Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, Marketing strategy of KFC – KFC Marketing strategy, Marketing Strategy of Oracle - Oracle Marketing Strategy, Marketing Strategy Of Tropicana - Tropicana Marketing Strategy, Marketing strategy of Dell - Dell marketing strategy, Marketing strategy of Aquaguard - Aquaguard marketing strategy, Marketing Strategy of Apple Inc - Apple Marketing Strategy, Marketing strategy of BMW - BMW marketing strategy, Marketing Strategy of Dettol - Dettol Marketing strategy, Marketing strategy of Indigo Airlines - Indigo Marketing strategy, Marketing Strategy of Alibaba - Alibaba Marketing Strategy, Marketing Strategy of Axa - Axa Marketing Strategy, Marketing Strategy of Baidu - Baidu Marketing Strategy, Marketing Strategy of Bank of America - Bank of America Marketing Strategy. The KFC strategy is that it positions itself in local markets as a pleasant, bright, air conditioned restaurants with casual atmosphere. Differentiable: This criterion is set to know how the segments are different from each other and how they respond differently to various marketing mix elements and programs? Geographic Segmentation Dividing the market into different geographical units such as nations, states, regions, countries, cities or neighborhood. The consumers of KFC are the young as well as young adults.It used to serve the same menu all around the world which means that it was using undifferentiated targeting strategy. Segmentation, targeting, positioning in the Marketing strategy of KFC, Competitive advantage in the Marketing strategy of KFC, BCG Matrix in the Marketing strategy of KFC, Distribution strategy in the Marketing strategy of KFC, Brand equity in the Marketing strategy of KFC, Competitive analysis in the Marketing strategy of KFC, Market analysis in the Marketing strategy of KFC, Customer analysis in the Marketing strategy of KFC. Its chicken wings, and chicken bucket is a favourite with everyone. With 18000 restaurants delivering finger licking delicious fast food across the world, KFC has evolved itself through the years and having strong tie-ups or strategic partnership with the supply chain partners is helping them in serving its customers in a better way. Free resources to assist you with your university studies! Demographic segmentation 3. Geographic Segmentation of KFC. It’s been more than 75 years since its inception and still, KFC’s original recipe of fried chicken is satisfying the taste buds of customers because it is finger licking good!!. These products are low in caloric value such as Tender roast chicken Breast without skin, Hot and Spicy whole chicken Wings Etc (livestrong.com), therefore these suits to the health conscious segment. Promotion relates to the activities by the companies through which they communicate the products and influence target consumers to buy it. Since the segment belongs to high and middle income group, therefore prices are set on a higher side. The market is still growing but fast food chains have low acceptance in developed markets. The marketing concept emerged in the mid-1950s. It also offers a variety of deals to differentiate its products from its competitors. KFC’s has different market segment as compared to street food store selling cooked rice. Companies need to design a marketing mix to cater to each of these segments. KFC has adopted cost base pricing strategy. Study for free with our range of university lectures! Our academic experts are ready and waiting to assist with any writing project you may have. KFC has also segmented the children group by introducing the Zinger Junior. To attract the segment KFC has developed advertising slogan which is, “Nobody does chicken like KFC”. KFC divides the market on the basis of behavioral variables as follows: 3. They have been reasonably successful in identifying and catering to this segment and this can be determined by their growth from USA to its global presence all over the world. Business shifted to a customer centered in which “sense and respond” philosophy concept came in Instead of a product-centered, “make-and-sell” philosophy. Developed nations are becoming more health conscious, it’s only developing nations which will share the market dynamics. 26 Competitors Actions. KFC has divided market on the basis of psychographic variables as follows: Division by Social Class: Middle class, Upper class and, Personality: Gregarious, Authoritarians and. KFC is currently ranked 147 in the global brand ranking table. In developed nations the different fast food outlets are eating up each other’s market share. It has developed restaurants in the posh and prominent places in all countries. KFC has differentiated its products on various grounds such as on the basis of Food, fun & Festivity, providing several alternatives of its special recipe in the form of chicken meals. KFC introduces side dishes on a regular basis to ensure customer flavor and quality expectations are met. Price structure is also different for both the segments. Market segmentation surveys are common methods of obtaining the customer-specific information that could be used to create groups sharing common characteristics. KFC divides market on the basis of psychographic variables like: Life Style (Lifestyle is not specific) Personality (Personality is ambitious and authoritarian) 3.5 Behavioural Segmentation In … At first, the company adopted a market … 20 Reasons for KFC to go overseas. KFC is a brand and operating segment, called a KFC is synonymous with fried chicken and it challenged the established fast food market of … In demographic segmentation, the market is divided into groups based on an age, gender, family size, income, occupation, religion, race and nationality. Introduction. KFC is sure to apply the market segmentation theory. Registered Data Controller No: Z1821391. KEF divides he market … World’s 2nd largest fast food chain and largest chicken restaurant on the basis of sales is KFC, the successful brand of the parent company YUM! Demographic segmentation 3. Using the above mentioned segmentation means, KFC has narrowed down its business to cater to specifically two main target markets, *well off, taste and quality seeking adults who are normally brand conscious, innovators & trend followers. Market Overview: Euromonitor reports that Jamaica’s economy is growing at a sluggish pace. Its Hot wings, Sandwiches and Grilled chicken are stars since majority of its sales comes from these menu items. It has added in its menus as fish zinger, salad, Arabian rice etc according to the demands of the customer. Against competitors KFC positions itself with high quality, hygienic and affordable fast food products in an assortment of complete meals. For example in Australia its geographic segmentation is wide. Geographic Segmentation: Geographic segmentation divides markets according to geographic criteria. Due to this individual design restaurants receive aesthetic package to enhance drive-by appeal and differentiates KFC from other fast food restaurants. Based on this, new products are introduced (kfc.com). For effective segmentation following criteria is used by the firm (Kotler and Keller, 2006): 1. No plagiarism, guaranteed! KFC sells its products according to the geographic needs of the customers, worldwide and it is measureable. Fast Food Market was valued $647.7 Bn in 2019 & to reach $931.7 Bn by 2027, at a CAGR of 4.6%. In KFC, they have considered four variables for market: 1. To attract both the segments, KFC sponsors various games and uses the slogan, MAXIMUM ENJOYMENT IN MINIMUM TIME. Subway is yet to reach its complete distribution potential but KFC and McDonalds are constantly at loggerheads with their vast global presence. It’s lunchtime and everybody is attacking KFC for their little lunches, tens of people are ordering chicken and rice and the mature worker cannot answer to all the … Role of leadership | 9 Roles Every Leader Must Handle, Qualitative Data Analysis – Importance & Types. The criteria for this purpose will be the level at which KFC is doing to meet the needs, wants and demands of the customer and how effectively it is using its resources to achieve the desired results. Example: KFC … Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. The company also can fine-tune the marketing program and activities to better reflect competitors’ marketing (Kotler and Keller, 2006). There is difference in terms of the needs of customers. As a result, KFC covers both – online and offline deliveries. The innovative design for both interior and exterior of KFC restaurants attract customers. *You can also browse our support articles here >. Real Gross Domestic Product (GDP) grew by 1.5% in 2016 after gains of 1.1% in 2015. KFC has reached this segment as it is present in so many countries and in many cities of Australia. Let's stay in touch :), Very interesting and insightful. KFC divides the market on demographic basis in the following manner: Segmentation based on ethnic groups plays important role, for example in Australia KFC has segmented its market on ethnic group basis and have introduced Halal Food for the Muslim community. Market Segmentation by KFC In the light of all these segmentation criterion, KFC selects the segments on geographic, demographic, psychographic, and behavioral basis. KFC MARKET SEGMENTATION: KFC mainly uses geographic market segmentation for its products and offerings: 1. Your email address will not be published. In the light of the above mentioned segmentation criterion, KFC selects the segments on geographic, demographic, psychographic, and behavioral basis. Under demographic segmentation, KFC focus on the income bracket of consumers. Behavioral Segmentation is dividing a market into groups based on the attitude, consumer knowledge, and use or response to a product. Marketing mix – Click here to read the Marketing mix of KFC, SWOT analysis – Click here to read the SWOT analysis of KFC. In India KFC focuses how geographically its customers demand different … Marketing Strategy of Pizza Hut uses a mix of geographical and psychographic segmentation variables to make its products available of in the market. In this aspect KFC segmented the market on the basis of taste, quality, and price. The major success factor of KFC is the way it positioned itself in the minds of the consumer. They demand quality and taste, therefore KFC can charge higher price as compared to a cooked food store to this segment. It is division of the market into different geographical units, for example states, nations, regions, cities, countries, or neighborhood. 26 PESTEL Analysis. This is not an example of the work produced by our Essay Writing Service. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! To be attracted to eating super quality and tasted fried chicken products, people need to be part of a particular lifestyle segment. They are demographic segmentation, psychographic seg… You can follow me on Facebook. For well of, taste and quality seekers Big deals and more caloric products are available whereas for health conscious consumers low fat products are prepared. Theodore Levitt of Harvard explains that marketing focuses on the needs of the buyer and provides is preoccupied with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it (Levitt, 960). 3. At the same time also targets children who love to get free toys with meal. You can view samples of our professional work here. Demographic Segmentation In demographic segmentation, the market is divided into groups based on an age, gender, family size, income, occupation, religion, race and nationality. KFC has demographically segmented its market to cater for the different customers who reside in various cities where it has its outlets. We're here to answer any questions you have about our services. In KFC, they have considered four variables for market: 1. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Looking for a flexible role? Demographic Segmentation The market is divided into groups based on an age, gender, household size, income, occupation, religion, race and nationality in demographic segmentation. In this way KFC has positioned and differentiated itself from the competitor like Macdonald, King Burger, and Subway. These activities reveal that KFC policy is to make long term profits. KFC uses its attributes to Position its Product. ... Kentucky Fried Chicken, … KFC’s customers give importance to Clean, and comfort, such as the middle income and high income groups. KFC has divided market on the basis of psychographic … KFC has been portrayed to be a sign of individual taste and for this reason; the brand creates an image to be the number one fried chicken in the minds of consumers. In this aspect KFC segmented the market on the basis of taste, quality, and price. Both of them are in the burger category and where McDonalds offers burgers, Subway offers sandwiches. It took a strategic marketing attitude to achieve this positioning. Density wise mainly its presence is in urban and sub urban areas there is no climate specificity. 2008). To occupy a clear, distinctive and desirable place relative to competing products KFC, works on target consumer. Demographic segmentation relates to dividing the market into groups based on income, age, education, gender, family size, religion, occupation, race and nationality. KFC divides the market on demographic basis in this way:  Age is between 6-65. Popeyes is a chain with Louisiana heritage and flavorful authentic food ().KFC … KFC Corporation works on a broad quality program to deliver every time high quality food and outstanding service to customers. Its products are mostly aimed at the well off with higher disposable income to spend on premium fast foods. The target market of KfC. Also the local fast food joints are giving head on competition to KFC in the developing nations. Other menu items those in veg, desserts & in chicken (even burgers) are question marks since KFC is not able to differentiate itself on these menu items from others like McDonalds or local fast food joints. Geographic segmentation 2. Moreover it has transformed its positioning strategy from product based to value based in recent times. In India the … The consumers of KFC are the young as well as young adults. Although more than 50% of its sales come from Developed nations but those markets have stagnant growth rate and developing nations like India, China and many others have big potential for KFC. Companies’ task is to identify the segments and then decide which one to target. For example KFC projected its Trans fat free frying with zero calories in the TV spots (findarticles.com). The company derives segments by demography, geography, behavioural and psychographic elements (Crittenden, Crittenden and Pierpont 2015, 613). In this way KFC sales has increased by covering the Muslim population segment. Disclaimer: This work has been submitted by a university student. Psychographic segmentation and 4. Most of the customers can be defined as youngsters or young adults who can shell out a minimum amount of money to have a delicious meal. I love writing about the latest in marketing & advertising. Original recipe of fried chicken with secret blend of 11 herbs & spices have been the driving force for KFC from last 75 years. Yum Brands which is the parent company of the Pizza Hut and have KFC … According to the President and Chief Concept Officer of KFC Corporation, “They are raising the quality bar across the board and continuing to differentiate KFC from other fast food restaurants.” KFC customers are getting a better eating experience through great tasting real food, freshness, diversity and quality”(Business Wire, 2001). Before the introduction of the new Product test marketing is also being done, for example KFC tested its product Double Down before its introduction (tradingmarkets.com). KFC makes differentiation with competitors like MacDonald, King Burger and Subway by using the finest products and developing of a premium brand. Certain variables are involved in market segmentation; they are age, distance and purchase sizes etc. Company Registration No: 4964706. It used to serve the same menu all around the world which means that it was using undifferentiated targeting strategy. The market segmentation can be understood if the KFC separates their target market into some groups. Customer of KFC are the people from different age group, all who want to satisfy their taste buds with the finger licking delicious chicken menu. 1. Therefore, KFC serves fried vegetable strips and burger patties made of either potato … 1st Jan 1970 The next section will look into how KFC position itself. Billboards, Newspapers Ads, Posters, Internet Banners, TV Ads, Transit Ads, and Leaflets are used to advertise the KFC products to further catch the attention of the stated segments. The next section discusses KFC’s current marketing mix for the mentioned segments. Both the selected segments customers can get their desired items from the nearby KFC restaurants. KFC poisons against competitors by focusing on pure and fresh food to create a distinct and clear position in the minds of KFC customers. Within each … Fast food is defined as food that is quick to prepare & serve SWOT analysis of KFC analyses the brand/company with its strengths, weaknesses, opportunities & threats. Presence in developed & developing nations is helping the company in strategizing its future growth plans as it is giving them exposure & experience which is essential element in and fast food industry’s success. For this purpose a feedback questionnaire has been introduced in which experience of customers is taken about KFC service, product taste and quality to know the satisfaction criteria. It is also highlighted that meals are made more appetizing by supplementing with fresh, tasty side dishes and rich home style dessert. KFC has a broad menu with many options for customers and now even Vegetarian food items have been added by KFC which has helped KFC in increasing its customer base and sales volume. The article also covers top KFC competitors and includes KFC target market, segmentation… Regarding promotion both segment products are highlighted separately. However, in recent times, following McDonalds example, KFC has started localising its menu, giving it better acceptability in the market. There are very few outlets which serve anything in vegetarian. brand. KFC also includes country wise local accepted menus such as fish zinger and Arabian rice according to the demand of the customers. 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