KFC MACRO ENVIRONMENT IMPACT ON ITS MARKETING DECISIONS


            Kentucky Fried Chicken, now under Yum! Brands, Inc. has no lower than eleven thousand restaurants in eighty countries worldwide.  Next to McDonalds, it is the largest fastfood restaurant in the world.


            One of the new products of KFC is the Double Down. It has no bread. Instead of bread, chicken breading serves as its substitute. In between the chicken breading, there are cheese, bacon and sauce. In KFC’s advertisement, the slogan used to promote the product is “(it) is so meaty, there is no room for a bun”.  


            The Toasted Pocketful was launched in Malaysia. Its ingredients are the zinger fillet, corn kernels, Chacho’s corn chips, lettuce and chicken strips that are crispy. On top is a jalapeno cheese sauce. It is then put in a tortilla, wrapped and toasted. Its aim is to start its products that are tortilla-based.


            In its Malaysian operations,  a profit growth of twenty-five percent to RM35.6 million was recorded. The growth was attributed to expansion of an additional eight new branches and thirty-four outlets, the launching of novel products and services as breakfast menu and Triple XL burger, KFC’s marketing campaign associated with the 400th store set meals celebrations,  and a twenty-four operation by some outlets.


            However, rising prices of necessities as cooking oil, poultry, flour, and potato products canceled some of the profits that were earned.


            In Singapore, earnings were generated by an extension of eight new outlets, the nationwide marketing promotion called the Real Taste campaign, and the launching of Golden Fiesta Bucket Meal.


           


In Pakistan, KFC is concentrating on targeting the suburban middle class income families with products sold at affordable prices. Additional mobile outlets are soon to open to cater to these target markets where additional offerings of dessert are available. Hot Wing will be introduced to several key cities of Pakistan.


Open cooking is known to be applied in some KFC outlets of Pakistan. This is to afford the customers to view how their food is cooked, and to assure them that KFC cooking is safe and hygienic.


KFC have also introduced  promotion packages as Ramadan package, midnight package, birthday package, and celebrates other occasions as Basant day, Mother’s day, and others. They also launched KFC items as watches, mugs and coffee cups, toys, key chains, T-shirts, and offers lucky draw activities to entice more customers.


It also has its own chatting and social site where it promotes and introduces its products.   It has its own mobile vane to be able to deliver orders within thirty minutes, and which serves also as a source of advertisement. Road shows are performed by KFC during campaigns and festivals.       It is aiming to open an additional forty more outlets around the country. In the city of Peshawar, KFC outlets are open twenty-four hours everyday and all products are available any time of the day or night.


            While registering improved sales in its restaurants and outlets, the KFC segment is recording a decrease in its earnings. This is mainly due to the continuous increase of KFC’s prime raw commodities as soybean meal, corn, and palm oil. Its outcome is a much higher cost of producing internal poultry products. In addition, cost of ingredients was also on the rise as well as materials used in its packaging.


            Due to this, the KFC group is concentrating to attain an improved cost efficiency method while improving productivity in its facilities, both the restaurants and manufacturers.


            Marketing decisions were based on the following opportunities: enticing or targeting the youth market by putting up facilities with play stations, LCDs, Wi-Fi and making the outlet available for parties and events; promoting the hygiene of their chicken meat;  campaign on complementing home meals; improvement in its delivery logistics;  introduction of new products as fish, corns, salads, donuts, and others making it a totally balanced meal with every course available from soup, main dish to dessert o suit each customer’s taste and wants; and  positioning itself in South America.


            On the other hand, KFC needs to study its pricing because its sale cost is higher than other fastfoods selling the same products or items; assess its packaging and its offers of promotional deals to customers; provide solutions to customers” requirement of healthy foods, and increase more their variety of products.


 



Credit:ivythesis.typepad.com


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