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1、KFC Marketing Mix Report Group 7PAGE PAGE 9Kentucky Fried Chicken Marketing Mix Report肯德基营销组合报告Kentucky Fried Chicken Marketing Mix ReportCompany OverviewKentucky Fried Chicken, also known as KFC, is a part of Yum! Brands, Inc., the worlds largest restaurant company in terms of system restaurants. A

2、s the worlds popular chicken restaurant chain, KFC specialized in its Original Recipe Kentucky Grilled Chicken, Original Recipe Strips with home-style sides, Honey BBQ Wings, and freshly made chicken sandwiches. Every day, more than 12 million customers are served at KFC restaurants in 109 countries

3、 and territories around the world. KFC operates more than 5,200 restaurants in the United States and more than 15,000 units around the world.This report focus on identifying KFCs target market, analyzing its product, distribution, promotion, and pricing strategies that may produce satisfying exchang

4、es with the target market, and Providing recommendations for the companys further development. Target MarketKFC has divided its global market into various groups of consumers who have different geographically demands, taste preference and behaviors. KFC has made its marketing segmentation according

5、to the following bases:(1) Geographic SegmentationFrom the microscopic view: Since KFC is a fast food chain restaurant, in which customer would like to have a quick bite, its outlets are required to build on a well traveled, major street, with good ingress and egress, good visibility and ample space

6、 for parking, among other things. From the macroscopic view: According to KFCs franchising report, while in the western U.S., there are totally no available spaces to built new outlets, in the eastern U.S., there are still plenty of opportunities to develop the new outlets.(2) Demographic Segmentati

7、onAge: There is not a specific age segmentation of KFC, most consumers in KFC ages from 6 to 65.Gender: Both male and female Income: Above $10,000, below the average level in U.SFamily size: 2-5 people. One of KFCs strength is its focus on family meal.Family life cycle: KFC is suitable in every stag

8、e of life such as single person, single married couple as well as those who have children.(3) Psychographic SegmentationPersonality: Consumers in KFC are open, casual and easy-going. They must neither be vegetarian nor healthy-diet.Social class: Middle or belowLifestyles: Most people choose KFC beca

9、use they do not have much time to prepare meals by themselves. According to the segmentation analysis, we can draw the conclusion that KFC should target its market on first and second tire cities to attract busy-working people and young students.The reasons are as follows: The big cities are more de

10、veloped with better transportation conditions and densely populations. Busy-working employees and young students have a fast pace, they rarely have time to prepare meals. Younger people pay less attention on healthy-diets.4P StrategiesProductBasically, the product is anything that be offered to a ma

11、rket for attention, acquisition, use, or consumption that might satisfy a want or need. And it includes not only its physical unit, but also its package, warranty, service, brand name, company image, value and so on. Here, we would like to talk about its Physical unit and service.1. Physical unitKFC

12、 is specially dealing in the chicken products, These products are: Chicken ( including Original Ripe, Extra Crispy, Strips, Popcorn, Pot pie, Wings, Variety Bucket, and Boneless Variety Bucket), Burgers (including Mighty Zinger, Zinger Extreme, Fish Zinger, Zinger burger, Twister, Col.Chicken Burger

13、, and Sub 60), Desserts & Beverages (including Scoop of Walls, Fruit Salad, Large Drink, Mineral water regular, Mineral water large, Coffee, and Tea), Snacks & Side Orders (including Nuggets, Regular Fries, Large Fries, Corn on the Cob, Arabian Rice, Dinner Roll, Hot Shots, and Cheese).By exploring

14、KFCs products, we can find that it has a series of traits. It is a standard production, which adapts its restaurants to local tastes, different cultural and political climates. Basically, KFC has the special recipe for chicken products and that is why KFC known as a chicken specialist all over the w

15、orld. Whats more, KFC is a kind of fast food, which can provide a quick bite for the person who pays less attention on healthy-diets. Besides, I have to mention that one of KFCs strength is its focus on family meal, which is a factor that attracts more people who have families.2. Service KFC offers

16、customers high consistency from one visit to the next because of its standardized preparation procedures. In America, KFC offers free home delivery service at specific branches in specific cities, KFC provides services to celebrate the birthdays of kids at their home or in KFC restaurants, now KFC a

17、lso provides services of mobile unit of KFC.In order to explore a further development, from my perspective, KFC should extend its product line and bring out more new product to fit the customers while at the same time protect its own classic products. Whats more, KFC should take some practical measu

18、res to create its brand loyalty of consumers, which is a consistent preference of consumers over all other congeneric products. In addition, KFC should keep its core and supplementary services and develop much more services that match with the local consumers.PriceKFCs price positioningA common meal

19、 of KFC is 7 dollars, while currently, in the U.S., the per capita income is 90 dollar a day, which is about 13 times the price of a meal in KFC. So KFC should focus on middle and low-income groups.KFCs pricing strategy As a global brand, KFC use multiple price strategy due to different market situa

20、tion. The price strategies that implement in the U.S. have a big difference with its global strategy.Currently, KFCs biggest market share is moving to the immature markets and developing countries. As a result, KFC choose the price skimming as its pricing strategy. Because of its advanced management

21、 experience, advance the supply chain, advance technology, and strong financial support. KFC is the top brand and its product is more competitive than other competitors. On this condition, KFC product can attract consumer from middle or higher income level.However, since the target market changed in

22、 the mature markets and developed countries such as U.S., KFC should choose the status quo pricing strategy which stays with the price of competitors. In this area, fast-food is the lower consumer goods and this industry has been very mature. There are full of competitors such as McDonalds, Burger K

23、ing, and Subway which have the same homogeneity and their competition is extremely intense. On one hand, each competitor has its own independent and perfect supply chain, so the costs of product can be compressed to a minimum. On the other hand, the service, product quality, and the product categori

24、es are all most the same. Differences are not large. Because of these two factors, KFC should lower its price in order to attract consumers from middle and low income levels thus stay in a competitive position. In addition, Comparing with other competitors, KFC chooses different prices to increase t

25、he diversity of product. Since KFC position itself as a fried chicken expert in the fast-food industry. Fried chicken is popular and best product of KFC .In order to increase its differences and consolidate its leading position, KFC pricing its fried chicken with a price higher than any other fast-f

26、ood competitors. In general, its price is higher about 5%-10% than others, while other product such as hamburgers and beverage prices are basically the same as with the competitor. KFC face the pressure to raise the priceIn recent years, since the using of bio-fuel which made from corn, costs of KFC

27、s raw material keep getting higher and higher and the cost of human labor is also increasing. However, in order not to drive away its consumer who can only accept a relatively low level price and remain in a competitive position, there is no room for KFC to reduce the cost in its complete supply cha

28、in. For this reason, KFC is facing the great pressure to change its price strategy in order to solve the problem.PromotionPromotion is the method used to inform and educate the chosen target audience about the organization and its products. The promotion of KFC is quite varieties such as TV program,

29、 Internet, public relation and so on. Moreover, KFC innovates a new menu set for it is easy to order and can save money. A special menu set also is cheaper than normal. At KFC, promotion is the main tool to bring all chicken lovers attention towards its delicious one-of-a-kind.One of KFCs promotion

30、methods is sales promotion, which includes Premiums, Exhibits, Coupons and Entertainment.Premiums For sale promotion KFC has used premiums strategy that give gifts as premiums like watches, keychain, coffee cup, T-shirt, toys to attract customers especially teenagers.ExhibitsKFC sometimes will hold

31、a huge exhibition in public and let people know the history of KFC and its new products. Since the exhibition will attract people various from different ages and social statues, KFC are able to enlarge its consumer market significantly. (3) CouponsAll KFC outlets offer its customers with various for

32、ms 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 m

33、ust cut and bring. This strategy can attract many people from middle or lower class people in the U.S. who are always seeking for a lower price.(4) EntertainmentIn some KFC restaurants, children can have a special birthday party and they can play in the amusement area to get a lot of fun. This speci

34、al service are welcomed by young parents who are busying working and have no time to spend with their children, since it can provide the family a good time to get together and have fun together.In addition, KFC do its promotion by Advertisement. The channels often used by KFC are through TV Channel,

35、 Logo of KFC, Hoarding, Sponsorship, and Mobile vane.TV ChannelAdvertising on different cable channel like Ten Sports, ABC, TNT and also advertising on world call cable advertising. Logo of KFCThe logo of the smiling Colonel is probably one of the most recognized faces in the world and instantly bri

36、ngs the image of fried chicken to ones mind. HoardingUsing regular hoarding to propagate promotion activity in order to make people buy more foods they like.SponsorshipThis is another tool to strengthen an organizations image. KFC is currently the sponsor of the Australian Cricket Team and the colon

37、el logo can be seen on their uniforms throughout the matches. Since sports have always been very popular among the young people, the sponsorship can leave an energetic and active brand image.Mobile vane For the delivery of the order is very quick service, for this purpose KFC has a mobile vane that

38、makes it possible within 30 minutes to deliver the products. The vans also can be a source of advertisement.PlaceKFC operates more than 5,200 restaurants in the United Stated. It has its outlets in various locations throughout the state which are going to cater to our needs for the distribution proc

39、ess.1. Generally, KFC have two target consumers(1) People living in a hectic lifestyle Currently, more and more employees in the U.S. are living in a hectic lifestyle. These kind of people spend whole days working in front of their computer and neither feel like neither having meals nor preparing me

40、als by themselves. The hectic lifestyle made individuals formulate the fast food concept of saving time on preparing food and have a full meal in a very short time. (2) Consumers who dont like cooking such as young people. They always like to try something new and eating out with their friends will

41、always be the best choice.2. The placement of KFC outletsTarget on those consumers, KFC has its special outlets placement strategy. In order to satisfy consumers who have a busy lifestyle, KFC open their outlets in cities such as the first and second tire cities in eastern U.S., in which transportat

42、ion conditions are better and are in a higher population density. By going to KFC, people can buy their products easily and quickly. KFC have a large market in these kinds of cities because the products can satisfy the citizens needs.In addition, since KFCs target market are mostly young people. It

43、always place itself close to schools, colleges, cinemas and commercial areas which are mostly populated by young and people who are in a hurry. These customized placement strategy enable KFC to cater its target consumers. 3. Selling MethodsKFC uses three different methods of selling its products dir

44、ectly to the market. The first method of distribution used by KFC is direct delivery which is especially appealing to consumers who always work at office or home. They can call KFC ahead of time to place an order. In the last few years, consumers are demanding greater convenience when purchasing. “F

45、ree Home Delivery” provides consumers a lot of conveniences. Even in the case they dont go out their house or office; they can still enjoy KFCs food. Customers can visit the website to know their operations and about their products. Another method of distribution which is for customers to dine-in. C

46、ustomers can go to the nearest KFC restaurant, place an order and either take what they ordered away or just eat at the restaurant. As we know, one of KFCs strength is its focus on family meal. KFC provides customers a clean place to sit down and enjoy KFCs products in a fun and family atmosphere. T

47、his method made KFC suitable in every stage of life: not only married couple who have children but also single person. The third method of distribution is online ordering which is still not wide implemented all over the U.S. This method is suitable for those people who do not have much time to prepa

48、re meals by themselves. Those people spend whole days in front of their computer to do work. Its convenient for them to finishing an online ordering. Since the ordering method is useful and did very well in Singapore. KFC in the U.S. has selected Californias South County as the test market that able

49、 to determine whether online-ordering services will rollout nationwide. This method is welcomed by the customers because it allows customers to view the entire menu and download any special coupons. KFC adopts a decentralized marketing system which means managers run operations according to American

50、 culture, political and economic situation. This enables KFC operation more flexible. And KFC has its franchises method for channel management system. KFC opens its franchises in most populated and well income areas. SuggestionsCombine KFCs target market and its current financial pressure, we have c

51、onclude that on one hand, it must reduce the operation cost of outlet; on the other hand it should promote some new product and find new methods of distribution which can bring it more profits. Here, we would like to illustrate some specific strategies for KFCs future development.1. Research and dev

52、elopment the frozen product sold at supermarket and grocery. Since KFC provide the family meal to U.S family in its outlet, it can also develop the frozen instant meal and sale them at the supermarket and grocery. Comparing to outlet, where KFC has to sale meal by human labor, distributing products

53、to retailers store would cost fewer expense of sites leasing and labor employment. What is more, there are more and more people would like to purchase food at supermarket only one time per week and do not to eat outside. Although they like the flavor of KFC, the most vital reason why they dont drive

54、 out is because of the cost of time and gas. It is hard for the whole family member to get together and eat outside. But if they can buy the frozen product at supermarket in advance they would have more time choices to enjoy it. 2. Open more outlets in downtown and other population-concentration areas. While McDonald and subway target on individual, KF