DIGITAL MARKETING

PLAN
KENTUCKY FRIED
CHICKEN (KFC)

SUBMITTED BY:

MOBASHREEN M I S
MBA II YEAR
1913323036024
 DIGITAL MARKETING PLAN

Name: Kentucky fried chicken (KFC)

Type: Subsidiary
Industry: Restaurant
Genre: Fast food restaurant
Products: Fried chicken, Chicken sandwiches, Wraps, French fries, Soft drinks, Salads,
Desserts, Breakfast, Krushers (Milkshakes)

INTRODUCTION AND STRATEGY

1. Company background
Kentucky’s Fried Chicken popularly known as KFC is an American multinational fast-food
restaurant that is renowned for its fried chicken. The organisation was established in 1952
and presently has more than 40,000 outlets all around the world in about 130 countries. KFC
occupies the second largest position in the world regarding the largest fast-food restaurant
chain after McDonald's. KFC is the subsidiary of the Yum Brand, and the organisation follows
the franchise business model that has led to the widespread expansion of the business. The
organisation serves 12 million customers every day globally.
The last few years have been quite tough for the business due to the increased
consciousness of healthy food and the brand’s increased distance from its core values. The
lack of practical business and the corporate strategy resulted in the decline of the sales. The
present report provides an overview of the marketing plan based on a new strategy that
would help KFC to grow and develop.
2. SITUATIONAL ANALYSIS
INTERNAL ANALYSIS
The internal analysis of the organisation can be done by assessing its strength and the
weakness as is evident below:
Strength:
1.KFC has a strong presence with more than 40,000 location in about 130 countries. It is one
of the market leaders in the fast food industry.
2. The brand has also increased its product line and is offering both the veg and the non-veg
food items to its customers.
3. The secret recipe of KFC includes '11 Herbs and Spices' has helped the business to grow
and develop. It is one of the famous trade secrets.
4. The franchise business model of KFC has led to the growth and the development of the
business.
Weakness:
1. KFC has negative publicity for offering unhealthy food as the items are fried, and hence
they have high fat and calorie content. This has declined the sale of the brand.
2. The management of franchisee has become quite challenging. Maintaining the quality of
the food is essential, and if one outlet fails to do so, it can lead to the negative publicity of
the entire brand.
3. The bad suppliers often betray the trust of the brand. The supply of hormone injected
chicken hampered the brand name.
EXTERNAL ANALYSIS
The external analysis can be done through the evaluation of the external opportunities of
the threats and weakness.
Opportunities:
1. KFC has already a presence in 140 countries, and there are still chances of expansion in
future globally.
2. KFC has the scope to introduce healthier options to the customers for attracting and
regaining their trust.
3. Reinforcing its network outlet can help the brand to penetrate that will make KFC one of
the leading fast food chains.
Threats:
1. Increasing competition in the market is one of the significant threats to the business.
2. Changes in the eating habit of the customers have led to the decline in the sale of KFC.
3. MARKETING OBJECTIVES
The marketing plan is based on the following objectives:
• To create awareness among the customers and create goodwill in the market
• To increase the sales of the organisation by 10%
 • To increase the outlets by 5%
• To increase the profitability by 10%
4. BUSINESS STRATEGY
Business strategy can also be termed as long-term business planning. In this case, the
business strategy for KFC would be assessed based on the Ansoff Matrix. This is a tool that
provides a framework for strategic planning and enables the marketers and the
management of business organisations to formulate strategies for the future growth of the
organisation.
In KFC, the process of strategic planning and the operational control is critical. KFC has
always focused on the penetration and diversification strategy. Considering the present
situation, the new business strategy of KFC has been illustrated

….

Ansoff Matrix of KFC

Market Penetration: Market penetration deals with the selling of the product or the service
in the particular market. KFC has focused on improving their presence in Brazil and
Argentina. Hence, the market penetration strategy can help in doing the same by placing
the existing products before the new target market. KFC can penetrate in the market of
Brazil and Argentina by increasing the number of outlets. The new outlets of KFC through
franchisee would help to reach out to new customers by selling more existing products and
thereby gain the market share. It would help to secure over the dominant market and
create a strong position in the market.
Product Development: The changes in the demography and the lifestyle of the people has
brought changes in the buying process. KFC should focus on extending the healthier options
by including more veg items and calorie-free items to the customers. This would help to
increase the target market which in turn would increase the sales of the business. People
have more conscious about their health, and hence they preferring calorie-free and fat-free
food. Hence. KFC should develop this product line, and this can increase their reach towards
the customers. It is recommended to KFC to create ‘Try Healthy, Be Healthy’ campaign in
which new healthy products would be launched.
STP:
Segmentation
Geographic segmentation: KFC has outlets internationally and sells its products according to
geographic needs of the customer. In India KFC focuses how geographically its customers
demand different products. In north India Chicken is the main selling product, while in the
south the Veg. items sell more than the chicken.
Demographic Segmentation: In demographic segmentation, the market is divided into
groups based on an age, gender, family size, income, occupation, religion, race and
nationality. KFC divides the market on demographic basis in this way:
Age is between 6-65.
Gender is both males and females.
Family size is 1-2, 3-4, 5
Income is Rs 10,000 n above.
Family lifestyle is almost all.
Psychographic segmentation: Dividing a market into different groups based on social class,
lifestyle, or personality characteristics is called psychographic segmentation. KFC divides
market on the basis of psychographic variables like
Social class- Upper and Middle class.
Lifestyle is not specific.
Personality is ambitious and authoritarian
TARGET MARKET
As the outlets of KFC are in posh area and prices are too high (overhead expenses-rent, air-
conditioning, employees), so KFC targets upper and middle classes. Target market depends
upon size and growth rate of population, Company resources and structural attractiveness
of market segment.
Market Positioning
KFC uses its attributes to Position its Product (Fried Chicken) For a product to occupy a clear,
distinctive and desirable place relative to Competing products in the minds of target
consumer. In KFC feedback is taken from the customer in order to know the customer
demands and then improvements are made in products. KFC focuses on pure and fresh food
in order to create a distinct and clear position in the minds of customers KFC has a strong
brand name and they are leading the market in fried chicken.
5. TACTICS AND ACTION
KFC for its penetration and product development strategy can make use of the following
marketing tactics and actions:
1. Social media advertisement: KFC can advertise about the new product launch in the
social media sites. Facebook, Twitter, YouTube, Instagram and Snapchat have
increased the accessibility of the business towards the customers. The new
advertisements about the new outlets in Brazil and Argentina and the new healthy
food items would increase the awareness of the customers.
2. Pay per Click (PPC): PPC would help KFC to bring customers from different sites to
their page that would encourage to try out their new products. The new healthier
product line that would be launched can be advertised on different websites along
with a link, a click on which can bring the customers to the main page of KFC.
3. Sponsorship: KFC can work on their corporate social responsibility through
sponsoring events. For instance, the positioning strategy and the product
development of strategy revolve around ‘Try Healthy, Be Healthy’. Hence, sponsoring
campaigns and events on health and wellbeing and obesity prevention will not only
increase the goodwill but would increase the trust of the customers and increase
sales.
4. Referral: KFC can develop the customer portal to influence the customers and the
fans to share the positive sentiments about the new products or the outlets of the
business. This would help to strengthen the relationship between the customers and
the business. Social media message and blog post can help to carry out this type of
marketing tactics by KFC.

6. CONTROL MEASURES
The management of KFC needs to develop control measures to ensure that the marketing
plan is successful. The control measure that can be used in this case is illustrated below:
Control Measures for the KFC Marketing Plan
The variables that can be used for the performance standards are:
1. Sales figure
2. Market share
3. Profitability
4. Consumer feedback
The result of the marketing plan can be obtained through survey and feedback. In case, the
results are positive then the marketing plan would be successful and if contrary then
corrections and alternations would be made.
7. OPERATION PLAN
The operation plan for the marketing would include certain factors which are discussed in
this section:
1. Customer Relationship Management (CRM) is essential to establish a connection
with the customers. Innovation and technologies are essential to establish the CRM
and make KFC more customer-centric. CRM would help to better place the brand
and strengthen the relationship with the current and future customers.
2. Website optimisation is essential for KFC as it is a marketing tactic and it would help
to develop the connection with the public. The website of KFC would be more visible
to the public as it would appear higher in the search engine. This would help to
increase the popularity of the brand.
3. The perception of the customers about the new launches and the new outlets would
be acquired through a survey. The customers would be surveyed online in social
media or through websites to know about their preferences for the products.
4. A unique marketing team would be developed for establishing the concepts and
carry out the marketing tactics and also collect data at the end of the marketing.
COMPETITORS:

• McDonalds.
• Burger King.
• Subway.
• Dunkin Donuts.
• Starbucks.
• Pizza Hut.
• Domino's Pizza.
• Taco Bell.
 CONTENT MARKETING:
KFC has two basic content marketing strategies.
One: make weird chicken-related stuff and enjoy lots of media attention.
Two: make actual content on inexpensive platforms like YouTube. Of course, they
sometimes do both.
KFC's current content split is around 75% planned and 25% tactical - though the brand's
working to bring that split closer to 50/50 with the help of its in-house creative team.

SOCIAL MEDIA MARKETING

Facebook: -
Facebook is a leading social media platform and an effective channel for marketing your
business. The leading social media network offers a large audience of around 2 billion from
all around the world. It also offers several effective tools that business can use to promote
their product and service portfolio. Apart from connecting with users and engaging them,
the brands can use Facebook features for discussion and communication. KFC has a large
base of followers which is close to 53 million. The brand uses Facebook for running regular
promotional campaigns. KFC publishes regular posts on Facebook. However, the number of
posts remains limited to just a few each week. It shares promotional content with its loyal
followers. Each of these posts receives hundreds to thousands of Likes. Some videos have
received millions of views which proves both the reach of Facebook and the popularity of
the KFC brand. One of the videos KFC shared on KFC India page has received around 16
million views. The KFC app has more than 400 K monthly users. Overall, KFC has achieved an
impressive level of engagement. Consumers put forth their delight or complaints openly.
KFC uses Facebook for feedback and customer service as well.
Twitter: -
Twitter is also a great social media platform with effective marketing tools and features
which allow you to share multimedia content with ease. Brands use it for running
promotional content and sharing images, videos and more promotional material. It is an
impressive channel for real time marketing and connecting with your followers. KFC has got
around 1.3 million followers on Twitter. KFC is quite a famous brand. However, it does not
tweet so regularly from social media channels and uses it rather for weekly promotions. The
engagement level is impressive. Each tweet receives hundreds of likes and several shares,
retweets and responses. However, KFC is a famous brand and remans in news. It is also why
the brand is discussed widely across the social media platforms.
Instagram:
Instagram is a good channel for promoting your brand through multimedia content. The
network offers features that are best for sharing promotional content and discussions. Insta
is good for running promotional campaigns because apart from a large audience, the
platform offers tools for easy sharing and discussions. The company has a nice large group
of followers on Instagram. There are around 1.3 million following the company on Insta. It is
quite good in terms of engaging and discussions. The number of responses and likes KFC
receives is generally higher on Insta. KFC has made around 600 posts on Insta including
images and videos. Each of the videos has received views in thousands.
Linked In:
Linked In is also great social media brand that offers a large audience of professionals. The
channel offers features for branding, marketing and discussion as well as an opportunity to
promote your work culture and business strategy. Apart from growing your audience and
engaging your users, you can use Linked In to showcase your company’s vision and values.
KFC has around 48 K followers and uses its account to promote its work culture. However,
its level of activity on Linked In is nearly nil. The company has made only three posts on
Linked In. It can use Linked In to engage users on topics like food quality, work life, supply
chain management, CSR and sustainability.
YouTube: -
Video marketing is now an indispensable part of the marketing strategies of most QSR
brands. All of them use YouTube for video marketing and to promote their products and
brand. KFC has several channels on YouTube which are dedicated to different markets. The
company has around 400K followers on YouTube. It has posted around 50 videos on
YouTube. The brand has engaged its followers well using YouTube. KFC has used
promotional and educational videos for marketing and to allow users space for discussion.
Most of these videos have achieved hundreds of thousands of videos and some in millions.
KFC is a good marketer and markets its brand from various social media platforms. While
Facebook offers attractive reach, Insta offers nice level of engagement and YouTube
provides great opportunities of video marketing and sharing educational and informational
videos. Social media channels provide attractive opportunities of marketing and growth.
Brands can grow their user base and reach millions of fans and followers around the world
easily. KFC has achieved an impressive engagement level and reach on all these channels
which reflect its popularity and customer loyalty.

SEARCH ENGINE MARKETING:

Google AdWords
Creating paid Ad can be done through Google AdWords.
The words in black box are the landing page title, the word in red box is the URL of the
landing page, the words in purple box are meta description and the words in brown box are
call to actions.
For paid Ad, KFC is ranked second which is considered at the top positions. To be on the top
rank, KFC must have high CPC and CTR. In addition, only when an internet user clicks on the
paid Ad link, KFC will then have to pay (cost-per-click). Furthermore, the higher the clicked-
through-rate will result a higher advertisement rank as it is by this formula Ad Rank = Max
CPC x CTR. Since KFC is at the Top position, it also means that the link has been clicked a lot
of times by internet users.
However, high relevance of the landing page also results KFC to be at the top rank. For
example, when searched the key word 'fried chicken singapore', the landing page that the
internet user will go to has the information that they want. Therefore, they will stay at KFC
delivery page and not go back to the SERP to search for the correct information they want.
RELEVANCE
This shows that the selection of keywords for KFC’s webpage is of high relevance, as the
search result for KFC’s webpage came out from the keywords ‘fried chicken’ and ‘popcorn
chicken’ and did no came out with irrelevant keywords.
TRAFFIC
Brand keywords have lesser volume searches, an example will be Popcorn chicken KFC
Singapore. Non-brand keywords have a higher volume of searches, an example will be fried
chicken Singapore.
COMPETITION
They usually use long tail keyword phrases with lower competition such as, ‘2 pcs fried
chicken combo’ instead of ‘fried chicken singapore’ as it is not so competitive. KFC is ranked
as the 7th position on the webpage and above it there are other 6 links above are related to
fried chicken but they are not related to KFC. However, if ‘2 pcs fried chicken combo’ which
is a long tail keyword phrase is searched, the first few positions are related to KFC.

Furthermore, which can be seen in the trend, the key words 'fried chicken' and 'burger' are
not frequently search by internet user as compared to 'KFC delivery'. This is because KFC is a
successful brand and people knows it. Hence, they will usually key in the key word 'KFC'
instead of using other key words to find KFC.

EMAIL MARKETING:
KFC collects customer database through the registration of member cards for KFC usage.
This is to enable KFC to collect customer’s information especially regarding the email. KFC
sends regular marketing newsletters, product or service updates, promotions, daily deals,
coupons, voucher codes, discounts. When there is new promotion or new meals, KFC could
send these exciting 1st - hand news to the customer’s email with relative cheap cost and
convenience. This could both inform and remind customers to dine or take away in KFC
restaurants.

MOBILE MARKETING:
KFC set out to build a new personalized communication channel to drive customer
frequency by building true loyalty instead of functional loyalty. Their specific goal was to
increase foot traffic and to take advantage of a dynamic CRM system, loyalty program and a
leading-edge mobile app.
To achieve this goal, KFC focused on customer experience in their mobile app generating
impressive results in just a few months:
▪ 25 percent of customers used the app during their visit with KFC driving engagement
through a combination of personalized communication and proximity-based
rewards;
▪ The customer win back campaign with a giveaway of a free and premium Colonel
Sanders sandwich to lost customers had a high open rate of 34%, helped grow
revenue with a 14% “win back” conversion rate;
▪ The restaurant increased visit frequency by performing other simple steps including
automated birthday greetings;
▪ Mobile marketing helped grow same store revenue by 12%.
What KFC proves is that restaurants seeking improved customer loyalty and increased same
store revenue should take a closer look at mobile. According to Google Shopper Marketing
Agency Council, 90% of smartphone owners use their device for pre-shopping and shopping
activities while Customer Insight Group highlights that 73% of customers actually want a
loyalty card on their device. This means that mobile is a preferred method of building loyalty
and brand engagement when it comes to restaurant customers. It’s also crucial to reach
mobile users at key moments when they are deciding on a place to eat. The right mobile app
will work to get more foot traffic in specific locations, grow the CRM database, make
ordering for customers more efficient, and provide staff quality control.

WHATSAPP MARKETING
WhatsApp is going to be the next big platform for marketing not just among youngsters, but
especially among the older audience aged 50 and above. This is because the young crowd is
more active and present on Instagram and Facebook, but the older audience in the 45-50+
age range is much more active on WhatsApp.
The stickers are usually meant either for a particular location or something topical. It's a
good medium where you can remind audiences about your brand. It's all about long-term
brand building and WhatsApp stickers and GIFs help create the recall value we desire our
brands to have.
KFC is taking to sticker marketing on WhatsApp, smaller players operating in a city or state
level are also trying to make the most of the trend. As WhatsApp does not yet support
brands to advertise on the platform, these brands fall back to creating engaging content and
then leveraging WhatsApp’s ‘sharing’ behaviour to reach audience. GIFKaro, a GIF based
content production company. Brands like GIFKaro, Gifskey, Xploree, BobbleAI are some of
the tech start-ups actively helping brands to ‘sticker or gif’ their communication. This kind of
marketing is a well-practiced one in the West.
KFC had partnered with mobile app Tenor for GIFs featuring the brand's mascot alongside
buckets of chicken with love-themed messages around Valentine’s day. These GIFs were
available via Tenor's GIF Keyboard app and also integrated into Facebook, WhatsApp and
Twitter. The campaign was a huge hit.

SMILE TO PAY
Alipay has launched a new way to pay for your KFC in China — by smiling. Redefining the
term “happy meal”, fast food fanatics in China now just need to flash their smiles to earn
their dinner. The service allows customers to process their payment simply by smiling after
placing their order at one of the fast food restaurant’s self-serve screens.

A 3-D camera then scans the customer’s face to verify their identity. An additional phone
number verification option is available for added security.
So far, the facial payment system is only available at a single KFC in Hangzhou, China. The
company behind the technology, Ant Financial, an Alibaba subsidiary, says its Smile to Pay
technology needs about one to two seconds of facial scanning with a 3D camera and a “live-
ness detection algorithm” to check the identity of the person paying, who must also enter
their mobile phone number to help guard against fraud.

CONCLUSION:
KFC is a major quick serving restaurant (QSR) serving over 12 million customers on a daily
basis through its 40000 restaurants in 130 countries. This digital marketing plan views the
marketing strategy that KFC implements. Prior to that, the plan gives an introduction about
KFC, its SOSTAC analysis. Throughout the years, KFC has lost a large number of their market
share to other healthier fast food restaurants due to the fact that consumers have become
more health conscious.
In response to the consumer’s demands, KFC introduced a healthier product that is mainly
targeted at health-conscious people. Being in “Maturity Stage” it has high opportunities of
introducing its new products and deals. In Future it will be expanding its chain by
introducing more outlets all over the world by using proper usage of digital strategies.