ASSIGNMENT

Kentucky Fried Chicken (KFC)

SUBMITTED TO SIR LIAQAT JAVED

INSTITUTE OF MANAGEMENT SCIENCES

KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches. While
its primary focus is fried chicken, KFC also offers a line of roasted chicken products,
side dishes and desserts.

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 marketplace. ‡

Product ‡

Price ‡

Place ‡

Promotion

a) PRODUCT
Anything that can be offered to a market to satisfy a want or need. KFC's specialty is
fried chicken served in various forms. KFC's primary product is pressure-fried pieces
of chicken made with the original recipe. The other chicken offering, extra crispy, is
made using a garlic marinade and double dipping the chicken in flour before deep
frying in a standard industrial kitchen type machine.

1)Segmentation
‡

Geographic segmentation: KFC has outlets internationally and sells its products
according to geographic needs of the customer. In pakistan KFC focuses how
geographically its customers demand different products. here Chicken is the main
selling product, while in india the Veg. items sell more than the chicken.
 Demographic Segmentation: In demographic segmentation, the market is divided
into groups based on an age, gender, family size, income, occupation, religion, race
and nationality.

KFC divides the market on demographic basis in this way:

Age is between 6-65.

Gender is both males and females.

Family size is 1-2, 3-4, 5+

Income is Rs 10,000 n above.

Family lifestyle is almost all.

Psychographic segmentation Dividing a market into different groups based on

KFC divides market on the basis of psychographic variables like

Social class- Upper and Middle class. ‡

Lifestyle is not specific. ‡

Personality is ambitious and authoritarian

2)Target market
‡ “The process of evaluating each market segments attractiveness and selecting two
or more segments”

‡ As the outlets of KFC are in posh area and prices are too high (overhead
expenses-rent, air-conditioning, employees), so KFC targets upper and middle
classes. Target market depends upon size and growth rate of population, Company
resources and structural attractiveness of market segment.

3) Market positioning
KFC uses its attributes to Position its Product(Fried Chicken)
‡ For a product to occupy a clear, distinctive and desirable place relative to
Competing products in the minds of target consumer. In KFC feedback is taken from
the customer in order to know the customer demands and then improvements are
made in products. KFC focuses on pure and fresh food in order to create a distinct
and clear position in the minds of customers KFC has a strong brand name and they
are leading the market in fried chicken.

b) PRICE
‡ 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

1) DEMOGRAPHIC FACTORS

Age: Generally there is no age limit focus by the KFC. The target and focus is on
each and every individual in a society. KFC finds its largest demographic in the
young of any society. ‡

Gender: Both male and females are focused by KFC, gender does not play any role
here. ‡

Household Size: This plays a vital role in the demographic factor of the KFC.
Generally they target whole families rather than single persons. This being the
reason for their Family Meals which are basically bundled items served at a
nominally cheaper rate.

KFC not only adopt the Pakistani culture but also the Religion as well. They offer
Halal foods to the customers, which is the symbol that they adopted the Muslim
religion.

KFC targets the young generation, as here in this country the young generation is
more towards eating out and is more energetic. It targets the early single segment
that is the upper class.

Previously they were focusing on single segment that was through Niche Marketing
by offering “Combo Deals”. Now they are focusing more on other classes as well.
They are dealing in masses by introducing value deals; most recently introduced
“Zinger Junior”.
2) ECONOMIC FACTORS

Income: Income is an important key factor for KFC. This factor decides which class
is to be targeted. In the early rise of KFC they focused on the upper class but slowly
are introducing economy meals that attract the lower to middle classes. ‡

Consumption Behavior: It estimates the behavior of people, their liking and

Geographic location preference:

Urban ‡

Semi urban

Behavior segmentation

Taste conscious quality conscious class combination of product and quality

3) Pricing Strategy
‡ Market skimming: KFC globally enters the market using market skimming. Their
products are priced high and target the middle to upper class people. Gradually they
trickle down the prices focusing on the middle to lower class people to penetrate
both sides of the market.

Competition: They compare the price of their 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 Indian fast food
market (only with fried chicken). It prices its burgers, French fries and soft beverages
with relation to its competitors.

C) PLACE

TARGET AREAS

Free home Delivery´ strategy: They provide free home delivery to offices & homes
TARGET MARKET

Location

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.

d) PROMOTION
Promotion is the method used to inform and educate the chosen target audience
about the organization and its products. . At KFC, Promotion is the main tool to bring
all chicken lovers attention towards its delicious one-of-a-kind product.

All KFC outlets offer its customers with various forms of incentives to buy its
Chicken. 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 or free
add-ons. Additionally they provide meal vouchers and exciting offers in their print
ads, which the customer must cut and bring along.

DOCUMENTATION
Kfc segments its products differently in every country it uses the research and
development method to segment the products. Firstly it launches small number of
products and then move toward the other according to the needs of the customer.
Through the survey and getting information from the customer who came in the
outlet the all information is collected. All the information that is collected through the
customer is sent to the research department who after some other researches took
the action.