of money that customers have to pay while purchasing the product. huge promotional activities is of no use if the product is not available to the consumer. The outlets are: . there are 11 outlets of KFC. Their products are priced high and target the middle to upper class people. High quality product. They are located in convenient place so that the customers can easily go and enjoy delicious foods. In Bangladesh. KFC pricing the products by keep the different pointsin the mind. According to Marketing Manager. KFC offer different products at different list prices. price is the sum of all the values that consumers exchange for benefits of having or using the product or services. inflation.     Place Place includes company activities that make the product available to target consumers.

       Advertising The logo of the smiling Colonel is probably one of the most recognized faces in the world and instantly brings the image of fried chicken to one‘s mind.To enhance public relation KFC does different types of seminars and employee training classes. KFC Mirpur. KFC Uttar  Promotion Promotion means activities that communicate the merits of the products and persuade consumers to buy it. KFC Dhanmondi 5. Promotion is the main tool to bring all chicken lovers attention towards its delicious one-of-a-kind product. KFC Dhanmondi 4. Additionally they provide meal vouchers and exciting offers in their print ads.  Sales Promotion All KFC outlets offer its customers with various forms of incentives to buy its Chicken.1. KFC is not just a quality food restaurant. its products and policies. KFC Gulshan 2. It also does the following activities as advertisements:  Public Relations It is a communication effort that is designed to favourably influence attitudes toward an organization.08 8. Chapter. KFC Baily 7. 6. At KFC. Using all the resources of promotion: Advertising Sales Promotion Public Relations Events and Experiences Coupons. It is the method used to inform and educate the chosen target audience about the organization and its products. Discounts and Bundled packages An organization finds most of its meanings and survival through promotion. KFC Paltan 8. customers can enjoy the benefits of free meals or free add-ons.1 Marketing Plan . KFC Banani 3. but also a socially conscious corporate citizen. It has been equally involved in promoting and funding several community welfare projects through aggregate KFC revenue. which the customer must cut and bring along. the Fried Chicken. Using coupons that one can acquire after spending a particular amount over a period of fixed time.

In addition we want to create and retain long term relationship with customers and prospects. Find Out About Your Competitors Customer Retention 8. and capture maximum market share through increasing our sales. Tick Your choice (√) Perfect Food Quality Food Temperature Waiting Time Menu Board Sitting Arrangement Restaurant Temperature Music Restaurant Cleanliness Above Average Average Below Average Poor . threat. Wide Reach of Market Survey Get Honest Answers Cost Benefits.2 Market surveys For every business to success we need a strong market holing. 5. future assumption and forecast base to come up with the best possible market solution and keep pace with time. 2. A Feed Back form can be: FEED US BACK: D 1. The Top 5 Benefits of Market Surveys: 1. and delight them by our continuous effort to serve package of tasty surprise. Broad description to achieve our goal is described under ‘Action Program’. So continuous research to understand the market will help us grow as an organization. suppliers. ‘Financial Budget and forecast’. weakness.The survey may generate sales leads. For this we have to develop a quantitative ranking along with qualitative description of the ranks to specify positive and negative sides of our product and service. 8. competitors. and ‘Controls’ section.As marketers of KFC our plan is communicate and promote our new and existing product and services to our target market. opportunity.3 Customer Feedback We will arrange a feedback system from customers. 3. It will help us to trace our performance. With this motive staring from this year we will carry on different market survey and market research to get to know our customers. 4. competitive advantages. Feedback collection can be done in our outlets or through campaign.

The objective of guerrilla marketing is to create a unique. and consequently turn viral. to convey or promote a product or an idea. often in a localized fashion or large network of individual cells. When will you be back? _ Next time I blink (very soon) _ May be sometime later _ When I win a Nobel Prize (Never) 3. Guerilla marketing is a whole new concept in Bangladesh so it will be surprising for our customer if we successfully implement this promotional activity in proper manner. sticker bombing.4 Guerrilla Marketing Guerrilla marketing is an advertisement strategy. potentially interactive. and consumers are targeted in unexpected places. Typically. guerrilla marketing campaigns are unexpected and unconventional. engaging and thought-provoking concept to generate buzz. Which restaurant you consider next after KFC? _ABC _XYZ _Other 8. . in which low-cost unconventional means (graffiti. How many people were in your group? _Just me _Me and some one _4 or more 4.Overall Experience 2. The idea of guerrilla marketing was introduced as an unconventional system of promotions that relies on time. energy and imagination rather than a big marketing budget. flash mobs) are utilized.

6 Discount offers Like almost all competitive brands we will also provide occasional Discounts. Some may consider these efforts humorous as KFC is not an infant brand that need to step up to the street to sell its offerings.We can also arrange Surprise Selling under this method. We will provide with variety of weather friendly offering to boost up the taste of season with KFC experience. . winter. 8. Or in the evening of cold winter we can go through public place with a tank full of KFC hot coffee and sell them in a special offer. For example: in Bangladesh we have three main seasons‘ summer. but if we think from the contrary perspective then this may increase customer intimacy with KFC. take the car at a public place or amusement park and sell those hot wings in a limited offer within a limited time. If we create this offer simple with logical pricing these offers can gain much popularity among our customers. Breakfast offer etc. For example: In Rainy season we can take a lobby filling with Bucket of hot wings. We can transform it into our marketing opportunity of seasonal offers. Dinner offer.5 Seasonal offers We will introduce seasonal offers concentrating on different season. 8. For example: lunch box discount. and rainy season. This will also enhance our brand image.

7 Participate in social activity. 4. Communicate the offer according to local norms. Set offers accord 8. as part of social welfare Corporate social responsibility has been talked as a big issue among business and people.Some rule of Discount offers: 1. Do not exaggerate the offer. 5. 6. 3. Present a simple offer attractively. suppliers and business. 2. prospects. competitors. As a corporate member of Bangladesh KFC also care for its‘ surrounding. Do not underestimate or overestimate our customers. We have already taken few steps about cleanliness and in future we plan to participate more into the social welfare activity. Fig: KFC cleanliness program Distributing food among children . Create an honest offer. 7. Simplify the key benefit.

070 All the calculations are done in a simplified form. and through creating prospective financial statements that present.09 9. 3. financial managers has to make all the calculation regarding cost analysis.2 Marketing expense budget How much will it cost (Annually)? Marketing Cost (2012) Taka ooo) (oo. sales forecast. We are considering all the forecast based on the Gulshan brunch that is the first ever KFC restaurant in Bangladesh. Contribution margin percentage calculation: = 1 – (variable cost per unit/selling price per unit) = . given one or more hypothetical assumptions. We select some area in Dhaka city where we want to run a project of tree plantation. projection.000 Average selling price of KFC‘s per unit product is 200tk.WE do care for our surrounding. 2. Under this project we will plant trees in the roadside island and also have a plan to organize a workshop of tree plantation in different schools to encourage new generation about it. and changes in financial position (Here we are representing simple form of company’s cost and profit evaluation. an entity's expected financial position. expense forecast. but in next one year we have so many plans. Our attempt is to give a model budget for KFC) Assumptions: 1. .00. Forecasts are done on yearly basis. and we have act on our realization so far. Average variable cost per unit 60tk. break even analysis. 5. financial projection estimates of the future financial performance of a firm. Annual Fixed Cost 180. 6. Basically. results of operations. 4. income statement analysis and overall cost-benefit analysis to determine which project should be chosen and implemented. Chapter.1 Financial Projections Every plan has its cost of implementation. 9. 7.

000 900. 9. Calculation of 2012 sales: 1500*30=45000*12=540000*200=1080 2. We expect our sales to grow positively with our promotional activity. The KFC markup price is given by: Markup price≔ .Car rent Space rent Employee salary Advertisement cost Expense related to promotion Social activities Total = 3 4 5 4 1 1 18 9.4 Mark-up pricing Variable cost Fixed cost Expected unit sales 60 18000000 900000 Suppose KFC has the following cost and sales Expectations.000 720. The manufacturer unit cost is given by: Unit cost= Variable cost + 85 Now assume the KFC wants to earn 20% markup on sales.3 Sales forecast Year 2012 2013 2014 Sales in units 540.ooo) 1080 1440 1800 Note: 1.000 Taka (oo.

86 Lack Chapter. The essential elements of KFC control processes are: • Establishment of Standards • Measurement • Comparing performance with the standards • Taking corrective action 10.1 Controls Controlling is measuring and correcting individuals and organizational performance to ensure that events conform to plans.000/0.00. 00. Break-even analysis focuses on the relationship between fixed cost. Standards should be set precisely and preferable in quantitative terms. and helping to correct deviations from standards.70 = 257142. A standard acts as reference line or a basis of appraisal of actual performance. KFC standards represent criteria for performance.KFC involves measuring performance against goal and plans. Break-even in sales volume: = fixed cost/ (price-variable cost) = 180. showing where deviations from standard exist. Target –return Price: Unit cost + =$85 + 9.Target–return Pricing: KFC has invested $ 1million & wants to set a price to earn 20% & expected unit sales 900000.5 Breakeven Analysis Breakeven analysis is a calculation of the approximate sales volume required to just cover costs.2 Establishment of Standards Establishment of Standards is the first step in KFC control process. below which production would be unprofitable and above which it would be profitable. KFC controls the facility of the accomplishment of plans.000/ (200-60) = 128572 units Break-even in Taka: = fixed cost/ Contribution margin percentage = 180. variable cost. and profit. KFC setting standard is closely linked and is an integral part of the planning process. In shortly.10 10. Standards are .

it is easier to correct deviations. KFC comparing the Performance with Standards Appraisal of performance or comparing actual performance with pre-determined standards is an important step in control process. KFC applied the corrective measures in actual place . every procedure. where results are intangible and cannot be measured quantitatively direct personal observations. every activity of these programs. however deviation should be disclosed as early as possible. 10.Another way KFC follow the correct through leading- . In other cases.In the absence of such ability. and every budget can become a standard against which actual or expected performance might be measured. Comparison is easy where the standards of KFC have been set in quantitative terms as in production and marketing. KFC Standards tend to be of the following type Physical standards Cost standards Capital standards Revenue standards Program standards Intangible standards goals as standards strategic plans as control points for strategic control         10.4 Measurement of Performance Measurement is not always practicable. 10. 10. every policy. planning is the basis of KFC control.The management of KFC should not depend upon the guess that standards are being met measurement of performance against standards should ideally be done on a forward looking basis so that deviations may be detected in advance of their occurrence and avoided by appropriate actions. groups or units .6 Taking Correct Action The Standard of KFC reflects the various positions in its organization structure .If KFC performance is measured accordingly. inspection and reports are few methods for comparing performance. every goal of the many planning programs. the measurement of KFC performance against standards should ideally be done on a forward-looking basis on that deviations may be detected in advance of their occurrence and avoided by appropriate actions. KFC forwardlooking manager can sometimes predict probable departures from standards .used or bench marks by which performance is measured in the control operations at the planning stage.3 Types of KFC Standards Every objective.5 Comparing Performance with the Standards The second step is to measure actual performance of various individuals.

we should make an appropriate plan to establish our KFC Then we should recognize did we cope with our actual goal or not? If there are any faults. KFC has introduced many offerings for its growing customer base in Bangladesh while staying rooted in the taste legacy of Colonel Harland Sander‘s secret recipe. After correcting the fault. then try to define what the fault was in our planning of KFC. Chapter. we should work for removing the fault so that it may not hamper our next year performance.1 Conclusion and Recommendation KFC is the largest brand of Yum Restaurants. . we should do work according to the correct plan. if KFC do the task according to the plan and provide quality product to satisfy the customers. KFC has the culture of team. Moreover new products highly refresh the oldones as recipe is modified according to the culture In recent survey it has been proved that most people in love to take home parcel rather than dining out. flavourful and juicy Original Recipe chicken. Transcom foods limited have brought KFC franchise in Bangladesh for the first time In Gulshan area. Veggie and etc. For the vegetarians in India. One of the most important and oldest resources ―The secret recipe‖ of 11 herbs is still used in meals. KFC builds on past concepts. juicy & crunchy Zinger Burger. After identifying the fault point. but unfortunately KFC do not have any home delivery service like McDonald or other food chain storestherefore. In briefly. Chicken Bucket and a host of beverages and desserts. the spicy. we would say that KFC should definitely have a home delivery service. Toasted Twister. the total processes are given bellowfirst. A&W and Long John Silver. Taco Bell. it will enable to solve problem according to planning process. a company that owns other leading brands like Pizza Hut. The firm believes in learning of old employees rather thanrecruiting new employees. We should closely monitor our quality in order to make our consumers satisfaction.      fuller explanation of the job or more effective leadership techniques. juicy inside‖ Hot and Crispy Chicken. Its signature dishes include the ―crispy outside. If there any fault in plan. Teams are blending of old and new employees but KFC more on old employees. Most of the new meals offered are based on the old product concept of providing quality chicken. with modifications according to the taste of local market. We thing that. Dhaka.11 11. KFC also has great tasting vegetarian offerings that include the Veggie Burger. then correct the fault.

htm http://www. Chapter-12 12.KFC is one of the few food brands that have been surviving for so long with an aristocratic brand image.com/ http://www.com/doc/17818440/KFC-marketing-strategies http://www.com www. 2013 Email ThisBlogThis!Share to TwitterShare to Facebook Labels: Education Reactions: No comments: .about.youtube.1 Sources Text Book: Marketing Management.scribd.org www.org/wiki/Break_even_analysis http://www.gmarketing.com www.wikipedia.scribd. June 06.com/od/marketingplanandstrategy/a/Marketing-Strategy-VsMarketing-Plan.com Links: http://en.htm Posted by Mystery News24 at Thursday.guriellamarketing.com/doc/9259321/KFC-New-Product-Plan http://marketing.kfcbd.investopedia.com/aboutus_kfcbang.kfc. Just because of its quality it has been holding a competitive position so far.wekipedia. We expect to grow its reputation and business in future and hope our marketing plan will contribute in reaping the root towards a successful food chain in its brighter future.b.cpm www. 13thEdition Philip Kotler Kevin LaneKeller Abraham Koshy MithileshwarJha Websites: www.

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