A Quality Assurance department establish by KFC to decide the new product innovation. Which this department prepares screening of idea and product feasibility report and does the technical evaluation.
KFC’s specialty is fried chicken served in various forms. KFC’s primary product is pressure-fried pieces of chicken made with the original 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 in a standard industrial kitchen type machine. For instance, in Malaysia KFC come out with hot and spicy fried chicken to match with the Malaysian favour. Apart from this, Malaysia people are more emphasize on family, so KFC launch barrel of chicken which inside one barrel has 21 pieces chicken. Besides that, Malaysian like having their breakfast with grains or cereals. KFC introduce porridge as breakfast in the menu.
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Price is the amount of money that customers have to pay while purchasing the product. Price also can define as the sum of the values that customers exchange for benefit that they get after using or having product. There are no age limit focuses by KFC. Generally, KFC enters the market using market skimming. KFC products are priced high and target middle to upper class people. However, step-by-step KFC trickle down the prices to attract middle to lower class people to penetrate both side of the market. KFC adopt the cost base price strategy. Before determine the price of product, KFC include the government tax and exercise duty and all the expenses that is fix and variable costs to fix the price.
KFC also will compare the price with competitor before decide the price. For example, if competitor provides same product at lower price, no doubt KFC also will lower the price of same products too.
Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods or services are moved from the manufacturer or service provider to the user or consumer. KFC establish outlet at the place that are accessibility for consumers. For example, there are 25 outlets KFC at Kedah which in a small town Sungai Petani already has 6 outlets KFC. KFC prefer placing itself close to schools, colleges, cinemas and markets which are mostly populated by the young and those who are in a hurry. In addition, KFC enjoys a large number of footfalls every weekend. Moreover, they also have outlets close to non-vegetarians (mostly Muslim populated areas).
In channel process, KFC works on the flow of good operation techniques which is good operating manager leads to good team selection and good services achieve good targets will create good revenues. Which the target can achieve through the following internal strategies: training, incentive based targets, recognition for good work, performance based bonus, employee benefits to keep them motivated.
Promotion
Another one of the 4P’s is promotion. This includes all of the tools available to the marketer for ‘marketing communication’. As with Neil H.Borden’s marketing mix, marketing communications has its own ‘promotions mix.’ Promotion is the method used to inform and educate the chosen target audience about the organization and its products. KFC using reminder advertisements which stimulates repeat purchases of its product. The slogan ‘Its finger linkin good’ like a reminder to remind consumer how good they felt last time when ate KFC.
KFC use sponsorship as a tool of promotion tool due to sponsor can increase image of company. Currently, KFC sponsor in the Australian Cricket Team. Sales promotion is one of the tactics to promote product KFC. KFC use coupons, entertainment, exhibits to increase it sales.
Analysis SWOT KFC
One of the largest chicken restaurants chain in the world is KFC. KFC has a very long history and has the most recognizable brand in chicken. KFC is a very popular chain of fast food outlets that start from Louisville, Kentucky. An annual sale more than a billion dollars make KFC known as a leader in the chicken restaurant segment. It is difficult for new companies who want to enter the market because KFC hold 50% of market share.
Although there are many competitors try to enter fast food industry, however KFC was able to retain its customer because of its unique offering. KFC’s secret recipe of 11 herbs and spices has made it the leader in chicken for the last fifty years. For this reason, KFC become the highest ranking when it comes to chicken restaurant chain, restaurants and a variety of convenience food suppliers. Over the years, KFC achieved great recognized as a reputable brand fast food and global positioning and equipped with excellent industry.
Weaknesses
KFC has a long time to market with new products. Due to natural fast food chicken segment, innovation has never been a major strategy for KFC. However, during the late 1980’s, other fast food chains, such as McDonald’s, began to offer chicken as a menu option. During this time, McDonald’s had already introduced the McChicken while KFC was still testing its own chicken sandwich. This delay is greatly increase the cost consciousness of consumers, for the development of KFC sandwich. KFC growth rate is only about one percent a year although its has entered the market so many year. The company said it did not focus its resources and development.
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Opportunities
Kentucky has been trying to enter new markets and position themselves in some difficult to enter markets such as South America. As more and more investment by companies, the absolute position can be stronger than the food industry.
Company market share and profit can increase through spend more resources, development and introduce new foods and products
Threats
KFC’s competitors have successfully captured a large market share. According to the survey, McDonald’s has about 35 percent of share in the mezzanine section while Burger King has about sixteen percent of the market share in the fast food industry The local restaurants in different countries where KFC has presence pose a threat to the company.
Other participants in the fast food industry continue to improve and try to enter new markets, increase their market share and sales. As awareness about healthier food is increasing among people due to changing of healthy lifestyle, nowadays people seek for healthy, delicious and low calories foods.
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