KFC marketing story - part 2

Hi guys!

It’s me again and today I come back with the second part of marketing story of KFC. Last time we only talked about the simplest things of KFC and this time, we will move to another part is the Marketing strategy and understanding competitors. To be easier figure out, I will still do as an interview with questions and answers as the previous time. So, let’s start!

5. What is the mission statement of the company?

KFC has decided a mission in this year is that “The Association of Kentucky Fried Chicken Franchisees, Inc. is united to protect, promote and advance the mutual interests of all member franchisees and the Kentucky Fried Chicken system.” (BlaBlaWriting, 2016)

6. Which are the main competing products? Make a distinction between generic competition (non-branded, cheap, same product), product form competition (substitute: can perform same need) and brand competition (direct competitor brands offering same product)

·        Although there are more than 300 menus worldwide, KFC still has a number of competing products. The basic one is core chicken, originated from the on-the-bone chicken pieces flavored with Colonel Harland Sanders' "Traditional Recipe" of 11 herbs and spices. As well as its original chicken dish, KFC also has some major products:

-         Chicken burgers, involving the Zinger and the Tower burgers.

-         Wraps with Twisters and Boxmasters.

-         A numerous finger foods such as crispy chicken strips and hot wings.

-         Popcorn chicken consists of small pieces of fried chicken.

However, KFC has a flexible marketing strategy: it separates different menus to different countries internationally to adapt regional taste. For instant, in Asia, people tend to prefer Zinger chicken burger because of the spicy taste. (Wikipedia, 2016)

·        Distinction between generic competition, product form competition and brand competition.

	Generic competition	Product form competition	Brand competition
Strengths	Inexpensive price	Have potential development in the market	Reputation and experience in the market
Weaknesses	Non-branded	Huge competitors have separated the majority of market share	High price

7. What is the competitive position of the company with the chosen product? Motivate your answer.

KFC has a powerful brand name and they are definitely one of the market leaders in the fast food industry. However, in the recent years, KFC has gradually lost its position in the market. This can be explained by heavy competitions in the chicken market as well as other difficulties in specific markets worldwide such as consumer’s taste or policy challenges. But KFC has had solutions to get back to its throne again with more investment from the parent company, Yum! Brands, and the international market extension.

8. Which differential advantages does the company have over its’ competitors?

KFC owns a unique receipt of 11 herbs and spices for the traditional dish, which has asserted its position in the consumer’s mind. Moreover, the firm has internationally diversified its menu recently and therefore gains more global experiences. Reputation and experience are the two factors that make KFC become a giant symbol in the fast food industry.

9. When we look at the Ansoff Matrix, which growth strategy do you see for your product? Motivate your arguments!

According to the Ansoff Matrix, the two growth strategies that can be suitable for KFC are Market Penetration strategy and Market Development strategy. The reason for this is that the target of KFC is to expand its market share in both current market and new potential market. With existing menus, to reach this goal, the firm needs to advertise impressively and have sound brand building as well as improving the standard of the products.

I think that’s enough for this time. In my next blog, I will answer questions about Consumer buying behavior.

See you!

Bibliography

·        BlaBlaWriting. (2016). BlaBlaWriting--Business Strategy–KFC Company. Retrieved September 112, 2016, from http://blablawriting.com/: http://blablawriting.com/business-strategy-kfc-company-essay

·        Wikipedia. (2016, September 10). KFC. Retrieved September 12, 2016, from https://en.wikipedia.org/: https://en.wikipedia.org/wiki/KFC#Products