Kfc Marketing Analysis Essay
The first ever KEF restaurant has been opened in September at Goulash, Dacha with a seating capacity of 178 persons. In the coming days, KEF plans roll out more restaurants in Bangladesh STEP Marketing Strategy Running a successful business Is not Like a field of dreams; you can build It but they might not come true. You have to let people know about the product or service you offer, and persuade them to buy or use It. And you have to let people know about your product or service repeatedly. For this, marketing strategy is very important.
Your marketing strategy consists of: The “what” has to be done-Inform nonusers about the product or service being offered. Inform consumers of differentiation factors. So it helps the company to decides which customers it will serve (segmentation and targeting) and how (differentiation and positioning). Let identifies the total market, then divides it into smaller segments, selects the most promising segments , and focuses on serving and satisfying the customers in these segments. And this marketing strategy provides the goals for your marketing plans.
Figure: Marketing Strategy KEF has marketing strategy emphasis on the following facts: Market Segmentation Market targeting Differentiation Positioning A) Market Segmentation: Dividing a market into distinct groups of buyers who have different needs, characteristics or behaviors and who might require separate products or marketing programs. KEF mainly focus on following market segments. Figure: Market Segmentation Demographic Segmentation: variables such as age, gender, family size, income, occupation, education, religion, race and nationality.
As one might expect, demographic segmentation variables are amongst the most popular bases for segmenting customer groups. Also, for practical reasons, there is often much more data available to help with the demographic segmentation process. KEF give their concern in following demographic segmentation:- Age: One of the first variables of demographic segmentation is age. This is because consumer needs and wants change with their age. In KEF Generally there is no age limit focus by the KEF. The target and focus is on each and every individual in a society.
KEF finds its largest demographic in the young of any society. Figure: Age Life cycle stage: Closely connected to age, the life cycle stage of a consumer group defines what will be the need of that particular customer. For this KEF offer kids meal with toys and veggie burger for old age people. This demographic segment cannot be said as an “Age” segment because these customers are in specific phase of their “Life”. Income: Another popular basis for segmentation is income. A person’s income level combined with its accumulated wealth is the major determinant of the consumers’ willingness to purchase a product.
Income is the main decisive factor that influences consumers purchasing power. Consumers with low incomes may not be able to purchase their desired products whereas consumer with higher incomes may not be satisfied with the existing product. In KEF Income is an important key factor for KEF. This factor decides which class is to be targeted. In the early rise of KEF they focused on the upper class but slowly are introducing economy meals that attract the lower to middle classes. Figure: Income Social Class: This plays a vital role in the demographic factor of the KEF.
Generally they target upper class, upper middle class, middle class and middle lower class. Because the items KEF sell are very expensive. Figure: Social Class Family size: 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. Figure: Family Size Religion: Bangladesh is a country of religious group. The two main groups are Muslim and alcohol free. So every religious group can have their products.
Geographic segmentation The market is segmented according to geographic criteria?nations, states, regions, countries, cities, neighborhoods, or zip codes. Gee-cluster approach combines demographic data with geographic data to create a more accurate profile of specific. With respect to region, in rainy regions you can sell things like raincoats, umbrellas and gumboots. In hot regions you can sell summer wear. In cold regions o can sell warm clothes. KEF in Bangladesh only focus following geographic segmentation.
These are:- City: Because Bangladesh is a developing country and the fast food business highly profitable in only Dacha and Chitchatting city that’s why KEF only focus on this two city. Key Spots: Tourist spots Commercial Areas University Canteen Cryptographic Segmentation: Cryptographic segmentation is dividing a market into different groups based on social class, lifestyle, or personality characteristics is called cryptographic segmentation. KEF divides market on the basis of cryptographic variables like: Life
Style (Lifestyle is not specific) Personality (Personality is ambitious and authoritarian) Behavioral Segmentation In behavioral segmentation, consumers are divided into groups according to their knowledge of, attitude towards, use of or response to a product. It is actually based on the behavior of the consumer. Occasions: The first form of behavioral segmentation is selling product in different occasions. In Bangladesh KEF can permit their customer to celebrate various occasions. They also offer their customer on cricket match “KEF Popcorn Chicken”, on Valentine’s Day special couple discount offer.
Benefits: Several products are targeted towards the benefits sought by the customer. For this KEF only focus some social class. Loyalty Status: There are two ways to grow a business. First is to acquire new customers and second is to retain your existing customers. The more loyal your customer is to you, the more your customer base will increase. That’s one more kind of behavior which marketers target. In case of KEF, they have some advantage because they are well known chain Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
After a company has defined market segment it can enter one or many of these segments. A company should target segments in which it can profitably generate the greatest customer value and sustain it over time . A Company with limited recourses might decide to serve only one or a few special segments. A company with a great number of recourses might decide to serve two or more segments. C) Market Positioning: Positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers.
After a company has decided which market segments to enter, it must decide how it will preferential its market offering for each targeted segment and what positions it wants to occupy in those segments. A product position is the place the product occupies relative to competitors products in consumer’s minds. Marketer wants to develop unique market positions for their products. If a product is perceived to be exactly like others on the market consumers would have no reason to buy it. KEF promotes a “high quality poison” for its products.
It produces high quality products, chargers a high price, distributes through high class dealers and advertises in English newspapers with a high circulation. KEF is communicating through physical sighs and queues that people use to Judge quality. For KEF management the image their customers carry in their mind is the most important factor. That is why for them the product quality, which is almost, standardizes the entire world except little differences because of local requirements & the promotions are very critical factor.
The people which are their customer and the physical evidence, the environment customers get in the KEF are the focus that built Cuff’s image in the customer mind that is why they are always trying to bring positive changes in the environment so hat every time their customer enter the KEF, can feel the difference. They think that trough continuous efforts they have developed such a brand image in their customer’s minds that their customers have become brand loyal. I order words they have got brand equity. AS Marketing Mix The marketing mix is a business tool used in marketing. The marketing mix is often crucial when determining a product or brand’s offering, and is often synonymous with the four AS: Product Price Place Promotion Fig: Marketing mix A product can be defined as anything that can be offered to a market for attention, actuation, use or consumption that might satisfy want or need. KEF is specially dealing in the chicken products; Basically, KEF has the special recipe for chicken products that is why, KEF is known as a chicken specialist all over the globe.
KEF target the Asia and east side because they observe that these people like the chicken products, so they enter in the market due to the demand of their chicken products. C) Place: Place includes company activities that make the product available to target consumers. High quality product, attractive pricing, huge promotional activities is of o use if the product is not available to the consumer. In our country, there are 11 outlets of KEF. They are located in convenient place so that the customers can easily go and enjoy delicious foods. The outlets are: 1. KEF Goulash 2.
KEF Banal-lie 3. KEF Diamond 4. KEF Murmur 5. KEF Saskatoon 6. KEF Bally 7. KEF palatal 8. KEF Attar 9. KEF Chitchatting 10. KEF Cox’s Bazaar D) Promotion: Promotion means activities that communicate the merits of the products and persuade consumers to buy it. It is the method used to inform and educate the chosen target audience about the organization and its products. Using all the sources of promotion: Advertising Sales Promotion Public Relations Events and Experiences Coupons, Discounts and Bundled packages An organization finds most of its meanings and survival through promotion.
At KEF, Promotion is the main tool to bring all chicken lovers attention towards its delicious one-of-a-kind product, the Fried Chicken. A) Advertising: 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 one’s mind. It also does the following activities as advertisements: Figure: Advertising media b) Public Relations: n organization, its products and policies. KEF is not Just a quality food restaurant, but also a socially conscious corporate citizen.
It has been equally involved in promoting and funding several community welfare projects through aggregate KEF revenue. To enhance public relation KEF does different types of seminars and employee training classes. C) Sales Promotion: All KEF 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-ones.
Additionally they provide meal vouchers and exciting offers in their print ads, which the customer must cut and bring along. SOOT Analysts: SOOT analysis is an overall evaluation of the company’s strengths(S), weakness(W), opportunities (O) and threats(T). The SOOT analysis begins by conducting an inventory of internal strengths and weaknesses of an organization and the external opportunities and threats that may affect the organization, based on market and the overall environment KEF is the strongest brand in the fast food industry in the world.
For knowing about situational market analysis and identifying market opportunities, caking, getting knowledge about future threats, and evaluating their overall market growth KEF always make a SOOT analysis. Figure:soot Analysts STRENGTHS: Strong franchises all over the world. Taste and food quality are better than other food corner They are successful in maintaining their loyal customers. They serve variety of items under single menu. Variety in menu Interactive relationship market.
It doesn’t have any core competition in chicken serving. KEF outlets are available. KEF secret recipe of herbs and species. Large market share. Large multi brand in the world KEF is the market leader in providing different products of chicken They are specialized in chickens Existing in the local market for years, therefore , knowing people’s tastes and whims They are ISO ( International Standard Organization) certified WEAKNESSES: Its major weakness is the presence of multinational competitors in the market like Pizza hut.