7p's marketing mix,stp, segmentation,targeting,positioning.

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BRAND AND PRODUCT MANAGEMENT.
TOPIC: 7P’S SEGMENTATION,TARGETING AND
POSITIONING.
(MATA GUJRI COLLEGE,FATEHGARH SAHIB)
SESSION-2020-21
Submitted to:
Dr.Jashanjeet Kaur
Submitted by:
Bhupinder Singh
B.B.A Final
201637

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INTRODUCTION.
KFC (Kentucky Fried Chicken) is a fast food restaurant chain. This
company headquartered in Louisville, Kentucky, in U.S. The company is
a subsidiary of Yum! Brands( 百勝集團 ), a restaurant company that also
owns the Pizza Hut and Taco Bell chains. The founder was Harland
Sanders. It’s the world’s second largest restaurant chain (as measured
by sales) after McDonald’s with 18,875 outlets in 118 countries and
territories as in 2013.

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USAGE OF KFC.
Kentucky Fried Chicken (KFC) was found in Louisville; it is the world’s most
widespread chicken restaurant chain which offers services to more than 12 million
clients in 109 nations all over the world. Kentucky Fried Chicken operates more than
5,200 restaurants in the US and more than 15,000 restaurants all over the world. KFC
was introduced by Harland Sanders in the early 1930’s. Sanders began preparing and
serving food for hungry travellers who pass through by his service station in Corbin,
Kentucky, United States. Sanders did not own a bistro, but he used to serve travellers on
his own dining table in the living quarters section of his service station. He expanded his
business by 1964, as time passes he franchised more than 600 chicken restaurants in all
over United States and Canada. Consumers around the world enjoy more than 300 other
items from KGF (Kentucky Grilled Chicken) in the US and a salmon sandwich in
Japan. KFC then merged with Yum Brands in1997 when that enterprise was acquired
from PepsiCo as Tricon world-wide restaurants Inc (KFC, 2012).

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KFC.
KFC was founded by Colonel Harland Sanders, an entrepreneur who began selling fried chicken from
his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified the
potential of the restaurant franchising concept, and the first "Kentucky Fried Chicken" franchise
opened in Utah in 1952. KFC popularized chicken in the fast-food industry, diversifying the market by
challenging the established dominance of the hamburger. By branding himself as "Colonel Sanders",
Harland became a prominent figure of American cultural history, and his image remains widely used
in KFC advertising to this day. However, the company's rapid expansion overwhelmed the aging
Sanders, and he sold it to a group of investors led by John Y. Brown Jr. and Jack C. Massey in 1964.
KFC was one of the first American fast-food chains to expand internationally, opening outlets in
Canada, the United Kingdom, Mexico, and Jamaica by the mid-1960s. Throughout the 1970s and
1980s, it experienced mixed fortunes domestically, as it went through a series of changes in corporate
ownership with little or no experience in the restaurant business. In the early-1970s, KFC was sold to
the spirits distributor Heublein, which was taken over by the R.J. Reynolds food and tobacco
conglomerate; that company sold the chain to PepsiCo. The chain continued to expand overseas,
however, and in 1987, it became the first Western restaurant chain to open in China. It has since
expanded rapidly in China, which is now the company's single largest market. PepsiCo spun off its
restaurants division as Tricon Global Restaurants, which later changed its name to Yum! Brands.

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Kentucky Fried Chicken.

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7P’s of Marketing Mix.
● PRODUCT
● PRICE
● PLACE
● PROMOTION
● PEOPLE
● PROCESS
● PHYSICAL EVIDENCE

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PRODUCT.
●
Streetwise: Veg Snacker, Chicken Snacker, Snack Box, Rizo Rice, Rizo Gravy, Mini
Krusher,
●
Snacks: Popcorn Chicken, Hit Wings, Boneless chicken strips
●
Veggie Selection : Veg Snacker, Veg Zinger, Veg Strip with Salsa
●
Toasted Wraps
●
Burger: Veg Zinger, Chicken Zinger, Tower Zinger
●
Box Meal
●
Chicken Delight : Fiery Grilled, Hot and Crispy, Original Recipe
●
Bucket Chicken
●
Signature sides: Corn on the cob, Coleslaw, Fries
●
Krusher: Frappe, Iced Mochaccino, Iced Kappucino
●
Desserts: Soft wirl, Choamor, Brownie Sundae

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PRICE.
KFC follows both optional pricing and mixed bundling pricing. A
consumer can buy dishes from the basic menu and go for add-ons
(Optional pricing) and there are combo offers which comprise a
mix of items. The pricing of products ranges approximately from
25 Rs. to ~675 Rs. KFC has variety of options in each category, For
e.g.: In Bucket, there are menus with 8pcs, 12pcs and also 12pcs
variety bucket(Hot & Crispy Original Recipe and Chicken Strips).

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PLACE.
KFC initially opened its outlets in metros and Tier I cities, now
it has gradually moved to Tier II cities where the buying
power is one the rise due to rapid urbanization. KFC has its
outlets in all major cities and has overtaken Pizza Hut in
Quick service restaurants. By the year 2015, KFC is expected
to have 500 outlets in India.

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PROMOTION.
KFC does promotional activities by offering add- ons to the
existing menu, gift coupons, T-shirts, Kids meal etc. KFC promotes
its products through LCD displays kept inside its outlets which
promotes their products and kindles desires among consumer. India
being the country with largest youth population has favored the
growth of KFC and it has become the fastest growing fast food
chain in India pushing aside McDonalds’ and Pizza Hut.

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PEOPLE.
●
Has people working under its sales team that play a vital role in its marketing efforts. These people have been
trained in persuasive techniques, but also to show respect to the business customers taking into consideration
their preferences.
●
Has people working in its customer service department. These are contacted by customers in case of any
issues within the product, and these people guide customers through the process of getting the issues
resolved. These people are trained to respect the customers and try their best to get their issues resolved.
●
Has people working with suppliers to obtain raw materials. These people play a vital role in maintaining or
improving the quality of the final product produced.
●
Has people working at retail stores who help the customer on site, by answering any questions or helping
them decide the product that best suits their needs.
●
Recommended People Strategy
●
Should undergo trainings for its sales force, customer services and purchasing people as these play a vital role
in delivering value to the customers.
●
Should provide incentives to its sales force through bonuses for meeting targets, or through commissions for
the sales made.
●
Should hire people that show respect towards customers, and are committed to the company.

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PHYSICAL EVEDENCE.
●
Sells its products in a distinct color packaging that easily identifiable on retail
shelves. These are placed on special shelves provided by the company, which
also have a distinct color and design. This makes it easier for customers to
locate such shelves in busy retail stores.
●
Has an online website that is user-friendly and allows customers to view its
products in high quality images taken from various angles.
Recommended Physical Evidence Strategy
●
Should collect feedback from its customers regarding its packaging so that it
could improve on this.
●
Should set up its own stores where it provides a shopper-friendly environment
and ambience, encouraging its customers to purchase its products.

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PROCESS.●
To make sure that its products are always available at retail stores has systems
installed where retailers can notify when their inventory levels are low. provides them
with more products while ordering its productions to replenish its stock. This ensures
that products are always available to customers when needed.
●
Has an online delivery process, where orders are received in the computer system and
based on these orders, the relevant product from the inventory is shipped to the
delivery service provider.
●
Is actively involved in researching market opportunities in order to understand customer
needs. It also develops understanding regarding customer needs through feedback
collected at store, its helpline or social media pages.
●
Recommended Process Strategy
●
Should use computers across to handle its various process to increase efficiency and
timely delivery to customers.
●
Should constantly look for ways to innovate and improve its processes in terms of
efficiency and cost. Costs savings would eventually lead to lower prices for its products.

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STP OF KFC.
●
Market Segmentation; Dividing a market into distinct groups of buyers who have different needs,
characteristics or behaviors and who might require separate products or marketing programs. KFC
mainly focus on following market segments.
-Demographic Segmentation: Demographic segmentation consists of dividing the market
into groups based on variables such as age, gender, family size, income, occupation, education,
religion, race and nationality. As one might expect, demographic segmentation variables are among-st
the most popular bases for segmenting customer groups. Also, for practical reasons, there is often much
more data available to help with the demographic segmentation process.
KFC give their concern in following demographic segmentation:-
●
Age: One of the first variables of demographic segmentation is age. This is because consumer needs
and wants change with their age. In KFC 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.
●
Life cycle stage: Closely connected to age, the life cycle stage of a consumer group defines what will
be the need of that particular customer. For this KFC offer kids meal with toys and veggi burger for old
age people. This demographic segment cannot be said as an “Age” segment because these customers
are in specific phase of their “Life”.

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●
Income: Another popular basis for segmentation is income. A person’s income level combined with
its accumulated wealth is the major determinant of the consumers’ willingness to purchase a
product. Income is the main decisive factor that influences consumers purchasing power.
Consumers with low incomes may not be able to purchase their desired products whereas consumer
with higher incomes may not be satisfied with the existing product.
In KFC Income is an important key factor for KFC. This factor decides which class is to 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.
●
Social Class: This plays a vital role in the demographic factor of the KFC. Generally they target
upper class, upper middle class, middle class and middle lower class. Because the items KFC sell
are very expensive.
-Geographic segmentation
The market is segmented according to geographic criteria—nations, states, regions, countries, cities,
neighbour hoods, or zip codes.. With respect to region, in rainy regions you can sell things like
raincoats, umbrellas and gumboots. In hot regions you can sell summer wear. In cold regions you
can sell warm clothes. KFC in Bangladesh only focus following geographic segmentation. These
are:-
●
City: Because Bangladesh is a developing country and the fast food business highly profitable in
only Dhaka and Chittagong city that’s why KFC only focus on this two city.

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●
Psychographic Segmentation: Psychographic segmentation is dividing 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 like:
1)Life Style (Lifestyle is not specific)
2)Personality (Personality is ambitious and authoritarian)
-Behavioural Segmentation :In Behavioural segmentation, consumers are divided into
groups according to their knowledge of, attitude towards, use of or response to a product. It is actually
based on the behavior of the consumer.
●
Occasions: The first form of behavioral segmentation is selling product in different occasions. In
Bangladesh KFC can permit their customer to celebrate various occasions. They also offer their
customer on cricket match “KFC Popcorn Chicken”, on Valentine’s Day special couple discount offer.
●
Benefits: Several products are targeted towards the benefits sought by the customer. For this KFC
only focus some social class.
●
Loyalty Status: There are two ways to grow a business. First is to acquire new customers and second
is to retain your existing customers. The more loyal your customer is to you, the more your customer
base will increase. That’s one more kind of behavior which marketers target. In case of KFC, they
have some advantage because they are well known chain international fast food company.

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TARGETING.
●
Market targeting is the process of evaluating each market segment’s
attractiveness and selecting one or more segments to enter.
●
After a company has defined market segment it can enter one or
many of these segments. A company should target segments in
which it can profitably generate the greatest customer value and
sustain it over time .A Company with limited recourses might decide
to serve only one or a few special segments. A company with a great
number of recourses might decide to serve two or more segments.

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POSITIONING.●
Positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to competing
products in the minds of target consumers.
●
After a company has decided which market segments to enter, it must decide how it will differentiate its market
offering for each targeted segment and what positions it wants to occupy in those segments. A product position is
the place the product occupies relative to competitors products in consumer’s minds. Marketer wants to develop
unique market positions for their products. If a product is perceived to be exactly like others on the market
consumers would have no reason to buy it.
●
KFC promotes a “high quality poison” for its products. It produces high quality products, chargers a high price,
distributes through high class dealers and advertises in English newspapers with a high circulation. KFC is
communicating through physical size and ques that people use to judge quality.
●
For KFC management the image their customers carry in their mind is the most important factor. That is why for
them the product quality, which is almost, standardizes the entire world except little differences because of local
requirements & the promotions are very critical factor. The people which are their customer and the physical
evidence, the environment customers get in the KFC are the focus that built KFC’s image in the customer mind
that is why they are always trying to bring positive changes in the environment so that every time their customer
enter the KFC, can feel the difference. They think that trough continuous efforts they have developed such a
brand image in their customer’s minds that their customers have become brand loyal. I order words they have got
brand equity.

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THE END.