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BUS104 Introduction To Marketing

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  • Course Code: BUS104
  • University: Kings Own Institute
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  • Country: Australia



KFC is a recognized and renowned brand which has its worldwide presence in almost all the major countries. With a vast success and growth arte, the company is developing its business operations across the world. The key aim of the report is to develop a marketing plan for KFC so that it can extend its market reach and attain further global expansion. The report will help the readers in understanding the current industry position of the fast food industry through industrial analysis. Following to this, the report will highlight the various competitors of KFC in the fast food industry; it will also present the market share, competitive strategies and competitive table showing the position of KFC. Subsequent to this, the report will present information related to customers by the means of customer analysis. There will be presented the needs, decision making and segmentation of the consumers. Later to this, the report will throw lights upon the brand value and the strengths, threats, weaknesses and opportunities present to KFC by the means of brand analysis. The future objective and goals of the company will help in understanding the future plans of KFC. After that, a detailed marketing mix will be presented in the report throwing emphasis upon the product, promotion, place and price elements of the marketing mix of KFC. The report will conclude with a general analysis of all the segments presented in the report with a concluding statement. 

Marketing/ Industry Analysis

To understand the market trends and industrial competition, there has been taken use of industry analysis. The industry analysis will be performed through the Porter five forces model. It is one of the highly recognized tools for performing industrial analysis. This analysis will help in understanding the threat of substitutes and new entrants, buying power of the suppliers and the buyers and the industrial rivalry. 

Bargaining Power of Buyers

The bargaining power of the buyers can be said as high as there are several other fast food chains which offer quality products to the individuals. Therefore, the increased number of fast food chains raises the bargaining power of the buyers. But on the other hand, KFC is a recognized brand, thus, it is not easy for other fast food chains to copy or deliver similar quality products. Thus, from this aspect, the bargaining power of the buyers is low (Yu and Zhang, 2009).

Bargaining Power of Suppliers

In the fast food industry, the suppliers usually have high bargaining power because of the fact that there are enormous numbers of fast food chains and fast food retailers that requires a similar kind of raw materials for producing fast food products. Therefore, the suppliers have strong bargaining power and therefore they tend to increase the prices of the raw materials. The organizations are depended upon the suppliers, thus they have to accept the increased pieces too (Mullally, 2012). 

Threat of New Entry

In this industry, there is an increasing and huge threat of new entrants. In the past decade, the demand for fast food has increased with a rapid rate which has resulted in several new small and big companies entered in the fast food sector. And still there are various domestic companies which are entering into this industry. But on the other hand, KFC is a worldwide brand which requires enormous amount of funds to have global recognition. Therefore, small companies cannot target global regions due to insufficiency of capital. Therefore, the threat of new entry from capital investment pint of view is low. 

Thereat of Substitute Products

KFC is well famous for few of its key products which are not easy to get in any other fast food outlet such as fries chicken, etc. But in present scenario, because of several health issues, people are moving towards healthy and dietary food habits which results in replacing the KFC fast food products with vegetarian food products. Thus, the threat of substitute is also high in this industry. 

Industrial Rivalry

In the food industry there are several big players which try to dominate the market and attract t the potential customers with their innovative and fascinating offers and food products. There are big chains such as Burger King, McDonalds, etc. which gives a striving competition to the sales and revenues of KFC. Therefore, it can be said that there is strong industrial rivalry among the existing competitors (Khanna and Sehgal, n.d.). 

Competitive Analysis

In the present scenario, there is an essential need for performing a competitor analysis so that there can be attained an understanding of the market competitors, their markets position and share the competitive strategies. It helps the company in planning its strategic moves and expansion strategies. 

Indirect and Direct Competitors

There are both direct and indirect competitors of KFC in the market. Direct competitors of KFC comprises of Subway, Burger King, McDonalds, etc. The indirect competitor comprises of the domestic fast food retailer and supplier which are well established as the domestic fast feed retailers (Xie, 2013).

Competitor Analysis Table of Direct Competition from McDonalds

Compétitive Objectives (market share) and Competitive Position

Competitive Strategy

Following are the competitive strategies of KFC to attain competitive advantages and to have the position of market leader. 

Healthy Products

KFC is planning to add increased number of nutritious and healthy products so that the customer who demands for healthy products can also be targeted as well as it also helps in extending the customer base. 

Organic Food Products

KFC is also planning to have more of organic food products in its menu so that there can be reduced environmental impacts and more number of customers can be attracted with such organic products (Ruzzier, Ruzzier and Hisrich, 2013).

Extended Menu

Another competitive strategy of KFC is that it is increasing the number of food products. The varieties are increasing so that more customer segments of all ages can be targeted. 

Vegetarian Food Products

KFC is well recognized for its non-vegetarian and primarily chicken related food products but to attract the vegetarian customers as well as health conscious customers, the company is planning to introduce vegetarian products also. 


The company also takes use of differentiation strategy for attaining competitive benefits. The customers are offered high value for the money they have paid for the food products of KFC (Bartlett and Rangan, 1992).


KFC always have innovativeness in its business operations. There are several products which are the result of innovativeness in the manufacturing so that the customers do not get bore of the regular products. 


Another competitive strategy of KFC is that the company has established its ventures or fast food chains at the prime locations of the cities so that large number of customers can be targeted (Kotler, et al., 2015).

Customer Analysis

The customers are the biggest strength of KFC which forecasts the future growth and sustainability of the company. Therefore, there is an essential need for KFC to perform a customer analysis. 

Consumer Need Analysis

There has been performed consumer need analysis of various age groups so that they can be targeted accordingly. The customers of KFC are from age six to sixty five. The consumers who demands high quality and high taste are the major customers of KFC as the organisation offers improved quality and taste to its customers. In present, the individuals demand for new flavours as well as also healthy and nutritious elements in the fast food products also. Therefore, the company also understand the needs of the customers and offer them less Calorie products. 

Decision making of the consumers

Need Recognition

The consumer develops a need of purchasing food products where the consumers realize that they are hungry and have a need to purchase food products from KFC. 

Search for Information

The consumers analyze various options available to them such as various fast food chains and other restaurants. Then the consumer search for information, the information is related to the varieties of foods and beverages and their associate prices and the accessibility options. From the monetary terms also, the consumers judge the brand, that whether it will be affordable for t5hem or not (Pauwels, 2006).

Evaluation of Alternatives

Once the consumer seeks information, he try to compare it with other brands. There has performed evaluation of the various alter natives available to the consumers. Fir example, the consumer will compare the products of KFC with the products of Burger King, McDonalds, and Subway etc. (CES, n.d.).

Purchase Decision

In this stage after evaluating all the brands and options, the consumer finally decides to purchase a food product from one of the selected brand. For example, the customers can fascinated from the combo meals of KFC and thus it selected KFC for buying the product. 

Post-Purchase Evaluation

Customers also have a tendency to make post-purchase evaluations. Therefore, it is essential that KFC must offer adequate products as per the demands of the consumers so that they have complete satisfaction in their post purchase evaluation (Armstrong, et al., 2014).

Consumer Segmentation

Demographic Segmentation

All age group people are attracted with the products of KFC; therefore the chain offers extended varieties of food products.

From the income group, people from middle as well as upper class afford the products of KFC. The combos are at affordable prices so to attract the middle class people as well as youngsters.


Geographic Segmentation

From the geographical segmentation point, the individuals usually prefer such chains to be established near to the institutes, shopping malls or at crowded places. Thus from this need realization, KFC establish its ventures at such locations only.

Psychographic Segmentation

The individuals who have a modern life style as well as high social class are the customers of KFC (Ruiz, 2004).


Behavioral Segmentation

There are people who visit such places on some occasions only.

There are customers who have strict healthy food habits. Thus, as per their behavioral habits they do not opt for the products of KFC.

Brand Analysis

The brand is the most powerful and competent asset of an organisation. The brand analysis helps in understanding the brand visibility and brand recognition of the company among the consumers. The company opened its first franchisee in the year 1952 in the United States. From that point of time till present, there are around 18,875 branches of KFC across the world. The brand has high recognition in the regions of China as there it has established approximately 4563 units at various locations (KFC, 2017). This shows the rapid growth and worldwide expansion of the company.  KFC has developed itself in various segments including breakfast, desserts, salads, soft drinks, French fries, wraps, chicken sandwiches, fried chicken, chicken pizza, etc. Such extension has helped the company in serving extended customer base (KFC, 2017).

SWOT Analysis of KFC

• High brand loyalty
• Huge brand recognition
• Effective marketing and advertising
• Global presence
• Strong trademarks
• Worldwide business operations
• Extended customer base (Yang, 2014).


• High calories products which is unfavourable by health conscious people
• Indulge in various environmental hazards such as causing harm to the animals
• Increased market competition (Vignali, 2001).


• Introduction of healthy, nutritious and vegetarian food products to have increased customer base
• There are opportunities for KFC to start home delivery also at various regions where there is increasing demand for home delivery of food products
• More global expansion in the untapped regions
• Introduction of more pioneering food products as per the changing needs of the markets (Harrington, et al., 2017). 


• Threat from other competitors which includes big players as well as the recognized domestic players
• Changing food habits of people due to increased health issues, people are demanding more of healthy products only which results in decline in the sales of food profits of JFC
• Recession and decline in the income level of the people (George, Parol and Life, n.d.). 

Objective and Goals

The objectives and goals of the marketing plan of KFC is to expand its business by having targeting extended set of customer base. The company aims to attract the upper class as well as the middle class people by having more varieties of food products. The company also objects to have more nutritious and healthy food products so that the individuals preferring healthy products can also be targeted easily. The company also aims to provide the consumers with value based services. By having a differentiation strategy, KFC wants to offer high value to nits customers with its innovative and delicious food products and beverages. The primary goal of the company is to become the market leader of the food and beverages industry across the world and to have huge customer base (Randhir, et al., 2016).

Marketing Mix Analysis

Following is the marketing mix of KFC:


The products of KFC are innovative in nature that targets the middle class as well as the upper class individuals. The most recognized products include the fried chicken and varieties of burgers for example fish zinger, chicken burger, twister, etc. Increased numbers of varieties are available for the customers in the beverages as well as in food. There are also healthy and vegetarian products especially for customers preferring healthy food products. There are also offered various meals which are the most favoured products of KFC as it is liked b u the youngsters as well as the families the most (GRADE, n.d.).


KFC usually have high prices of its food products and beverages in comparison with other fast food chains. The company offers high value to its customers. But the prices of the combos and the meals are generally less or reasonable so that it can easily be affordable by maximum number of people. There are various discounts and offers which are provided to the customers on few selected products so that the company can increase the sales of its products. The other price related strategies of the company is to sell a low price product free of cost with a high cost product so that the customers can fascinate with such combos (SAMPLE, n.d.).


KFC always establish its chain at the most prime and crowded locations. The main objective behind establishing at such locations is to become the centre of attraction for the people. B because of high crowd, the chances of potential customers visiting the restaurant increases. As well as locating at the prime locations help the organisation in getting attraction of upper class audiences, etc. (SAMPLE, n.d.). KFC also locate itself at various famous malls and shopping centres as these are the most visited places of the people. There is a direct channel between the producer and the consumers as there is no mediator in between, the consumer can purchase the food products directly from the outlets. To attract the young individuals, the company also place its outlets near to the institutes and the colleges so that there can be increased sales of the food products (Clow, 2004). 


KFC invests huge amount of capital for its promotional activities. There are enormous number of promotional approaches and strategies for advertising the food products of the company. To enhance the market share as well as to have strong and increased brand recognition, the strategies used by the company comprises of sales promotion activities, advertising, personal selling, sponsorships, publicity, word of mouth and direct response (GRADE, n.d.). For the advertisements, KFC take use of online advertisements, television advertisements, hoardings and online advertisements for the personal selling, the volunteers of the company visits to several institutes for distributing the vouchers and pamphlets so that the more number of potential customers can be targeted. For the sales promotion, KFC provides promotional offers and vouchers to the potential customers so that they visit the restaurant again and become the reliable customers of KFC. There is also taken feedbacks from the consumers so that they can be offered with additional offers as per their customized requirements based upon their feedbacks. The one of the most successful promotional strategy of KFC is by the means of social media marketing. There are several social platforms on which the company has its recognized presence and through these applications and platforms, KFC increase its promotional activities and extend its customer base (Kennedy, 2006).


In present scenario, the highly developed companies also seek expansions and developments. For fulfil this purpose, the above marketing plan was developed for KFC. From this, marketing plan, kit can be concluded that, KFC has various opportunities for further growth and expansion. The company can have more number of customers as well as huge revenues and sales if it has further expansion through expanding the food menu by having more number of nutritious, organic and healthy food products. The company has strong brand recognition and visibility which is one of the core strength of the company. Therefore, KFC must maintain its brand visibility by various investments and continuous developments. There is huge demand for fast food but KFC must offer products as per the needs of the customers as well as by having a proper understanding of the competitors so that there can be continuous growth of the brand and the customer base. Therefore, it can be concluded that KFC must plan strategic moves to attain competitive benefits and must have innovations in its business operation to have long term sustainability and worldwide expansion.  


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