Matias, Rolyn Mari C.

BSHM 3-1

Research about the Kentucky Fried Chicken (KFC) Fast Food.

Executive Summary:
This an Integrated Marketing Communication Plan for KFC Corporation a company under HEUBLEIN,
INC. The plan will cover marketing communication strategies that are specific for Philippine market.

KFC is currently sharing its market brands like McDonald’s and Jollibee for under chicken dishes
category. Garnering 30% share in 2009.

Currently, The leading fast food chain industries (McDonald’s and Jollibee) are all investing in
advertizing. This marketing communication plan aims to make KFC stand out from competition by
improving current advertising perspective to make it more appealing to the market in efficient and
effectively way.

To achieve this, a new tagline will be introduced and all other marketing effort under it such as
merchandizing, online marketing and events. The coverage of the integrated marketing plan will evolve in
the theme “so good” to further develop the appeal of the brand. To make the KFC brand more impactful,
personifying the brand message to make it more appealing to target market (working adults) which is
associated with.

In serving the chosen market of the brand all the advertisement will emphasize the value of
“relationship”- it’s either with family or with friends serving in a bucket is streetwise decision. This
proposition will manifest to press release and support materials created for KFC.

In strengthening the proposition of “relationship” through marketing channels and effort will secure brand
loyalty and brand switchers.

Findings:

Kentucky Fried Chicken (KFC) is the most successful chicken fast food operator in the United States, and
it has made significant inroads in the international market. Begun by Harland Sanders when franchising
was just beginning in the United States, KFC combines corporate- owned stores with franchise outlets
and offers a variety of fried chicken products, as well as chicken sandwiches. Despite its vast reputation,
KFC suffers from similar faults of other fast-food restaurants, including having primarily serving high-fat
foods and following a questionable franchise management system. Some problems that KFC faced
includes environmental issues, they have been accused by Greenpeace of a large destruction of the
Amazon Rainforest because the supply of soy used for chicken food that KFC receives from Cargill has
been traced back to the European KFC. Hygiene is another issue that KFC has been dealt with as well as
flawed menu and questionable franchise system. They are also accused of growing mutant chickens;
repacking old food seen in viral video; another issue customer claimed that he was served a rat.

Discussion:

KFC offers tasty and convenient food to customer at nominal prices. The company produces products for
family, kids and people of age groups to discover dinning. Although company has done alot for offering
quality food to the target market but critics point that hamburgers, friend chicken, fries, and snacks
contain high fat and salt. Sometimes meals are “Super sized” leading to over eating and becoming an
evident cause of obesity epidemic. Although the products are wrapped in convenient packaging but raise
demands for handling substantial waste and pollution. KFC being the largest fast food supplier generates
tons of solid waste every day where significant percentage isn’t recyclable and lasts longer on the
landfills. Therefore in the shorter run the company is satisfying consumer needs but creating
environmental problems in the longer run.

The company has a reputable image and brand name in the world for producing quality food with
essential nutritions, healthy ingredients, low calories and drinks containing needed minerals. Customers
can easily get the information about the products from the company’s website with guidance on how the
product is made, customer can also customize product on their own premises and change the ingredients
to their likings. All the burgers are filled with chicken breast only. Recently the company invest The
company invests £1 million per annum to switch to nutritionally superior high oleic rapeseed oil;
following that recently company announced to use only high oleic rape seed oil in all products and
aborting the use of palm oil.

The company has variety of things distinguishing itself from the competitors operating within the same
industry. Some of the defining aspects distinguishing company from its competitors are easy to cook
food, elegant packaging and status value. Buyers don’t estimate the product’s values and costs objectively
and are only persuaded by perceived image of the company and its food in the market.

CONCLUSION & RECOMMENDATIONS:

Based on primary and secondary research; it can be deduced that the company has taken best initiatives to
build strong public image, influence people buy their products by effectively leveraging the selective
relationship management and in improving work place practices from employment and production
perspective. As the study suggests that the company knows the overall impact of its operations on
Environment, health of the consumer and reputation of the organization. So it has taken measures to curb
the environmental pollution by decreasing the use of plastic and Styrofoam, reducing calories, saturated
oil and fats in the food by replacing palm oil with rape seed oil, reducing salt, providing nutrition
information to the consumers, obtaining high quality chicken from british farms and by modifying the
nutritional profile of the menu on consistent basis. As suggested in earlier part of analysis the company is
also funding the United Nations World Food Hunger Program, joined charity in order to help the
unemployed youth and reducing the use of non-renewable resources to certain extent by building eco-
stores with some energy saving features.

The company is making a significant contribution in the well being of the society and in preserving the
natural climate by reducing carbon footprints. All these initiatives are the premium examples of how
organization’s create and maintain profitable customer relationship by using public relations, societial
marketing and customer relationship management. When observed from the business perspective; the
company is operating within a highly saturated market not showing any signs growth for the future. The
company can increase the share of their customers by closely analyzing the other cultural values and
perceptions. As the company is operating worldwide it can add new products to menu board by
undertaking global cultural research analysis and consequently creating superior customer values shaped
by consumer’s needs, wants and demands by observing culture.

Based on my own judgment it seems like company’s policy is to sell everything to everyone. They should
focus on particular segment of the market, closely analyze their needs, carefully select the customers and
deliver superior customer value to capture back the value in return. As United Kingdom is the country
with rich diversity; so all these issues should be taken into consideration when creating superior customer
value, selecting the appropriate communication channel for positioning the product or targeting the
customer, crafting an effective message for the public for communicating the merits of the product and
designing loyalty scheme.

In analysis it has been discovered that the company hasn’t been able to develop customer loyalty and
retention programs beyond offering consistently high value and satisfaction. Now a days companies offer
“frequency marketing programs” whereby they reward customers for buying more or in bulk. For instance
airline companies offer frequent flier programs, hotels provide room upgrades to regular guests and
supermarkets give patronage discount to valuable customers. KFC isn’t implementing such schemes to
reward customers for their loyalty and commitment. The company can issue membership cards with
certain validity providing special discounts for generating revenue and increasing sales .

SWOT Analysis:

STRENGTHS:
- KFC has been in the industry for 25years, which enable it to provide quality of products, services
making it the market leader and trusted in chicken category.
- Integration to online medias, such as website, ecommerce option, twitter with 601K followers,
face book with 34M likes, YouTube, 8,052 subscribers and Instagram 100K followers, allowing it
to provide online market to easily access the products and services.
- Diversifying it to portfolio into un-top and emerging markets around the world and considering
expanding to large areas such as China and India.
- Strengthening its partnership to personalities that would promote KFC Corporation’s products
and services, in both online and television.
- Changes in leadership to further pave way to new ideas and innovation as strategic move.

WEAKNESS:
- 25 years allow under dogs in fast food chain industries to pile up and compete with KFC. Some
compete in different category such as sandwich
- Integration to online media will make KFC accessible to online basher that could easily tarnish
their reputation.
- Since KFC need to compete to local brands that is been there for years, The company also need to
adjust base on the preferences of the market to beat the local competition.
- Changes in structure means adjustments in the system, gaining trust of people in the organization
and trust of stakeholders.

OPPORTUNITIES:
- The emerging markets could help the growth of the brand.
- The technology could provide speed to its workforce and reach to its users.
 - Emerging personality online could help KFC promote its product lower than T.V personalities.
- Globalization can bring different people to the organization and different ideas that could help
KFC’s growth.

THREATS:
- The emerging markets have culture to consider in their expansion that could slow their growth.
- Technology could be replicated or depreciated; it would also be costly to invest into because it is
fast changing.
- Preferences of the personality online could change from time to time because of other influence.
- Language barrier and culture barrier could be a seen as a threat.

KFC Mission and Vision:

Mission:

To maximize profitability, improve shareholder values and deliver sustainable growth year after year.

Vision:

To be leading integrated food services group in ASEAN region delivering consistent quality products and
excellent customer focused.

References:
https://studymoose.com/kfc-marketing-strategy-essay
https://www.slideshare.net/mkaren851/kfc-39274633
https://www.slideshare.net/MRshakin/overview-of-kfc#:~:text=3.,sustainable%20growth%20year
%20after%20year.