0
Strategic marketing
managment
on KFC

Presented by:Ashfaq ahmad
To
Sir shahzad khan
ID:5161
CITY UNIVERSITY PESHAWAR
INTRODUCTION
• KFC Corporation, or KFC, founded and also
known as Kentucky Fried Chicken, is a chain of
fast food restaura...
CONT...
• KFC primarily sells chicken in form of pieces, wraps ,salads
and sandwiches. While its primary focus is fried ch...
History
2007
1997

1952

1930

KFC started
by Harland
Sanders

The first
franchise was
opened in South
Salt Lake, Utah

Yu...
KFC'S LOGO

1952

1978

1991
1991

1997

today
CONT...
• Presently KFC is branched out in nine major
cities of Pakistan (Karachi, Lahore, Rawalpindi,
Faisalabad, Multan,...
Cont...
• Presently KFC has provided employment
to over 1200 Pakistanis, which adds up
to 6000 individuals directly depend...
Changing name to KFC
• The reason they changed from Kentucky
fried chicken to KFC was that people got
conscious when they ...
Strength
•
•
•
•
•
•

Good taste
Brand equity
Global experience
Operations
Trademark recipes
Strong customer focus
Weaknesses
•
•
•
•

High prices
Image of ‘’Fried’’
Only chicken related recipe
Most of product having close substitute in
...
Opportunities
•
•
•
•
•

Increase outlets
Underdeveloped market abroad
Increase trends to take meal out of home
Earn bigs ...
Threats
•
•
•
•
•

New entrants/better quality brands
Health conscious eating habits
Animal care activists
No support from...
Proposed Strategies
• Product Development
• Market Development
• Market penetration
SPACE MATRIX
Financial Strength
Return on Investment

+5

Increase in EPS

+3

Leverage

+4

Working Capital

+5

Increase...
Industrial strength
Growth Potential

+5

Profit Potential

+5

Ease of entry

+2

Technological changes

+3

Average

+3....
Competitive advantage
Customer loyalty

-2

Market share

-1

Products quality

-1

Product Life Cycle (Growth)

-3

Contr...
Environmental stability
Technological Changes

-3

Inflation Rate

-4

Ease of exist from market

-5

Demand Variability

...
SPACE Analysis
Total of X-axis

4.4 – 3.8 =0.6

Total of Y-axis

3.75 – 1.83 =1.92
SPACE Matrix
FS

Conservative

Aggressive

+6
+5
+4
+3

(1.92, 0.2)

+2
+1

CA

IS
-6

-5

-4

-3

-2

-1

+1

-1

+2 +3

...
Market share
5
15
kfc
mcdonalds
55
25

K&N'S
Burger king
BCG Matrix
Relative Market Share Position
High
1.0

Industry Sales Growth Rate

High
+20

Medium

Medium
.50

Stars

Low
0...
Strategy
• Market development
• Product development
• Market penetration

Reason : High market share and High growth
Oppor...
Weight

Product
Develop
ment

Market
Develo
pment

Product
penetra
tion

Economy

QSPM

Key External Factors

4

4

4

4

...
Decision
• Propose Strategy: Market Development.
• Alternative strategy: Product Development
Strategic Marketing Managment on KFC PAKISTAN
Strategic Marketing Managment on KFC PAKISTAN
Strategic Marketing Managment on KFC PAKISTAN
Strategic Marketing Managment on KFC PAKISTAN
Strategic Marketing Managment on KFC PAKISTAN
Strategic Marketing Managment on KFC PAKISTAN
Strategic Marketing Managment on KFC PAKISTAN
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Transcript of "Strategic Marketing Managment on KFC PAKISTAN"

  1. 1. Strategic marketing managment on KFC Presented by:Ashfaq ahmad To Sir shahzad khan ID:5161 CITY UNIVERSITY PESHAWAR
  2. 2. INTRODUCTION • KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky. • KFC is a brand and operating segment, called a "concept" of Yum! Brands since 1997 when that company was spun off from PepsiCo.
  3. 3. CONT... • KFC primarily sells chicken in form of pieces, wraps ,salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts.
  4. 4. History 2007 1997 1952 1930 KFC started by Harland Sanders The first franchise was opened in South Salt Lake, Utah Yum! Brand the parent to KFC was started in October 7, 1997 KFC’s revenue was $520.3million
  5. 5. KFC'S LOGO 1952 1978 1991 1991 1997 today
  6. 6. CONT... • Presently KFC is branched out in nine major cities of Pakistan (Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad, and Islamabad) • with 45 outlets nation-wide. • Opening the first KFC outlet in Gulshan -eIqbal , Karachi in 1997.
  7. 7. Cont... • Presently KFC has provided employment to over 1200 Pakistanis, which adds up to 6000 individuals directly dependent on KFC Pakistan. • The Government of Pakistan receives over Rs.10 to 11 million per month from KFC Pakistan as direct taxes
  8. 8. Changing name to KFC • The reason they changed from Kentucky fried chicken to KFC was that people got conscious when they read the word ‘’FRIED’’ which gave them an impression that its not healthy because it contains fat, so Kentucky fried chicken had to change their trade name from KENTUCKY fried chicken to KFC. JUST TO avoid the fatty impression. •
  9. 9. Strength • • • • • • Good taste Brand equity Global experience Operations Trademark recipes Strong customer focus
  10. 10. Weaknesses • • • • High prices Image of ‘’Fried’’ Only chicken related recipe Most of product having close substitute in market • Inconsistent quality of service in many outlets • Lack of control in join venture agreements
  11. 11. Opportunities • • • • • Increase outlets Underdeveloped market abroad Increase trends to take meal out of home Earn bigs profits as population increase Availability no of franchises to other cities
  12. 12. Threats • • • • • New entrants/better quality brands Health conscious eating habits Animal care activists No support from govt agencies Intensive competition
  13. 13. Proposed Strategies • Product Development • Market Development • Market penetration
  14. 14. SPACE MATRIX Financial Strength Return on Investment +5 Increase in EPS +3 Leverage +4 Working Capital +5 Increase in Cash Flow +5 Average financial strength +4.4
  15. 15. Industrial strength Growth Potential +5 Profit Potential +5 Ease of entry +2 Technological changes +3 Average +3.75
  16. 16. Competitive advantage Customer loyalty -2 Market share -1 Products quality -1 Product Life Cycle (Growth) -3 Control over suppliers and distributers -2 Technological Know How -2 Average competitive advantage -1.83
  17. 17. Environmental stability Technological Changes -3 Inflation Rate -4 Ease of exist from market -5 Demand Variability -4 Competitive Pressure -3 Average -3.8
  18. 18. SPACE Analysis Total of X-axis 4.4 – 3.8 =0.6 Total of Y-axis 3.75 – 1.83 =1.92
  19. 19. SPACE Matrix FS Conservative Aggressive +6 +5 +4 +3 (1.92, 0.2) +2 +1 CA IS -6 -5 -4 -3 -2 -1 +1 -1 +2 +3 +4 +5 +6 -2 -3 -4 Defensive -5 Competitive -6 ES
  20. 20. Market share 5 15 kfc mcdonalds 55 25 K&N'S Burger king
  21. 21. BCG Matrix Relative Market Share Position High 1.0 Industry Sales Growth Rate High +20 Medium Medium .50 Stars Low 0.0 Question Marks High Market Share High Growth rate Profit potential 0 Cash Cows Low -20 Ch 6 -27 Dogs
  22. 22. Strategy • Market development • Product development • Market penetration Reason : High market share and High growth Opportunity
  23. 23. Weight Product Develop ment Market Develo pment Product penetra tion Economy QSPM Key External Factors 4 4 4 4 Political/Legal 4 2 2 2 Technological 4 4 4 2 Social 4 4 4 3 Competitive 4 4 4 3 Brand equity 4 4 4 3 Customer Loyalty 4 3 3 3 Financial Position 4 3 4 3 Strong trade mark recipes 4 3 4 2 Quality product and services 4 4 4 2 Total 40 35 37 27 Key Internal Factors
  24. 24. Decision • Propose Strategy: Market Development. • Alternative strategy: Product Development
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