What is marketing?

Almost every marketing textbook has a different definition of the term “marketing.” The
American Marketing Association (AMA) uses the following: “The process of planning and
executing the conception, pricing, promotion, and distribution of ideas, goods, and services to
create exchanges that satisfy individual and organizational objectives.” From this definition, we
see that:

 Marketing involves an ongoing process. The environment is “dynamic.” This means that
the market tends to change—what customers want today is not necessarily what they
want tomorrow. For example, sales of beef are declining in the United States because
consumers have become health oriented. Similarly, Tupperware parties are less popular
today than they once were because there are fewer housewives who do not work outside
the home.

 This process involves both planning and implementing (executing) the plan.

 Some of the main issues involved include:

o Marketers help design products, finding out what customers want and what can
practically be made available given technology and price constraints.

o Marketers distribute products—there must be some efficient way to get the
products from the factory to the end-consumer.

o Marketers also promote products, and this is perhaps what we tend to think of first
when we think of marketing. Promotion involves advertising—and much more.
Other tools to promote products include trade promotion (store sales, coupons,
and rebates), obtaining favorable and visible shelf-space, and obtaining favorable
press coverage.

o Marketers also price products to “move” them. We know from economics that, in
most cases, sales correlate negatively with price—the higher the price, the lower
the quantity demanded. In some cases, however, price may provide the customer

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with a “signal” of quality. Thus, the marketer needs to price the product to (1)
maximize profit and (2) communicate a desired image of the product.

o Marketing is applicable to services and ideas as well as to tangible products. For
example, accountants may need to market their tax preparation services to
consumers.

THE MARKETING ENVIRONMENT

ELEMENTS OF THE ENVIRONMENT:

The marketing environment involves factors that, for the most part, are beyond the
control of the company. Thus, the company must adapt to these factors. It is important to observe
how the environment changes so that a firm can adapt its strategies appropriately. Consider these
environmental forces:

 Competition:

Competitors often “creep” in and threaten to take away markets from firms. For
example, Japanese auto manufacturers became a serious threat to American car makers in
the late 1970s and early 1980s. Similarly, the Lotus Corporation, maker of one of the first
commercially successful spreadsheets, soon faced competition from other software firms.
Note that while competition may be frustrating for the firm, it is good for consumers. (In
fact, we will come back to this point when we consider the legal environment). Note that
competition today is increasingly global in scope.

 Economics:

Some firms in particular are extremely vulnerable to changes in the economy.
Consumers tend to put off buying a new car, going out to eat, or building new homes in
bad times. In contrast, in good times, firms serving those needs may have difficulty
keeping up with demand.

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Political:

Businesses are very vulnerable to changes in the political situation. For example,
because consumer groups lobbied Congress, more stringent rules were made on the terms
of car leases. The tobacco industry is currently the target of much negative attention from
government and public interest groups. Currently, the desire to avoid aiding the enemy
may result in laws that make it more difficult for American firms to export goods to other
countries.

 Legal:

Firms are very vulnerable to changing laws and changing interpretations by the
courts. Firms in the U.S. are very vulnerable to lawsuits. McDonald’s, for example, is
currently being sued by people who claim that eating the chain’s hamburgers caused them
to get fat. Some impacts of the legal environment.

 Firms are significantly limited in what they can do by various laws—some laws, for
example, require that disclosures be made to consumers on the effective interest rates
they pay on products bought on installment. A particularly interesting group of laws relate
to antitrust. These laws basically exist to promote fair competition among firms. Some
principles involved here include:

o Collusion: Firms may not “conspire” to fix prices (agree that they will not sell
below an agreed upon price) or reduce services.

o Predation: Firms may not sell their products below their cost of production for
the purpose of driving competitors out of business so that they, themselves, can
raise prices when competition is reduced.

o Market share: Firms which have an unacceptably large market share may be
“broken” up by court order so that many smaller firms will be around to compete.
(This is what happened to AT&T, and at times, IBM has been worried about this

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prospect). • Tying: A firm that controls a valuable product may not require the
consumer to buy a more commonplace one to get the scarce product. For
example, Intel controls many of the newest microprocessors (e.g., Pentium IV).
Intel also makes motherboards for computers; however, motherboards are made
by a lot of firms. Intel would be thought to abuse its effective monopoly power if
it required consumers to buy a motherboard in order to get its newest chips.

 Technological:

Changes in technology may significantly influence the demand for a product. For
example, the advent of the fax machine was bad news for Federal Express. The Internet is
a major threat to travel agents.

 Social:

Changes in customs or demographics greatly influence firms. Fewer babies today
are being born, resulting in a decreased demand for baby foods. More women work
outside the home today, so there is a greater demand for prepared foods. There are more
unmarried singles today. This provides opportunities for some firms (e.g., fast food
restaurants) but creates problems for others (e.g., manufacturers of high quality furniture
that many people put off buying until marriage). Today, there are more “blended”
families that result as parents remarry after divorce. These families are often strapped for
money but may require “duplicate” items for children at each parent’s residence.

Environmental scanning:

Its helps the firm understand developments in the market. Such developments may
involve changes in the market place due to social trends (e.g., Gerber, a manufacturer of baby
products, faces a serious challenge with declining U.S. birth rates), technology (e.g., VCR
makers are threatened by DVD players), or new or potential competitors (e.g., Internet service
providers are being threatened by increasing marketing efforts from MSN). Note that

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environmental scanning must be performed continuously, since environmental change does not
cease.

Economic cycles:

The economy goes through cycles. In the late 1990s, the U.S. economy was quite strong,
and many luxury goods were sold. Currently, the economy is somewhat weak, and many firms
are facing the results. Car makers, for example, have seen declining profit margins (and even
losses) as they have had to cut prices and offer low interest rates on financing. Generally, in good
economic times, there is a great deal of demand, but this introduces a fear of possible inflation.
In the U.S., the Federal Reserve will then try to prevent the economy from “overheating.” This is
usually done by raising interest rates. This makes businesses less willing to invest, and as a
result, people tend to make less money. During a recession, unemployment tends to rise, causing
consumers to spend less. This may result in a “bad circle,” with more people losing their jobs due
to lowered demands. Some businesses, however, may take this opportunity to invest in growth
now that things can be bought more cheaply.

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ABOUT KFC

Kentucky Fried Chicken (KFC) is a fast food restaurant chain that specializes in fried
chicken and is headquartered in Louisville, Kentucky, United States. It is the world's
second largest restaurant chain (as measured by sales) afterMcDonald's, with almost
20,000 locations globally in 123 countries and territories as of December 2015. The
company is a subsidiary of Yum! Brands, a restaurant company that also owns
the Pizza Hut and Taco Bell chains.

KFC was founded by Harland Sanders, an entrepreneur who began selling fried chicken
from his roadside restaurant inCorbin, Kentucky, during the Great Depression. Sanders
identified the potential of the restaurant franchising concept, and the first "Kentucky
Fried Chicken" franchise opened in Utah in 1952. KFC popularized chicken in the fast
food industry, diversifying the market by challenging the established dominance of
the hamburger. By branding himself as "Colonel Sanders", Harland became a
prominent figure of American cultural history, and his image remains widely used in KFC
advertising. However, the company's rapid expansion overwhelmed the aging Sanders,
and, in 1964, he sold it to a group of investors led by John Y. Brown, Jr. and Jack C.
Massey.

KFC was one of the first American fast food chains to expand internationally, opening
outlets in Canada, the United Kingdom, Mexico, and Jamaica by the mid-1960s.
Throughout the 1970s and 1980s, KFC experienced mixed fortunes domestically, as it
went through a series of changes in corporate ownership with little or no experience in
the restaurant business. In the early 1970s, KFC was sold to
the spirits distributor Heublein, who were taken over by the R.J. Reynoldsfood

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and tobacco conglomerate, who sold the chain to PepsiCo. The chain continued to
expand overseas, however, and in 1987 KFC became the first Western restaurant chain
to open in China. The chain has since expanded rapidly in China, which is now the
company's single largest market. PepsiCo spun off its restaurants division as Tricon
Global Restaurants, which later changed its name to Yum! Brands.

SWOT ANALYSIS

STRENGTH:

1. Global Presence: KFC is the world’s 2nd largest restaurant chain with more
than 18,000 KFC outlets in 120 countries and territories around the world. It is
market leader in Non-veg food joints categories in majority of countries it is in.
2. Strong parent company: It is the subsidiary of Yum! Brands, a restaurant
company that also owns the Pizza Hut and Taco Bell . Yum! Brands, the fortune 500
company, is one of the world’s largest fast food restaurant companies in terms of
system units—more than 41,000 restaurants around the world in over 125 countries
& it help individualbrands in optimizing its resource usage.
3. Veg & Non veg offerings: Although KFC is known for its finger licking
Chickens menu but recently they ventured out in Vegetarian category which is
helping them in increasing their business & attracting both veg & non-veg preferred
customers.
4. Secret Recipe: Sanders’ Original Recipe of “11 herbs and spices” is one of the
most famous trade secrets in the catering industry. A copy of the recipe, signed by
Sanders, is held inside a safe inside a vault in KFC’s Louisville headquarters, along
with eleven vials containing the herbs and spices.

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WEAKNESSES

1. Unhealthy fats: Use of unhealthy fats & unhygienic calories is creating problem
for the fast food chains to which KFC is not an exception.
2. Managing franchisees: Franchisee management is one of the critical issues in
the success of the fast food chains and due to conflicting operational issues between
KFC and its franchisees many of its outlets got closed since its inception.

OPPORTUNITIES:

1. Market expansion: Emerging economies and their changing lifestyle resulting
into more of outings with family/friends, corporate parties will result in the high
growth of the industry. Furthermore, the presence and popularity of McDonalds is
anytime more daunting for KFC.
2. Specializing into vegetarian Menu: Although KFC recently entered in
vegetarian fast food category but they have limited menu items as compared to other
chains like subway, Pizza-hut, Mac Donald’s, who are already an established player
in the segment. So specializing into Veg. items like they have in Non-Veg will help
the company in its overall global growth.
3. Rise in health conscious population: Designing its menu for the health
conscious population will be the driving force for the whole industry in the future
because due to changing lifestyle people are getting less time for themselves due to
which health issues are raising.
4. Penetration: Strengthening its outlet network by further penetrating the
current market will help KFC in increasing its revenues & become no.1 player in fast
food chain market given that now they have presence in both Veg. & Non-Veg. menu
in the selected market.

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THREATS:

1. Competition: KFC is not a leader in the fast food chain industry so it has to
compete with all other well established fast food companies who all are flourishing in
the market.
2. Changing Consumer Eating habits: With government & NGO’s health
awareness campaigns people are becoming more aware of what to consume & what
to not which is affecting the business of fast food Industry as a whole.
3. Raw Material prices: Rise in the raw material prices may affect the industry,
of which KFC business is not an exception.
4. Closure of current Franchisees: Rise in channel conflict resulting into
closing of the franchisees is affecting its brand image & resulting into negative word
of mouth.

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COMPETITOR ANALYSIS:

Any Organization cannot enjoy the business without competi
t o r s . N o organization can afford to ignore there competitors. It is very important
for amarketing managers to monitor the activities of there competitors, what they aredoing?
KFC adopted such sort of strategy that there is no competitor for spicy chicken, which
is made by KFC.
KFC beats its competitors through the revising marketing strategy at ever
y movement but the main competitor of KFC is Mc Donald’s.

KFC MC DONALDS
Spicy products Burger and French Fries
Pakistani people like spicy products instead of boiled
foods
Arabian rice and Zinger burger Big Mac
Free Delivery Free Delivery
Chicken is eaten by every community Beef is banned in some community
Local staff and highly qualified because local staff can Its staff consists of simple graduates and give them
better deal with the customers. training
KFC usus Top to Bottom and Bottom to Top approach Mc Donalds uses Top to Bottom approach
in Management
KFC is co branding with walls No such case

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K
SEGMENTTATION:
KFC has divided the market of Pakistan into distinct groups of customers with different
demands, tastes and behavior who require separate products or marketing mix.
In Pakistan the niche marketing is being used for particular classes of people.
They have made segments of the market on the following bases.

 Demographical

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 Behavior
 Geographical

By using these three bases they segmented the market as under.

DEMOGRAPHICAL BASIS

In demographics their first segment is consisted of the income factor i.e. high income, average
income and low income.

BEHAVIOR

In behavioral aspect they segmented the market on the basis of quality, taste and price. Following
are the different possible segments in this regard.

 Taste conscious
 Quality conscious
 Class conscious
 Combination of price and quality

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K
GEOGRAPHICAL BASIS

On the basis of the geographical factor we have divided our market in two main segments.
 Urban areas
 Sub urban areas

PROFILE CRITERIA:

1. Gender: KFC is for each gender both male and female.
1 Income: Everyone can use the KFC service upper and middle class .

FC
2 Age: Age limitation for using their products is above 7.
3 Occupation: By profession also everyone can use this product means businessmen, students,
workers and other peoples.
4 Education: It has no need more education that why the person who know something can
easily enjoy with their products.
5 Family life cycle: KFC is suitable in every stage of life like single married couple and also
those who have children can use this product.
6 Lifestyle: This product is used in every level of social class like upper, middle class.
7 Attitude: When the customers once buy this product after that they can use the product
continuously.
8 Purchasing decision: Often KFC changes the purchasing decision of customers because of its
good attributes.
9 Geographic region: Geographically KFC is used in every part of the country as well as all
over the world.

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KFC
CURRENT TARGET MARKET:
KFC will be using differentiated market coverage strategy. It means that different marketing mix
will be used for different age groups.
After evaluation of various segments, KFC has decided to target the market of urban and Sub-
urban Areas of Pakistan.

 People are educated and they want variety in their diet.
 Normally people of rural areas don’t take fast food. On the other hand people of urban
areas take fast food.
 Income of the people of urban areas is normally high and they can afford to purchase
such products, which are slightly higher in price as compared to prevailing prices of local
food in the market.
 People of Urban Areas are more quality conscious than the people of Rural Areas.
 In Urban Area there lived people from every walk of life and profit generation is easier
than in Rural Areas.

Population density is higher in Urban Areas as compared to Rural Areas, so the numbers of
customers are more in Urban Areas.

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PESTEL ANALYSIS OF KFC

POLITICAL
Kentucky Fried Chicken provides the fast-food service. To achieve their goals they make
a political system that can guide them or they called as a guide service. This political system
could change their business strategy and make the progress to their company. For example, they
have employee that run the activity in the restaurant. They make a contract with the employee
and make a pension fee. They also provide the alternative in buying KFC. KFC Hospice Dinners
that delivering a caring out reach to the terminally ill. The Hospice delivers meals to the
terminally ill nationwide. These meals are delivered directly to the patient in their own house.
We always called that a delivery orders. The customers feel better when they enjoyed this
system. KFC Cafeterias which offering dishes competitors. And KFC Grocery Products which
The Cornel is always home.

ECONOMICAL
If we talked about the economy aspect, we talked about the fund or money. Kentucky
Fried Chicken provides the lower price. They have a food packet; just like we buy the packet we
can get the discount or something that support us to buy there again. In this economic analysis
we find the benefit of economical that changes the strategy of international business of Kentucky
Fried Chicken. They can grow up with the lower price and the satisfying service.

SOCIAL
Kentucky Fried Chicken is one of the International Company which has begun
their company early and nowadays they are one of the biggest companies in the world. Why the
KFC can be the biggest company. Kentucky Fried Chicken built they social connection with
others organization or the company around the world. Beside that in their restaurant, they also
provide the food that the tasted is related with the tasted in the country they took the place to
build the restaurant. In addition abut the employee, they are worked the people from the country
which are have a good performance and have a talent in cooking for the chef. KFC also
supported the many of events, they help the committee by sponsored the event. Sometimes they
give the donation to the poor people. With this social activity they company will be known.

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TECHNOLOGICAL
In this analysis, Kentucky Fried Chicken can go out of their home country. They use the
modernization technology to advertise their product. They make a website of KFC so easily we
just search in internet what do we want about KFC and so many information about KFC. There
are also many transactions that do by internet and the KFC just delivered the order to the
customer address. In our country they have the phone number that can contact if we want to
order some food. Sometimes the customer lazy to go out to buy some food, this is the reason they
make an order delivered.

ENVIRONMENTAL
Environment is the one of the important analysis that must be had by the company.
Without environment they can’t run their transaction because the environments are their
customer and they get profit from the product that has been bought. Many people like Kentucky
Fried Chicken Company because they are not like the industrial company. KFC Company does
not disturb the public activity by make a noisy. They just invite the environment to come to the
restaurant to enjoy their food.

LEGAL
Kentucky Fried Chicken is the legal company. They growth under the Yum! Brands. They
gather with Pizza Hut and Mc. Donald’s that they are the food company. This legal analysis
guides them to go overseas because the companies which want to going international business
are the legal company. They also can hold their recipe because it has been legality so no one can
steal it. In other hands, the employee also protect from the stealing cooking recipes. Kentucky
Fried Chicken Company can growth bigger and bigger. They are legal so every activity is done in
legal system.

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Marketing mix

The marketing mix is generally accepted as the use and specification of the ‘four Ps’
describing the strategic position of a product in the market place.

 Product (goods and service)

 Price (value of the product)

 Promotion (aware the people for product)

 Place (distribution of product)

Marketing mix at KFC

The marketing mix of KFC consists of 4Ps. It contains every thing KFC do it to
influence the demand for their products.

a product is anything that can be offered to a market that might satisfy a want or
need.

KFC product planing

 KFC product is classified as consumer product as it has no intermediates.

 KFC offers specialty goods.

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 The stock turn over of KFC is high.

 Price and quality of the product is always compared.

 KFC’s product includes

 Goods (Burgers, Chicken Meals etc)

 Services (cleanliness, quick service, parties)

Product strategy of KFC

KFC was launched here as an innovative product. KFC has got one product line but
later they introduced products in the same line to protect their market share. New
product ideas are generated from:

 Customer services (comments cards)

 Gallops survey (mystery shoppers)

KFC have a Quality Assurance department that decides the new product
innovation. Q.A. department prepares screening of new ideas and product’s
feasibility report. This department does the technical evaluation (whether it is
practical to produce the new product or not).

KFC’s products are tested externally by offering trials to customers by giving them
free samples.

KFC adds a new product in its present assortment based on

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 Their competitors

 Product’s adequate demand

 The satisfaction of key financial criteria

 Its compatibility with environmental standard

KFC product line

KFC product line includes all chicken based products.

Chicken:

o 1 piece
o 2 pieces
o 5 pieces
o 10 pieces

Burgers:

o Zinger Burger
o Colonel’s Chicken Burger
o Colonel’s Fillet Burger
o Zinger Jr.

Combos:

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o Chicken Meals
o Sandwich Meals
o Family Meals

Desserts & Beverages:

o Fruit Salad
o Regular & Large Drink
o Regular & Large Mineral Water
o Tea
o Scoop of Walls Ice cream
o Coffee

Snacks & Side Orders:

o Arabian Rice
o 5 & 10 Pieces Hot wings
o Dinner Roll
o Regular & Large Fries
o Hot Shots
o Corn on the Cob
o Hot & Crispy Soup

Product mix strategy

The product mix strategies are in relation to:

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Competitors:

KFC has a head-on competition with McDonalds
Wherever they place their products; KFC goes there as well.
Locally in Pakistan KFC face a close competition with the local brands like AFC (Al-
Baik Fried Chicken), Fried Chicks, Dixy Chicks etc they are producing the same
product as KFC.

Attributes:

The brand of KFC is so strong that it is the attribute itself.

Place
 and Quantity:

KFC products are based on high quality and prices.

Product mix expansion

 Line Extension:

 Through introducing new meals offers.

 Alteration of existing products:

 Quality Assurance department does it. The department decides which
product should be sold and when (seasonal products as rice and soups
offered in winters).

 Functional modification:

 It is also decided by the Q.A. department to introduce new recipes.

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 Quality modification:

 KFC has moved to masses rather than the original recipe.

Contraction

KFC introduced itself, has grown and now it is at maturity stage for the last ten years
in Pakistan.
When the new deals or offers are not sold as expected, quality assurance
department contracts the previous offers and introduces new offers.

Change in product positioning

KFC products were first offered to upper socio-economic group. Later, introducing
discounted and lower price deals, they are now dealing in masses. So, KFC has
traded down.
In doing so KFC has used the same brand name and same high quality product.

Product management of KFC at initial stage

Market entry was not a big problem for KFC as it is a well-known international brand.
In that stage they did promoted through their own brand. Their promotion statement
was “KFC in Pakistan”. Management in the rise stage had to make policy for heavy
competition with McDonald’s. they open new branches improved and extend the
product line by introducing new product items.

Brand of KFC

 Brand Name: KFC

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 Color: Red and white

 Symbol: Colonel Harland Sander’s picture and KFC written with it.

 Master Brand: The brand itself is so dominant, that it immediately comes in
mind.

o KFC's brand identity -- the logo features Colonel Harland Sanders, one
of the best-recognized icons in the world.
o KFC is trade marked registered brand.
o It is distinctive, adaptable to addition to product line.
o It suggests something about product.
o It is legally protected and registered
o The brand equity is very high as the value added by brand to the
product effects the product selling.
o KFC is marketing the entire output under products own brand

Product packaging

KFC makes its own disposable packaging. If they need promotion Pepsi contributes
in improving the packaging quality. KFC does family packaging.
They use paper material for packaging to avoid health hazards and environmental
pollution.
KFC does brand labeling. Some of its products also have informational labels such
as Halal, Veggi Burgers and Chicky Meals.

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Conclusion

 KFC has made a separate brand image in Pakistan.
 KFC Pakistan does not serve the vegetarians.
 Product line is very vast.
 They study the behaviors of the Pakistani customers.
 KFC has specific product features.
 Offering delicious and quality product.
 Specialization in fried chicken.
 Charging extra for side dishes.
 Quality, cleanliness, and service.
 Product quality assurance.

Price is the any amount of money that customers have to pay while
purchasing the product. More broadly, price is the sum of all the values that
consumers exchange for benefits of having or using the product or
services

Price strategies of KFC

In introduction stage KFC entered the market using market-skimming strategy. Their
products were high price and targeted only upper class. Gradually they trickle down
focusing on the middle class to penetrate the market. Also KFC follows one price
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strategy. Price is determined according to the rates of the raw materials and policies
of the Govt. The political and legal forces often affect the policies of KFC and
eventually results in change of prices that is due to imposing of taxes.

Price competition

We can compare the price of KFC products with McDonald, Dominoes and Pizza
Hut. If the competitor provides the same product at a lower price then the
organization usually lowers the price of its product too. In the case of KFC, Fried
Chicken is its main selling point and controls a monopoly over the Pakistan fast food
market. It-prices its burgers, French fries and soft drinks.

Product Line Pricing:

KFC has a unique pricing strategy that falls solely on their many product lines. Their
Value Meals fall into the category of Product Line Pricing. “Where there is a range of
product or services the pricing reflect the benefits of parts of the range.” For
example, you can order a Two Cheeseburger Value meal that comes with a medium
drink and fries. You can Super Size this meal to get a large drink and large fries for a
little more money or you can go with another value meal that might include different
items for different price.

Penetration Pricing:

When KFC first began to break into the coffee market, they ran a large marketing
campaign in order to gain some market share in the industry. For a limited time
frame, you could get a free small coffee every morning from 4-7am. This was to

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promote their new coffee partnership with Green Mountain Coffee and helped
spread the word that KFC was now offering coffee.

Cost Based pricing

 KFC prices their product keeping different points in view.
 They adopt the cost base price strategy.
 Pricing of the product includes the govt. tax and excise duty and then
comes the final stage of determine the price of their product.
 The products are bit high priced according the market segment and it
is also comparable to the standard of their product.
 In the cost based method we include the variable and fixed cost.

Calculation of the price under Cost Based Pricing Strategy

Total Pounds of Chicken Served in KFC Restaurant Annually = 1.914 Billion

Total KFC Chicken Pieces Sold Annually = 5.89 Billion

Total Retail Sales = $8.9 Billion

Sales Price of per Chicken Piece = Total Retail Sales / chicken Pieces sold = $8.9
Billion / $5.89 Billion =$1.51 we assume that Fixed Cost is = $6000000000

Variable Cost = $675000000

Profit Margin is Or Mark Up = $225000000(25% of Sales) per unit variable cost =
$675000000 / 5890000000 = $0.115

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Unit Cost = Variable Cost + Fixed Cost / Chicken pieces Sold
= 0.115 + 6000000000 / 5890000000
= 0.115 + 1.02
= $1.135
Now suppose manufacturer wants to earn 25% mark up on sale. The manufacturer
mark up price is calculated:

Mark Up Price = Unit Cost / (1 – Desired Return on Sales)
=1.135 / (1-.25)
= 1.135 / 0.75
= $1.51

Conclusion

 KFC charge high prices.
 Offers different coupons.
 Concept of discount is lacking in KFC Pakistan.
 KFC has targeted the upper class people.
 Service charges are also high.
 No clear policy for discount and coupons.
 The employees are trained not to suggest the discounts.
 KFC sells their experiences on high rates.
 High revenue due to best strategies.

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this refers to how the product gets to the customer; for example, point-of-sale
placement or retailing. This third P has also sometimes been called Placement,
referring to the channel by which a product or service is sold (e.g. online vs. retail),
which geographic region or industry, to which segment (young adults, families,
business people), etc. also referring to how the environment in which the product is
sold in can affect sales.
KFC distribution

KFC has only one channel of distribution i.e. direct where the goods are transferred
to the consumer directly. KFC has no middlemen.

Distribution of goods and services

 KFC does distribution of consumer goods directly to the consumer.
 KFC also does distribution of services to the consumer like parking, sitting,
home delivery, etc.
 KFC gets Wheels! KFC launched its first mobile unit, which took the streets
of Karachi by storm. The mobile unit has been designed to cater to the needs of
those who are on the go, and have little time to stop by at a restaurant. It also
provides a unique convenience of enjoying the delicious KFC offering anytime,
anywhere, thus making fast food truly fast and convenient.
 KFC intends to further develop its mobile network nationwide through more
such units

Target areas

 Free home Delivery” strategy – They provide free home delivery to
offices & homes at all Pakistan.
 Accessibility – Resulting in several outlets to cater to the needs of people
in & around the city.

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 Hectic lifestyle – Due to the hectic lifestyle of office goings individuals the
fast food concept saves time of preparing food and gives the customer a full meal
quickly.
 Hectic lifestyle of individuals – giving them more time at work and less
stress about waiting for food.
 Commercialization of urban and sub-urban markets leading to more mid-
sector people that find high-end eating joints very to expensive.
 Mid-sector people are always looking for change which KFC provides in
their range of fast food.
 Quality conscious – people in urban areas are more conscious about the
quality of food than rural areas.
 Urban areas are more populated therefore they help with attracting higher
revenues.

Placement of outlets

Due to KFC placing itself close to schools, colleges, cinemas and markets which are
mostly populated by the young and those who are in a hurry, KFC enjoys a large
number of footfalls everyday. In addition, they also have outlets close to non-
vegetarians (mostly Muslim populated areas).

CHANNEL PROCESS

KFC works on the flow of good operation techniques i.e.
“Good Operating Manager→ leads to “Good Team
Selection →Good Services → Good Targets → Good
Revenues through the following internal strategies:

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o Training
o Incentive based targets
o Recognition for good work
o Performance based bonus
o Employee benefits to keep them motivated
o Promotion

Vertical marketing system

KFC has corporate vertical marketing system because it is centrally owned by its
subsidiary Yum Brands. KFC is affected by the geographic distribution (they have
few outlets then its competitor McDonald’s). The unit value of the items is
comparatively lower then McDonald’s. KFC has a well-equipped sitting area for the
customers and a Chicky play area for the kids.

Conclusion

 KFC deals in internal market.
 Less number of outlets in over all Pakistan.
 Target only city areas.
 Slow delivery system in some areas.
 KFC has well equipped sitting.
 KFC has no intermediaries.
 Well trained staff with expert supervisors.
 Seeking customer’s response for quality.
 KFC has no entertainment in some franchises.
 Quality conscious people are the main target of KFC.

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Promotion is the method used to inform and educate the chosen target audience
about the organization and its products. Using all the resources of promotion

KFC promotion strategy : The logo features Colonel Harland Sanders that is one
of the best logo in the world has created its name as a standard in the market. 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. Today the Colonel’s
Spirit and heritage are reflected in KFC’s brand identity.

KFC promotion sources

o Advertising
o Sales Promotion
o Public Relations
o Events and Experiences
o Coupons, Discounts and Bundled packages

An organization finds most of its meanings and survival through promotion.
At KFC, Promotion is the main tool to bring all chicken lovers attention towards its
delicious one-of-a-kind

Advertising

 KFC by its advertisements derives the desire in the customer to
come and enjoy healthy food in their favorite restaurant.

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 They spend 2% of its profits on advertisement and use print media and
most recently doing televised marketing to promote it products.
 Their advertising media involve: Newspapers, Pamphlets, Billboards and
Television. KFC does both the primary demand advertising (“Become a Chicken
Fanatic”) and the selective demand advertising (e.g. “Zinger Meal”).
 In its advertising it gives informative messages like “Faryad: Keep the city
Clean”.
 KFC does institutional advertising to stimulate demand. When KFC offers
new products then it does product advertising.
 KFC’s ad’s act as counteracts which means to drive the customer to KFC
i.e. it uses pull advertising strategy.
 KFC has put big hoardings on the busy areas of Pakistan and have an
effective advertisement campaign on the media in order to MOTIVATE its customers.
 The colors used in advertising are Red, White and blue which itself is
recognition for the brand.

Sponsorship

Sponsorship is another tool to strengthen an organizations image. KFC sponsor’s
many NGO’s and other social welfare organizations like Regular sponsorship to
SOS village. Sponsorships to FARYAD a plant and life association FARYAD: Keep
the City Clean”. They also offer different deals according to the season and
occasions. KFC is currently the sponsor of the Australian Cricket Team and the
colonel logo can be seen on their uniforms throughout the matches.

Sales Promotion

KFC have joint sale promotions with different companies like HP, Philips, Value
Meals, and Pepsi Cola. And most recently with ARY Gold digital and World Call

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Internet services, Also KFC Proud Partners are Del Monte, Culligan, Shan and Peek
Freans. KFC uses the following tools to further enhance its sales.
• Premiums
• Exhibits
• Coupons
• Entertainment
PSO had made a scheme in which PSO had given the coupons of KFC having 10%
off. (1 coupon was given after each purchase of 10 liters of petrol).
Using coupons that one can acquire after spending a particular amount over a
period of fixed time, customers can enjoy the benefits of free meals (premiums).
Additionally they provide meal vouchers and exciting offers in their print ads.

KFC promotion in parties

KFC organize some musical shows and other parties. With the caption “Biggest
Birthday Party” The event took place on Louisville, Kentucky, USA, on Sept.8,
1979, to celebrate the 89th birthday of Kentucky Fried Chicken founder Colonel
Harland Sanders.

Quality assurance

KFC takes great pride and care to provide the best food and dinning experience in
the quick service restaurant business. They believe eating sensibly, combined with
appropriate exercise, is the best solution for a healthy lifestyle. Chicken & its
Products are

 Locally produced and processed chicken.
 Supplied in frozen form
 100% Halal

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Conclusion :

After my research of KFC, I come to conclusion that KFC has a good product as
far as chicken items are concerned. But they have to increase other varieties to
attract the customers. And they must targets the children, as McDonald’s
targeting by making a play land because children are the main source and
important ones to push their parents to go to their favorite restaurants. And one
more aspect for KFC is that it must also reduce their prices to compete their
competitors like McDonald, Crisps Pins and Pizza Hut. The largest threat KFC is
faced with is the restaurant industry as a whole. The consumer continues to have
many choices when it comes to fast food restaurants. KFC struggles are much
do to the inability to bring new products to the market quickly and its innovation of
new products. KFC fell behind the market in new products and was copying other
fast food chains to stay competitive.

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BIBLIOGRAPHY:

 www.slideshare.net/annaelizabethbrewer/international-marketing-kfc
 https://www.scribd.com/doc/99116670/Marketing-Strategies-of-Kfc
 www.google.com
 www.wisnudewobroto.com/kentucky-fried-chicken-marketing-strategy-english/

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