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Running Head: FINAL PROJECT MILESTONE 1

Final Project Milestone 1

Samuel O. Owa

MBA Learner

Nexford University

Bus 6080: Marketing Strategy

Kathleen Hargiss

April 24, 2021

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FINAL PROJECT MILESTONE 1
Company Overview

Kentucky Fried Chicken (KFC) is an American fast-food restaurant chain that is

headquartered in Louisville, Kentucky. The company is specialized in fried chicken. This

brand is the second in the world for the restaurant chain. KFC was established during the year

1930 and is spread across 118 countries having restaurants of about 18,875(Management

Glossary, n.d.).

According to Reference (April 2020), KFC, the short form of “Kentucky Fried

Chicken," is the biggest fast-food fried-chicken chain in the world. The company has more

than 18,000 restaurants in 118 countries and territories including Nigeria. The company

recently posted revenue of $23 billion. The company’s mission or vision is "To sell food in a

fast, friendly environment that appeals to price-conscious, health-minded consumers." And its

major competitions are from the likes of Wendy's, Subway, McDonald's, and Burger King

(Reference, 2020).

Target Market

According to UKEssays (November 2018), KFC’s target markets are families and

young consumers. The company is positioning its products to “three generations” from

middle and upper-middle-income segments. The company strategically positions itself in

local markets as a pleasant, bright, air-conditioned restaurant with a casual atmosphere.

To continuously appeal to its target markets, KFC differentiated its product offerings

using different bases such as based on Food, fun & Festivity, providing several alternatives of

its special recipe in the form of chicken meals. It also offers a variety of deals to differentiate

its products from its competitors. Apart from its product offerings, KFC distinguishes itself

based on the experience it provides: the right place, the right chicken, and the right

celebration! Consequently the emphasis on ‘we do chicken right’ UKessays (2018). KFC also
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differentiates its service in the form of the takeaway, dine-in experience, and KFC on

Wheels. In this way, KFC has positioned and differentiated itself from the competitor like

Macdonald, King Burger, and Subway. To wade off competition, according to UKessays

(November 2018), KFC prides itself with high quality, hygienic and affordable fast food

products in an assortment of complete meals. It distinguishes itself by emphasizing that its

chicken is prepared through unique secrets recipes in a variety of traditions to suit the diverse

taste and eating occasions. It also highlights the fact that meals are made more appetizing by

supplementing with fresh, tasty side dishes and rich home-style dessert.

Market Segmentation

Market Segmentation Explanation of Market Segmentation Factor

Factors

Demographic KFC’s target market is segmented demographically as follows:

Age: 6-65; Gender: Both Males and Females; Family Size: 1-2, 3-4,

5+;Income: $150 and above; Occupation: Not Specific; Education:

Not Specific; Religion: Not Specific; Generation: Not Specific;

Nationality: Not Specific; Family lifecycle: Almost All.

Geographic Location Geographically, KFC trades globally and has several outlets in

several countries. Its products are sold in line with the geographic

needs of the customers worldwide and it is measurable. For instance,

in Australia KFC’s geographic segmentation is wide.

Behavioral KFC segmented its market, in this aspect, based on taste, quality, and

price. KFC segments the market based on behavioral variables as

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follows:

1. Taste conscious 2.Quality conscious

3. Class conscious 4.Combination of price and quality

Psychographic (Values KFC segmented its market based on psychographics variables as

& Lifestyle) follows:

Division by Social Class: Middle class, Upper class and

Lower class

LifeStyle: Luxury and Indulgence

Personality: Gregarious, Authoritarians and Ambitious people

New Product Details

Fried Turkey is being positioned to be seen as an alternative to fried chicken by health-

conscious customers because “turkey is slightly leaner with fewer calories than chicken”

Healthline (n.d.).

SWOT Analysis

Strengths Weaknesses
1. New Revenue line for the company 1. New food preparation methods and
2. Offers an avenue to increase the recipe development
customer base of the company 2. Acceptability of the new product by
3. Product will serve as a healthy franchise operations
alternative product offering to Chicken 3. Supply chain distribution of the new
by appealing to health-conscious product.
customers

Opportunities Threats
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1. Expansion into emerging markets 1. The rising cost of inputs and exchange
2. The attraction of new customers rate fluctuations
3. Possibility of getting a Patent for the 2. Competition
new product. 3. Unstable Government policies
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References

Healthline. (n.d). Turkey vs Chicken: Which Has More Protein?. Retrieved from

https://www.healthline.com/nutrition/turkey-vs-chicken#is-one-healthier

Management Glossary. (n.d). SWOT Analysis of KFC in 2020. Retrieved from

https://managementglossary.com/swot-analysis-of-kfc/#:~:text=The%20SWOT

%20analysis%20of%20KFC%20mentioned%20in%20this%20article%20has,base

%20and%20its%20secret%20recipe.

Reference. ( April 8, 2020). What Is the KFC Vision Statement?. Retrieved from:

https://www.reference.com/business-finance/kfc-vision-statement-

7285bcb4a474915f#:~:text=The%20KFC%20mission%20or%20vision,%2C

%20McDonald's%2C%20and%20Burger%20King.

UKEssays. (November 2018). Marketing Concept And Market Segmentation Practice By Kfc

Marketing Essay. Retrieved from

https://www.ukessays.com/essays/marketing/marketing-concept-and-market-

segmentation-practice-by-kfc-marketing-essay.php?vref=1