KFC In Australia: Market Analysis And Strategy Essay.

Provide a brief description of this organisation and the industry to which it belongs. You may also want to include in this description any mission statements, value statements or ‘slogans’ that this organisation utilizes to communicate its purpose. In describing this organisation, please also identify its orientation towards marketing and provide relevant, detailed and factual supporting evidence to substantiate why you have identified this specific orientation. Finally, include a brief description of the product(s) this organisation offers the market. And comment on what role the brand has in this organisation’s marketing strategy.

1. Company – what are the strengths and key resources, what are some of the weaknesses? What are the opportunities and threats?
2. Customers – who is the company serving and what type of behaviour is ‘typical’ from them?
3. Collaborators – describe their suppliers, distributors or other partners that help the company to deliver their products to the market? If company doesn’t have any – explain why it is not necessary.
4. Competitors – who are the current main competitors, are there any potential new threats or new entrants to the marketplace?
5. Context – what other factors affect this organisation (e.g., legal, political, technological, etc.)?

How does the firm go about collecting information (e.g., market research, market intelligence, etc.) about the 5Cs? For example, how does it learn about?

1. What customers want?
2. Which competitors pose a threat?
3. How the context of business is changing, if at all? d. What role collaborators play in the process?

Based on the market analyses, outline potential market segments that are available to the chosen organisation. Recommend and justify:

a choice of target market(/s)

a value proposition for the target market(/s).

a positioning statement for the target market(/s).

In all cases, please remember to justify your argument(s) in this assignment by explaining and providing reasoned arguments for why you have formed your views. Please ensure that you support your arguments by explicitly applying and drawing insights and conclusions from relevant marketing models, concepts and theory covered in the course to date. Do not simply rely on offering personal conjecture or opinion

5C’s Analysis

In present time, each and every company is trying to attract the customers with the new and innovative business practices. The trend of strategic marketing can be seen in every company. This report is presenting the market analysis and strategy of the famous food chain KFC in Australia. KFC is the largest chicken restaurant chain in the world. The company is offering tasty and delicious fried chicken and it is operating in more than 115 countries in all over the world. The company was established in 1930 by Harland Sanders (Bhasin, 2016). Kentucky Fried Chicken (KFC) is one of the popular and famous fast food chains which are operating in various countries. It is the second largest fast food chain in the world after the McDonalds in many countries. In present time, KFC has more than 18,000 outlets in the 120 countries. KFC is now one of the most innovative companies in terms of the fast food products among the customers (King, 2014). Due to its innovative marketing and products, the company is giving strong competition to the big companies such as Starbucks, McDonalds etc. Having effective and comprehensive business strategy, the company has strong brand image among the customers. in many years, KFC has established itself as a brand name which believes in the sustainable marketing to maintain  the strong relations with the customers by providing natural food to them.

KFC is famous fast food chain among the customers of Australia. Company is popular fast food chain which is serving the food with the integrity. The company ensures that the ingredients used in the food are natural and healthy for the customers. The company is involved in the natural campaigns in which it ensures that the food provided to the customers is chemical free and healthy. Sometimes, company has to face some food safety issues because the suppliers and small farmers do not have enough resources so they do not follow safety norms. So, sometimes, it creates questions on the promise of the company in terms of safe and healthy fast food. Apart from this, KFC is popular for its chicken-based products for the non vegetarians. The position and reputation of the company keeps vegetarian away as there are lack of vegetarian products (Lovelock, 2011).

The target customers of the KFC are those who want to enjoy real and tasty chicken products. Basically company targets those customers who have the age group of 13 to 36. Generally, it can be seen that these customers are more interested towards the fast food as an alternative food during their job or working hours (Armstrong & Cunningham, 2012). So, the objective of the KFC is to target those customers by convincing them for the quality food products. The competitors such as McDonalds and Burger King are providing similar products at very low cost but there is no surety and healthy and safety products. Thus company wants the customers of the fast food to switch towards the natural fast food products (Ahmed, Vishnu & Amin 2014).

Collecting information about 5C

Suppliers of the company are the main collaborators for the business of fast food. The suppliers of the KFC are the farmers who support the company with the natural food products. The provided ingredients by the farmers are used in preparing the food products in KFC. For providing support and help to the suppliers, company is focused on the food safety norms. KFC uses pasture-Raised cows and beef to make sour cream which is supplied by the local farmers. Along with this, pigs are also used in the food ingredients and those are fed with the chemical free diet. Basically, they are treated with the safety and responsible manner (Huxham & Vangen, 2013). 

KFC is facing strong competition with the McDonalds, Dominos, Subway and many other local competitors. They are famous among the customers because of having low price products in the market. McDonalds is one of the biggest sellers in the food chain category. It has low cost menu which is the key factor to attract the customers. McDonald is famous for the vegetarian customers as it does not serve beef or pork and encourage vegetarians towards them. Further, Dominos is also the strong competitor of KFC because the company has exciting offers with the low price menu. So, Dominos is also marked itself as the famous brand among the customers of Australia. Along with this, there are some local competitors also that are set to grow in the Australian food market but the customers are not so much aware about those brands so they prefer established brand for the food.

KFC has many social activities for the environment such as helping the people and giving them donation etc. by the effective management system, company is able to focus on the social activities for the society and environment. For instance, there is the competition among the employees for building togetherness in the jobs so; KFC has the social activity for them in their job role. Further, in case of technology, KFC is one of the best companies in the food sector. Form the television, banner and other media platforms; KFC uses technological way to advertise its products.

By the 5C analysis of KFC, it is observed that the KFC uses demographic segmentation to target the customers and serve them according to their needs and wants. The customers of KFC are young and young adults. KFC has strong position among the customers in terms of its chicken menu. There are some outlets that are serving anything in the vegetarian. But in terms of non-vegetarian food, KFC is popular among the customers. Its products such as chicken wings and chicken bucket are popular of each customer. To stay connected the customer form the KFC, company focuses on getting their personal information. With the unique services, company identifies the information about age, gender, taste and preferences of the customers and visitors. Along with this, there is the reward program which focuses on the loyal customers and their purchases. By the loyalty programs, company is able to get important personal information the customers along with their taste and preferences.

Developing marketing strategy

The information related the competitors of KFC can be easily obtained by the industry reports and the financial data of the competitors available on their websites. It is helpful for the KFC to analyze the sales and revenue of the competitors. So, by the feedbacks of the customers on the social media sites and by the customer survey, KFC can be able to identify the preferences of the customers. To analyze the difference between the services provided by the company and the competitors, these methods are really very helpful. By this, KFC is able to know about the expectations and references of the customers in the market. Because of the market research of the competitors, KFC provides offers and discounts to the customers and implement important changes in the restaurants so that the customers stay loyal for the company.

For operating in the global market, it is important for the company to analyze the external environment which affects the business operations. This can be done by focusing on the laws and policies of the country in which the company is operating because each and every country has different rules and laws related to the food safety and security. KFC operates under laws and regulation of the Australian rules. The company gathers in information about the McDonalds and other food companies. The legal analysis is helpful for KFC to operate in the international market (Peñaloza, Toulouse & Visconti, 2013).

Collaborators are basically those persons who support the company in its main business operations without taking active part in it. The main collaborators of the KFC are local farmers and suppliers who provide the raw material and ingredients for the continuous production and services. It is mentioned above that KFC depends upon the local farmers of the country. They are the source of natural raw material. Company collects the information related the local farmers and safety of the products which they are providing to the company. KFC has some requirements for the collaborators such as they do not unsafe products and the animals should consume chemicals and antibiotics. For maintain the long terms relationship, suppliers have to meet the demand of the company.  

KFC is focused on providing healthy fast food products to the customers with the cheaper price. In terms of target market and segmentation, KFC uses demographic, geographic, psychographic and behavioral segmentation. In the KFC, income level of the consumers is an important factor. In early ruse of KFC, company targets the upper class but after that, with the economy meal, Company attracts lower to middle class also. Along with this, consumers are targeted based on the attitude and response towards the products provided by the company (Haseeb, 2016).

Developing marketing tactics

The value proposition of KFC can be measured in terms of its services to the customers. The company provides organic products to the customers. The company wants to raise the awareness regarding healthy and safe products among the customers. KFC has integrity concept in its products in which the products follow value driven strategy for preparation of healthy food. In terms of customer value proposition, customers are highly satisfied with the KFC in terms of quality, price and taste of the products. KFC identifies the customers’ needs by developing menu items based on the consumers changing taste. The slogan of KFC is ‘There is fast food then there is KFC.” So, KFC is the timeless and trusted brand among the customers because of its quality ingredients, unique recipes, tender cooking and fresh preparations. Basically, it is all about competitive e value, home-style meals and friendly services in the KFC (Chakravarthy & Coughlan, 2011).

For the KFC, target market will be those customers who do not have time to prepare the food for them. In such kind of customers, college going students and corporate individuals can be targeted. In this, the age group of 17 to 38 will be targeted. The value provided by the KFC is much better as compared to the competitors in terms of healthy and safe food along with the effective guideline of food safety standards. By these practices, KFRC can position itself in the organic food market. The idea behind targeting young people is to create awareness among them regarding healthy and safety food. Further, the idea behind developing the brand value is taken for the welfare of the society and social interest of the individuals (Bruning, Hu & Hao, 2009).

KFC promotes “high quality meal” for its customers. It prepares high quality products charges high prices, distributes by high class dealers and gives advertisement in the top newspapers. Basically, KFC is communicating by the physical evidences and consumers judge the company based on its quality. The aim of the KFC is to build the long term image in the customers mind. KFC is always trying to develop positive image among the customers and for this, company is implementing positive changes in the environment (Martínez, 2012).

KFC basically deals with the chicken products. KFC has the special recipe for the chicken products and that is the reason, KFC is popular as the chicken specialist in all over the world. KFC got the advantage of the chicken products and due to the demand in the market, KFC entered in the global market. There are varieties of the products offered by the KFC and those are divided into the sections based on the differentiations. The products of KFC are divided in to Chicken, Burger, Dessert and beverages and snacks and side orders. Main and original recipe of the KFC is fried chicken and French fries.

KFC operates in the global. Market and to enter in these markets, KFC uses price skimming strategy. The prices of the KFC products are high because company targets middle to upper class customers. Along with this, company also targets middle to lower class customers and for them, company trickle down the prices. Company adopts cost based price strategy by keep the products different from the competitors. The price s of the chicken products is set by the company y by adopting proper method. The pricing strategy of the KFC is different in the different countries because of various exchange rates tax policies and inflation (Turnbull & Valla, 2013).

Place can be described as the activities of the company to make the product available for the customers. If the products are not available for the customers properly, there is no use of attractive pricing, high quality products, and the promotional activities for the products. In case of KFC, company has located its stores in the busy areas and on convenient places so that the customers can easily go there and can enjoy the tasty food. Company also has many outlets in all over the country (Fifield, 2012).

This is the main activity of the company to make the customers aware about the products. For the promotional activities, KFC uses such methods by which it can inform and educate the target customers about its products. KFC uses advertising, public relations, events, coupons and discount offers, sales promotions for its delicious one-of-a-kind product named Fried Chicken. Company does advertising in news paper and health magazines to make the customers aware about their health (Pavlou & Stewart, 2015). 

People refer to the staff and employees of the company who are responsible in preparing food and serving to the customers. The staff of the KFC provides unique experience in terms of services to the customers by motivating them to visit the stores again. KFC has the best quality chef and supporting employees who are accountable for providing healthy food. They are properly trained to prepare hygienic food on the order of the customers.

It includes then process of delivering the food to then customers. KFC focuses on the expectations of the customers and provides food according to their needs and preferences. By this, KFC makes sure the next visit of the customers and opportunity to retain them as the loyal customers (Jeston & Nelis, 2014).

The environment and the seating arrangement of the restaurant appeal the customers to visit again. KGFC has good ambience for the customers where they can enjoy tasty food. Along with this, the packaging and the preparation of the food products is healthy. The employees have clean dresses and focused on providing unique service to the customers. All these things attract the customers to visit the stores again and again (O'Guinn, Allen & Semenik, 2011).

Conclusion 

This report focuses on the marketing strategies of the famous food chain restaurant. Kentucky Fried Chicken (KFC). From the above discussion, it is observed that this is one of the leading fast food companies in the world. The company is focused in providing quality food products to the customers with the attractive rates and prices. Sometimes, there might be issues related to food safety and security but company has deal with the issues by adopting the legal rules and policies of the Australian government.

References 

Ahmed R. R., Vishnu P, & Amin M.A., (2014), Impact of Product Packaging on Consumer’s Buying Behavior: European Journal of Scientific Research, 122 (2), 125-134. UK

Armstrong, G., & Cunningham, M. H., (2012), Principles of marketing, Australia: Pearson publication

Bhasin, H., (2016), Marketing strategy of KFC – KFC Marketing strategy, Accessed on 31st May 2017 from https://www.marketing91.com/marketing-strategy-of-kfc/

Bruning, E. R., Hu, M. Y., & Hao, W., (2009), Cross-national segmentation: European Journal of Marketing, 43 (11/12), 1498-1522

Chakravarthy, B., & Coughlan, S., (2011). Emerging market strategy: innovating both products and delivery systems, 40(1), 27-32

Fifield, P., (2012), Marketing strategy, (2^nd edition), Berlin: Reed educational & publishing Pvt Ltd

Haseeb, (2016), Marketing Plan of KFC, Accessed on 31^st May 2017 from https://marketingdawn.com/marketing-plan-of-kfc/

Huxham, C., & Vangen, S. (2013), Managing to collaborate: The theory and practice of collaborative advantage, Routledge.

Jeston, J., & Nelis, J. (2014), Business process management, Routledge

King, M., (2014), Australia’s Top Ten fast food franchises, Accessed on 31st May 2017 from https://www.fool.com.au/2014/04/04/australias-top-ten-fast-food-franchises/

Lovelock, C., (2011), Services Marketing, (7^th edition), India: Pearson Education

Martínez, P., (2012), The Consumer Mind: Brand Perception and the Implications for Marketers, USA: Kogan Page Ltd

O'Guinn, T., Allen, C., & Semenik, R., (2011), Advertising and Integrated Brand Promotion, Ohio: Cengage Learning

Pavlou, P. A., & Stewart, D. W., (2015), Interactive Advertising: A New Conceptual Framework Towards Integrating Elements of the Marketing Mix, pp. 218-222