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SEMESTER SPRING 2012 Principles of Marketing (MGT301) Bc060400090 Assignment No. 2

Questions # 1: After analyzing the findings of the research conducted, you need to identify the key factor which compelled KFCs higher management to launch Big Filler Burger? Solution CONSUMER APPEAL: Fast-food outlets have become popular with consumers for several reasons. One is that through economies of scale in purchasing and producing food, these companies can deliver food to consumers at a very low cost. In addition, its predictability can be reassuring to a hungry person in a hurry or far from home. World over, American and American-style fast food outlets have been popular for their quality, customer service and novelty. Many consumers nonetheless see them as symbols of the wealth, progress and well-ordered openness of Western society and therefore become trendy attractions in many cities around the world, particularly among younger people with more varied tastes Interpretation: How often people visit KFC to analyze this question I asked 300 customers to give their opinion to find out the spread over the 5 options. People 36 % on weekly basis to the KFC to eat out Big Filler Burger and Bucket Meal or Zinger meal while 25% people come fortnightly basis which is good sign for the KFC to shown that there service quality is better and enforce people to come KFC regularly. 8. Reason to eat out at the KFCs higher management to launch Big Filler Burger (a) An occasion to celebrate (b) I work in this area hence decide to come here (c) Wanted a break from home food

(d) For snack (brunch) (e) For lunch (f) Wanted an enjoyable outing with family (g) Wanted to get together with friends (h) I was in this area & hence decided to eat here

Alone An occasion to celebrate I work in this area and hence decide to come here Wanted a break from home food For snack (Brunch) For lunch Wanted an enjoyable outing with family Wanted to get together with friends I was in this area and hence decided to eat here 2 1 2 3

Friends 2 6

Family

Colleagues 3 4

4 8

3 3 6 2 2

40 3

R ASO S FO E E N R ATIN O T W G U ITHR SPE O N E CT F ATU EO TH R F E G O P O TH R SPO D N O K C R U F E E N E TS F F

An occation to celebrate I work in this area & hence decided to com here e W anted a break from hom food e

2 3 6 2 4 1 3 4 2 4 3 3

For Snack(Brunch)

For lunch

W anted an enjoyable outing with fam ily

6 1 1 2 3 0 ALONE 5 10 FRIENDS 15 20 FAMILY 25 30 35 40 45

W anted to get together with friends I was in this area & hence decided to eat here

2 40

COLLEGUES

Questions # 2: How competitors of KFC help in making an idea of Big Filler? Was it market intelligence or market research which helped KFC to take this decision? Solution:Market Intelligence Market intelligence is the upward or downward movement of a market, during a period of time. The market size is more difficult to estimate if one is starting with something completely new. In this case, you will have to derive the figures from the number of potential customers, or customer segments. Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats. Profiling coalesces all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment.[1] Competitor analysis is an essential component of corporate strategy. It is argued that most firms do not conduct this type of analysis systematically enough. Instead, many enterprises operate on what is called informal impressions, conjectures, and intuition gained through the tidbits of information about competitors every manager continually receives. As a result, traditional environmental scanning places many firms at risk of dangerous competitive blindspots due to a lack of robust competitor analysis. The strategic rationale of competitor profiling is powerfully simple. Superior knowledge of rivals offers a legitimate source of competitive advantage. The raw material of competitive advantage consists of offering superior customer value in the firms chosen market. The definitive characteristic of customer value is the adjective, superior. Customer value is defined relative to rival offerings making competitor knowledge an intrinsic component of corporate strategy. Profiling facilitates this strategic objective in three important ways. First, profiling can reveal strategic weaknesses in rivals that the firm may exploit. Second, the proactive stance of competitor profiling will allow the firm to anticipate the strategic response of their rivals to the firms planned strategies, the strategies of other competing firms, and changes in the environment. Third, this proactive knowledge will give the firms strategic agility. Offensive strategy can be implemented more quickly in order to exploit opportunities and capitalize on strengths. Similarly, defensive strategy can be employed more deftly in order to counter the threat of rival firms from exploiting the firms own weaknesses.

Clearly, those firms practicing systematic and advanced competitor profiling have a significant advantage. As such, a comprehensive profiling capability is rapidly becoming a core competence required for successful competition. An appropriate analogy is to consider this advantage as akin to having a good idea of the next move that your opponent in a chess match will make. By staying one move ahead, checkmate is one step closer. Indeed, as in chess, a good offense is the best defense in the game of business as well. A common technique is to create detailed profiles on each of your major competitors. These profiles give an in-depth description of the competitor's background, finances, products, markets, facilities, personnel, and strategies. This involves: