MARKETING IN ORGANIZATIONS

Executive summary

Large and small organizations are today competing for the same market and the most
innovative and proactive have emerged victors. Today’s global economy has realized the
importance of small organizations and are increasingly giving them the much needed support to
sustain their growth. As a result, a company’s survival is dependent upon their wise marketing
efforts coupled by financial operational among other functions within their structure.

Competition has escalated more than ever and as major inroads are achieved in the use of
technology, the situation is not getting any better. Social media avenues have been intruded by
organizations seeking to capture the audience with their product and service offerings.

The following report consists of a marketing techniques used in two organizations; that is
KFC and COCA-COLA. It also contains the segmentation and targeting in Business to Business
and Business to Customer.

Information for this report has been gathered from online sources and personal
observation.

INTRODUCTION

This project is about to study of two companies marketing techniques on their products.
In this project I have studied the different techniques of marketing that are used by company,
from identifying the needs, wants and demands of their product among the people and how
company developed the customer oriented marketing strategies, that are how they have done
segmentation, target marketing and positioning of their product. Here, we have choosed KFC and
Coca-Cola products to analyze their strategy used in marketing.

Here, the organization is considered as the Australian fast food company. It is KFC. The
full form of KFC is Kentucky Fried Chicken. It is a fast food restaurant which falls in the
category of fast food industry of Australia (Jones and Reid, 2010). After McDonald's, it is the
second largest restaurant in the world. It has 18,875 outlets in one hundred and eighteen
territories as well as countries. The original product of KFC is pressure fried chicken pieces
which are seasoned with Sanders recipe of eleven spices as well as herbs.

Coca Cola is world’s leading soft drink maker and operates in more than 200 countries
around the world. It sells a variety of sparkling and still beverages. It generates 60% of its
revenue and about 80% of its operating profit from outside the United States. It has strong brand
recognition across the globe. According to business insider, approximately 94% of the world
population is aware of the red & white logo of Coca Cola.

MARKETING TECHNIQUES

The organization, KFC is producing food items to the people and COCA-COLA
producing the different drinks items to people. KFC follows the marketing techniques of taste
and attraction and COCA-COLA follows packaging and one brand marketing strategy.

TARGETING BUSINESS TO BUSINESS SEGMENT

Size and Value

Most companies assume customer value is directly measured by the amount of revenue
generated by a customer. While a company’s accounting department should probably think of
customers in terms of revenue, profit, and loss, the true worth of a customer is multidimensional,
and marketers should consider all of the dimensions that create customer value. Depending on
your business model, your financial state, and the maturity of your company, choosing the right
dimensions on which to measure customer value can mean the difference between success and
failure.

Most companies assume customer value is directly measured by the amount of revenue
generated by a customer. Loyal customers also often provide additional value by referring other
people to your brand or business, generating buzz through social media and word-of-mouth, and
writing favorable reviews. You can look at past purchases and interactions to determine a
customer’s level of loyalty, and target them with rewards and offers that incentivize them to
continue returning to your brand for products and content.

Region
 Geographic segmentation is when a business divides its market on the basis of
geography. There are several ways that a market can be geographically segmented. You can
divide your market by geographical areas, such as by city, county, state, region, country, or
international region. You can also divide the market into rural, suburban, and urban market
segments. And, you can segment a market by climate or total population in each area. Some
advantages of region segments are,

 It's an effective approach for companies with large national or international markets
because different consumers in different regions have different needs, wants, and cultural
characteristics that can be specifically targeted.
 It can also be an effective approach for small businesses with limited budgets. They can
focus on their defined area and not expend needless marketing dollars on approaches ill-
suited for their target geographic segment.
 It works well in different areas of population density. Consumers in an urban
environment often have different needs and wants than people in suburban and rural
environments. There are even cultural differences between these three areas.

Public, private and voluntary sectors

The public sector includes organizations that provide basic public services such as armed
forces, policing, roads, education and health.

The private sector includes organizations and individuals that provide goods and services
and their primary aim is to make a profit; for example, shops, manufacturers, financial services,
etc. Profits are distributed to owners and shareholders as well as reinvested.

The voluntary sector is different from the other two sectors because it is ‘not-for-profit’
and is not government controlled. Traditionally, it has occupied a ‘third space’ and sits between
the public and private sectors. The third space is one where needs have not been met because the
private sector has not seen it as profitable to do so and the public sector has either neglected
these needs or not been able to afford to address them.

By product and industry

Product segmentation is a flexible way of grouping products. In a similar fashion to a

target group, a product segment contains all products that possess a particular combination of
product attributes. Unlike product groups, which are a static division of products, product
segmentation enables you to work with dynamic attributes. Product segmentation simplifies both
campaign planning as well as the creation of condition records in trade promotion management:

1. Campaign planning

You can use product segments in a campaign to simplify key figure planning. You assign
a product segment to the campaign and can then carry out planning based on all products
contained in the segment.

2. Condition records in trade promotion management

If you assign product segments to a condition record, you reduce the maintenance effort
required for generating conditions since you do not have to link individual products with
conditions. A condition record is then valid for all products within a product segment.

Industry segment is an identifiable component of a business. The segment may be

identified by product line, geographic region, division, or other divisible part of the company.
Firms often evaluate performance on a segment basis. Segments also may be sold as the firm
reevaluates its product lines or territories.

TARGETING BUSINESS TO CUSTOMER SEGMENT

Geographic Segmentation

Geographic segmentation refers to the process of dividing the market into various
geographical regions such as states, cities, neighborhoods, and countries. KFC and Coca-Cola
has different outlets in different countries. The products are sold depending on the needs of
customers in a given geographic unit. Moreover, the geographic unit must be measurable to
allow the firm to function efficiently. Most outlets of KFC and Coca-Cola are located in the
urban areas. This gives the company an opportunity to reach as many customers as possible.
KFC and Coca-Cola operates several stores in the main cities of the world. Its products are
designed in such a way that they accommodate the cultural differences of people residing in
these towns.

Demographic Segmentation
 Demographic segmentation refers to dividing up the market based on the income, gender,
religion, family, race, occupation, and nationality of the consumers. KFC and Coca-Cola has
demographically segmented its market to cater for the different customers who reside in various
cities where it has its outlets.

Psychographic Segmentation

Psychographic market segmentation refers to the market division based on various

characteristics such as lifestyle, social class, and personality characteristics. KFC has divided its
market based on various psychometric variables such as personality characteristics and lifestyle.
Concerning personality characteristics, its products target the authoritarian and ambitious
consumers. Under social class, the firm has segmented its market to meet the needs of people
from the middle and upper class.

Lifestyle Segmentation

People from both upper and middle class are interested in super-quality products. KFC
can provide super-quality chicken products that appeal to those who enjoy luxury. As such, the
firm has gained trust from the middle and upper class. Most consumers from these two social
classes identify themselves with the brand created by KFC. The Coca-Cola drinks targeted
mostly the young age people who used to travel more and have fun.

TECHNIQUES IN MARKETING PRODUCTS OF KFC

Competitive advantage in the Marketing strategy of KFC

Original recipe of fried chicken with secret blend of 11 herbs & spices have been the
driving force for KFC from last 75 years. KFC has a broad menu with many options for
customers and now even Vegetarian food items have been added by KFC which has helped KFC
in increasing its customer base and sales volume. Presence in developed & developing nations is
helping the company in strategizing its future growth plans as it is giving them exposure &
experience which is essential element in and fast food industry’s success.

BCG Matrix in the Marketing strategy of KFC

 Its hot wings, Sandwiches and Grilled chicken are stars since majority of its sales comes
from these menu items. Other menu items those in veg, desserts & in chicken (even burgers) are
question marks since KFC is not able to differentiate itself on these menu items from others like
McDonalds or local fast food joints.

Distribution strategy in the Marketing strategy of KFC

With 18000 restaurants delivering finger licking delicious fast food across the world,
KFC has evolved itself through the years and having strong tie-ups or strategic partnership with
the supply chain partners is helping them in serving its customers in a better way.

KFC always believes in keeping its outlet in premium areas as well as in malls and
shopping complexes. These KFC outlets can also carry out delivery for online orders of KFC. As
a result, KFC covers both - online and offline deliveries.

Brand equity in the Marketing strategy of KFC

KFC is currently ranked 147 in the global brand ranking table. Sustained positive brand
positioning has helped the company in creating top of mind awareness (TOMA) . With its
introduction of Veg-menu and localization strategy, it is now catering to the left-out segment
which will help in its brand building.

Another factor which strongly helps KFC is its continuous branding initiatives with
above the line as well as below the line marketing tactics.

Competitive analysis in the Marketing strategy of KFC

KFC is facing strong competition from McDonalds, kokoriko, kyochan and many other
local & national fast food companies. Also the local fast food joints are giving head on
competition to KFC in the developing nations. In developed nations the different fast food
outlets are eating up each other’s market share.

One of the major competitors of KFC is McDonalds and Subway. Both of them are in the
burger category and where McDonalds offers burgers, Subway offers sandwiches. Subway is yet
to reach its complete distribution potential but KFC and McDonalds are constantly at
loggerheads with their vast global presence.

Customer analysis in the Marketing strategy of KFC

Customer of KFC are the people from different age group, all who want to satisfy their
taste buds with the finger licking delicious chicken menu. Most of the customers can be defined
as youngsters or young adults who can shell out a minimum amount of money to have a
delicious meal.

MARKETING TECHNIQUES:

KFC:

Segmentation, targeting, positioning in the Marketing strategy of KFC

KFC (Kentucky Fried chicken) uses demographic segmentation to serve the market as per
the customer needs & wants. The consumers of KFC are the young as well as young adults.

It used to serve the same menu all around the world which means that it was using
undifferentiated targeting strategy. However, in recent times, following McDonalds example,
KFC has started localising its menu, giving it better acceptability in the market. Moreover it has
transformed its positioning strategy from product based to value based in recent times.

KFC is strongly positioned in the minds of consumers for its Chicken menu. There are
very few outlets which serve anything in vegetarian. But when it comes to non-vegetarian, KFC
is just superb. Its chicken wings, and chicken bucket is a favourite with everyone. This excellent
targeting technique is the reason that most non vegetarian lovers flock at KFC.

COCA-COLA:

Segmentation helps the brand to define the appropriate products for specific customer
group; Coca Cola doesn’t target a specific segment but adapts its marketing strategy by
developing new products.

Similarly it uses mix of undifferentiated & mass marketing strategies as well as niche
marketing for certain products in order to drive sales in the competitive market. Its Cola is
popular worldwide & is liked by people of all age group while the diet coke targets niche
segment for people who are more health conscious.

Coca Cola uses competitive positioning strategy to be way ahead of its competitors in the
Non-alcoholic beverages market.

The ‘One Brand’ strategy, which brings its four product variants – Coca-Cola, Diet Coke,
Coca-Cola Zero and Coca-Cola Life, under the Coca-Cola master brand instead of being
marketed as separate products, was first launched in the UK market back in March.

CONCLUSION

Marketing has become an essential factor for organization succession. Every organization
has to attract customers by their innovative promotional schemes and aggressive marketing
campaign. Strategic marketing defines the best possible use of available resources in order to get
competitive advantage. On the basis of this study it can be concluded that strategic marketing is
vital for every organization in order to survive in current competitive market. The effective
strategic market plan can vastly provide comprehensive competitive advantage.
REFERENCES

 https://bohatala.com/kfc-strategies-marketing-project-report/
 https://www.marketing91.com/marketing-strategy-of-coca-cola/
 https://www.locusassignments.com/solution/unit-2-marketing-essentials-assignment-
solution
 https://www.marketing91.com/marketing-strategy-of-kfc/
 https://blog.reachforce.com/blog/the-3-most-popular-methods-of-segmentation-for-b2b
 https://www.insanegrowth.com/customer-segmentation/
 https://www.open.edu/openlearn/ocw/mod/oucontent/view.php?id=21012&section=1.1
 https://financial-dictionary.thefreedictionary.com/industry+segment
 https://help.sap.com/doc/saphelp_crm700_ehp04/7.0.4.04/en-US/1e/
5b307c1bb44845bd960a2f05c0e2e4/content.htm?no_cache=true