Marketing Strategy Analysis Assignment Sample

Introduction Of Marketing Strategy Analysis

In this study marketing strategy of KFC (Kentucky Fried Chicken) is briefly described and the reasons for its growth and failure are also described here. To do this research sclept models are presented and microanalyses are done. As well as a performance of this company in market of competition in the market bases of the UK and Malaysia has done here. Market orientation strategy is present here, and entering strategy in the Malaysia market and UK market is briefly present. After that market orientation based on needs, service, and quality that helps KFC is described. Hence target marketing based on demographics, behavior and psychology is also presented in this study. Therefore positioning strategy of this company is analyzed in brief. After the analysis of the marketing mix of product, place, price, and promotion, all the necessary output has been fulfilled. Finally, yet important conclusion is done and a SWOT analysis is done as per required.

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Background

Colonel Harland Sanders first opened KFC restaurant for a little business in the year 1952 in Utah. His unique chicken recipe has become popular worldwide within a short time, his chicken recipes are made of nearly 11 herbs (Kfcshop, 2022). At the current time, KFC become so popular that it set up more than 900 restaurants all over the UK and Malaysia. In the UK company officially promised to deliver their chicken or food from farm to household within 48 hours. To develop their marketing strategy company focuses on the importance of nutrition and health. With the help of their image, they are trying to participate in the market of competition both in the country as well UK and Malaysia. Through the help of demographic segmentation, this company manages to fulfil all kinds of customers' needs and choices. This company took care of vegetarian choices and non-vegetarian choices also; through capturing business KFC has many types of cater such as young adults, olds, kids, and many other kinds of age groups (Chan et al. 2020). For their marketing policy's sake, they have categorized their audience into a few groups such as families, children, young adults and teens, and budget consumers.

SCLEPTModel

Table 1: SCLEPTModel

(Source: Self-developed)

Analysis

As per the above table, it can be analyzed that, a few external environmental factors of the two countries, the UK and Malaysia have been discussed here. As per the "socio-cultural" factor, the clear idea about the total population rate, language majority, as well as religion of these two countries, has been analyzed (Indexmundi, 2019). After that, an idea regarding the laws and regulations of both countries has been evaluated here. The Equal Pay and Employment Act laws of both countries can be the guide for the employees of KFC during their expansion in both countries. Along with that, the "economic" factor of the UK and Malaysia have provided the idea regarding the GDP, Inflation, Interest and unemployment rate that can bring a positive impact on the business market expansion of KFC in the two countries (UnitedNations, 2020). Along with that, this SCLEPT model has also provided a vast opinion regarding the political, technological as well as environmental aspects of both countries.

Microanalysis

Economical factor

The economic stability of the UK of 7.90% has helped this business to develop and spread its network within the country (Kfcshop, 2022). Though there are a few brands as KFC that are competing with them those brands are not financially stable for improving their business as KFC is. As the UK is a market-based company and its economy is charging from its own market, it is also an opportunity for this company to confirm its position in the market. In contrast, Malaysia is facing some issues of lower GDP nowadays, and for that KFC is also facing some financial problems to advance in the market of this company.

Social factor

The UK has a bigger consumer market and this factor helps KFC to spread its network and make more profit from the market. The current population is 68.7 million according to a report, and this large population is helpful for a business, especially as a food delivery or restaurant business. On the contrary, Malaysia is a country of many religions and ethnic, this country has Taoism, Buddhism, Sikhism, and Hinduism for this the food habit of this country is not the same. Sometimes food companies suffer to deliver food according to the people's choice and in this case, KFC is not any different (KFC, 2019).

Political factor

The UK is one of the most powerful countries in the world and its government is stable. UK political status has been stable for a long time and this company is getting stable business policies from the government. Although Brexit is giving an impact on businesses in the UK but in the market of food it is not so effective because most of the consumers are its own citizens (McGrattan et al. 2020). On the other hand, Malaysia consists of three federal and thirteen states and is a federal constitutional monarchy, for all these reasons this country this country's administration is not so well. Most of the administration is corrupt and for that reason, business policies are biased in this country. KFC also facing some issues regarding its marketing policy and other companies are taking advantage of the government.

Technological factor

The UK is not back in case of technological advancement all over the world, and in London, there is a financial and technological hub. Advanced technological hub is creating an opportunity for KFC and this company is trying to set up automation technologies in food food-making process. As well they are trying to automate their HRM as well, higher level of internet users is also a plus point for this company. By using the internet, most people order their food and watch ads regarding food, therefore KFC developing its selling and marketing strategy with the help of internet. On the other hand, Malaysia also manage to attract the attention of many MNC companies such as IBM, Google, HP, and Amazon in a matter of technology but it is not as developed as the UK and therefore KFC is facing some technical challenges in this country (Hans, 2020).

Competitor analysis

UK

As the UK is a very developed country is quite common for this country to develop a business hub and develop many kinds of business including business regarding food. KFC has also many competitors in the UK such as Oppo Ice Cream, Tattu, City Pantry, Pizza Hut, Pizza Express, and Nandos as well they are giving KFC very tough competition in case of capturing customers and marketing. In the UK 59% of consumers, respond positively to their food, Pizza Hut with 58% positive response, and Nandos with 57% of positive response. One can see marketing policy and capturing consumers are not so easy for KFC in UK market as there are many strong competitors (Kfcshop, 2022). Greegs are dominating UK's food market with a respondent's share of 67%. KFC's current revenue is $2.8B in a year and this is not so weak number in the case of food business. Though there are many competitors it is confirmed that people as this company's product even more at the current time. KFC provides two types of delivery systems in the UK; one is a courier and the other is hyper-local. That is proving very useful in case of expanding their business, as many other companies in the UK are offering home delivery facilities in the UK.

Malaysia

Most sold food in Malaysia is fried chicken and because many kind of people belongs from many religions are living here their food habits are not the same. Local companies are well aware of all these things, but in the case of KFC, their main attraction is chicken recipe. Other recipes are not very popular and for that reason, they are facing problems in selling their non-veg items. The main competitors of KFC in Malaysia are Pizza Hut and McDonald's as brands, therefore the company does not have such a greater number of competitors in Malaysia in comparison with the UK (Asman et al. 2020). According to a statistics report, KFC is the most visited food restaurant in Malaysia.

Market orientation

Market orientation is one of the most convincing yet effective aspects of a particular business that can promote its growth properly. Noteworthy, market orientation assists organizations to grab a massive customer base in the business that can further lead the organization to achieve success.

In the case of KFC, it has been seen that they have conducted a proper survey after entering into the business market of Malaysia. The business survey has been done by them to gain information regarding the demands of the customers and the type of service and product they need from the organization. According to a statistical report from the organization, it has been seen that almost 37.89% of people in the UK love to have fried items such as fried chicken. Apart from that, 45% of the adults have seen to be addicted to non-veg and veg burgers (Jharia, 2020).

Management of the KFC has successfully accommodated this particular factor and successfully managed to ponder over the matter of customer satisfaction. A recent report from the company has claimed that the customer satisfaction rate after implementing the human relation theory for the Malaysian people has gone up to 78.80% (Peng et al. 2020).

In contrast to that, KFC in the business market of the UK implemented Maslows' marketing theory that has successfully assisted them in identifying the desires of the people across the business area. Taking information from the previous organizations, KFC has successfully rectified the faults such as product quality maintenance, and managed to satisfy the customers. As per the viewpoint of (Zamri et al. 2020), people across the UK love to have foods that contain higher quality and cost does not matter that much in that case. Keeping these things in their mind, KFC has successfully managed to meet the demands of their individual customers. As per the statistical report with respect to the UK business market, almost 88.77% customer satisfaction rate has been seen for the company.

Market Entry Strategy

KFC uses demographic distribution to target mainly the young generations, the college and school-going girls and boys, adult generations and families with attractive foods. It has a huge demographic reach and attracts those they want quick, spicy, tasty and valuable food, as well as junk food lovers and brand admirers, drawn to its lovely flavour profile. The company KFC began with a different earning strategy, giving the same food and experience across places. As a worldwide brand, the company has employed area-specific plans, transformed its menu and provided the local taste and habits of the UK and Malaysia. KFC faces strong competition from McDonald's, Kyochan and other spicy food companies.

Figure: Pricing Strategy of KFC

(Source: WordPress, 2020)

UK

So they adopt some effective market plans and strategies for entering the UK's market. Product strategy of KFC in the UK, although KFC is famous for their very lovable chicken burgers and French fries, they added some tasty products to their menu(Gharmaoui,2023). Their global market strategy is introducing new food items to their customers. That help to make a strong product plan and help to grow marketing and sale. Some of the mouth-watering products of KFC are rice bowls, Chicken zinger burgers, chicken wings, Veg burgers, chicken wings,

French fries Promotion plans are connected to the methods that firm products are promoted in the market.KFC introduced itself immensely in the UK market as the world's second-biggest food restaurant (Dudko, 2022). More than 50% of the sales are enhanced after adopting the strategies. In the UK, KFC starts to sell its food products according to the financial conditions of the places and the customers. They try to provide their products by maintaining the quality of the taste at a sufficient price. KFC has been founded for over 45 years in the United Kingdom. At present time KFC has more than 850 outlets or stores and the company has 25,000 workers in the UK.

Malaysia

In Malaysia, KFC got difficult competition from other brands, so KFC takes a competitive market strategy. Different types of burgers are the primary products of Mcdonald's and KFC, so KFC enhance their burger quality to get its position in the Malaysian market. The spicy food products of KFC go through a lot of quality checks; this is part of their market entering strategy. Promotion strategy is one of the most important processes of their business; they advertise their products through attractive colourful advertisements on online sites, and different types of offers they often provide to enhance their sales. At present time KFC has 800 restaurants and outlets in Malaysia (JAFFAR, 2022).

Market Segmentation

Figure: Market segmentation of KFC

(Source: Quora, 2023)

Market segmentation is a marketing process that describes reaching prospective purchasers in societies, communities or segments with main requirements and answers similar to a marketing plan. Market segmentation makes companies target different types of buyers, recognize the worth of main products and work differently from one another. The KFC company adopted a market penetration strategy to enhance its business all over the world and make the business the largest globally (Wu,2022). In the UK market of the country, UK KFC started the geographic segmentation theory. It has divided the market into many geographical areas such as different states of the UK, territories, cities, and countries. KFC deals globally and has a variety of outlets in many regions. KFC sells its foods regarding the geographic requirements and aspects of the buyers, and it is countable. In the UK its geographic distribution is large. It has been seen that the esteemed organization KFC has 590 restaurants in the UK (Song, 2022).

On the other hand, demographically the company is present in Malasiyan cities also. Demand-wise significantly its presence is in urban, suburban and rural-urban fringe areas there are no climate problems that affect the business in any way. The company has gotten to this position as it is present in so many cities in the UK and Malaysia.

Target marketing

Behavioural distribution is splitting the market into categories based on the manners, buyers' demand and ideas and response to junk food products. In this factor, KFC divided the market on the ground of flavour, quantity, standard of the food and cost of the product(Noh, 2023). Here are some different possible segments in this matter. KFC splits the market on the matter of observable changes such as flavour enhancement, Quality increment, the standard of the products conscious, combination of cost and the quality of the product.

In the below-mentioned table various strategies of KFC for achieving the goal such as offers, wandering prizes and many opportunities are mentioned.

Table 2: Market Segmentation

(Source: Self-developed)

In this entire table, the demographic segments are mentioned and the targeted people of each age group and middle and upper-class people are mentioned. Here the revenue-generating plan such as coupons and many tickets with the meals are offered to the people occasionally. The above tables show the target of different ages, groups, cultures, couples, communities, and persons based on the different segmentation such as demographical, Psychographic and behavioural segments in both the territories UK and Malaysia. In the field of the UK, the table describes that teenagers, school and college-going adults are the main customers of KFC. On the other hand spiritual persons, healthy peoples and peoples they love to take their dinner outside at the weekend are the main targets of KFC.

Positioning Strategy

KFC is a United States-rooted country that was founded by Standers and Harmen in 1952.

The brand KFC uses a demographic division to give service to their consumers and targeted market to achieve the goal in the international market. Demographic segmentation is a type of market division method that involves different styles to attract various people and age groups such as income, gender, age etc (Ilsøe et al. 2021). This service division helps any organisation to understand the consumers' requirements and taste differences. The brand KFC follows some keys in their serving system such as respect, coordination, transparency, responsibility and innovation in their strategy. This brand has to produce both veg and non-veg food products to attract both vegetarian and non-vegetarian consumers.

The company's main targets are to enhance the satisfaction of their shareholders, employees and also the consumers (Stalmachova et al. 2021). These perspectives help the company to make unexpected returns and revenue from the shareholders, employees and consumers. This company takes the unique position of following these key strategies, implementing new opportunities for consumers and employees. This firm maintains its position by giving its behaviour and rapid work performance to its consumers. This company is actively aware of its food quality and the requirements of the consumers. This company makes unique styles of food and tastes that attract people. This company got rapid success because of their rapid restaurant's absolute fried chicken and many chicken recipes.

Figure: Business position of KFC in the UK

(Source: Statista, 2023)

In the above-drafted picture, the awareness of these restaurants, loyalty and popularity has been described. In the market of the country UK, the company KFC is used to get a high-quality position among the competitive restaurants. They used to target the most populated cities in the UK market which helped the restaurant to get more consumers at a time. This company made a great success by choosing their restaurant in the busiest towns and most populated and high society people's towns in the UK market.

On the other hand, the company KFC has chosen the market of Malaysia to spread their business as a top position among the competitive restaurants. This company had chosen the most popular tourist areas of the country Malaysia to enhance their business internationally. KFC has used to make unique fried chicken recipes worldwide that make more consumers for the company not only in the market in Malaysia but also worldwide.

Marketing Mix

Product

The original product of the company KFC is fried chicken, although this restaurant used to make many veg and non-veg products such as burgers, chicken Maggie, masala coke, french fries and many more. KFC chose to make both veg and non-veg products to attract vegetarian and non-vegetarian customers. KFC uses fresh and good quality chicken and fresh chicken and also other fresh raw vegetables to make their products in the market of the countries UK and Malaysia. This company used to maintain the covid protocols and also sanitization strictly to provide their service and products to the consumers. The company KFC is used to make tasty food items and unique food items among the competitive restaurants making the company stay in a unique position in the market of UK and Malaysia and also worldwide.

Table 3: Product differentiation

(Source: Self-developed)

Price

This company had chosen an affordable prices strategy in their food items among the countries UK and Malaysia. The company KFC used to sell their outlets starting at 4.99£ in the UK market. The Colonel's Meal with the quantity of 3 pieces can be had for only 4.99£ in the UK market. This price is so affordable for each class of people. On the other hand, KFC used to sell their food items for a minimum of 10.49RM. 6 pieces of chicken nuggets can be had for only RM10.49 in the market in Malaysia. This best quality food item can be had for affordable prices in the market of UK and Malaysia. The company puts an effort into financial pricing of their items that are affordable for each class of people which made this company stay in a unique position among the competitive market of the countries UK and Malaysia.

Place

The company KFC used to make their priorities the big cities and the most populated towns for marketing and selling in the market of the countries UK and Malaysia. The company chooses the busiest towns to spread their sales in the market of the countries UK and Malaysia (Waiho et al. 2020). This firm used to choose the tourist and high society people areas to attract more consumers and generate high volume revenue for the company.

Promotion

The company KFC promotes their foods by conducting many offers in-store and online and also for attracting many consumers (Hernández et al. 2022). This company used many online pages and social media platforms for promoting its food items and generating huge revenue for the company. This firm used to conduct many wandering offers on various occasions to attract the people of the international market. This company KFC uses many social media advertisements and many celebrity influencers to generate a high volume of unexpected revenue for the country in the competitive market. The company made a high rate of interest by providing wandering sale offers and coupon tickets for attracting consumers.

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Conclusion

The entire report here has been seen to be developing effectively by considering the individual marketing approach of KFC in both the business markets of the UK and Malaysia. The marketing approach has been seen to be different for KFC in the two countries as the cultural difference has been there for each. Apart from that, the organization has been seen to be using different marketing strategies for different countries that have helped them to accommodate the massive customer base. Noteworthy, the SCLEPT model has critically evaluated the factors that have influenced KFC during their individual market entries. In addition, micro-analysis and business competitor analysis has been seen to be depicting the business operation of the mentioned organization. It has been seen that following different business strategies along with effective business theories has evolved throughout the study.Apart from that, market segmentation strategy and target market analysis have been seen to be developing in this report properly through some pictorial description. The market positioning strategy and the marketing mix have successfully proposed a clear description of the business movements of KFC.

SWOT Analysis of KFC

Table 2: SWOT analysis of KFC

(Source: Self-developed)

Analysis

The above framework of SWOT has depicted the major strengths, weaknesses, future threats as well as opportunities. It can be depicted that this company has ranked 2nd among the best global brands within the fast-food industry. Apart from that total earned revenue of this company was US$27.9 billion as of the report 2021 and that can be considered another major strength (KFC, 2019). Apart from that the major weaknesses that this company has been facing are related to its criticism regarding the consumption of high calories and fat in fast foods, lack of trust among suppliers and high rate of employee turnover. Along with that, this company has the future opportunity to bring more technological innovation along with innovative food menus that can bring customer satisfaction (Frue, 2019). Lastly, the major threat that this company may get is a threat from competitors and an increased trend to eat healthy food.

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