​ ​ Report on KFC in Bangladesh

Submitted to: Mr.Fahad Feroz

School of Marketing and International Business

Name:Raisa Taslim
ID-2014283630
Sec-29
Course-MARKETING 202

DATE-25th September,Friday,2020

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 Table of contents

SL CONTENT PAGE

1 KFC 4PS AND 4CS 2

2 BRAND STRATEGY 4

3 PRICING STRATEGY 5

4 PRICING 6

5 COST STRATEGY 12

This report is about how kfc has made progress with their company in Bangladesh which
includes price, promotion, connection, places, how satisfied the customers are, etc. In the global
market increase the demand for hygiene food, KFC is trying to make some contribution in its
industry. KFC is in brand strategy which is a long-term plan for the development of a successful

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brand in order to achieve specific goals. KFC(king fried chicken or Kentucky fried chicken)
uses brand strategy to serve the market as per customer needs and wants. The purpose of this
report is to understand the strategy of KFCs 4ps and 4cs in Bangladesh.

What is 4pcs in terms of brand strategy? What is 4cs in terms of brand strategy?
Product, price, promotion and place. These are customer value,cost, communication and
Four pillars of KFC in terms of brand strategy. Convenience is the four pillars of a brand.

Colonel Harland Sander, was the founder of kfc. ​Founded​: September 24, 1952, ​North Corbin,
Kentucky, United States​.
KFC specializes in chicken and they say, ​“nobody's cooking like KFC today and we are the
chicken experts, there are no competitors for spicy chicken which is made by KFC”. ​In

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Bangladesh Transcom Foods Limited, is a concern of the group is the franchisee of KFC.

BRAND STRATEGY DEVELOPMENT

What is a brand strategy?

Brand strategy is a long term plan for the development of a successful brand in order to achieve
specific goals. A well defined and executed brand strategy affects all aspects of a business and is
directly connected to consumer needs, emotions and competitive environments.

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Brand strategy also defines as the customers and companies impressions of four different KFC
elements of 4ps and 4cs -a)Products, b)Price, c) Promotion and d)Place
a)Consumer, b)Cost, c)Communication and d)Convenience.
In all the elements, I would choose the brand strategy of cost and price on KFC company.

PRICING STRATEGY
FOOD ITEMS OF KFC

​ Name Price Unit

Pepsi/ 7up TK.240.17 2 litres

Bun TK.73.00 1 Bun

Fries TK.156.95 1 Large

Coleslaw salad TK.142.35 1 Large

Fried chicken TK.266.45 2 pieces

Burger-chicken zinger TK.288.35 1 burger

Burger-hot zinger TK.302.95 1 burger

Burger-veggie feast TK.251.85 1 burger

Snack box(1 chicken+fries) TK.204.45 1 box

Zinger meal box TK.399.95 1 meal

Boneless chicken strips with TK.478.15 6 pieces

dip

Hot wings TK.346.78 6 pieces

8 pieces chicken bucket TK.1018.35 1 bucket

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 12 pieces chicken bucket TK.1529.35 1 bucket

Hot zinger meal TK.456.78 1 meal

8 pieces fiery grilled chicken TK.1091.45 1 bucket

bucket

12 pieces fiery grilled chicken TK.1600.45 1 bucket

bucket

FOR EXAMPLE-​the 5in1 Box just got mightier! Your Favorite Zinger Burger now is bundled with the
KFC favorites! 1 Zinger Burger, 1 pc Chicken, 2 pcs Hot Wings, 1 regular drink and a Snickers now available
at an introductory price of only Tk.399!!

Satisfy your burger and chicken craving all at one go! Make the smart choice … Try the 5 in 1 Zinger Box
today!

*Available in Dine in,Take Away & Delivery

*T&C Apply ​#shobcheyebhari​

What is the price?

Price is the amount of money that customers have to pay while purchasing the ​products.

PRICING STRATEGY:

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KFC globally enters the market using a ​market skimming pricing strategy which includes
Bangladesh. Their products are priced high and target the middle to upper class people.
Gradually they trackle down the prices focusing on the middle to lower class people to penetrate
both sides of the market. We can compare the price of their products with FFC, CFC, American
Burger and Pizza Hut. If the competitor provides the same product at a lower price than the
organization usually lowers the price of its product too.KFC prices their product keeping
different points in view. They adopt the cost base price strategy. Pricing of the product includes
the government tax and excise duty and then comes the final stage of determining the price of
their product. In the cost based method we include the variable and fixed cost. In Bangladesh,
currently KFC is using geographical pricing like inside Dhaka and outside Dhaka like Khulna
and Chittagong. When they produce new products, at first they use ​market penetration pricing
which means they set the price at a low rate so that customers will deeply attract the products and
they will make profit by offering more. As the product is new, the company needs to change the
price from time to time based on customers' responses and production cost.

“How close is the nearest KFC outlet from the house?”

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In Bangladesh, the main concern of KFC is to sell in volume and maintain it on a long term
basis. They are charging a price which they think is fair to customers.

KFC offers different products at different list prices.

· KFC provides special discounts to only special customers and people who live near the
​

restaurant.

·​ Payment period, customer pays when the services are delivered to them.
​

·​ Allowances are provided to employees.

​

Most of the time, low prices means inferior goods while high prices means superior goods in the
customers mind as compared to competitors pricing.

There are different pricing strategies that KFC uses for its products and its variants.

a) Optional Pricing: optional pricing is basically used by companies to attempt to increase

the amount customers spend once they start to buy. It increases the overall price of the
product or service. In KFCs case, customers can buy the main items present in their menu
and can then option for “extras” and “sides” like drinks or desserts which go well with
the main item that they purchased. The end result is the customer ends up paying for the

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 main item that he/she wanted to buy and also for the add-ons.

b) Bundle Pricing: ​KFC bundles have different products together and offer them to
customers at a slightly lower price. It provides different combo offers to its customers

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 and also provides an option to its customer to make the combo of their own choice.

c) Product line pricing: ​They combine all different meals which fall into the category of
product line, where there is a difference of products and customers rating.

d) Psychological pricing: It is the price strategy when buying, customers psychology

thinks about the past price and remembers about current price. For example, when the

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 rice meal was first made, the price was around 300tk then after a few months, the price
came low to around 250tk, so the customers will buy more as the price is low.

e) Discount pricing: KFC uses discount pricing to sell

low-prices in high quantities. When sellers give a high percentage of discount, the
customer buys more items. But giving discounts all the time, it will be a risk, customers
will have doubt that their product has problems.

“​ Price is the amount of money customers

have to pay to obtain the product”.
Written by: PHILIP AND ARMSTRONG

Most of the time, low prices means inferior goods while high prices means superior goods in the
customers mind as compared to competitors pricing.

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COST
KFC products are a bit higher in prices because it targets the upper class audience and also the
cost involved in transportation or delivery of products is not expensive. If you think about the
consumer perspective, the price becomes the cost. It is important to determine KFCs overall
cost- not price- of products to the customers. Positioning is far more important, as kfc directly
influences perceived value. However, kfc is the long term, its likely true if the price is lower than
the cost then it is good for the kfc restaurant so that more customers will come. They should
only focus on the cost to satisfy the customer which will ensure that more factors are being
considered. In the cost based strategy, kfc includes the variable and fixed cost. The total cost
will consider the cost of time in goods or services, customers cost on unselected items, the cost
of consuming the items and most important kfc mainly focus on the customers experience and
reviews. ​Cost of marketing orientation of KFC includes cost for regular researches
and analysis. If the company sets the marketing focus structure for the food products, then it also
comes under the cost of company. The other costs which are needed for the market orientation
are product development cost and promotional activities cost for advertising.

Kfc produces new products with the existing products, makes them new items and the price of
the product will be low and cost higher for customers needs and making new profits.

Calculation of the product price under cost based pricing strategy:

Total pounds of the chicken served in kfc Annually=1,914 billions

Total sold annually=5.89 billions

Total retail sales=$9.8 billions

Whole year total will be around $600000000 for kfc.

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 The graph above shows how KFC bangladesh price increases or decreases.

So, lastly, I would say kfc charges high but cost is low, give discounts to different items and tries
to satisfy customers with their services and products.

​KFC(King Fried Chicken)

​-Its Finger Licking Good.

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The End

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