MARKETING STRATEGIES OF KFCIntroductionKFCCorporation, orKFC, foundedand also knownas Kentucky Fried Chicken, is a chain of fastfood restaurants based in Louisville, Kentucky. KFC is a brand and operating segment, called a "concept" ofYum! Brands since 1997 when that company was spun off from PepsiCo. KFCprimarily sells chickenin formofpieces, wraps, salads and sandwiches. While its primary focus isfried chicken, KFC also offers a line ofroasted chicken products, side dishes and desserts.Marketing MixThemarketingmix is generallyaccepted as the use and specification of the 'four Ps' describing the strategic position of a product in themarketplace.ProductPricePlacePromotion

ProductAnything that can be offered to a market to satisfy a want or need. KFC's specialty is fried chicken served in various forms. KFC's primary product ispressure-fried pieces of chicken made with theoriginal recipe. The other chicken offering, extra crispy, is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine.SegmentationGeographic SegmentationKFC has outlets internationally and sells its products according to geographic needs ofthe customer. In India KFC focuses how geographically its customers demand different products .In north India Chicken is the main selling product, while in the south the Veg. items sell more than the chicken.Demographic SegmentationIn demographicsegmentation, themarket is divided into groups based on an age, gender, family size, income, occupation, religion, race and nationality. KFC divides the market on demographic basis in this way:Age is between 6-65.Genderisbothmales andfemales.Familysizeis1-2, 3-4, 5+Income is Rs 10,000 n above.Familylifestyleisalmostall.Psychographic segmentationDividing a market into different groups based on social class, lifestyle, or personality characteristics is called psychographic segmentation. KFC divides market on the basis of psychographic variables likeSocial class-Upper andMiddle classLifestyle is notspecificPersonalityisambitious andauthoritarianTARGET MARKETThe process of evaluating each market segment s attractiveness and selecting two or more segments. As the outlets of KFC are in posh area and prices are too high (overhead expenses-rent, air-conditioning, employees), so KFC target supper and middle classes. Target market depends upon size and growth rate ofpopulation, Company resources and structural attractiveness ofmarket segment.Market PositioningFor aproduct tooccupya clear, distinctive and desirable place relative toCompeting products in the minds of target consumer. In KFC feedback is taken from the customer in order to know thecustomerdemands and then improvements are made in products. KFC focuses on pure and fresh food in order to create a distinct and clear position in the minds ofcustomersKFChas a strong brand name and they are leading the market in fried chicken. KFC uses its attributes to Position its Product (Fried Chicken)PricePrice is the anyamount of moneythat customers have to pay while purchasing the product. More broadly, price isthe sum of all thevalues that consumers exchange for benefitsof having or using the product or servicesDemographic factorsAge: Generally there is no age limit focus by the KFC. The target and focus is on each and every individual in a society. KFC finds its largest demographic in the young of any society.Gender: Bothmale and females are focused by KFC, gender does not play any role her.Household Size: Thisplays a vital role in the demographic factor of the KFC. Generally they target wholefamilies rather than singlepersons. This being the reason for their Family Meals which are basically bundled items served at a nominally cheaper rate.Economic FactorsIncome: Income is an important key factor for KFC. Thisfactordecides which class isto be targeted. In the early rise of KFC they focused on the upper class but slowly are introducing economy meals that attract the lower to middle classes.Consumption Behavior: It estimates the behavior of people, their liking and disliking towards the pricing of the products.Geographic location preferenceUrbanSemiurban

Behavior segmentationTasteconsciousQualityconsciousClassCombination of product and quality

Pricing StrategyMarket skimming: KFC globally enters the market using market skimming. Theirproducts are priced high and target the middle to upper class people. Gradually they trickle down the prices focusing on the middle to lower class people to penetrate both sides of the market.CompetitionWecan comparethe priceoftheirproducts with McDonald, Dominoes and Pizza Hut. If the competitorprovides the same product at a lowerprice then the organization usually lowers the price of its product too. In the case of KFC, Fried Chicken is its main selling point and controls a monopoly over the Indian fast food market (only with fried chicken).It prices its burgers, French fries and soft beverages with relation to its competitors.Cost BasedKFCprice theirproduct keeping different points in view. They adopt the cost base price strategy. Pricing of the product includes the government tax and excise duty and then comes the final stage ofdetermine the price of their product. The products are bit high priced according the market segment andit is also comparable to the standard of their product. In the cost based method we include the variable and fixed cost.PlaceTARGETAREASFree home Delivery Strategy They provide free home delivery to offices &homes (select countries).AccessibilityResulting inseveral outlets to cater to the needs of people in & around the city. Hectic lifestyleDue to thehectic lifestyle of office goings individuals the fast food concept saves time of preparing food and gives the customer a full meal quickly.Economically convenientThepricing appeals to the many classes of a society.TARGET MARKET1.Location -Hecticlifestyle ofindividuals-giving them moretime at work and less stress about waitingfor food.-Commercialization of urban andsub-urban markets leading to more mid-sector people that find high-end eating joints very too expensive.-Mid-sector people are always looking for change which KFC provides in their range offast food.-Quality conscious people in urban areas are more conscious about the quality of food than rural areas.-Urban areas are morepopulated therefore they help with attracting higher revenues.

2. Placement of outlets

-Due to KFCplacing itselfclose to schools, colleges, cinemas and markets which are mostly populated by the young and those who are in a hurry, KFC enjoys a large number of footfalls every day. In addition, they also have outlets close to non-vegetarians (mostly Muslim populated areas).

STRATEGY

Giventhe competitivenature of fast foodjoints, KFC uses the Push Strategy to help them create:AwarenessBe differentSound attractive

CHANNELS

KFC believes in firstlevel channels inthe order given below:ManufacturersRetailersConsumers

CHANNEL PROCESS

KFC works on the flow of good operation techniques i.e.Good Operating Manager leads to Good Team SelectionGood Services Good TargetsGood Revenues through the following internal strategies:TrainingIncentive based targetsRecognitionforgoodworkPerformancebased bonusEmployee benefits to keep them motivatedPromotion

Promotion

Promotion is the method used to inform and educate the chosen target audience about the organization and its products. Using all theresources of promotion:AdvertisingSales PromotionPublicRelationsEventsand ExperiencesCoupons, Discounts and Bundled packagesAn organizationfinds most of its meanings andsurvival through promotion.At KFC, Promotion is the main tool to bring all chicken lovers attention towards itsdelicious one-of-a-kind product, the Fried Chicken.

Advertising

The logo of the smiling Colonel is probably one of the most recognized faces in the world and instantly brings the image of fried chicken to ones mind.

KFC andits new company jingle, finger licking good is a frequent announcement on televisions, billboards, flyers and radio. The concept of showing a normal customer deeply involved in devouring his piece of chicken usually turns on the drool factory in everybodys mouth and makes them rush to the nearest KFC. In India where chicken lovers areplenty abound these ads featuring normal people connect instantly and create a rush at their outlets. Using the following methods KFC spreads its message of finger lickinggood chicken.

Advertising Using Reminder advertisements-KFC stimulates repeatpurchases of its products. The company anthem fingerlicking good is justa wakeup call to the consumer to remind them how good they felt the last time they ate KFC chicken.

Sponsorship is another tool to strengthen an organizations image. KFC is currently the sponsor of theAustralian Cricket Team and the colonel logo can be seen on their uniforms throughout the matches.

Sales Promotion

KFCuses thefollowingtoolstofurtherenhance its sales.PremiumsExhibitsCouponsEntertainment

Sales Promotion

All KFC outlets offer its customers with various forms of incentives to buy its Chicken. Using coupons that one can acquire afterspending a particular amount overa period of fixed time, customers can enjoy the benefits of free meals or free add-ons.Additionally they provide meal vouchers and exciting offers in their print ads, which the customer must cut and bring along.

MARKETING STRATEGIES OF MCDONALDS

McDonalds rode the baby-boomer trend in the 1960s, the swelling ranks of teenagers and the rising female labor force participation, supplying a fast and inexpensive menu. In the 1970s and the 1980s, McDonalds rode the globalization trend by transferring the American Way of Life to many countries around the world. At the same time, McDonalds adapted to the social context of each county by franchising to locals.In the 1990s and early 2000s, McDonalds transformed its corporate image by launching the Fast and Convenient campaign that involved the radical adjustment of the companys product portfolio to emerging food industry trendsthe refurbishment of McDonalds restaurants to achieve a banded, updated, and more natural dining environment.The fast and convenient elements of the McDonalds concept were supplemented by the healthy and more natural element, by adding salads, fruits, and carrot sticks to the menu.In nowadays, McDonalds continues to broaden its product portfolio by offering high quality coffee and healthy drinks (either through its traditional restaurants or the Cafs), competing head to head with Starbucks and local cafeteriasbenefiting from local trends like austerity in Europe.McDonalds further benefited from a sound franchise business modela form of collective entrepreneurship that allows its franchisee-members, management and shareholders to share the risks and rewards from the discovery and exploitation of new business opportunities. The marketing mix of McDonalds consists of the various elements in the marketing mix which forms the core of a companys marketing system and hence helps to achieve marketing objectives. The marketing mix of McDonalds discusses the 4ps of the leading burger chain across India offering the tastiest burgers and French fries.

Product

McDonalds places considerable emphasis on developing a menu which customers want. Market research establishes exactly what this is. However, customers requirements change over time. In order to meet these changes, McDonalds has introduced new products and phased out old ones, and will continue to do so. Care is taken not to adversely affect the sales of one choice by introducing a new choice, which will cannibalize sales from the existing one (trade off). McDonalds knows that items on its menu will vary in popularity. Their ability to generate profits will vary at different points in their cycle. In India McDonalds has a diversified product range focusing more on the vegetarian products as most consumers in India are primarily vegetarian. The happy meal for the children is a great seller among others.

Price

The customers perception of value is an important determinant of the price charged. Customers draw their own mental picture of what a product is worth. A product is more than a physical item; it also has psychological connotations for the customer. The danger of using low price as a marketing tool is that the customer may feel that quality is being compromised. It is important when deciding on price to be fully aware of the brand and its integrity.

In India McDonalds classifies its products into 2 categories namely the branded affordability (BA) and branded core value products (BCV). The BCV products mainly include the McVeggie and McChicken burgers that cost Rs 50-60 and the BA products include McAloo tikki and Chicken McGrill burgers which cost Rs20-3 This has been done to satisfy consumers which different price perceptions.

Promotion

The promotions aspect of the marketing mix covers all types of marketing communications One of the methods employed is advertising, Advertising is conducted on TV, radio, in cinema, online, using poster sites and in the press for example in newspapers and magazines. Other promotional methods include sales promotions, point of sale display, merchandising, direct mail, loyalty schemes, door drops, etc. The skill in marketing communications is to develop a campaign which uses several of these methods in a way that provides the most effective results. For example, TV advertising makes people aware of a food item and press advertising provides more detail. This may be supported by in-store promotions to get people to try the product and a collectable promotional device to encourage them to keep on buying the item.

At McDonalds the prime focus is on targeting children. In happy meals too which are targeted at children small toys are given along with the meal. Apart from this, various schemes for winning prices by way of lucky draws and also scratch cards are given when an order is placed on the various mean combos.

Place

Place, as an element of the marketing mix, is not just about the physical location or distribution points for products. It encompasses the management of a range of processes involved in bringing products to the end consumer. McDonalds outlets are very evenly spread throughout the cities making them very accessible. Drive in and drive through options make McDonalds products further convenient to the consumers.

People

The employees in Mc Donalds have a standard uniform and Mc Donalds specially focuses on friendly and prompt service to its customers from their employees.

Process

The food manufacturing process at Mc Donalds is completely transparent i.e. the whole process is visible to the customers. In fact, the fast food joint allows its customers to view and judge the hygienic standards at Mc Donalds by allowing them to enter the area where the process takes place. The customers are invited to check the ingredients used in food.

Physical evidence

McDonalds focuses on clean and hygienic interiors of is outlets and at the same time the interiors are attractive and the fast food joint maintains a proper decorum at its joints.

MARKETING STRATEGY OF JOLLIBEE

Jollibee Foods Corporation (PSE: JFC) is the parent company of Jollibee a fast-food restaurant chain based in the Philippines. Among JFC's popular brands are Jollibee, Chowking, Greenwich, Red Ribbon, and Manong Pepe's.[1] Since its inception, Jollibee has become an increasingly profitable fast-food chain with 686 restaurants in the Philippines and 57 in other countries employing 29,216 workers.[2] Including all its brands, JFC has 1,804 stores worldwide and total sales of more than US$1 billion as of December 2008.

In 1975 Tony Tan Caktiong and his family opened a Magnolia Ice Cream parlor[3] in Cubao.[4] Sometime in 1978, Caktiong and his brothers and sisters engaged the services of a management consultant, Manuel C. Lumba. Lumba shifted the business focus from ice cream to burgers,[3] after his studies showed that a much larger market was waiting to be served. Lumba became Caktiong's first business andmanagement mentor.

The Jollibee mascot was inspired by local and foreign children's books. Lumba created the product names "Yumburger" and "ChickenJoy". He had the company incorporated and leased a house on Main St. in Cubao, Quezon City as the first headquarters. Lumba formulated a long-term marketing strategy: listing up a number of consumer promotions and traffic building schemes. Caktiong stressed that developing internal strengths was critical. The stores were re-designed, the service transformed into a full self-service, fast-food operation with drive-throughs. Not long after, Caktiong and Lumba went on an observation tour in the United States, attended food service and equipment conventions. Caktiong placed Lumba in charge of franchise development

Marketing:

Jollibee depends on high customer traffic and tight operations management. It offers great service to the high volumes of people who patronize its outlets by functioning as a well-oiled machine with close tabs on daily operations.

Jollibee focus:USP:The Unique Selling Proposition of the Jollibee brand is :1) Fast, Good, Clean, Cheap food2) Caters to local needs( Spicy patty)3) Consistency, reliability over all its outlets.Positioning:

Ensuring high traffic needs an emphasis on store location and positioning Jollibee in the minds of the consumer as a place that they would enjoy eating fast food. This entails proper branding and positioning of the service offered.Jollibee also projected itself as world class and not a local brand.The service that is offered should be consistent over all Jollibee stores, however this might be a problem as the division has been slimmed recently and resources might be stretched too far.

Product:

In the case of Jollibee, it went from being an ice cream parlor to serving hamburgers made with a home style recipe. This change in product was in response to events triggered by the 1977 oil crisis which would have doubled the prices of ice cream.

The product offered by Jollibee appeals to the Filipinos taste for spicy burgers. By concentrating its resources on satisfying the Filipino palate, Jollibee has been able to serve localized dishes that are unlike any found in the other fast-food chains in the Philippines. In addition to offering the usual French fries that accompany the meals found in McDonalds, KFC, Burger King, and so forth,

Jollibee also serves rice or spaghetti, Filipino style. Even the burgers are cooked exactly as Filipinos want them done sweeter and with more seasonings, often likened to what a Filipino mother would cook at home.

Menus in outlets across the globe adjusted to local preferences to differentiate it from other standardized players like Mc Donalds and KFC who maintain the same menus worldwide with minimal changes.

Jollibee even incorporated recipes from employees to truly capture local tastes.McDonalds entered the Philippine market in 1981 and many assumed the Big Mac would soon dominate the market. Surprisingly, McDs ended up getting stung by the bee. Jollibee has secured a 65% market share and is out pacing McDonalds at its own game. Jollibee accomplished this by local adaptation of the menu and by positioning the food chain as a family restaurant.

Place:

The location of outlets is of key importance to the marketing strategy of Jollibee. For Example, the outlet in Hong Kong is located at Central where a large number of Filipinos gather.

Promotion:

Local brands: Brands in local market are strong contenders and are not to be underestimated. Local managed brands like Jollibee in the Philippines, often have the advantage of intimate knowledge of consumer tastes and consumer preference through local pride.Jollibee used the wave of nationalist pride to promote a Filipino brand of hamburger. This strategy met with great success.

Investing in socio-civic programs designed to serve its host communities further secured Jollibees position as a Filipino company for the Filipino. Advocacy campaigns such as the early Christmas drive ma-Aga ang pasko sa Jollibee, again endorsed by Aga Mulach, the poverty housing project with Habitat

For Humanity, and the Kaya Mo Yan Kid or You can do it, kid! campaign to encourage kids to show their potential contributed to the companys overall success, not only with its customers but with all its stakeholders.

Jollibee attributes this success in part to its internal branding which focuses on "great taste and happiness" which includes "value for money, the happiest store experience, and the haven for kids.

Beach head strategy:

New Markets like Papua New Guinea and San Francisco which had an immigrant population can support the Beach head strategy which entails expansion in a market with little or no competition. Jollibee is an emerging market brand and can easily establish a beach head in foreign countries by targeting areas with a high immigrant population.

Competition

Competitors like Mc Donalds have more money and highly developed operation systems.Mc Donalds doesnt satisfy local taste in Philippines. It has a plain patty which is part of its standard global menu.

Jollibee doesnt have the big name to generate the high level of trust, and to choose franchisers in the partner countries.

Go in for BLUE OCEAN strategy- expand in places where there is an unmet need, which isnt being met by any of the existing vendors, hence there is little or no competition.

Nueva Ecija University of Science and TechnologyMunicipal Government of Talavera

Different Marketing Strategies of Various Business Companies(KFC , McDonalds and Jollibee)

Principles of Marketing Requirements

Submitted by:

Mary Joice Dela CruzElaiza DimagibaRosselle IbarraAllen Joy MatangatCatherine OylerDivine Grace SubidoHazel Joy Torrendon

BSBA 3-A

Submitted to:

Mrs. Justina AlcantaraInstructor

Ingredients for Chicken Inasal:

6 pcs of chicken quarters (thigh & leg portion)1 bulb of garlic (crushed or finely chopped)15 pcs calamansi1 1/2 tbsp salt2 tbsp ground black pepper4 tbsp soy sauce2 tbsp vinegar3 stalks lemon grass (actually, the more, the better)1/4 cup achuete or annatto oilInstructions: What we did first was to cut slits on the chicken. This is important in making sure that the marinade would penetrate the chicken. Before mixing the marinade, we then tried to release more the aroma and flavor from the lemon grass by pounding it with the back of a knife. And then tied it so that it would be easy to remove later. We then also extracted the juice from those calamansi. Make sure to use a strainer to catch all those seeds. You definitely dont want them in your chicken. They are super bitter! So we ended up with this much juice from those calamansi. After all those preps are done, its now just a matter of mixing all the ingredients, except the annatto oil, in a large mixing bowl. Make sure to massage the marinade into the chicken so that its equally spread on every inch of the chicken meat. Dont be afraid of touching the chicken with your bare hands. You dont need to worry about salmonella, as long as you have soap and water to wash your hands, youll be fine. We then transferred the chicken into a small sauce pan (or you may use a small mixing bowl) that would fit our fridge and let it soak up all those flavors for 24 hours. The longer you marinate, the better. The next day, just before grilling those chicken, we prepared the annatto oil. This will be used for basting the chicken while its being grilled. Tip: Achuete or annatto oil is made by steeping 1/8 cup annatto seeds in 1/4 cup hot oil until you get that dark orange color. Then strain the annatto seed. Its time to grill up those chickens. So we prepared our grill and made sure the charcoal was spread evenly. This is important so that the chickens cook evenly. Once done, simply place the chickens on the grill, back side first. After 5 minutes, flip the chickens and baste with the annatto oil. Do this several times until the chickens are cooked through. Tip: When you see a clear juice coming out from those slits on the chicken, thats an indication that the chickens are cooked through. Once the chickens are cooked, serve them with condiments such as vinegar, soy sauce and calamansi juice. We love it spicy, so we serve them with chilis.