KFC Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of KFC analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on KFC marketing mix, help the brand succeed in the market. Let us start the KFC Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
KFC Product Strategy:
The product strategy and mix in KFC marketing strategy can be explained as follows:
KFC is one of the worlds most popular fast food joint, having a great specialty in burgers. KFC is synonymous with fried chicken and it challenged the established fast food market of hamburgers. The original product is pressure fried chicken nuggets flavored with secret seasoning of 11 ingredients. Other specialties of KFC are Extra Crispy Chicken, home style sides and buttermilk biscuits. In 1990, KFC expanded its menu and offered other chicken preparations like Chicken Fillet Burgers and wraps, salads, potato fries, desserts and beverages. KFC has optimized its product offerings as per the geography and demand.
KFC has over 300 different menus as a part of its marketing mix product strategy across different locations worldwide. The company has also introduced new variety of food items depending upon the local preferences in the country of operations. For the essential components of products i.e. sauces, marinades and seasonings, KFC has long association with McCormic Company. As it had association with PepsiCo, most of the beverages served in KFC are from Pepsi however there are exceptions in some geographies.
Image: Wikimedia
KFC Price/Pricing Strategy:
Below is the pricing strategy in KFC marketing strategy:
The menu at KFC is offered at affordable prices and they have adopted inventive strategies to compete in different markets. The target segment for KFC is families of young people in urban and semi urban location belonging to upper middle class or middle class.
When it entered the market, the prices were higher which were gradually reduced later on to target lower income group. The price is also comparable to the competitors. KFC offers differential pricing. The products are available as individual as well as bundles or combos. Burgers are available for approximately $5 and combo meals with a beverage is available for close to $15. The pricing of bundles is less as compared to combined price of all the products. It is especially lucrative in price sensitive markets like Asia & Africa. Annually, the brand has a revenue of more than $25 billion world wide.
Read more about KFC
KFC Place & Distribution Strategy:
Following is the distribution strategy in the KFC marketing mix:
The founder of KFC identified the importance of franchising and established first KFC restaurant in Utah in 1952. Later on, the international outlets were opened in Canada, UK, Mexico and Jamaica in 1960s. The Headquarters of KFC is located in Louisville, Kentucky. KFC is present in more than 150 countries worldwide with over 20,000 outlets, which shows its strong place strategy in its marketing mix. It was the first Western Restaurant to open in China in 1987 and it is still going strong there. Usual daily average orders catered by an outlet are 250, out of which many are fulfilled during peak hours. For some of the places globally, like Malaysia which is multicultural country, the promotional offers are launched as per the special occasions like Chinese New Year. The locations chosen by KFC are state of the art and are selected after lot of deliberation.
Many factors like proximity to customers, business climate, total cost, infrastructure, quality of labor, and host community are major deciding factors.
KFC Promotion & Advertising Strategy:
The promotional and advertising strategy in the KFC marketing strategy is as follows:
KFC has a website as well as presence in social networking websites like Facebook, Twitter, Instagram and YouTube. It also has depended on mass media for promotion. The KFC advertisements appear in print as well as broadcast media. Print media include newspapers, magazines featuring tempting display of KFC offerings, special offers and prices. It also uses billboards and hoardings on internal city roads as well as highways for advertisements. The brand has a good digital marketing strategy and engages with its users via social media, video content, contests, discount coupons etc. It is famous for its taglines like 'Finger Lickin Good', 'Nobody Does Chicken Like KFC' and 'So Good' and these are always included in the promotional activities. It was found that KFC commercial is seen by millions of viewers weekly. In some regions they have introduced 5 in 1 meal box wherein more products are given as compared to competitors.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of KFC.
People:
KFC believes in providing freshly made highest quality meals at affordable prices and target customers for them are families. The staff at KFC outlets is specially trained in customer service and communication. On its website, it has separate options for employment opportunities in restaurants and KFC corporate. KFC offers franchise option through its website also. For this they have a set of assessment factors to qualify. These factors include Multi unit operation experience, financial qualifications, Personal and financial reputation, motivation and commitment, culture and brand fit and growth mindset. They are also impartial towards the minority and women candidates for franchise application and encourage it. Through its parent company Yum, it has a program called Leading Inclusion for Tomorrow (LIFT) for global inclusion and engagement efforts. Through Colonel's Community Grant Program, sponsorship, partnership and donation is provided to non-profit organizations. These programs are involved in community building, youth development.
Process:
KFC is a subsidiary of Yum! Brands which also owns Pizza Hut and Taco Bell. After the establishment of franchise, it underwent many changes initially due to inexperience in field and corporate ownership changes. The KFC outlets are either company owned or franchise owned. Although setting up KFC requires lot of initial investments, it offers large returns once established. The image of a company founder Colonel Harland Sanders is always a part of the restaurant decor. The outlets offer drive through as well and dine in and take out options. The delivery service of KFC is very limited. It has small kiosks with limited menu at locations such as filling stations, convenience stores, stadiums, theme parks, colleges etc. The website of KFC includes the common telephone number to place order, nearest store locator, menu and the promotional offers available. It has one click button through which user can register, fill in details and begin ordering. These details get registered and are useful for next ordering. The pandemic affected the brand as some outlets worldwide were being asked to be kept shut.
Physical Evidence:
KFC started serving fried chicken in a cardboard bucket and it became its tradition. It was introduced by Pete Harman in 1957. The headquarters of the KFC in Louseville is termed as Whitehouse due to its resemblance to presidential white house. It has executive offices and Research and development facilities. The main ingredient of KFC preparations, chicken is 100% whole muscle chicken. They procure it from highest quality local suppliers to ensure premium quality of its products. It is checked for quality, expiry date and fried at minimum 170°C for perfect product. To maintain transparency with customers, they can visit the kitchens, see the process and meet the cook. KFC runs another operation called KFC Foundation through which students and KFC employees are given assistance for college education and hardship & crisis situations. Hence this gives an insight on KFC marketing strategy and marketing mix.
About KFC:
KFC is an American Fast food chain earlier called as Kentucky Fried Chicken. It was established in Colonel Harland Sanders with humble beginning in a roadside stall during great depression. KFC is one of the largest fast food chain in world along with McDonalds.
The brand offers burgers, salads, sandwiches etc. as a part of its menu.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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