What is marketing?

Almost every marketing textbook has a different definition of the term marketing.
The American Marketing Association (AMA) uses the following: The process of planning
and executing the conception, pricing, promotion, and distribution of ideas, goods, and
services to create exchanges that satisfy individual and organizational objectives. From this
definition, we see that:

Marketing involves an ongoing process. The environment is dynamic. This means

that the market tends to changewhat customers want today is not necessarily what
they want tomorrow. For example, sales of beef are declining in the United States
because consumers have become health oriented. Similarly, Tupperware parties are
less popular today than they once were because there are fewer housewives who do
not work outside the home.

This process involves both planning and implementing (executing) the plan.

Some of the main issues involved include:

o Marketers help design products, finding out what customers want and what
can practically be made available given technology and price constraints.

o Marketers distribute productsthere must be some efficient way to get the

products from the factory to the end-consumer.

o Marketers also promote products, and this is perhaps what we tend to think of
first when we think of marketing. Promotion involves advertisingand much
more. Other tools to promote products include trade promotion (store sales,
coupons, and rebates), obtaining favorable and visible shelf-space, and
obtaining favorable

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 o press coverage.

o Marketers also price products to move them. We know from economics that,
in most cases, sales correlate negatively with pricethe higher the price, the
lower the quantity demanded. In some cases, however, price may provide the
customer with a signal of quality. Thus, the marketer needs to price the
product to (1) maximize profit and (2) communicate a desired image of the
product.

o Marketing is applicable to services and ideas as well as to tangible products.

For example, accountants may need to market their tax preparation services to
consumers.

THE MARKETING ENVIRONMENT

ELEMENTS OF THE ENVIRONMENT:

The marketing environment involves factors that, for the most part, are beyond the
control of the company. Thus, the company must adapt to these factors. It is important to
observe how the environment changes so that a firm can adapt its strategies appropriately.
Consider these environmental forces:

Competition:

Competitors often creep in and threaten to take away markets from firms.
For example, Japanese auto manufacturers became a serious threat to American car
makers in the late 1970s and early 1980s. Similarly, the Lotus Corporation, maker of
one of the first commercially successful spreadsheets, soon faced competition from
other software firms. Note that while competition may be frustrating for the firm, it is
good for consumers. (In fact, we will come back to this point when we consider the
legal environment). Note that competition today is increasingly global in scope.

Economics:

Some firms in particular are extremely vulnerable to changes in the economy.

Consumers tend to put off buying a new car, going out to eat, or building new homes

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 in bad times. In contrast, in good times, firms serving those needs may have difficulty
keeping up with demand.

Political:

Businesses are very vulnerable to changes in the political situation. For

example, because consumer groups lobbied Congress, more stringent rules were made
on the terms of car leases. The tobacco industry is currently the target of much
negative attention from government and public interest groups. Currently, the desire
to avoid aiding the enemy may result in laws that make it more difficult for American
firms to export goods to other countries.

Legal:

Firms are very vulnerable to changing laws and changing interpretations by

the courts. Firms in the U.S. are very vulnerable to lawsuits. McDonalds, for
example, is currently being sued by people who claim that eating the chains
hamburgers caused them to get fat. Some impacts of the legal environment.

Firms are significantly limited in what they can do by various lawssome laws, for
example, require that disclosures be made to consumers on the effective interest rates
they pay on products bought on installment. A particularly interesting group of laws
relate to antitrust. These laws basically exist to promote fair competition among firms.
Some principles involved here include:

o Collusion: Firms may not conspire to fix prices (agree that they will not sell
below an agreed upon price) or reduce services.

o Predation: Firms may not sell their products below their cost of production
for the purpose of driving competitors out of business so that they, themselves,
can raise prices when competition is reduced.

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 o Market share: Firms which have an unacceptably large market share may be
broken up by court order so that many smaller firms will be around to
compete. (This is what happened to AT&T, and at times, IBM has been
worried about this prospect). Tying: A firm that controls a valuable product
may not require the consumer to buy a more commonplace one to get the
scarce product. For example, Intel controls many of the newest
microprocessors (e.g., Pentium IV). Intel also makes motherboards for
computers; however, motherboards are made by a lot of firms. Intel would be
thought to abuse its effective monopoly power if it required consumers to buy
a motherboard in order to get its newest chips.

Technological:

Changes in technology may significantly influence the demand for a product.

For example, the advent of the fax machine was bad news for Federal Express. The
Internet is a major threat to travel agents.

Social:

Changes in customs or demographics greatly influence firms. Fewer babies

today are being born, resulting in a decreased demand for baby foods. More women
work outside the home today, so there is a greater demand for prepared foods. There
are more unmarried singles today. This provides opportunities for some firms (e.g.,
fast food restaurants) but creates problems for others (e.g., manufacturers of high
quality furniture that many people put off buying until marriage). Today, there are
more blended families that result as parents remarry after divorce. These families
are often strapped for money but may require duplicate items for children at each
parents residence.

Environmental scanning:

Its helps the firm understand developments in the market. Such developments may
involve changes in the market place due to social trends (e.g., Gerber, a manufacturer of baby
products, faces a serious challenge with declining U.S. birth rates), technology (e.g., VCR

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makers are threatened by DVD players), or new or potential competitors (e.g., Internet
service providers are being threatened by increasing marketing efforts from MSN). Note that
environmental scanning must be performed continuously, since environmental change does
not cease.

Economic cycles:

The economy goes through cycles. In the late 1990s, the U.S. economy was quite
strong, and many luxury goods were sold. Currently, the economy is somewhat weak, and
many firms are facing the results. Car makers, for example, have seen declining profit
margins (and even losses) as they have had to cut prices and offer low interest rates on
financing. Generally, in good economic times, there is a great deal of demand, but this
introduces a fear of possible inflation. In the U.S., the Federal Reserve will then try to prevent
the economy from overheating. This is usually done by raising interest rates. This makes
businesses less willing to invest, and as a result, people tend to make less money. During a
recession, unemployment tends to rise, causing consumers to spend less. This may result in a
bad circle, with more people losing their jobs due to lowered demands. Some businesses,
however, may take this opportunity to invest in growth now that things can be bought more
cheaply.

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ABOUT KFC

Kentucky Fried Chicken (KFC) is a fast food restaurant chain that specializes
in fried chicken and is headquartered in Louisville, Kentucky, United States. It is the
world's second largest restaurant chain (as measured by sales) afterMcDonald's,
with almost 20,000 locations globally in 123 countries and territories as of December
2015. The company is a subsidiary of Yum! Brands, a restaurant company that also
owns the Pizza Hut and Taco Bell chains.

KFC was founded by Harland Sanders, an entrepreneur who began selling fried
chicken from his roadside restaurant inCorbin, Kentucky, during the Great
Depression. Sanders identified the potential of the restaurant franchising concept,
and the first "Kentucky Fried Chicken" franchise opened in Utah in 1952. KFC
popularized chicken in the fast food industry, diversifying the market by challenging
the established dominance of the hamburger. By branding himself as "Colonel
Sanders", Harland became a prominent figure of American cultural history, and his
image remains widely used in KFC advertising. However, the company's rapid
expansion overwhelmed the aging Sanders, and, in 1964, he sold it to a group of
investors led by John Y. Brown, Jr. and Jack C. Massey.

KFC was one of the first American fast food chains to expand internationally, opening
outlets in Canada, the United Kingdom, Mexico, and Jamaica by the mid-1960s.
Throughout the 1970s and 1980s, KFC experienced mixed fortunes domestically, as
it went through a series of changes in corporate ownership with little or no
experience in the restaurant business. In the early 1970s, KFC was sold to
the spirits distributor Heublein, who were taken over by the R.J. Reynoldsfood
and tobacco conglomerate, who sold the chain to PepsiCo. The chain continued to
expand overseas, however, and in 1987 KFC became the first Western restaurant

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chain to open in China. The chain has since expanded rapidly in China, which is now
the company's single largest market. PepsiCo spun off its restaurants division as
Tricon Global Restaurants, which later changed its name to Yum! Brands.

SWOT ANALYSIS

STRENGTH:

1. Global Presence: KFC is the worlds 2nd largest restaurant chain with more
than 18,000 KFC outlets in 120 countries and territories around the world. It is
market leader in Non-veg food joints categories in majority of countries it is in.
2. Strong parent company: It is the subsidiary of Yum! Brands, a restaurant
company that also owns the Pizza Hut and Taco Bell . Yum! Brands, the fortune
500 company, is one of the worlds largest fast food restaurant companies in
terms of system unitsmore than 41,000 restaurants around the world in over
125 countries & it help individualbrands in optimizing its resource usage.
3. Veg & Non veg offerings: Although KFC is known for its finger licking
Chickens menu but recently they ventured out in Vegetarian category which is
helping them in increasing their business & attracting both veg & non-veg
preferred customers.
4. Secret Recipe: Sanders Original Recipe of 11 herbs and spices is one of the
most famous trade secrets in the catering industry. A copy of the recipe, signed by
Sanders, is held inside a safe inside a vault in KFCs Louisville headquarters,
along with eleven vials containing the herbs and spices.

WEAKNESSES

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1. Unhealthy fats: Use of unhealthy fats & unhygienic calories is creating
problem for the fast food chains to which KFC is not an exception.
2. Managing franchisees: Franchisee management is one of the critical issues
in the success of the fast food chains and due to conflicting operational issues
between KFC and its franchisees many of its outlets got closed since its inception.

OPPORTUNITIES:

1. Market expansion: Emerging economies and their changing lifestyle

resulting into more of outings with family/friends, corporate parties will result in
the high growth of the industry. Furthermore, the presence and popularity of
McDonalds is anytime more daunting for KFC.
2. Specializing into vegetarian Menu: Although KFC recently entered in
vegetarian fast food category but they have limited menu items as compared to
other chains like subway, Pizza-hut, Mac Donalds, who are already an
established player in the segment. So specializing into Veg. items like they have in
Non-Veg will help the company in its overall global growth.
3. Rise in health conscious population: Designing its menu for the health
conscious population will be the driving force for the whole industry in the future
because due to changing lifestyle people are getting less time for themselves due
to which health issues are raising.
4. Penetration: Strengthening its outlet network by further penetrating the
current market will help KFC in increasing its revenues & become no.1 player in
fast food chain market given that now they have presence in both Veg. & Non-
Veg. menu in the selected market.

THREATS:

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1. Competition: KFC is not a leader in the fast food chain industry so it has to
compete with all other well established fast food companies who all are
flourishing in the market.
2. Changing Consumer Eating habits: With government & NGOs health
awareness campaigns people are becoming more aware of what to consume &
what to not which is affecting the business of fast food Industry as a whole.
3. Raw Material prices: Rise in the raw material prices may affect the
industry, of which KFC business is not an exception.
4. Closure of current Franchisees: Rise in channel conflict resulting into
closing of the franchisees is affecting its brand image & resulting into negative
word of mouth.
COMPETITOR ANALYSIS:

Any Organization cannot enjoy the business without comp

e t i t o r s . N o organization can afford to ignore there competitors. It is very
important for amarketing managers to monitor the activities of there competitors, what they
aredoing? KFC adopted such sort of strategy that there is no competitor for
spicychicken, which is made by KFC.
KFC beats its competitors through the revising marketing strategy at ev
e r y movement but the main competitor of KFC is Mc Donalds.

KFC MC DONALDS
Spicy products Burger and French Fries
Pakistani people like spicy products instead of boiled
foods
Arabian rice and Zinger burger Big Mac
Free Delivery Free Delivery
Chicken is eaten by every community Beef is banned in some community
Local staff and highly qualified because local staff can Its staff consists of simple graduates and give them
better deal with the customers. training
KFC usus Top to Bottom and Bottom to Top approach Mc Donalds uses Top to Bottom approach
in Management
KFC is co branding with walls No such case

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 KFC
SEGMENTATION:
KFC has divided the market of Pakistan into distinct groups of customers with different
demands, tastes and behavior who require separate products or marketing mix.
In Pakistan the niche marketing is being used for particular classes of people.
They have made segments of the market on the following bases.

Demographical
Behavior
Geographical

By using these three bases they segmented the market as under.

DEMOGRAPHICAL BASIS

In demographics their first segment is consisted of the income factor i.e. high income,
average income and low income.

BEHAVIOR

In behavioral aspect they segmented the market on the basis of quality, taste and price.
Following are the different possible segments in this regard.

Taste conscious
Quality conscious
Class conscious
Combination of price and quality

GEOGRAPHICAL BASIS

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 KFC
On the basis of the geographical factor we have divided our market in two main segments.
Urban areas
Sub urban areas

PROFILE CRITERIA:

1. Gender: KFC is for each gender both male and female.

1 Income: Everyone can use the KFC service upper and middle class .
2 Age: Age limitation for using their products is above 7.
3 Occupation: By profession also everyone can use this product means businessmen,
students, workers and other peoples.
4 Education: It has no need more education that why the person who know something can
easily enjoy with their products.
5 Family life cycle: KFC is suitable in every stage of life like single married couple and
also those who have children can use this product.
6 Lifestyle: This product is used in every level of social class like upper, middle class.
7 Attitude: When the customers once buy this product after that they can use the product
continuously.
8 Purchasing decision: Often KFC changes the purchasing decision of customers because of
its good attributes.
9 Geographic region: Geographically KFC is used in every part of the country as well as all
over the world.

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 KFC
CURRENT TARGET MARKET:
KFC will be using differentiated market coverage strategy. It means that different marketing
mix will be used for different age groups.
After evaluation of various segments, KFC has decided to target the market of urban and
Sub-urban Areas of Pakistan.

People are educated and they want variety in their diet.

Normally people of rural areas dont take fast food. On the other hand people of urban
areas take fast food.
Income of the people of urban areas is normally high and they can afford to purchase
such products, which are slightly higher in price as compared to prevailing prices of
local food in the market.
People of Urban Areas are more quality conscious than the people of Rural Areas.
In Urban Area there lived people from every walk of life and profit generation is
easier than in Rural Areas.

Population density is higher in Urban Areas as compared to Rural Areas, so the numbers
of customers are more in Urban Areas.

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PESTEL ANALYSIS OF KFC

POLITICAL
Kentucky Fried Chicken provides the fast-food service. To achieve their goals they
make a political system that can guide them or they called as a guide service. This political
system could change their business strategy and make the progress to their company. For
example, they have employee that run the activity in the restaurant. They make a contract
with the employee and make a pension fee. They also provide the alternative in buying KFC.
KFC Hospice Dinners that delivering a caring out reach to the terminally ill. The Hospice
delivers meals to the terminally ill nationwide. These meals are delivered directly to the
patient in their own house. We always called that a delivery orders. The customers feel better
when they enjoyed this system. KFC Cafeterias which offering dishes competitors. And KFC
Grocery Products which The Cornel is always home.

ECONOMICAL
If we talked about the economy aspect, we talked about the fund or money. Kentucky
Fried Chicken provides the lower price. They have a food packet; just like we buy the packet
we can get the discount or something that support us to buy there again. In this economic
analysis we find the benefit of economical that changes the strategy of international business
of Kentucky Fried Chicken. They can grow up with the lower price and the satisfying service.

SOCIAL
Kentucky Fried Chicken is one of the International Company which has begun
their company early and nowadays they are one of the biggest companies in the world. Why
the KFC can be the biggest company. Kentucky Fried Chicken built they social connection
with others organization or the company around the world. Beside that in their restaurant,
they also provide the food that the tasted is related with the tasted in the country they took the
place to build the restaurant. In addition abut the employee, they are worked the people from
the country which are have a good performance and have a talent in cooking for the chef.
KFC also supported the many of events, they help the committee by sponsored the event.
Sometimes they give the donation to the poor people. With this social activity they company
will be known.

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TECHNOLOGICAL
In this analysis, Kentucky Fried Chicken can go out of their home country. They use
the modernization technology to advertise their product. They make a website of KFC so
easily we just search in internet what do we want about KFC and so many information about
KFC. There are also many transactions that do by internet and the KFC just delivered the
order to the customer address. In our country they have the phone number that can contact if
we want to order some food. Sometimes the customer lazy to go out to buy some food, this is
the reason they make an order delivered.

ENVIRONMENTAL
Environment is the one of the important analysis that must be had by the company.
Without environment they cant run their transaction because the environments are their
customer and they get profit from the product that has been bought. Many people like
Kentucky Fried Chicken Company because they are not like the industrial company. KFC
Company does not disturb the public activity by make a noisy. They just invite the
environment to come to the restaurant to enjoy their food.

LEGAL
Kentucky Fried Chicken is the legal company. They growth under the Yum! Brands.
They gather with Pizza Hut and Mc. Donalds that they are the food company. This legal
analysis guides them to go overseas because the companies which want to going international
business are the legal company. They also can hold their recipe because it has been legality
so no one can steal it. In other hands, the employee also protect from the stealing cooking
recipes. Kentucky Fried Chicken Company can growth bigger and bigger. They are legal so
every activity is done in legal system.

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 Marketing Mix

The marketing mix is generally accepted as the use and specification of the four
Ps describing the strategic position of a product in the market place.

Product (goods and service)

Price (value of the product)

Promotion (aware the people for product)

Place (distribution of product)

Marketing mix at KFC

The marketing mix of KFC consists of 4Ps. It contains every thing KFC do it to
influence the demand for their products.

a product is anything that can be offered to a market that might satisfy a want
or need.

KFC product planing

KFC product is classified as consumer product as it has no intermediates.

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 KFC offers specialty goods.

The stock turn over of KFC is high.

Price and quality of the product is always compared.

KFCs product includes

Goods (Burgers, Chicken Meals etc)

Services (cleanliness, quick service, parties)

Product strategy of KFC

KFC was launched here as an innovative product. KFC has got one product line
but later they introduced products in the same line to protect their market share.
New product ideas are generated from:

Customer services (comments cards)

Gallops survey (mystery shoppers)

KFC have a Quality Assurance department that decides the new product
innovation. Q.A. department prepares screening of new ideas and products
feasibility report. This department does the technical evaluation (whether it is
practical to produce the new product or not).

KFCs products are tested externally by offering trials to customers by giving

them free samples.

KFC adds a new product in its present assortment based on

Their competitors

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 Products adequate demand

The satisfaction of key financial criteria

Its compatibility with environmental standard

KFC product line

KFC product line includes all chicken based products.

Chicken:

o 1 piece
o 2 pieces
o 5 pieces
o 10 pieces

Burgers:

o Zinger Burger
o Colonels Chicken Burger
o Colonels Fillet Burger
o Zinger Jr.

Combos:

o Chicken Meals
o Sandwich Meals
o Family Meals

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 Desserts & Beverages:

o Fruit Salad
o Regular & Large Drink
o Regular & Large Mineral Water
o Tea
o Scoop of Walls Ice cream
o Coffee

Snacks & Side Orders:

o Arabian Rice
o 5 & 10 Pieces Hot wings
o Dinner Roll
o Regular & Large Fries
o Hot Shots
o Corn on the Cob
o Hot & Crispy Soup

Product mix strategy

The product mix strategies are in relation to:

Competitors:

KFC has a head-on competition with McDonalds

Wherever they place their products; KFC goes there as well.
Locally in Pakistan KFC face a close competition with the local brands like AFC
(Al-Baik Fried Chicken), Fried Chicks, Dixy Chicks etc they are producing the
same product as KFC.

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 Attributes:

The brand of KFC is so strong that it is the attribute itself.

Place
and Quantity:

KFC products are based on high quality and prices.

Product mix expansion

Line Extension:

Through introducing new meals offers.

Alteration of existing products:

Quality Assurance department does it. The department decides which

product should be sold and when (seasonal products as rice and soups
offered in winters).

Functional modification:

It is also decided by the Q.A. department to introduce new recipes.

Quality modification:

KFC has moved to masses rather than the original recipe.

Contraction

KFC introduced itself, has grown and now it is at maturity stage for the last ten
years in Pakistan.

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When the new deals or offers are not sold as expected, quality assurance
department contracts the previous offers and introduces new offers.

Change in product positioning

KFC products were first offered to upper socio-economic group. Later, introducing
discounted and lower price deals, they are now dealing in masses. So, KFC has
traded down.
In doing so KFC has used the same brand name and same high quality product.

Product management of KFC at initial stage

Market entry was not a big problem for KFC as it is a well-known international
brand. In that stage they did promoted through their own brand. Their promotion
statement was KFC in Pakistan. Management in the rise stage had to make
policy for heavy competition with McDonalds. they open new branches improved
and extend the product line by introducing new product items.

Brand of KFC

Brand Name: KFC

Color: Red and white

Symbol: Colonel Harland Sanders picture and KFC written with it.

Master Brand: The brand itself is so dominant, that it immediately comes

in mind.

o KFC's brand identity -- the logo features Colonel Harland Sanders,

one of the best-recognized icons in the world.
o KFC is trade marked registered brand.
o It is distinctive, adaptable to addition to product line.

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 o It suggests something about product.
o It is legally protected and registered
o The brand equity is very high as the value added by brand to the
product effects the product selling.
o KFC is marketing the entire output under products own brand

Product packaging

KFC makes its own disposable packaging. If they need promotion Pepsi
contributes in improving the packaging quality. KFC does family packaging.
They use paper material for packaging to avoid health hazards and
environmental pollution.
KFC does brand labeling. Some of its products also have informational labels
such as Halal, Veggi Burgers and Chicky Meals.

Conclusion

KFC has made a separate brand image in Pakistan.

KFC Pakistan does not serve the vegetarians.
Product line is very vast.
They study the behaviors of the Pakistani customers.
KFC has specific product features.
Offering delicious and quality product.
Specialization in fried chicken.
Charging extra for side dishes.
Quality, cleanliness, and service.
Product quality assurance.

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 Price is the any amount of money that customers have to pay while
purchasing the product. More broadly, price is the sum of all the values
that consumers exchange for benefits of having or using the product or
services

Price strategies of KFC

In introduction stage KFC entered the market using market-skimming strategy.

Their products were high price and targeted only upper class. Gradually they
trickle down focusing on the middle class to penetrate the market. Also KFC
follows one price strategy. Price is determined according to the rates of the raw
materials and policies of the Govt. The political and legal forces often affect the
policies of KFC and eventually results in change of prices that is due to imposing
of taxes.

Price competition

We can compare the price of KFC products with McDonald, Dominoes and Pizza
Hut. If the competitor provides the same product at a lower price then the
organization usually lowers the price of its product too. In the case of KFC, Fried
Chicken is its main selling point and controls a monopoly over the Pakistan fast
food market. It-prices its burgers, French fries and soft drinks.

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 Product Line Pricing:

KFC has a unique pricing strategy that falls solely on their many product lines.
Their Value Meals fall into the category of Product Line Pricing. Where there is a
range of product or services the pricing reflect the benefits of parts of the range.
For example, you can order a Two Cheeseburger Value meal that comes with a
medium drink and fries. You can Super Size this meal to get a large drink and
large fries for a little more money or you can go with another value meal that
might include different items for different price.

Penetration Pricing:

When KFC first began to break into the coffee market, they ran a large marketing
campaign in order to gain some market share in the industry. For a limited time
frame, you could get a free small coffee every morning from 4-7am. This was to
promote their new coffee partnership with Green Mountain Coffee and helped
spread the word that KFC was now offering coffee.

Cost Based pricing

KFC prices their product keeping different points in view.

They adopt the cost base price strategy.
Pricing of the product includes the govt. tax and excise duty and
then comes the final stage of determine the price of their product.
The products are bit high priced according the market segment and
it is also comparable to the standard of their product.
In the cost based method we include the variable and fixed cost.

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 Calculation of the price under Cost Based Pricing Strategy

Total Pounds of Chicken Served in KFC Restaurant Annually = 1.914 Billion

Total KFC Chicken Pieces Sold Annually = 5.89 Billion

Total Retail Sales = $8.9 Billion

Sales Price of per Chicken Piece = Total Retail Sales / chicken Pieces sold =
$8.9 Billion / $5.89 Billion =$1.51 we assume that Fixed Cost is = $6000000000

Variable Cost = $675000000

Profit Margin is Or Mark Up = $225000000(25% of Sales) per unit variable cost

= $675000000 / 5890000000 = $0.115

Unit Cost = Variable Cost + Fixed Cost / Chicken pieces Sold

= 0.115 + 6000000000 / 5890000000
= 0.115 + 1.02
= $1.135
Now suppose manufacturer wants to earn 25% mark up on sale. The
manufacturer mark up price is calculated:

Mark Up Price = Unit Cost / (1 Desired Return on Sales)

=1.135 / (1-.25)
= 1.135 / 0.75
= $1.51

Conclusion

KFC charge high prices.

Offers different coupons.

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 Concept of discount is lacking in KFC Pakistan.
KFC has targeted the upper class people.
Service charges are also high.
No clear policy for discount and coupons.
The employees are trained not to suggest the discounts.
KFC sells their experiences on high rates.
High revenue due to best strategies.

this refers to how the product gets to the customer; for example, point-of-sale
placement or retailing. This third P has also sometimes been called Placement,
referring to the channel by which a product or service is sold (e.g. online vs.
retail), which geographic region or industry, to which segment (young adults,
families, business people), etc. also referring to how the environment in which the
product is sold in can affect sales.
KFC distribution

KFC has only one channel of distribution i.e. direct where the goods are
transferred to the consumer directly. KFC has no middlemen.

Distribution of goods and services

KFC does distribution of consumer goods directly to the consumer.

KFC also does distribution of services to the consumer like parking,
sitting, home delivery, etc.
KFC gets Wheels! KFC launched its first mobile unit, which took the
streets of Karachi by storm. The mobile unit has been designed to cater to the
needs of those who are on the go, and have little time to stop by at a restaurant.

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 It also provides a unique convenience of enjoying the delicious KFC offering
anytime, anywhere, thus making fast food truly fast and convenient.
KFC intends to further develop its mobile network nationwide through
more such units

Target areas

Free home Delivery strategy They provide free home delivery to

offices & homes at all Pakistan.
Accessibility Resulting in several outlets to cater to the needs of
people in & around the city.
Hectic lifestyle Due to the hectic lifestyle of office goings individuals
the fast food concept saves time of preparing food and gives the customer a full
meal quickly.
Hectic lifestyle of individuals giving them more time at work and less
stress about waiting for food.
Commercialization of urban and sub-urban markets leading to more
mid-sector people that find high-end eating joints very to expensive.
Mid-sector people are always looking for change which KFC provides
in their range of fast food.
Quality conscious people in urban areas are more conscious about
the quality of food than rural areas.
Urban areas are more populated therefore they help with attracting
higher revenues.

Placement of outlets

Due to KFC placing itself close to schools, colleges, cinemas and markets which
are mostly populated by the young and those who are in a hurry, KFC enjoys a
large number of footfalls everyday. In addition, they also have outlets close to
non-vegetarians (mostly Muslim populated areas).

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 CHANNEL PROCESS

KFC works on the flow of good operation techniques i.e.

Good Operating Manager leads to Good Team
Selection Good Services Good Targets Good
Revenues through the following internal strategies:
o Training
o Incentive based targets
o Recognition for good work
o Performance based bonus
o Employee benefits to keep them motivated
o Promotion

Vertical marketing system

KFC has corporate vertical marketing system because it is centrally owned by its
subsidiary Yum Brands. KFC is affected by the geographic distribution (they have
few outlets then its competitor McDonalds). The unit value of the items is
comparatively lower then McDonalds. KFC has a well-equipped sitting area for
the customers and a Chicky play area for the kids.

Conclusion

KFC deals in internal market.

Less number of outlets in over all Pakistan.
Target only city areas.
Slow delivery system in some areas.
KFC has well equipped sitting.

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 KFC has no intermediaries.
Well trained staff with expert supervisors.
Seeking customers response for quality.
KFC has no entertainment in some franchises.
Quality conscious people are the main target of KFC.

Promotion is the method used to inform and educate the chosen target
audience about the organization and its products. Using all the resources of
promotion

KFC promotion strategy : The logo features Colonel Harland Sanders that is
one of the best logo in the world has created its name as a standard in the
market. The logo of the smiling Colonel is probably one of the most recognized
faces in the world and instantly brings the image of fried chicken to ones mind.
Today the Colonels Spirit and heritage are reflected in KFCs brand identity.

KFC promotion sources

o Advertising
o Sales Promotion
o Public Relations
o Events and Experiences
o Coupons, Discounts and Bundled packages

An organization finds most of its meanings and survival through promotion.

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 At KFC, Promotion is the main tool to bring all chicken lovers attention towards its
delicious one-of-a-kind

Advertising

KFC by its advertisements derives the desire in the customer

to come and enjoy healthy food in their favorite restaurant.
They spend 2% of its profits on advertisement and use print media and
most recently doing televised marketing to promote it products.
Their advertising media involve: Newspapers, Pamphlets, Billboards
and Television. KFC does both the primary demand advertising (Become a
Chicken Fanatic) and the selective demand advertising (e.g. Zinger Meal).
In its advertising it gives informative messages like Faryad: Keep the
city Clean.
KFC does institutional advertising to stimulate demand. When KFC
offers new products then it does product advertising.
KFCs ads act as counteracts which means to drive the customer to
KFC i.e. it uses pull advertising strategy.
KFC has put big hoardings on the busy areas of Pakistan and have an
effective advertisement campaign on the media in order to MOTIVATE its
customers.
The colors used in advertising are Red, White and blue which itself is
recognition for the brand.

Sponsorship

Sponsorship is another tool to strengthen an organizations image. KFC sponsors

many NGOs and other social welfare organizations like Regular sponsorship to
SOS village. Sponsorships to FARYAD a plant and life association FARYAD:
Keep the City Clean. They also offer different deals according to the season and

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occasions. KFC is currently the sponsor of the Australian Cricket Team and the
colonel logo can be seen on their uniforms throughout the matches.

Sales Promotion

KFC have joint sale promotions with different companies like HP, Philips, Value
Meals, and Pepsi Cola. And most recently with ARY Gold digital and World Call
Internet services, Also KFC Proud Partners are Del Monte, Culligan, Shan and
Peek Freans. KFC uses the following tools to further enhance its sales.
Premiums
Exhibits
Coupons
Entertainment
PSO had made a scheme in which PSO had given the coupons of KFC having
10% off. (1 coupon was given after each purchase of 10 liters of petrol).
Using coupons that one can acquire after spending a particular amount over a
period of fixed time, customers can enjoy the benefits of free meals (premiums).
Additionally they provide meal vouchers and exciting offers in their print ads.

KFC promotion in parties

KFC organize some musical shows and other parties. With the caption Biggest
Birthday Party The event took place on Louisville, Kentucky, USA, on Sept.8,
1979, to celebrate the 89th birthday of Kentucky Fried Chicken founder Colonel
Harland Sanders.

Quality assurance

KFC takes great pride and care to provide the best food and dinning experience
in the quick service restaurant business. They believe eating sensibly, combined
with appropriate exercise, is the best solution for a healthy lifestyle. Chicken &
its Products are

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 Locally produced and processed chicken.
Supplied in frozen form
100% Halal

Conclusion :

After my research of KFC, I come to conclusion that KFC has a good product
as far as chicken items are concerned. But they have to increase other
varieties to attract the customers. And they must targets the children, as
McDonalds targeting by making a play land because children are the main
source and important ones to push their parents to go to their favorite
restaurants. And one more aspect for KFC is that it must also reduce their
prices to compete their competitors like McDonald, Crisps Pins and Pizza Hut.
The largest threat KFC is faced with is the restaurant industry as a whole. The
consumer continues to have many choices when it comes to fast food
restaurants. KFC struggles are much do to the inability to bring new products
to the market quickly and its innovation of new products. KFC fell behind the
market in new products and was copying other fast food chains to stay
competitive.

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BIBLIOGRAPHY:

www.slideshare.net/annaelizabethbrewer/ international-marketing-kfc
https://www.scribd.com/doc/99116670/Marketing-Strategies-of-Kfc
www.google.com
www.wisnudewobroto.com/kentucky-fried-chicken-marketing-strategy-english/

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