Sample Organization Assignment on KFC
The science of meeting the requirements of the customers by facilitating them with valuable products is called marketing. Marketing can be done only by an organization or company. At the same time, the organization performs marketing because they want to achieve their objectives in future. It is clear that they want some profit from it. In a Marketing process, communication is a major factor in it. A good relationship with the customers is essential for the organization. Traditional marketing is described regarding four Ps. These four Ps are product, promotion, placement as well as the price of the product or service which the company is providing.
Background of the organization
Here, the organization is considered as the Australian fast food company. It is KFC. The full form of KFC is Kentucky Fried Chicken. It is a fast food restaurant which falls in the category of fast food industry of Australia (Jones and Reid, 2010). After McDonald"s, it is the second largest restaurant in the world. It has 18,875 outlets in one hundred and eighteen territories as well as countries. In 1930, 20th March, the restaurant was founded by Sanders Court and Café. Harland Sanders founded the organization. Harland Sanders was an entrepreneur who began his marketing by retailing fried chicken from his wayside restaurant in Corbin Kentucky (Jia Lu, 2010). The organization made the chicken industry famous in the world with the help of market diversification by challenging the recognized supremacy of hamburger. The restaurant opened their outlets in the United Kingdom, Mexico. Jamaica as well as Canada. The original product of KFC is pressure fried chicken pieces which are seasoned with Sanders recipe of eleven spices as well as herbs. KFC opened their first restaurant in Malaysia (KFC Case Assignment: Addressing Recessionary Challenges by Focusing on Health & Value, 2009). The restaurant was opened in 1973 on Jalan Tunku Abdul Rahman. In today’s generation, KFC has more than three hundred and ninety restaurants in the world and now it is still counting.
PEST Analysis of the organizations
The PEST Analysis of KFC are as follows:
KFC is one of the most famous International Fast Food Company in the world. The restaurant built their social relationship with the other companies or organizations around the world. Apart from these, KFC also provides the food that the tested is associated with the tested in the nation they took the place to construct the restaurant (Liu, 2008). Moreover, a significant number of people comes from the corners of the world to work in the organization. The employees show good performance regarding cooking. KFC is also responsible for supporting some events. The organization helps the committee by sponsoring the event (Siegel, 2011).
The Economic factor is related to money or fund issues. Kentucky Fried Chicken provides the customers with low price fast foods (Reed, 2010). They also provide food packet. KFC follows the policy of other restaurants. The customer buys the packet from KFC with a discount price. Kentucky Fried Chicken provided this facility so that the customers come again and buy their services and products (Bhatta, 2014). In this way, they balance their economy. As a result, it leads to the growth of business.
On the account of this analysis, Kentucky Fried Chicken can leave their nation of origin. They utilize the modernization innovation to promote their service or product (Uggioni and Salay, 2012). Numerous exchanges do by the web and the KFC just transported the request to the client address. They created a website of KFC so effortlessly that the customers simply look on the internet what do they need about KFC. Thus, they can get various data about KFC. In their nation, they have the telephone number that can contact on if they want to order some KFC stuff(Roberts-Lombard, 2009). The online system is created for those customers who are lazy and do not want to go out to buy their food.
Kentucky Fried Chicken gives the service based on fast food. To accomplish their objectives they make a political framework that can direct them. It is known as guide service. Their political structure could change their business methodology and gain the development to their organization (Haryanto and Febrianto, 2014). They additionally give the option of purchasing KFC. KFC Hospice Dinners that were conveying a mining effort to the critically ill. Taking an example, they have the worker that run the movement in the organization. They make an agreement with the representative and make an annuity expense.
Opportunities and Threats
The competitors of KFC have seized a significant share of the market. As demonstrated by the survey, McDonald"s has around thirty-five percent share in the entresol section while Burger King has around sixteen percent of the market share in the fast food industry of Australia (Murdoyo Rahadiarto, 2012). The local restaurants in various countries where KFC has established their market pose a threat to the association. In the fast food industry of Australia, the other candidates continue to advance and attempt to enter new markets. As a result, they can extend their shares as well as sales in the market. Days are passing by, and the awareness of healthier food is increasing among the people of Australia. KFC has lots of fried chickens. Therefore, they should be aware of the heath of the people because people are now avoiding fried foods. It is a threat to the organization (Howieson, 2011).
Kentucky has been attempting to enter new markets and position themselves in some difficult to enter markets. In today"s generation, the business of fast food is decreasing from the old person"s side. But youngsters are increasing, and they like fast foods. KFC is such restaurants in which youngsters come to consume the foods because they love to eat (Shen and Xiao, 2014). It is an opportunity to them. The market share and the profit of KFC can be increased by spending more on the resources. They can also improve by introducing and developing new products and foods. Youngsters love changes and for that KFC can make a huge profit if they launch new offers, deals as well as the new food stuff. It will be the great opportunity for KFC if they open their outlets in multinational cities where people do not have time to cook food for themselves as they are busy with their job.
The market segmentation can be understood if the KFC separates their target market into some groups. A target market is a market which is used to identify the type of customers located in a particular area. The organization needs to separate the market on the demand of the customers. Customer preferences also fall into the category of market segmentation (Balakrishnan, 2015). The market segmentation is divided into four parts (SONDEREGGER, 2011). They are demographic segmentation, psychographic segmentation, geographic segmentation as well as behavioral segmentation. The task of Kentucky Fried Chicken is to identify the segments as well as the needs of the customers. The market segmentation helps in bringing the satisfaction of the client more cost successfully than contenders. Active variables are assimilated into the market segmentation. The variable is age, size, purchase as well as distance. The customers of KFC offer criticalness to Clean, and comfort, for instance, the average compensation and high wage packs. They ask for quality and taste, like this KFC can charge higher cost when stood out from a cooked food store to this area (SONDEREGGER, 2011). The restaurant has various market segment when appeared differently about street support store offering cooked rice. There is a difference in regards to the necessities of customers. These social occasions can hold up at the expense of higher assessing.
The market segmentation is one of the significant factor or strategic planning of Kentucky Fried Chicken. On the other hand, with the help of market segmentation, Kentucky Fried Chicken can analyze the possible current marketing conditions or the strategies which are implemented by other fast food restaurants. Moreover, there are various types of competitive companies are present in the global market which creates many difficulties to expand the business of Kentucky Fried Chicken. Apart from that, through market segmentation, Kentucky Fried Chicken can determine the requirements of their customers which help them to analyze the taste of clients.
Like every restaurant, KFC or Kentucky Fried Chicken also has a marketing mix process which helps them to develop their business and meet their future objectives. A marketing mix consists of the four Ps. The four Ps are a place, promotion, product, and price. The marketing mix helps the business to determine the appropriateness of the service or product they are providing to the targeted customer. The four Ps are described below:
The price is the quantity of money that the customers have to pay for the purchase of a product. The restaurant follows both mixed shoving pricing as well as optional pricing. There are many combo offers which are provided to the customers. These combo offers have different price ranges. The price ranges are only made for various types of customers (Constantinides, 2006). There are different price vary from buckets to hot wings. With the help of market skimming, KFC enters the market. The products of KFC is high, but they make an affordable price for middle-className customers.
The service or product is such thing which the client will form the organization. KFC serves their services as well as their product to their clients. The organization needs to know about the demands of the customers. Suppose in Melbourne, there is a huge demand of fried chicken, desserts, snacks as well as combo pack whereas in Sydney, the customer requires burger and coke. So, it is quite clear that the need of the product is based on the market segmentation. But KFC has all types of products such as veg snacker, snack box, Rizzo rice, mini krusher, chicken zinger, veg strip with salsa, toasted wraps, soft swirl, brownie Sundae and so on. Therefore, KFC has competitive advantages in Australian food environment (Constantinides, 2006).
Promotion is another category of four Ps of a marketing mix. It consolidates most of the tools available to the advertiser for the communication of marketing. According to the marketing mix of Neil H.Borden, the communication is marketing has its promotional mix. One of the tactics to advertise KFC to the public is sales promotion. Promotion is the procedure used to prompt and educate the selected target customers about the association and its things. The restaurants use sponsorship as a tool of promotional strategy because the sponsor can fabricate picture of an organization. At present, the Australian Cricket Team is sponsored by KFC. The restaurant uses entertainment, exhibits, and coupons to raise the sales . KFC utilizes the souvenir advertisements which enables to go over purchases of its thing.
Initially, the restaurant opened its outlets in Tier I and metro cities. Day by day, the restaurant has moved to Tier II cities where the power of the buyer is one of the significant benefits regarding rapid urbanization. In all the main cities, KFC has opened their outlets, and it has taken over Pizza Hut. The restaurants have opened five hundred stores in India during the year 2015.
Suppose two product of KFC is considered such as bucket chicken as well as krusher. These two products are different from each other. The first one solid food and another one are partial liquid. Their prices and promotion will be different. But if KFC promotes two products as a combo pack, then they can attract a large number of customers. It can only be possible by applying the marketing mix in busy cities of Australia.
The above report is based on commercialization of Australian Food Industry. Here, the organization considered is Kentucky Fried Chicken or KFC. In the first portion of the story, a background of KFC is described followed by the macro environmental analysis. The macro environmental analysis consists of PEST analysis. After PEST analysis, the opportunities and threats are outlined. Next, market segmentation is described as well as marketing mix. Like every company, Kentucky Fried Chicken also have to follow the strategies to develop their market, but they have to look after the health awareness.
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