INTRODUCTION TO MARKETING (MKT410)

CASE STUDY – THE MARKETING

ENVIRONMENT

KENTUCKY FRIED CHICKEN (KFC) MALAYSIA

(FAST FOOD RESTAURANT)

PREPARED BY:
NAMES MATRIX NO.
MOHAMAD NAFIZ BIN ROSLI 2020336333
NUR MAIZATUL AMIRA BINTI MOHD 2020971735
LEZAHAR
NURSYARAFANA BINTI ROSNI 2020963875
JAMILAH BINTI AHMAD BOKHARI 2020161371

PREPARED FOR:

MADAM IMA ILYANI BINTI DATO’ HJ. IBRAHIM

SUBMISSION
DATE:

25 JULY 2021
 CONTENTS
1.0 EXECUTIVE SUMMARY ........................................................................................................ 1
2.0 INTRODUCTION ......................................................................................................................... 2
3.0 MAIN BODY ................................................................................................................................. 3
3.1 PRODUCT .............................................................................................................................. 3
3.2 PRICE ..................................................................................................................................... 4
3.3 PLACE................................................................................................................................. 6
3.4 PROMOTION ........................................................................................................................ 7
4.0 CONCLUSION ........................................................................................................................ 9
5.0 REFERENCES ........................................................................................................................ 10
6.0 PLAGARISM............................................................................................................................ 11
7.0 ASSESSMENT ........................................................................................................................ 12
1.0 EXECUTIVE SUMMARY

The company that was been choosing in Kentucky Fried Chicken (KFC) Malaysia. This
company provide different cuisine that usually we have in Malaysia. They create a new food that
consist of traditional and local food with a twist of cheese and other ingredients that never used
in other food company. However, the target customers for this company are people who love
chicken at affordable price.

KFC company mostly located at all country in Malaysia such as at shopping mall, at city, at
centre of town and the places as surrounded by Malaysian people areas where people will visit
and buying their product. Besides, the raw materials that used to make the product also can
acquire from the supplier factory that cooperate with KFC.

Next, it also includes brief overview of the four P’s of KFC Malaysia marketing. This case study
report begins with an introduction of KFC company which is the background history of company,
the vision and mission. In this case study also, we can determine the type of product, services
and how the company accomplish them. After that, we can emphasize the product and price of
food KFC used in their marketing strategy to attract customers to buy and enjoy their products.
At the end, our group would conclude this entire report.

1
2.0 INTRODUCTION

This study purposed is to learn and analyze on the company Kentucky Fried Chicken
(KFC) in Malaysia organized their marketing mix which covers product, price, place, promotion.
Besides there are several reasons such as innovation, marketing investment and customer
experience that help (KFC) company becomes bigger.

Colonel Harland Sanders created the firm that began selling fried chicken at its street side
eatery in Corbin, Kentucky. Sanders promised a franchise restaurant, and the first "Kentucky Fried
Chicken" franchise debuted in Utah in 1952. KFC promoted chicken in the fast-food sector,
broadening the market by challenging the proven domination of the hamburger. KFC Malaysia is
the owner of KFC Holding Bhd. A corporation that is owned by Kulim Berhad.

The product type KFC is a consumer product that is a specialty product in Malaysia. KFC
items with distinct features and brand recognition for which a sizable segment of customers is
ready to go to extra lengths to obtain.

KFC's aim is to be the leading global food service company in ASEAN, offering high-quality
products and great staff service. Increase profitability through increasing shareholder value and
producing year after year sustainable growth. KFC is also a world-renowned fast-food industry
whose goal is to achieve and maintain fast food quality in the worldwide market. The KFC goal or
vision statement is, "To provide food in a quick, pleasant setting that is appealing to price-
conscious healthy consumers."

Furthermore, KFC’s goals are to develop new dishes, expand menu diversity, and
adopting new desserts menu. Thus, in order to achieve that, KFC started to expand more
franchises operations outside of Central America. They can expand their menu diversity because
different countries are more likely to have their own distinctive cultures. KFC are in advantage of
gaining people trust by creating a meal that suit with local taste. In addition, if there are a lot of
new dishes, people all over the country can choose their preferred food from the menu list and
KFC can start to develop more new dishes based on people’s interest. On the top of that, they
can also make more income and build their brand more.

2
3.0 MAIN BODY

3.1 PRODUCT

The product can be delivered to increase production. In terms of KFC, the main product
is fried chicken in various forms. The main product of KFC is pressure chicken, which is
manufactured using the original formula. The other chicken comes with a garlic marinade
and is double dipped in flour before being fried in a regular industrial kitchen. KFC
prepares the food in according to the consumer's regional preferences. With its hot and
spicy fried chicken, KFC appeals to Malaysians. Furthermore, because Malaysians
mostly has a higher family member, KFC has introduced chicken buckets that contain 21
chicken pieces in one barrel.

Figure 1: KFC Chicken Bucket

KFC's product mix strategy, which is like that of its competitors. The KFC competitor was
right next to the McDonald's competitor. McDonald's promotes its item wherever KFC
goes. KFC competes with several local brands in Malaysia, including Burger King, Marry
Brown, the Chicken Rice Shop, and the Secret Recipe. KFC also refers to the product
mix's attribution and position & price strategy, which focuses on high prices and brand
consistency.

3
KFC has a lot of alternatives for spreading their brand. The first is Line Expansion. New
meals have been added to the line because of the expansion. The Quality Assurance
Department is then in charge of improving the current product. The department decides.

which product should be marketed. Then, when the season arrived, KFC provide and
sell seasonal foods like rice and soup. As a third strategy to grow its product, KFC has
switched to the masses for this modification rather than the original recipe, such as the
'Hot and Spicy' recipe. KFC's entry into the market was not a major concern because it
is a well-known international brand. During that time, they were sold under their original
or own brand name. There also have a packing system at KFC. They make their package
to be disposed. KFC also creates family goods packaging and uses paper for packing to
reduce health hazards and environmental damage. KFC is doing well in terms of brand
recognition. For some of its items, details labels such as "halal" and "chicken dinners"
are also provided.

3.2 PRICE

Price is the amount of money charged for a product or service and it also known as the
sum of all the value that consumers give up to gain the benefits of having or using the
product or service. The price is the only element in the marketing mix that produces
revenue in all other elements that represent costs. Next, all the prices can trade by the
people how buying for the benefits of having the service of the procedure. This company
does not rely on age restrictions because the target customers for this company are
people who love chicken and entire families rather than single individuals.

KFC company joins the market using the inventory skimming. Next, the policy of the cost
base on the price was implemented by KFC. This company also included the government
tax, excise duty and all the disbursements that fixed and variable costs for setting the
price before deciding the great price. According to the market segment, the quality of
their products was comparable, and the goods are a bit high due to price.

In KFC company, several pricing techniques was determined such as market skimming,
competition and cost based. The KFC was using the strategy with the higher initial prices
to “skim” revenue layers from the market or known as the market skimming. They

4
 gradually trick the price down to penetrate both sides of the market. However, they are
focusing on the middle to lower class people.

Figure 2:The Example of Price in KFC at Malaysia

Besides, the price base of a competitor depends on the product price of the competitor.
The KCF company need to reduce the price when the competitors offer the same product
at the lower price but as one condition the product quality and image for marketing must
support the price. The key selling point for KCF is fried chicken and this company was
monopoly the fried chicken over the fast-food industry. Moreover, the prices of burgers,
French fries and soft drinks are regard to the competitors.

When the special event, KFC using the promotional pricing which is the prices are
temporarily priced below list price or cost to increase demand to attract customers during
the certain seasons or periods. The price is affordable from the upper class to the middle
class of the student in every culture and in household size, the demographic factor plays
a critical role. KFC are increasingly adding economic meals that draw the lower to the
middle classes while concentrated on the upper-class in the early rise.

5
3.3 PLACE

Another factor that influences market competition is location. This is a reference to the
distribution routes, location, and middlemen involved prior to the finished product is delivered to
the customer. It is the process through which items or services are moved from the manufacturer
or service provider to the customer or client. KFC has created channels that are available to
customers on the spot. A distribution channel is the platform of all distribution networks. This is a
collection of interconnected entities involved in making a product or service accessible for
purchase to customers or companies.

KFC company direct channel is the distribution channel which also known as integrated
channels. In other words, they deliver items straight from the shops to clients. This helps to
reduce total margins, build stronger relationships with customers, and handle operational
operations more efficiently. KFC also offers its customers services such as parking, dining, home
delivery, and so forth.

KFC (Kentucky Fried Chicken) employs demographic segmentation to provide customers

based on their expectations and preferences. KFC customers include both youngsters and young
adults. KFC's main area strategy is free home delivery, where they give free home delivery to
offices and residences. They also talk about individuals who live busy lives. Due to the hectic
lifestyles of certain individuals, the concept of rapid service like KFC requires less time cooking
and promptly gives them a normal meal. KFC strategically positions its outlets, especially in
regions populated by young people and some adults, such as universities, schools, metropolitan
workplaces, or any other market. They are deliberately placed so that KFC can satisfy its
consumers. KFC is concerned with effective operational strategies.

Besides, KFC company has a strategic plan to enhance their sale by picking their location
strategically or also known as target areas. This meant that this company will not randomly place
their restaurant. KFC mostly choose dense and pack location whereby it can get most number of
customer. This also because had provide free home delivery to homes and offices.

6
 Figure 3: KFC Outlet

3.4 PROMOTION

Promotion is the method for educating and informing to the specified target audience about
the organization and its product. It plays an important role in KFC's marketing mix, leveraging a
good mix of ATL, BTL, and Digital platforms to raise awareness and differentiate their products
from their competitors. Promotion is the main thing that used by KFC to attract the attention of all
chicken enthusiasts to its delicious one-of-a-kind product which is fried chicken. In addition, KFC
has a good social presence that able to connect or communicate with its customers and it is
allowing them to learn more about their product and services that suitable for customer wants.
KFC takes it a step further by routinely utilizing its resources to promote new deals, such as sales
promotion, public relations, advertising, and events, and experiences. For advertisement, KFC
have used the smiling Colonels logo as his face is one of the most recognizable faces in the
world, and it instantly can image of fried chicken. KFC usually promotes by radio, television, social
media to persuade and remind people to eat at KFC restaurants.

Figure 4: The Advertisement of KFC

7
 Furthermore, KFC was launched the voucher system where people must redeem that
voucher at the nearest KFC counter. People can buy any dishes at KFC using the voucher without
any exception. The purpose of this method, it may help people who cannot afford to buy KFC
and it can save the costumer’s money. However, costumer can buy the vouchers from shoppe
application at an affordable price. KFC also have a coupons system, where someone can buy
the dishes with the discount price, and they can spend over a specific period. Mostly that coupons
can be obtained from newspapers and KFC official website.

Figure 5: The Voucher of KFC

Other than that, KFC has established “Tabung Penyayang” since 1997 with the goal of
funding various CSR programmes for helping those who are less fortunate, and customers are
also encouraged to contribute the fund at the specific box that has been placed at every KFC
restaurant in Malaysia. KFC also have the new record achievement as they had a first green
restaurant in Malaysia which is at Nilai, Negeri Sembilan.

Figure 6: Tabung Penyayang KFC

8
4.0 CONCLUSION

In conclusion, all elements of the marketing mix, such as product, price, place and promotion have an
impact on one another. They develop a company's business plan, oversee its implementation, and
ensure its success. However, if it is done incorrectly, the company may take years to recover. The
marketing mix necessitates a considerable deal of expertise, market analysis, and consultation with a
variety of people, ranging from customers to manufacturers to traders and others. KFC has its own
marketing strategy. For example, KFC has used the internet to communicate with customers through
websites and applications and use the push technique. Next, KFC has a marketing mix that includes
television advertising, environmental actions, and sales promotion methods such as coupons to make
their brand known to the public. Furthermore, as a crucial selling factor, KFC companies have a
monopoly on the fast-food market; for example, if another company sells the same product as KFC,
KFC will cut the price for the same product. Finally, KFC used Line Expansion to grow their product
while also improving the performance of their existing product. As a result, each brand has its own
marketing mix to achieve its objective and vision.

9
5.0 REFERENCES

Bashin, H. (2017, December 16). Marketing91. Retrieved from Marketing strategy of KFC – KFC
Marketing strategy: https://www.marketing91.com/marketing-strategy-of-kfc/

David, J. (2021, February 5). Howandwhat. Retrieved from Marketing mix of KFC (7Ps of KFC):
https://howandwhat.net/marketing-mix-kfc-7ps-kfc/

Miah, R. (unknown). Marketing Mix-KFC. Retrieved from Academia:

https://www.academia.edu/7566841/Marketing_mix_KFC

Twin, A. (19 Febraury, 2021). The 4 Ps. Retrieved from Investopedia:

https://www.investopedia.com/terms/f/four-ps.asp

Team, M. S. (2020, April). KFC Marketing Mix (4Ps) Strategy. Retrieved from MBa Skool.com:
https://www.mbaskool.com/marketing-mix/services/17502-kfc.html

10
6.0 PLAGARISM

11
7.0 ASSESSMENT

ANALYSIS ON THE COMPANY’S MARKETING MIX RUBRICS (20%)

COURSE NAME : PRINCIPLES AND PRACTICE OF MARKETING

COURSE CODE : MKT410

STUDENTS’ NAMES : MOHAMAD NAFIZ BIN ROSLI (2020336333)

NUR MAIZATUL AMIRA BT MOHD LEZAHAR (2020971735)

NURSYARAFANA BT ROSNI (2020963875)

JAMILAH BT AHMAD BOKHARI (2020161371)

LECTURER’S NAME : MADAM IMA ILYANI BT DATO’ HJ IBRAHIM

PROGRAM :BACHELOR OF SCIENCE (HONS.) POLYMER TECHNOLOGY

GROUP :AS2433B

12
13
 GROUP PRESENTATION RUBRICS

Course Name: Introduction to Marketing
Course Code: MKT410
Student’s Name: MOHAMAD NAFIZ BIN ROSLI (2020336333) Lecturer’s Name: MADAM IMA ILYANI BT DATO’
NUR MAIZATUL AMIRA BT MOHD LEZAHAR (2020971735) HJ IBRAHIM
NURSYARAFANA BT ROSNI (2020963875)
JAMILAH BT AHMAD BOKHARI ( 2020161371)
Group: AS2433B

Weighted
Marks Poor Moderate Satisfactory Good Excellent Marks
Criteria C P A
Allocated Obtained
(%)
0 - 3 marks 4 - 6 marks 7 - 9 marks 10 - 12 marks 13 - 15 marks
The Introduction is Introduction is
Very interesting
not interesting, The Introduction is less appropriately
Introduction 15 Interesting introduction, introduction, A3
audiences are not interesting and addressed interesting,
addressed audience well addressed audience
addressed and poor the audiences addressed the
well
presentation audiences
5 marks 10 marks 15 marks 20 marks 25 marks
Information and
Information and
Information and Information and examples are
Information and examples are
examples are examples are less appropriately organized
examples are lacking or appropriately
lacking or not well than adequate for systematically,
not well chosen for the organized
chosen for the topic. assignment. accurately, relevantly
Content 25 topic. Less complete and systematically, A3
Not systematic Slightly complete and completely.
systematic organization accurately,
organization and and systematic However the content is
and incomplete. relevantly and
incomplete. organization. just adequate for
Minimum summary is completely. Clear
The summary is not Average summary assignment. A summary
provided. summary is
provided. is provided. is provided.
provided.
0 - 3 marks 4 - 6 marks 7 - 9 marks 10 - 12 marks 13 - 15 marks
The student is able The student is able to The student is able The student is able to The student is able
to answer questions, answer questions, but not to answer answer questions well to answer questions
not prepared, and prepared and confidence questions, but with and slightly confidence very well and
Defence ability 15 A3
confident at all. a little preparation and well prepared. slightly confidently.
and confidence Very well prepared

14
 Weighted
Marks Poor Moderate Satisfactory Good Excellent Marks
Criteria C P A
Allocated Obtained
(%)
0 - 3 marks 4 - 6 marks 7 - 9 marks 10 - 12 marks 13 - 15 marks
The student is not The student is fluent and The student is The student t is fluent The student is fluent
fluent and voice is voice is slightly not slightly not fluent and voice is slightly and voice is easy to
Fluency and
15 not clear. clear. and voice is quite easier to be heard be heard clearly. A3
Clarity
difficult to be clearly.
heard clearly.

0 - 2 marks 3 - 4 marks 5 - 6 marks 7 - 8 marks 9 - 10 marks

Visual are
adequate, but do not
• Very little or poor inspire Visual aids are well
• Very little or poor use Visual aids are well
use of visual engagement with used and the student
Effective of visual materials. usage and student is
10 materials. the material and the is able to make the A3
Audio Visual However the student is able to make the
• The student unable student is able to presentation more
able to make interesting presentation interesting
to do interesting make the interesting and
presentation. and meaningful
presentation. presentation meaningful
interesting.

0 - 2 marks 3 - 4 marks 5 - 6 marks 7 - 8 marks 9 - 10 marks

The student is The student makes The student makes The student is unable to The student makes
unable to use body minimum body language an acceptable body use body language minimum body
language (appearance, eye contact language (appearance, eye language
(appearance, eye and gestures) towards the (appearance, eye contact, gestures) (appearance, eye
Nonverbal contact, gestures) audience but happens contact and towards the audience. contact and gestures)
10 A3
communication towards the only a few times in a gestures) may towards the audience
audience. short period of time. focus on only one but happens only a
member of the few times in a short
audience or a period of time.
select few
members.
0 - 2 marks 3 - 4 marks 5 - 6 marks 7 - 8 marks 9 - 10 marks
The student gets
many of the things The student starts the
done. Time is presentation slightly The student is able
The student never The student gets only a
Time appropriately used, before scheduled. Time to start and complete
10 gets things done on few things done within A3
Management but may run is appropriately used, the presentation
time and time is not the time frame and time
slightly over or but may run slightly within the time
appropriately used. is not appropriately used.
under allocated over or under allocated frame.
time. time.

Total: 100 /100

15