In this article, you will learn about KFC Marketing Analysis. It will include Introduction, Vision Statement, Mission Statement, SWOT Analysis, Segmentation, Target Market, Success Strategies, Marketing Mix (4P’s) Strategies, Financial Statement and Conclusion of KFC
Introduction
KFC is the biggest fast-food restaurant business in the world. It is located in Louisville, United States of America. KFC is also known as Kentucky Fried Chicken. KFC provides its customers tasty fresh fried chicken.
Harland Sanders discovered Kentucky Fried Chicken in Corbin. KFC primarily sells chicken strips, salads, wraps, sandwiches, burgers, and other food items. Since the 1960s, KFC has focused on international markets, and it has launched a new challenge by taking control over the fast food industry of Asia.
KFC is having more than 750000 employees, approximately 18,000 restaurants worldwide in more than 120 nations.
KFC: Vision Statement
The vision statement of KFC is “To serve food in an efficient, pleasant environment that satisfies those who care about their budgets and their health“
Read More: Marketing Environment | Micro & Macro Environment
KFC: Mission Statement
KFC’s primary goal is to increase the success of its clients, staff, and customers. In its mission statement, “KFC prioritizes becoming the top choice of their target audience“. Customers’ preferences have a significant impact for its growth.
Market Segmentation of KFC
Demographic Segmentation
KFC classifies the market based on demographics as follows:
- Age: 6 to 65
- Gender: Male and Female
- Size of Family: 1 to 2, 3 to 4, 5 plus
- Income: $150 and above
- Education: Almost All
- Occupation: Almost All
- Generation: Not Specific
- Family lifecycle: Almost All
- Religion: Not Specific
- Nationality: Almost All
Market Segmentation | Types, Benefits of Segmentation
Geographic Segmentation
KFC operates business internationally and has a number of stores in different countries. KFC focus on how its customers’ product preferences vary based on their geographic location. For example, Australia has a diverse geographic segmentation. In Australia, there are 590 locations. KFC has introduced Halal Food for the Muslim community in Australia and has divided and advertised based on their needs
Psychographic Segmentation
KFC has divided the market into following psychographic segmentation:
- Classified by Social Class: Upper, Middle and Lower Class
- Classified by Lifestyle: Luxury and Extravagance
- Classified by Personality: Highly social, food loving, modern and ambitious individuals
Behavioral Segmentation
Following are the behavioural factors used by KFC to segment the market:
- Tastefulness
- Quality-conscious
- Being mindful of class
- Combining value and pricing
SWOT Analysis of KFC
STRENGTHS
- Owned by a large company
- Unique flavored recipe
- Fresh Taste
- Wide range of products
- Colonel’s trademark recipe and bucket
- Recipe contains 11 secret spices and herbs
- Food for vegetarians and vegans
- Global Presence
- Brand Recognition
- Loyal customer base
- Fast Growth
- Good Financial Position
- Worldwide restaurants and franchise network
- Attractive store design and friendly business culture.
Read More: STP Process | Segmentation, Targeting, Positioning
WEAKNESS
- Oily and unhealthy food image
- Limited Options for Vegetarians
- High calories food
- Problematic franchising system
- Poor management
- Damage to the environment and animals
- Unreliable vendors
- High staff turnover
OPPORTUNITIES
- Including Healthier Options (salads, grills, fresh fruit juices)
- Expand to new locations
- Offer inexpensive meals
- Focus on health-conscious individuals
- Need to deliver regional food designed for particular country
- Home delivery of meals to connect with more customers
- Opportunities for Business Expansion
- Supply chain optimization
THREATS
- Food scandals and quality issues
- Risk of brand imitation
- People these days prefer healthy eating
- Health politicians and activists are speaking out against the negative effects of consuming fast food.
- High competition
- Poorly managed franchisees
- The cost of raw materials is increasing
- Economic conditions are not stable worldwide
- Changes in exchange rates
- Lawsuits filed against KFC
What is an Internal and External SWOT Analysis?
| STRENTHS ✔ Owned by a large company ✔ Unique flavored recipe ✔ Fresh Taste ✔ Wide range of products ✔ Colonel’s trademark recipe and bucket ✔ Recipe contains 11 secret spices and herbs ✔ Food for vegetarians and vegans ✔ Global Presence ✔ Brand Recognition ✔ Loyal customer base ✔ Fast Growth ✔ Good Financial Position ✔ Worldwide restaurants and franchise network ✔ Attractive store design and friendly business culture | WEAKNESS ❌ Oily and unhealthy food image ❌ Limited Options for Vegetarians ❌High calories food ❌ Problematic franchising system ❌Poor management ❌Damage to the environment and animals ❌Unreliable vendors ❌High staff turnover |
| OPPORTUNITIES ✔ Including Healthier Options (salads, grills, fresh fruit juices) ✔ Expand market to new locations ✔ Offer inexpensive meals ✔ Focus on health-conscious individuals ✔ Need to deliver regional food designed for particular country ✔ Home delivery of meals to connect with more customers ✔ Opportunities for Business Expansion ✔ Supply chain optimization | THREATHS ❌Food scandals and quality issues ❌Risk of brand imitation ❌People these days prefer healthy eating ❌Health politicians and activists are speaking out against the negative effects of consuming fast food. ❌High competition ❌Poorly managed franchisees ❌The cost of raw materials is increasing ❌Economic conditions are not stable worldwide ❌Changes in exchange rates ❌Lawsuits filed against KFC |
Target Market of KFC
The target market of KFC includes both vegetarian and non-vegetarian customers segments. Its products appeal to people of all ages, including children and young adults. It include young and busy professionals. Cover highly populated cities.
Target Market Strategies | Undifferentiated, Differentiated, Concentrated Marketing
Marketing Mix of KFC
1. Product
KFC is known for its world’s best sandwiches and chicken fries, but the list goes on. KFC continuously adds new things to their menu, which fulfills the goal of satisfying their customers. KFC’s continuous menu expansion helps it develop a strong product strategy, which in turn supports its marketing efforts.
Product Classification | Consumer, Industrial Products | Examples
New Product Development Process: 8 Stages
Product Life Cycle (PLC) Stages, Strategies and Examples
The following are a few of KFC’s well-known and popular products:
CHICKEN:
- Nashville Hot Chicken
- Popcorn Chicken
- Hot Wings Fried Chicken
- KFC Fried Gizzards
- Kentucky Grilled Chicken
- Honey BBQ Chicken
- Chicken Little
- Extra Crispy
- Hot Wings Grilled Chicken
BURGERS:
- Krunch burger
- KFC Shrimp Burger
SANDWICH:
- Chicken Sandwich
- Crispy Colonel Sandwich
- Zinger
- Honey BBQ Chicken Sandwich
- Cheetos Sandwich
2. Price
The pricing strategy used by KFC are: Market penetration strategy and price skimming startegy. For example, KFC reduces its prices when competitors entered the market, and when introducing a new product, KFC keeps its prices as low as possible in comparison to competitor in order to attract attention of new customers.
3. Promotion
One of the largest food companies, KFC, actively markets itself. Newspapers, periodicals, television commercials, and billboards are the main forms of promotion. The Australian Big Bash League (BBL) and numerous cricket matches are sponsored by KFC.
KFC uses the phrase “Its Finger-Lickin’ Good” to remind customers of its mouthwatering menu items and delights. KFC uses their restaurants significantly to promote new goods.
4. Place
KFC restaurants are purposefully situated next to a school, university, office, or other educational facility. This is because younger generations in the country consume a lot more fast food than older generations do. . More than 15,000 KFC outlets can be found worldwide.
Product Positioning | Positioning Strategies | Examples
Financial Market Statement of KFC
Here is the financial statement showing three countries (US, China, India)of KFC:
Conclusion
In recent years, consumers have been more concerned about maintaining their health while managing their education or jobs. People choose quick meals since they may spend less time preparing the food and because they require a healthy meal to support their fitness goals.
In order to provide the customers with the stable meals they need, KFC may also provide the “chook salad plate,” which combines chicken and veggies.
Steamed or grilled chicken are significantly lower in calories than fried or crispy chicken, and KFC can provide these options to customers. To make KFC’s burger buns healthier, you may swap them out for whole-meal buns.
KFC could develop a vegan burger for them in order to draw in more customers from all other groups, such as vegans. It needs to guarantee that the cooking oil is suitable for vegetarians. They can offer vegetable juice and fresh fruit juice in addition to coffee and soda liquids since fruit juice is more nutrient-dense than soda beverages.
