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What is in a Marketing Plan?

The marketing plan will cover the rationale for the business, it‟s unique differentiation, which the principals believe is not only right and appropriate for the area in which the business will be situated but also sets it apart from other similar operations in the surrounding area. In addition to this rationale, the targeting and positioning strategy will be outlined, along with the overall marketing strategy, communications and actionable marketing plan, including costing‟s for advertising and promotion of the new venture.

Market Research Approaches
Prior to commencing any research consideration was given to the following pertinent questions, (Reuvid) i. ii. iii. iv. v. What and where is the main competition? What are the potential customers looking for? Where should the market positioning of the business be? What is the profile of the target customer? What approaches should be taken to achieve economic promotion of the business?

In order to answer these questions, both desk and field research were undertaken and you can read the rest of the marketing plan here Ivory Research welcomes Rowan Truebody to the Ivory Research team, thank you for joining the ever-growing talented writers we have at Ivory Research and supplying a sample of your work (above). Why Rowan Truebody is the ideal custom writer;
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Rowan holds a BmedSci in Speech and Language Therapy from Sheffield University. Rowan has worked in a variety of industries, including healthcare, human resources and marketing and promotions, providing analysis and reporting papers Rowan‟s background and well rounded experience shows that she he has extensive knowledge of expectations and requirements for work at both undergraduate and graduate level.

KFC Marketing Plan

Industry Background
These few decades, the lifestyle and pace of modern people has become faster changing ever. Thus, people are demanding for fast food for take away or dine in which are quick to fill up their stomach. This has fueled up the competition of fast-food restaurants to share the cake of fastfood industry. There has been an ongoing battle between the fast-food restaurants. KFC, McDonalds, Sugar Bun, and Marry Brown are the top selling fast-food restaurants in Malaysia today. The have the same goals to provide quality food, serve quickly, in attractive, clean surroundings. They are all on top in different areas. Many of their competitive advantages have come to a halt. They all have been working on other strategies to beat the competition (Yum Brands! 2007).

Corporation & SBU Background
QSR Brands Bhd. QSR Brands Bhd. with its subsidiaries together engages in the operation of fast food restaurants in Malaysia, Brunei and Singapore. It operates approximately 193 Pizza Hut restaurants in Malaysia and Singapore; 456 KFC restaurants in Malaysia, Singapore, and Brunei; and 13 Rasa Ayamas restaurants in Malaysia. The company has employed over 20,000 employees throughout Malaysia, Singapore and Brunei. The company is involving in the integrated poultry, breeder farms, hatchery, feedmill, and poultry production and processing operations, as well as vegetable farming, baking, sauce production, and commissary operations. In addition, QSR Brands Bhd engages in the poultry retail and convenience food stores operations, trading in consumables, and property holding operations. The company is headquartered in Kuala Lumpur, Malaysia. QSR Brands Bhd. Successfully listed on the Main Board of Bursa Malaysia on 1 April 2004 (QSR Brands Bhd. 2007). KFC Malaysia KFC Malaysia is the famous fast food restaurant in Malaysia; products it sells include chicken, burger, nugget, sandwich, wedges, drinks, fries, coleslaw and many more. It has captured 44% of market shares in Malaysia. Its first restaurant was opened in 1973 on Jalan Tunku Abdul

Rahman, now it has more than 390 restaurants throughout Malaysia and growing. Among all, their secret recipe chicken is the KFC most famous dish, it has great taste and truly enjoyed by Malaysian ever since. Kentucky Nuggets was conceived in Malaysia, and found its way to KFC worldwide today. “Meals on Wheels”, was also developed in Malaysia, creating and bringing opportunity for people to taste where KFC might not available. KFC Kids‟ Chicky Club was also developed to suite for kids. Chicky and Friends, the character in the KFC, bring pleasure and fun to all children, a good example would be television program sponsored, The Chicky Hour, which broadcast on every Saturday morning at TV3. Some other activities developed by KFC Malaysia include Projek Penyayang KFC, Tabung Penyayang KFC, “Tabung Penyayang” KFC Collection Boxes, and 3 of KFC restaurant are operted by speech and hearing-impaired staffs. All the information above extracted from the KFC Malaysia website (KFC Holdings 2007).

SBU Situational Analysis
SBU Culture
All fast food restaurants under Yum! Brands in the world have unique culture throughout the world, which applies to every brand under the Yum! Brands, which shows they have very strong belief towards their culture. „CHAMPS‟ is the soul culture for KFC in the world: Cleanliness, Hospitality, Accuracy, Maintenance, Product Quality, and Speed with Service.

Cleanliness
Make it shine! As referred to KFC RGM Manish Patel tells his team, they spend the first two hours of each day keeping his restaurant sparkling, with the program called “Cleaning Captain”. In 2006, he was named KFC‟s RGM of the year.

Hospitality
Letting the customer know that they come first. As referred to how LJS/A&W RGM Kris Jaccard defines hospitality. Kris has been keeping the customer top of mind for 15 years with franchisee BNC Food Group, she is designated a “training restaurant”. She scored 90% for CHAMPS in 2006.

Speed with Service Things move fast in the five restaurants that Mejid Mamdouh oversees in Paris. In-store surveys help the team stays focused on their customers‟ needs and keep their CHAMPS scores in 90% plus range. Ramona Ureda. Maintenance Displaying a high-energy attitude.Accuracy KFC RGM Liu Bing Zhi. then satisfied customers and profitability will follow! This veteran started as a crew member in 1993. All the information above extracted from Yum! Brands‟ annual report. defines accuracy as serving delicious food the right way every time with smiles. and making sure their orders are correct. SBU Resources The following are the corporate resources of KFC Holding (KFC 2007): . and his outstanding coaching skills and CHAMPS showed that he was an unique leader. she knows customers expect their orders to be perfect and the quality of the product as high as possible. while growing sales. As referred to Pizza Hut RGM Don Bryant keeps his eye on all parts of the business. She scores 97% for CHAMPS in 2006. As referred to Taco Bell company RGM of the year. Making sure customers don‟t have a bad experience because something is not working right is very important that contribute to the customers‟ satisfactions. Product Quality Perfect tacos every time. Customer coming in because they know they will get great food. Prioritize people capability first. He scored 95% in 2006.

KFC has well-known brand name around the world.  In terms of intangible resources. cook and its company website setup online.  KFC owns corporate headquarters in Jalan Sultan Ismail. which is the CHAMPS. Annual report should also be prepared . KFC also has its 15 warehouses and 25 logistic services located in Shah Alam.  KFC has operated more than 370 outlets around 13 states in Malaysia and 68 outlets in Singapore recently. SBU Stakeholders Shareholders The main concern of the shareholders of company is the profit that the company can generate. there are other concerns which are theft.  Kulim is the main funding of KFC Holding as it controls the flows of expense for KFC (Equity focus 2007). KFC has its own machine to manufacture. Kuala Lumpur which has the market value around 90 million and a 22 storey building (Hotfrog 2006).  In terms of technology resources. Johor. In terms of marketing resources.5 million out of 25 million just for marketing activities in year 2007 (Equity focus 2007). Selangor. Bhd (Hotfrog 2006). as mentioned above.  KFC has its manufacturing company named KFC Manufacturing Sdn. Not only this. damage. and intellectual property from theft. example would be physical assets. KFC has located around 6% of its estimated cost breakdown which is equivalent to 1.  Besides. financial assets. Kuala Lumpur. and the amount of money that can be allocated for them. shareholders need to be informed on how the company is going frequently. loss. or waste related to the assets. Besides profit. Penang and Sarawak (Hotfrog 2006). misuse. It also has a scale advantage as it is the first Western Quick Service Restaurant in the world to set up restaurants and the first to establish a children's club named KFC Chicky Club (QSR Brand Bhd 2007).  Another significant resource of KFC Malaysia is its corporate culture.

they also get benefited in terms of bonus or commission. The government may impose certain rules that will portrait threat for company. their interest may include building mutual relationship based on integrity. most company which offer better return to employee get the best employee. because without customer.through hardcopy or softcopy to shareholder timely. they are interested in how the company going is simple. like the quality and quantity of the food offered. Thus consider the interest of customers in making any decision is important. they depends for their living. Halal policy need to be strictly adhered. Because Malaysia is an Islamic country. Supplier will always try to avoid dealing with a company is not mutually trusted. Customers Customers are able to justify a company‟s success. and for Malaysian context. Employees For the employee. When the company success in the profit making. the staff inside the store and many more. they are looking into many aspect. the surrounding of the restaurant. people are willing to sacrifice for them. bad image will lead to low sales. especially in the Halal policy. obeying certain rules regarding Islam practices is necessary. the company can hardly get revenue. while consuming food in KFC. for example there are . the KFC offer variety of meals. complete and understandable to shareholders. family meal. and ethical behavior. Not only this. Government Government played a vital role in Malaysian restaurant. legal. budget meal etc. The company should also look into the safety and health problem of their employee. as when they work the company will pay them back in return. thus boosting the staff morale. Suppliers Supplier is very important to a company. neatly. For example. namely kids‟ meal. Also the image of a company in customers‟ perception is important. accurate. especially restaurant like KFC because food that they supply need to be fresh. Furthermore.

KFC has lower revenue dramatically in the year 2005.46 2006 1. The growth of sales and revenue began to stable in 2006 as KFC launched a few new products such as Cheesy BBQ Meltz and others after the aftermath of bird flu issue no longer threaten the market in Malaysia as stated in The Edge Daily (Tong 2006).52 Source: KFC 2007 SBU Customers Market Performance Figure above is Revenue of KFC Restaurants from Year 2003 to 2006.563 350 RM 000 142. Awards & Achievements Award Year Awarding Body Best New Product Development 2004 2004 Yum! Brands Beat Year Ago Award 2005 Yum! Brands Overall Marketing Excellence Award 2005 Yum! Brands Tiger Award .304 375 2004 2005 2006 From the table above.475. S.41 2005 1. KFC suffered a loss of 32.056 336 RM 000 66.Mr.563 thousand due to legacy issues of their assets.certain discussions among government pupils regarding of banning the advertisement of fast food industry. Restaurants 66. This is mainly due to the legacy issue of mainly property assets which requires KFC to pay huge and one-off impairment charges. SBU Past Performance 2003 KFC RM 000 Profit Before Tax No. Wong 2005 Yum! Brands Brand Visibility Award 2005 Yum! Brands Best Brand Image Award 2006 Yum! Brands Best Overall Marketing Award 2006 Yum! Brands Best New Product Award 2006 Yum! Brands Product Excellence 2006 2006 Yum! Brands Marketing Excellence 2006 2006 Yum! Brands KFC Restaurants Revenues in Billion (RM) 2003 1.736 350 RM 000 5. . But KFC only manage to get profit before tax of only 5.K.38 2004 1.4 thousand in 2005 (KFC 2007).

05bilion with a positive growth.05 Billion of revenues. KFC also advertised and held promotion for the launch of KFC X-meal through TV. the increased sale was showing a positive return of the effort (Tong 2006). there was a breakout of Asian Bird Flu in Asia. Another reason was due to new launched of product by KFC Restaurants. It consists of an OR Fillet Burger.4 percent on the Kuala Lumpur (Kentucky Fried Fish? Asian Bird Flu Wings KFC 2004). With heavy advertisement and promotion costs of RM4 Million. radio. This is the reason that the revenues rose up 0. tomatoes and mayonnaise.06Billion from 2005 to 2006 with a positive growth. the revenue also increased by 0. crushed BBQ nancho chips. From 2004 to 2005. . This had triggered the alert of public to avoid eating poultry such as chicken and this had slight impacted the sales of KFC Restaurants. press and outdoor advertising. point-of-sale materials and ambience (KFC Launches new combo meal 2005). Apart from the X-Meal that generated huge sales which was permanent product sold in every KFC restaurants. there was a low growth of 0. which offers extra choice and variety. They were protesting that the “Meat is Toxic” and “Eating Meat is Hazardous to Life” which were referring to the Asian Avian Bird Flu Outbreak. there was an increase of 0. In addition to that. This meal had reduced the anxiety of customers especially teenagers and young adult who wanted to eat both burger and chicken at the same time yet paying affordable price. one piece of chicken and a choice of either regular potato wedges or regular coleslaw or a regular whipped potato. During the outbreak. KFC Restaurants launched the new Cheesy BBQ Meltz which contributed at least 10% of the sales. The Cheesy BBQ Meltz is toasted tortilla bread filled with melted Mozzarella cheese. This was the first time ever KFC customers could get both burger and chicken with a side dish as part of one individual meal combo. there was a protest leaded by Animal Liberation Victoria from Australia against the KFC chickens sale in Kuala Lumpur. Interestingly.By referring to the table above.03Billion of revenue generated between year 2003 and 2004. As in 2004. This was mainly due to the new launched of combo meal called KFC X-Meal. This had slightly impact the brand name of KFC Restaurants (KFC Cruelty 2004). In addition of a great mean. shares in Malaysia's KFC Holdings (Malaysia) Bhd slipped 1. This product was successfully launched to target teens and young adults as well.

Thus KFC also has ala carte menu and real savers menu which emphasize in 1 set with lower price and side orders as well such as potato wedges. There are many other competitors in the market which includes Sugar Bun. At the same time also targets children who love to get free toys with meals.Market segments for KFC Restaurants The market segments are basically divided by 4 groups:  Children KFC targets children boys and girls with age 12 below who love to eat fried chicken. Thus KFC has Mini Bucket Combo and Variety Bucket to cater for bigger numbers of people to eat with favorable price.  Budget customers KFC has concerned of budget customers‟ appetite with basically age 12 to 55. On . Thus KFC has Chicky Meal with free toy. KFC target boys and girls who like to eat both fried chicken and burger at for an affordable mean. KFC also have children playground that normally parents would bring their children to play at there. Thus KFC has X Meal which emphasizes extra choice and extra variety with lower price. SBU Competition The main competitor of KFC Malaysia currently is McDonald. Marie Brown. while they could peacefully eat their meals. and other fast food chain restaurants.  Teen & Young adult KFC also targets teens and young adult with age 12 to age 25 who love of its fried chicken.  Family KFC targets family which both parents and 2 less or more kids dining together in KFC restaurants or take away. Normally.

the other hand. The market share of KFC Malaysia for the year 2006 was 44% while the market share of McDonald for the same year was 14%. This early entry into the market is very important because first comer usually gain more from the experience curve. for example Superbrands Certificate was given to McDonald in the year 2003 (Superbrands Asia 2007). for a company to survive in a country is not simple. and its creativity in the recent year is crucial for its success (Chen 2007). there is a good example of “the more you do something. However. However. Another advantage is experience and expertise. And the growth rate for the KFC Malaysia I year 2006 was 4%. There were quite a number of successes that McDonald had achieved. there is an inter-competition among the SBUs of same corporate for examples Pizza Hut. Another main advantage of early entry is cost reduction. The sales figure of KFC Malaysia for the year 2006 was RM 1. for example sustainable competitive advantages. a very lively example from KFC would be its big chains of KFC outlets in Malaysia. and growth rate of McDonald for the same year was 15%. the better at it you get”. As for the KFC Malaysia. . it is always one step backward of McDonald in term of menu. everything becomes cheaper”.52 billion. which is clearly reflected the effective labor forces. The first restaurant of KFC in Malaysia was opened in year 1973 while the first restaurant of McDonald in Malaysia was opened in the year 1982. for example its Fish burger comes after McDonald offered their Fish Burger. but unfortunately the sales figure of McDonald could not be obtained because it is not a listed company. and the 24 hours operation which is practicing in KFC now was actually initiated by McDonald. which amounted of 390 outlets. One of the most significant advantages that KFC has over McDonald is the early entry and establishment of KFC in Malaysia. just like what KFC has something special over McDonald. and it requires something special that others do not have. because of having economics of scale. The meaning of sustainable advantages means erecting barriers against competitor. McDonald‟s growth rate and also market share could be obtained through reliable source. economies of scale through standardization of products and processes among all outlets. for example “the bigger you are.

food & drinks and things that allow by Shariah law is called Halal and can be safely use or consume by Muslims (Halal Definition 2007). it has fully utilized its brand name. because of the popularity and the wider acceptance. McDonald. Economic Factors Economic Growth/Drop . While for the McDonald. as compared to dealing with other external supplier. in terms of the procedure to execute chicken and the process to handle it until the customers hand has to pay attention to as Halal issue is big in Malaysia. One more advantage. Changes PEST Analysis Political Factors Halal regulations Halal issue is very important in Malaysia as the Muslim population in Malaysia is huge. For example everyone would think of McD Burger once they heard about the McDonald. and Baker‟s Street are also the SBU of QSR Brand. the advantage would be its worldwide reputation is better than KFC (Keen 2005).The other advantage of KFC Malaysia would be its supplier teams. which are Region Food Industries. The very important criterion is to fully utilize advantages of KFC to out win its major competitor. Government always concern of Halal issue of the food in the country. the reason being it is an advantage is because it can prevent its competitors to get its information like sales revenue conveniently. The word “Halal” came from an Arabic word which means lawful. It is advantage that it will manage to get its materials at a cheaper price. would be that it is not public listed. So. Actions. Although both of the companies have their own advantages. which is still not yet fully utilized. its creativity to create better awareness among population in the world. Commissary. As for the McDonald. because of the same corporate it is in. but the advantages of KFC Malaysia are seems to be internally.

People are getting smarter by increasing in literacy rate. that means businesses are doing great in the market. Little changes in the interest rate will affects the operating profit of KFC and their debt ratio. It will affect the currency exchange rate in Malaysia which impacts on businesses costs and operations. It is normal that a company borrow money from the bank. It is so convenient that enable businesses to operate in the internet world due to increasing of computer users. Education The population in Malaysia started to improve their educational level. This may due to the increasing of unhealthy society among Malaysians.Economic rate is very important in doing business. People nowadays tend to look at the quality of food. Every country has different culture. The way how Malaysian perceived food is changing from he past till present. When come to outsourcing currency is a determination of company‟s success. This is a change from past behavior. it will somehow affect debt repayment and also the incentive to borrow. Technological Factors Improvement of internet uses The uses of internet have grown more and even shopping is done online. For . If there is positive growth in economic. So if there is any change in the interest rate. Social Factors Culture Culture refers to the way people live their life. KFC may enjoy a short period of high profit due to increasing economic growth but they also have to prepare in case economic rate of Malaysia falls. Interest rate Interest rate is the rate charged or paid for the use of money and usually not a fixed rate.

KFC Malaysia offers mostly fried products which are definitely a forbidden food for these consumers. where everything from personal usage to corporate usage has increased their prices. a little change in the price of the products will affect their buying behavior. Issues.http://www.instance. Cost reduction As today‟s economic environment. Key Trends.com. KFC Malaysia has several trends in the market. Problems and opportunities After going through the situational analysis. Price Sensitive Other major type of consumers arising in today‟s world is that they are very price sensitive. it is necessary for KFC Malaysia to consider in cost reduction. It also shows the share price rate in the website. While setting the product price. KFC website . issues and problems and finally opportunities that have or might been through. This trends happens throughout the world and it is increasing in a fast pace. KFC Malaysia needs to come out with healthier food that will suit their appetite. so in order to grab these market shares. one of the major group arising is the health conscious people. Key Trends Health conscious In today‟s world environment. attention should be paid more to avoid any unwanted outcomes. in order to have competitive edge as compared to their competitors. This cost reduction is important as its advantages will outweigh the disadvantages.kfcholdings. .my provide all the information about them and their products. which results loss for the company.

McDonald market shares will begin to grow and compete with KFC Malaysia. includes KFC Malaysia. thus leading bad images for KFC Malaysia. This eventually will bring poor images for customers which convinced by them. Lack of Manpower Also from the situational analysis. From the situational analysis. McDonald in Malaysia is actually growing in a faster pace as compared to KFC Malaysia. there is a proposal developed by the government recently to overcome the claims of fast food being unhealthy food for consumer. In term of human resource cost KFC would be lower. McDonald getting more growth rate From the situational analysis. Once the government agreed the proposal. KFC should notice that there were protests from customers saying that eating meat is dangerous and it contain toxic. where McDonald has relatively more manpower for each of their branches.Issues & Problems Government The first issue of KFC is government. Basically the proposal is about banning all advertisement for fast food industries. there is a huge variance between the number of workers and branches for both KFC Malaysia and McDonald. If this situation cannot be overcome soon. Corporate taxes decreased . KFC Malaysia will have hard time in promoting their products. but in terms of efficiency McDonald will be better than KFC. during the avian flu outbreak few year ago. Customer‟s complaint The second issue faced by KFC Malaysia is that customer complaint.

Thus. Introduction of New Menu .There is a 25% decrease in the corporate taxes in the budget 2008 in Malaysia. As the growing populations of teenagers and children in Malaysia. there is a trend of growing concern of nutritious breakfast in the concept of customers. there are still news of Avian Virus is lurking around countries like Malaysia. KFC has opportunity to tap the beef market as some customers are worried to eat chicken due to the news they heard. KFC should tap the breakfast market in fast food industry by introducing breakfast that has proteins. This is due to the fact that children and teenagers prefer foods that are fried which would taste better and delicious. Tapping the New Beef Market As the past few years back then. Hence. new competitors can appear in the market relatively easier as compared to before. KFC has plentiful of opportunity to capture this young market. Singapore and Brunei. study etc. This would able to recapture the customers who afraid of eating chicken in KFC. Vietnam etc. Opportunities Trend of Children Love Fried Chicken There is increasing of popularity of eating fried food among the children. and some vitamins values in. Introduction of Set Breakfast Recently. Thailand. Although this might help KFC Malaysia. also portrait threat of new competitors in fast food industry. Due to the facts of fast food ready to serve in short time. Thus there is potential market for KFC to grow if it launches new menu with beef meat. their passions to drink soft drink also draw them to eat fast food besides the factor of speed of dining fast food. Few years present. Due to lowered taxes. Customers think that it is important to eat a nutritious breakfast in order to have enough energy to go for work. Furthermore. there was an outbreak of Avian Flu that devastated majority of the poultry stocks. customers who are rushing during the morning time could grab a nutritious breakfast in KFC and eat with haste.

KFC could expect an opportunity to capture the market of tourists as the foods offered by KFC are Halal Guaranteed which suit the appetite of Middle East tourist.38 1. As Mexican foods are tropical foods that very superb and suit the tastes and appetites of tropical customers in Malaysia. Brunei and Singapore. Place of Visit for Tourists Malaysia has abundant of tourists from Middle East as the culture of Malaysia is quite similar to Middle East and the religion is Islam.46 1. This opportunity would be a great success as the launch of Cheesy BBQ Meltz had increased the sales of KFC of 10% in 2006.41 1. Portfolio Analysis In the portfolio analysis of this project will show the comparison of KFC Malaysia and McDonald. Thus is important for KFC to decorate the outlets to attract more tourists to dine in or takeaway in KFC. On year 2007 is Cuti-cuti Malaysia which mean tourist year for Malaysia which could further escalate the amounts of tourist to visit Malaysia. Snack food like Mexican foods are new and would be welcomed in the market of Malaysia. Cheesy BBQ Meltz is a type of Mexican food. With the increase of tourists visit Malaysia. Year 2006 2005 2004 2003 2002 Revenue 1. with its success and there would be spacious market growth of Mexican Foods to be launched in KFC‟s menu.25 .There is an increase demand toward snack food in KFC. The two important factors in developing a BCG Matrix is relative growth rate and relative market share of both the company. Brunei and Singapore.52 1.

As for the overall sales contribution. later it will be put into formula to calculate their growth rate for past years. As for the market share of both the company. As for revenue of McDonald. KFC Malaysia has the market share of 44%. please see the table below KFC Malaysia 4% 44% STAR KEY KFC McD Growth Rate Market Share ? McDonald 15% 18% . which can be seen. is only 4%. the revenue could not be obtained however the growth rate could be obtained through reliable source. To make it simple to see. However sales contribution of KFC Malaysia is predicted more than McDonald Malaysia. because of the market share of KFC bigger than McDonald. From the calculating below. while McDonald has the market share of 14%. the growth rate for the KFC Malaysia for the past few years. because of the absence of information in the sales of McDonald. quoting that they growth rate for the past ten years were 15%.The table above is the revenue sales figure for the KFC Malaysia starting from year 2002 to 2006. is growing over the years. it would not be available for this case.

steps they need to do is to increase their market shares. the reason being is due to that it has high market share but with low growth rate. As for the McDonald part. steps need to be taken in order to get there. the things that need to be done . and the McDonald is actually situated at the quadrant of question mark. The definition for cash cow is that it will generate large profits but little potential for the long-term. it is currently in the quadrant of question mark. and the definition of question mark is that it generate low profits currently but there is big potential for future profitability. In order for this cash cow to become a star again. In this case. which is the most ideal position for a company. Increasing the market share is somehow easier to be achieved as compared to KFC Malaysia. because it is possible for it to become a dog. but KFC Malaysia should not be satisfied of it. KFC is a Cash Cow. Although it is in cash cow situation now.20 INDUSTRY GROWTH CASH COW 10 DOG 0 RMS 50 40 30 20 10 0 From the BCG Matrix above. KFC Malaysia is in this quadrant.

Improve customer satisfaction by 50% through various methods. Capture the market of health conscious and vegetarian customer by 10 percent in year 2009. provide training. 2. . SBU Objectives & Goals Mission  To become the leading fast food chain in Malaysia Objectives 1. Therefore. Improve customer satisfaction 4. To target the segment of health conscious and vegetarian customer 2. and formulate strategies that enable KFC Malaysia to sustain in long term. To increase market share in rural area Goals 1.is the McDonald company concentrate more in developing it. and outweigh KFC Malaysia. Reduce cost of production of 20% by the year 2009. To increase growth rate 5. for example opinion box. Reduce the cost of production 3. Steps that need to be done now are to bring KFC Malaysia to become a star. clear mission statement is created to realize it. stringent standardization procedure before year 2010. and it could someday become the star. 3.

Below are some of their current strategies. To increase growth rate from 4% currently to 8% by the year 2009. Miri. There are around 390 KFC outlets in Malaysia currently. To increase market share in rural area by 10% in year 2010. Stronger bond will build among employees in KFC and thus increase the cooperativeness of staff. Market Commitment KFC is practicing strong commitment in order to increase profits and market share. It covers segments including children. Market Geography For now. KFC is only targeting nationally as in the business only expand and develop in Malaysia. Every segment has its own marketing mix. Their purpose is to try to target every possible customer segment to increase and maintain revenue for the firm. teen & young adults and budget customer. family. 5. Strong commitments encourage them to compete with other rivalry such as McDonald. Products Strategies The current strategy for KFC Malaysia of the product strategy varies. Strategies Current Strategies Market Strategies Market Scope Currently. Value . the management of KFC is using multi-market strategy for their products. For example Senadin. they have used many strategies in order to perform well in the market.4.

some of their promotional products that were introduced were Twister and Waikiki Burger. namely Twister. they can go redeem the product of discounted food from KFC Malaysia outlet. which is the design customization. Design As for the design strategy. but they have standardized the procedure of producing. For example they have Kids‟ Meal for kids. The benefit of this product is each segment of customer will get what suit them the most. They are using scope of product that is multiple in customized designs. as people will try the product before it vanish again. their current method is customizing standardization. To be detail. Developing a new product and eliminate it after some times will help them to gain numerous market shares.Their current value added of their product is collaboration with hotlink. New Product Development KFC Malaysia will come out with new product once in a while. which each product will suit into their different target market. drinks upgrade to bigger portion. Scope The scope of their current product is multi product. and Waikiki Burger that existed for a short period. Pricing Strategies Pricing for existing products – maintain . KFC Malaysia has been doing this all the while for the promotional product. that when customer receives a sms from hotlink. meaning they tried to pack and go for the product. their strategy used is harvesting elimination. Elimination For the elimination strategy. Another value added of their products is free gifts.

vegetables. QSR Brands Corporation is the franchisee which has Ayamas Breeder. And children who are registered as members also have some special surprise presents. As KFC restaurants ordered the supplies like meat stock. For instance. In terms of KFC‟s existing products. This actually encourage customers to have a tea time culture in Malaysia. Time Currently KFC offer different time pricing. This is the flow of indirect channel distribution: Suppliers (QSR Brands)  Retailers (KFC Restaurants)  Customers Speculation The fast foods sold in KFC Restaurants are based on speculation strategy. Distribution Strategies Indirect Channel Currently KFC has implemented indirect channel in distributing the fast foods. Membership cards (Chicky Club) for kids has been used for a long time. Getting the right price will bring sufficient profit for the firm. breads etc based on anticipated sales for each week. they are maintaining their product pricing. KFC now has snacks time in the after noon from Monday to Friday with a cheaper price.Pricing is an important marketing factor for KFC because it brings impacts to the firm‟s profit. Segmented pricing for customers Customer KFC has come out with segmented pricing strategy for the customers of the SBU. Thus KFC Restaurants could prevent wastage of supplies due to improper calculation. . Life sauce factory etc which act as suppliers for KFC Restaurants which are the retailers that sell fast foods. Children‟s can enjoy special discount while purchasing KFC‟s products especially kid‟s products. KFC‟s Corporate.

KFC Restaurants did well in the past 30 years for gaining market share with over 390 restaurants in Malaysia. The concept of CHAMPS is Cleanliness. For the newspaper.kfc. Vertical marketing system -contractual In order to improve the brand name of KFC in Malaysia.com. By providing free voucher cutting from newspaper to get discount for new foods is always practiced by KFC. For television. KFC also has free vouchers in newspaper for free gift redeem . newspaper and radio. Furthermore. Communication Strategies Advertising Currently. KFC restaurant should be having vertical marketing system whereby there is a contractual agreement with the concept of franchisee. Hospitality. KFC advertise mainly of its new meal or promotion during the commercial break. Product Quality and Speed with Delivery. Yum! Brand.Selective Distribution KFC Restaurants are selective distribution as these restaurants are limited to a certain amounts in each region. Maintenance. KFC advertises the new meals and promotion which sometime provide free voucher to get discount. This is to minimize the stiff competition between each other in a same region. Combo Ria with satay sauce by using a hilarious and comedy chit-chat. KFC normally advertise by persuading and reminding customers to dine in KFC restaurants. the advertisement also broadcast in its own website: www. These concepts are important to ensure the brand name of KFC is with quality assured. KFC is advertising in television. For radio. For instance. Thus it is recommended that KFC restaurants should impose the CHAMPS concept in every of its restaurants. the latest ad showed 2 Malay couples promoting the new KFC meal. Besides free voucher for discount. Sales Promotion KFC always utilize the sales promotion in order to promote its new meals. Accuracy. Singapore and Brunei. Brunei and Singapore.my.

This is an issue which KFC can take into account. In addition to that. KFC might want to consider adding one more marketing mix into their business just for health conscious customers. Moreover. As an add-on. KFCs‟s Chicky Hour showed fantastic cartoon program which enabled KFC to successfully capture the market of children successfully. Recommended Strategies Market Strategies Market Scope KFC are recommended to continue with their existing multi-market strategy pursued as their current multi-market strategies targeting children.such as soft drink etc. Moreover. KFC also practiced numerous corporate social responsibilities such as having a KFC Charity Collection Box in every outlet which could get customers to contribute for charity of orphanages. KFC also has 3 restaurants employing staffs which are speech and hearing-impaired to help them build up the confidence and self esteem in their life. family. Market Commitment strategy KFC are recommended to continue maintaining or increase their strong commitment in fast food industry. teen & young adults and budget customer benefits KFC in terms of revenue and market share. Public Relation KFC has on-going of sponsoring television program just for kids such as Chicky Hour on every Saturday morning at TV3 has been going strong for more than 5 years. This is because the rivalry of the fast food industry has been increasing due to government legacy on lower corporate tax for 27% for year 2007 which encourage business to come into the industry as stated in The Star Online (Budget 2008 2007). KFC should be prepared and responsive enough to compete with its major competitors through understanding the needs . Since communities nowadays receive high education quality and become smarter. KFC also collaborate with Maxis Hotlink to give Maxis prepaid users who hold KFC promotional SMS could get special meal when dine in KFC. they will demand a healthier life.

Value Second strategy that would recommend for KFC Malaysia is the value added for their product. people will like KFC more than any other fast food restaurants. KFC should further enhance this value added to contribute more toward their growth rate. The group recommended that they can give voucher for customer when they purchase their products. for example KFC use zero trans fat oil. by well understanding customers it could increase customers satisfaction. new product development is also proposed to have new product like Dumpling and Satay. Revenue of the company can regain strength when people change their perception towards KFC Malaysia. In touching people‟s heart. Chinese and Malay. just like what Bonus Link doing. is to improve their customer satisfaction.and wants for its target markets. they can collect points every time they buy products from KFC Malaysia. Products Strategies Product Repositioning The first recommended product strategy is repositioning. KFC Malaysia can actually convince their customer that its products are healthy to consume. stating next purchase will have certain discounts. New Product Development Thirdly. KFC have to ensures the sustainable competitive advantage is achieved which is to protect the secret recipe of fried chicken from competitors. Another ways of doing would be that they establish a KFC cards. as their recommended goal now is to regain the growth rate and market share. By repositioning their SBU. especially among their existing customer. By doing this their customer loyalty can also be improved. Market share thus will be further increased. Product Design . Both of the products are traditional dishes for Malaysia‟s two main races. This is due to many people have argued that fast food product is not healthybecause the food served are normally deep-fried. especially health conscious customer are growing. As one of the goals stated.

Last but not least. and pay only when they proceed to the counter. Pricing Strategies Pricing for existing products – maintain Suggested recommendation for KFC would be continue maintaining the current price of existing products. the next thing they will do is to calculate how much to be charged. all they need to do is to prepare the food earlier. Setting the right price can help KFC to cover the costs of production and a secure profit growth.skimming pricing For new products that launched by KFC should use skimming pricing. KFC still have to adjust the pricing of their product to the right price to avoid negative impacts of their production cost. and health conscious customer can have more choices in dining. is the product design. Changes in prices will not benefit KFC because charging the products with lower prices might lead to customers‟ perceptions that the food quality will decrease while charging prices for the products too high might cause the customers to switch their preferences to competitor‟s fast food company like Mc Donald. Segmented pricing for customers Customer Apart for only focus on children‟s welfare. As the products are new. Not only this. because not much people is needed in preparing the food at the back when they get order. Just like what the Deli is doing. KFC can also offered older citizen in Malaysia with membership card. they will do it themselves. KFC Malaysia should use the customization strategy for their products. because they are not restrained from eating things that they do not want. put in on places and people will do it themselves. New product pricing strategy . customer will be more satisfied if they can choose what they want to eat. older customer age 40 and above will actually come to KFC . the company can reduce their cost. By doing this. The morale behind this is that people will choose what ingredient they wanted for their products. Since a new customer segment which is health conscious customer has been add in into new strategy of KFC.

it is recommended that there is potential for KFC in penetrating to suburb or even to rural area. Channel Trends . It is recommended that special discounted price can be offer in the midnight from 12am to 8am everyday to encourage more customers to come to KFC in the middle of the night. With the good market research result. Hereby KFC can offer a special price and discount for the registered old customers. The importance of suburb area is due to the density of population live around the suburb would be a great opportunity to exploit. information regarding their personal details and their preferences can be obtained (information will remain confidential within the organization). While for the rural area. it would be recommended to setup restaurant in suburb area such as Desa Senadin in Miri. From the membership forms they fill in. As these places have many children who like fried chicken but couldn‟t go to town area to enjoy the food. Thus.and enjoy meal. Coverage and Channel trends: Cost It is recommended KFC‟s primary priority is to reduce the cost to the minimum as possible. Coverage Furthermore. Sarawak. it could prevent losses from setting up a restaurant in unprofitable location. The customers will receive birthday cards and special discounts for food that they ordered. it is recommended to conduct full scale market research toward the place of distribution before actually setup a restaurant. In order to lower the cost of distribution. Time Currently KFC also offer 24 open hours in west Malaysia but the price is normal like usual. KFC should launch mobile restaurants by having mobile kitchens on coaches to sell KFC foods to rural places. Distribution Strategies Channel Modification Strategy: Cost.

lucky draw etc. KFC could search opportunity by collaborating among the rising-famous singers in Malaysia and it . Then the order would be instantly processed in the nearest outlet and deliver to the customers. As customers tend to be attracted with free lucky draws and sweepstakes. This is to enable KFC to collect customers‟ information especially regarding the email. KFC should launch internet order through internet which customers can instantly select food they would like to eat and pay with credit cards. Communication Strategies Direct Marketing KFC should collect customer database through the registration of member cards for KFC usage. KFC could organize event like drawing competition in restaurants. Singapore and Brunei as well. This could be done by giving a drawing paper to the children to draw and fill colour after customers purchased meal. Public Relation KFC should endorse famous singer or celebrity to promote KFC meals through advertisement. Thus customers would demand speed of delivery of food to their places.For the channel trends. there is an increase pace of lifestyle in Malaysia. When there is new promotion or new meals. It also could be done through the singing concert that would be sung by the famous singers. Moreover. KFC could send these exciting 1st-hand news to the customers‟ email with relative cheap cost and convenience. Sales Promotion KFC should organize more events such as sweepstakes. Therefore. This could attract more children to participate as children are tending to like drawing and filling colour. KFC should behold the opportunity to attract more customers to dine in or take away in KFC restaurants in order to participate in the particular lucky draw or sweepstakes. This could both inform and remind customers to dine or take away in KFC restaurants. and the list of winners would be informed after the due date.

The reason being to choose the first 3 months in the year is to give space for KFC to correctly reposition for the rest of the months. customers‟ behaviors would tend to like discount and half price incentives and it would assure KFC could successfully capture the markets. Furthermore. It can be evaluated by using market survey method to understand the satisfaction level of customers toward KFC repositioning strategy which is supervised by Marketing Manager. . Implementation Charts 2008 Product Repositioning Value New Product Development Product Design Price Existing Product – Maintain New Product – skimming pricing Segmented pricing Place Cost Coverage Channel Trends Promotion Direct Marketing Sales Promotion Public Relation January February March April May June July August September Octob Evaluation Product Strategy 1. This could be done by giving half price concert ticket when customers purchase particular meal in KFC restaurants. Repositioning The repositioning should be implemented after a market survey that conducted in 3 months from January to March.would help boost the sales of KFC.

June and October in year 2008. should be implemented from July onwards. 3. Hari Gawai and Hari Raya season. While the second part. Both the strategy can be evaluated through the feedbacks from customers. Value The value part of this strategy divided into two parts. This need to be supervised by both operation manager and marketing manager. This overall process should be supervised by the Marketing Manager. 4. The suggested time of implementing this is October until December 2008. KFC can imposed the mentioned pricing strategy for existing product to boost temporally sales. Pricing Strategy 1. and the customers‟ response. Product Design The product design for KFC is about customization of the products. To be supervise by both Marketing Manager and Operational manager again. The first part which is offering coupon is to be implemented on March to May to create more attractions during non-school holidays. The intermittent period between will enable the operation department to have time to design new product. by looking at the quality of the product offered. New Product Development New KFC product should be introducing to public on May to July. The evaluation could be conducted through feedbacks from customers regarding their satisfaction toward the new product. KFC Cards. Existing products – Maintain Price For existing product the price will be maintained throughout the year only for certain period such Chinese New Year. . and November to December as these periods are school holidays thus can attract more customers. The month which is under those season are February.2. making the management able to find out the feasibility of such method.

Coverage After the market research survey. This should be supervised by Operation Manager. Cost In conjunction with the market research that would be done during January until March regarding the repositioning strategy. KFC could use the information to reduce the opportunity costs of setting up outlets. New products – Skimming Pricing For new products proposed pricing strategy will be skimming pricing. This special price that imposed is to act as privilege for them. 2. The perfect period to impose the proposed strategy is May. 3. This is because sales promotion are being impose as a promotion for those three months and it is a good idea for KFC to introduce new products to customers. This should be supervised by Distribution Manager. KFC could probe respondents to give opinion regarding the satisfaction level toward the locations of KFC outlets. KFC could set the mobile restaurants to rural places to have trial on the market of rural places. KFC could extend its outlet scope to places that respondents would like to have. Distribution strategy 1. Channel trends . Furthermore.2. Segmented Pricing Segmented pricing which is use on the senior citizens (members only) is proposed to be the whole year. Hence. But take note this strategy can only be use if KFC come out with healthy meal for them as they older citizens above 40 years old is not encourage to consume lots of fried food. June and July. 3. Thus the period of extending the coverage is best to be April until August which is the period after the market research survey.

new members would register and fill up their contact details. This should be supervised by Public Relation Manager. 2. sweepstakes. Promotion Strategy 1. Thus KFC should give concert ticket with half price to customers who purchase up to a required amount. As new products launching would certainly attract customers to come. Direct Marketing In conjunction with the launch of KFC cards from July onward. This should be implanted during November to December and supervised by Public Relation Manager. Public Relation KFC should held singing concert during school holiday that is November and December. Thus KFC should utilize the customer contact details to persuade. inform and remind customers to purchase KFC meals especially internet direct marketing.KFC should launch a website that specially designed to cater for online order and speed delivery. The implementation period is May to July and November to December. it would increase the repeat sales for KFC. Sales Promotion KFC should launch its sales promotion conjunction with the new products launching. drawing competition etc would certainly grab the customers‟ mind to revisit KFC again. hence the sales promotion like lucky draw. . As this is the peak period of customers to visit KFC restaurants. 3. This implementation period is ongoing as it is priority to update customers with news every month. Moreover the website should launch prior to cater the increasing demand during school holidays on November and December. Thus. This should be supervised by Marketing Manager. KFC should implement this website in 2 months time which is from September to October which is sufficient time to launch a success website.