MARKETING STRATEGIES OF KFC

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.
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.
Marketing Mix
The marketing mix is generally accepted as the use and specification of the 'four Ps' describing
the strategic position of a product in the marketplace.
Product
Price
Place
Promotion

Product
Anything that can be offered to a market to satisfy a want or need. 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 industrial
kitchen type machine.
Segmentation
Geographic Segmentation
KFC has outlets internationally and sells its products according to geographic needs
of the customer. In India KFC focuses how geographically its customers demand different
products .In north India Chicken is the main selling product, while in the south the Veg. items
sell more than the chicken.
Demographic Segmentation
In demographic segmentation, the market is divided into groups based on an age,
gender, family size, income, occupation, religion, race and nationality. KFC divides the market
on demographic basis in this way:
Age is between 6-65.
Gender is both males and females.
Family size is 1-2, 3-4, 5+
Income is Rs 10,000 n above.
Family lifestyle is almost all.
Psychographic segmentation
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
Social class-Upper and Middle class

Lifestyle is not specific

Personality is ambitious and authoritarian
TARGET MARKET
The process of evaluating each market segment s attractiveness and selecting two or more
segments. As the outlets of KFC are in posh area and prices are too high (overhead expensesrent, air-conditioning, employees), so KFC target supper and middle classes. Target market
depends upon size and growth rate of population, Company resources and structural
attractiveness of market segment.
Market Positioning
For a product to occupy a clear, distinctive and desirable place relative toCompeting
products in the minds of target consumer. In KFC feedback is taken from the customer in order
to know the customer demands and then improvements are made in products. KFC focuses on
pure and fresh food in order to create a distinct and clear position in the minds
of customers KFC has a strong brand name and they are leading the market in fried chicken.
KFC uses its attributes to Position its Product (Fried Chicken)
Price
Price is the any amount of money that customers have to pay while purchasing the
product. More broadly, price is the sum of all the values that consumers exchange for
benefits of having or using the product or services
Demographic factors
Age: 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.
Gender : Both male and females are focused by KFC, gender does not play any role her.
Household Size: This plays a vital role in the demographic factor of the KFC. Generally they
target whole families rather than single persons. This being the reason for their Family Meals
which are basically bundled items served at a nominally cheaper rate.
Economic Factors
Income: 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.

Consumption Behavior: It estimates the behavior of people, their liking and disliking towards
the pricing of the products.
Geographic location preference
Urban
Semi urban
Behavior segmentation
Taste conscious
Quality conscious
Class
Combination of product and quality
Pricing Strategy
Market skimming: KFC globally enters the market using market skimming. Their products are
priced high and target the middle to upper class people. Gradually they trickle down the prices
focusing on the middle to lower class people to penetrate both sides of the market.
Competition
We can compare the price of their products with McDonald, Dominoes and Pizza Hut. If
the competitor provides the same product at a lower price then the organization usually lowers
the price of its product too. In the case of KFC, Fried Chicken is its main selling point and
controls a monopoly over the Indian fast food market (only with fried chicken).It prices its
burgers, French fries and soft beverages with relation to its competitors.
Cost Based
KFC price their product keeping different points in view. They adopt the cost base price
strategy. Pricing of the product includes the government tax and excise duty and then comes
the final stage of determine the price of their product. The products are bit high priced
according the market segment andit is also comparable to the standard of their product. In the
cost based method we include the variable and fixed cost.
Place
TARGET AREAS
Free home Delivery Strategy They provide free home delivery to offices &homes (select

Accessibility Resulting in several outlets to cater to the needs of people in & around the city.
Hectic lifestyle Due to the hectic lifestyle of office goings individuals the fast food concept
saves time of preparing food and gives the customer a full meal quickly.
Economically convenient The pricing appeals to the many classes of a society.
TARGET MARKET
1.Location
-Hectic lifestyle of individuals-giving them more time at work and less stress about waiting for
food.
-Commercialization of urban and sub-urban markets leading to more mid-sector people that
find high-end eating joints very too expensive.
-Mid-sector people are always looking for change which KFC provides in their range of fast
food.
-Quality conscious people in urban areas are more conscious about the quality of food than
rural areas.
-Urban areas are more populated therefore they help with attracting higher revenues.
2. Placement of outlets
-Due to KFC placing itself close to schools, colleges, cinemas and markets which are mostly
populated by the young and those who are in a hurry, KFC enjoys a large number of footfalls
every day. In addition, they also have outlets close to non-vegetarians (mostly Muslim
populated areas).
STRATEGY
Given the competitive nature of fast food joints, KFC uses the Push Strategy to help them
create:
Awareness
Be different
Sound attractive
CHANNELS
KFC believes in first level channels in the order given below:
Manufacturers Retailers Consumers

CHANNEL PROCESS
KFC works on the flow of good operation techniques i.e.Good Operating Manager leads to
Good Team SelectionGood Services Good TargetsGood Revenues through the
following internal strategies:
Training
Incentive based targets
Recognition for good work
Performance based bonus
Employee benefits to keep them motivated
Promotion
Promotion
Promotion is the method used to inform and educate the chosen target audience about the
organization and its products. Using all the resources of promotion:
Advertising
Sales Promotion
Public Relations
Events and Experiences
Coupons, Discounts and Bundled packages
An organization finds most of its meanings and survival through promotion.
At KFC, Promotion is the main tool to bring all chicken lovers attention towards
its delicious one-of-a-kind product, the Fried Chicken.
Advertising
The logo of the smiling Colonel is probably one of the most recognized faces in the
world and instantly brings the image of fried chicken to ones mind.
KFC and its new company jingle, finger licking good is a frequent announcement on
televisions, billboards, flyers and radio. The concept of showing a normal customer deeply
involved in devouring his piece of chicken usually turns on the drool factory in everybodys
mouth and makes them rush to the nearest KFC. In India where chicken lovers are plenty
abound these ads featuring normal people connect instantly and create a rush at their outlets.
Using the following methods KFC spreads its message of finger licking good chicken.
Advertising Using
Reminder advertisements-KFC stimulates repeat purchases of its products. The company
anthem finger licking good is just a wakeup call to the consumer to remind them how good
they felt the last time they ate KFC chicken.

Sponsorship is another tool to strengthen an organizations image. KFC is currently the sponsor
of the
Australian Cricket Team and the colonel logo can be seen on their uniforms throughout the
matches.
Sales Promotion
KFC uses the following tools to further enhance its sales.
Premiums
Exhibits
Coupons
Entertainment
Sales Promotion
All KFC outlets offer its customers with various forms of incentives to buy its Chicken.
Using coupons that one can acquire after spending a particular amount over a period of fixed
time, customers can enjoy the benefits of free meals or free add-ons.
Additionally they provide meal vouchers and exciting offers in their print ads, which the
customer must cut and bring along.

MARKETING STRATEGIES OF MCDONALDS

McDonalds rode the baby-boomer trend in the 1960s, the swelling ranks of teenagers
and the rising female labor force participation, supplying a fast and inexpensive menu. In the
1970s and the 1980s, McDonalds rode the globalization trend by transferring the American
Way of Life to many countries around the world. At the same time, McDonalds adapted to the
social context of each county by franchising to locals.
In the 1990s and early 2000s, McDonalds transformed its corporate image by launching
the Fast and Convenient campaign that involved the radical adjustment of the companys
product portfolio to emerging food industry trendsthe refurbishment of McDonalds
restaurants to achieve a banded, updated, and more natural dining environment.
The fast and convenient elements of the McDonalds concept were supplemented
by the healthy and more natural element, by adding salads, fruits, and carrot sticks to the
menu.
In nowadays, McDonalds continues to broaden its product portfolio by offering high
quality coffee and healthy drinks (either through its traditional restaurants or the Cafs),
competing head to head with Starbucks and local cafeteriasbenefiting from local trends like
austerity in Europe.
McDonalds further benefited from a sound franchise business modela form of
collective entrepreneurship that allows its franchisee-members, management and shareholders
to share the risks and rewards from the discovery and exploitation of new business
opportunities.
The marketing mix of McDonalds consists of the various elements in the marketing mix
which forms the core of a companys marketing system and hence helps to achieve marketing
objectives. The marketing mix of McDonalds discusses the 4ps of the leading burger chain
across India offering the tastiest burgers and French fries.
Product
McDonalds places considerable emphasis on developing a menu which customers want.
Market research establishes exactly what this is. However, customers requirements change
over time. In order to meet these changes, McDonalds has introduced new products and

phased out old ones, and will continue to do so. Care is taken not to adversely affect the sales
of one choice by introducing a new choice, which will cannibalize sales from the existing one
(trade off). McDonalds knows that items on its menu will vary in popularity. Their ability to
generate profits will vary at different points in their cycle. In India McDonalds has a diversified
product range focusing more on the vegetarian products as most consumers in India are
primarily vegetarian. The happy meal for the children is a great seller among others.

Price
The customers perception of value is an important determinant of the price charged.
Customers draw their own mental picture of what a product is worth. A product is more than a
physical item; it also has psychological connotations for the customer. The danger of using low
price as a marketing tool is that the customer may feel that quality is being compromised. It is
important when deciding on price to be fully aware of the brand and its integrity.
In India McDonalds classifies its products into 2 categories namely the branded
affordability (BA) and branded core value products (BCV). The BCV products mainly include the
McVeggie and McChicken burgers that cost Rs 50-60 and the BA products include McAloo tikki
and Chicken McGrill burgers which cost Rs20-3 This has been done to satisfy consumers which
different price perceptions.
Promotion
The promotions aspect of the marketing mix covers all types of marketing
communications One of the methods employed is advertising, Advertising is conducted on TV,
radio, in cinema, online, using poster sites and in the press for example in newspapers and
magazines. Other promotional methods include sales promotions, point of sale display,
merchandising, direct mail, loyalty schemes, door drops, etc. The skill in marketing
communications is to develop a campaign which uses several of these methods in a way that
provides the most effective results. For example, TV advertising makes people aware of a food
item and press advertising provides more detail. This may be supported by in-store promotions
to get people to try the product and a collectable promotional device to encourage them to
keep on buying the item.
At McDonalds the prime focus is on targeting children. In happy meals too which are
targeted at children small toys are given along with the meal. Apart from this, various schemes
for winning prices by way of lucky draws and also scratch cards are given when an order is
placed on the various mean combos.
Place
Place, as an element of the marketing mix, is not just about the physical location or
distribution points for products. It encompasses the management of a range of processes

involved in bringing products to the end consumer. McDonalds outlets are very evenly spread
throughout the cities making them very accessible. Drive in and drive through options make
McDonalds products further convenient to the consumers.
People
The employees in Mc Donalds have a standard uniform and Mc Donalds specially
focuses on friendly and prompt service to its customers from their employees.
Process
The food manufacturing process at Mc Donalds is completely transparent i.e. the whole
process is visible to the customers. In fact, the fast food joint allows its customers to view and
judge the hygienic standards at Mc Donalds by allowing them to enter the area where the
process takes place. The customers are invited to check the ingredients used in food.
Physical evidence
McDonalds focuses on clean and hygienic interiors of is outlets and at the same time
the interiors are attractive and the fast food joint maintains a proper decorum at its joints.

MARKETING STRATEGY OF JOLLIBEE

Jollibee Foods Corporation (PSE: JFC) is the parent company of Jollibee a fast-food restaurant
chain based in the Philippines. Among JFC's popular brands are Jollibee, Chowking, Greenwich, Red
Ribbon, and Manong Pepe's.[1] Since its inception, Jollibee has become an increasingly profitable fastfood chain with 686 restaurants in the Philippines and 57 in other countries employing 29,216
workers.[2] Including all its brands, JFC has 1,804 stores worldwide and total sales of more than US$1
billion
as
of
December
2008.

In 1975 Tony Tan Caktiong and his family opened a Magnolia Ice Cream parlor[3] in
Cubao.[4] Sometime in 1978, Caktiong and his brothers and sisters engaged the services of a
management consultant, Manuel C. Lumba. Lumba shifted the business focus from ice cream to
burgers,[3] after his studies showed that a much larger market was waiting to be served. Lumba
became
Caktiong's
first
business
andmanagement
mentor.
The Jollibee mascot was inspired by local and foreign children's books. Lumba created the
product names "Yumburger" and "ChickenJoy". He had the company incorporated and leased a house
on Main St. in Cubao, Quezon City as the first headquarters. Lumba formulated a long-term marketing
strategy: listing up a number of consumer promotions and traffic building schemes. Caktiong stressed
that developing internal strengths was critical. The stores were re-designed, the service transformed
into a full self-service, fast-food operation with drive-throughs. Not long after, Caktiong and Lumba went
on an observation tour in the United States, attended food service and equipment conventions.
Caktiong placed Lumba in charge of franchise development

Marketing:
Jollibee depends on high customer traffic and tight operations management. It offers great
service to the high volumes of people who patronize its outlets by functioning as a well-oiled machine
with close tabs on daily operations.
Jollibee focus:
USP:
The Unique Selling Proposition of the Jollibee brand is :
1) Fast, Good, Clean, Cheap food
2) Caters to local needs( Spicy patty)
3) Consistency, reliability over all its outlets.
Positioning:

Ensuring high traffic needs an emphasis on store location and positioning Jollibee in the minds
of the consumer as a place that they would enjoy eating fast food. This entails proper branding and
positioning of the service offered.
Jollibee also projected itself as world class and not a local brand.
The service that is offered should be consistent over all Jollibee stores, however this might be a problem
as the division has been slimmed recently and resources might be stretched too far.

Product:
In the case of Jollibee, it went from being an ice cream parlor to serving hamburgers made with
a home style recipe. This change in product was in response to events triggered by the 1977 oil crisis
which would have doubled the prices of ice cream.
The product offered by Jollibee appeals to the Filipinos taste for spicy burgers. By concentrating
its resources on satisfying the Filipino palate, Jollibee has been able to serve localized dishes that are
unlike any found in the other fast-food chains in the Philippines. In addition to offering the usual French
fries that accompany the meals found in McDonalds, KFC, Burger King, and so forth,
Jollibee also serves rice or spaghetti, Filipino style. Even the burgers are cooked exactly as
Filipinos want them done sweeter and with more seasonings, often likened to what a Filipino mother
would cook at home.
Menus in outlets across the globe adjusted to local preferences to differentiate it from other
standardized players like Mc Donalds and KFC who maintain the same menus worldwide with minimal
changes.
Jollibee even incorporated recipes from employees to truly capture local tastes.
McDonalds entered the Philippine market in 1981 and many assumed the Big Mac would soon
dominate the market. Surprisingly, McDs ended up getting stung by the bee. Jollibee has secured a 65%
market share and is out pacing McDonalds at its own game. Jollibee accomplished this by local
adaptation of the menu and by positioning the food chain as a family restaurant.
Place:
The location of outlets is of key importance to the marketing strategy of Jollibee. For Example,
the outlet in Hong Kong is located at Central where a large number of Filipinos gather.
Promotion:
Local brands: Brands in local market are strong contenders and are not to be underestimated.
Local managed brands like Jollibee in the Philippines, often have the advantage of intimate knowledge
of consumer tastes and consumer preference through local pride.
Jollibee used the wave of nationalist pride to promote a Filipino brand of hamburger. This strategy met
with great success.

Investing in socio-civic programs designed to serve its host communities further secured Jollibees
position as a Filipino company for the Filipino. Advocacy campaigns such as the early Christmas drive
ma-Aga ang pasko sa Jollibee, again endorsed by Aga Mulach, the poverty housing project with
Habitat
For Humanity, and the Kaya Mo Yan Kid or You can do it, kid! campaign to encourage kids to
show their potential contributed to the companys overall success, not only with its customers but with
all its stakeholders.
Jollibee attributes this success in part to its internal branding which focuses on "great taste and
happiness" which includes "value for money, the happiest store experience, and the haven for kids.

Beach head strategy:

New Markets like Papua New Guinea and San Francisco which had an immigrant population can
support the Beach head strategy which entails expansion in a market with little or no competition.
Jollibee is an emerging market brand and can easily establish a beach head in foreign countries by
targeting areas with a high immigrant population.
Competition
Competitors like Mc Donalds have more money and highly developed operation systems.
Mc Donalds doesnt satisfy local taste in Philippines. It has a plain patty which is part of its standard
global menu.
Jollibee doesnt have the big name to generate the high level of trust, and to choose franchisers
in the partner countries.
Go in for BLUE OCEAN strategy- expand in places where there is an unmet need, which isnt being met
by any of the existing vendors, hence there is little or no competition.

Nueva Ecija University of Science and Technology

Municipal Government of Talavera

Different Marketing Strategies of Various

Business Companies
(KFC , McDonalds and Jollibee)
Principles of Marketing Requirements
Submitted by:
Mary Joice Dela Cruz
Elaiza Dimagiba
Rosselle Ibarra
Allen Joy Matangat
Catherine Oyler
Divine Grace Subido
Hazel Joy Torrendon
BSBA 3-A
Submitted to:
Mrs. Justina Alcantara
Instructor

Ingredients for Chicken Inasal:

6 pcs of chicken quarters (thigh & leg portion)
1 bulb of garlic (crushed or finely chopped)
15 pcs calamansi
1 1/2 tbsp salt
2 tbsp ground black pepper
4 tbsp soy sauce
2 tbsp vinegar
3 stalks lemon grass (actually, the more, the better)
1/4 cup achuete or annatto oil
Instructions: What we did first was to cut slits on the chicken. This is important in making
sure that the marinade would penetrate the chicken. Before mixing the marinade, we then
tried to release more the aroma and flavor from the lemon grass by pounding it with the
back of a knife. And then tied it so that it would be easy to remove later. We then also
extracted the juice from those calamansi. Make sure to use a strainer to catch all those
seeds. You definitely dont want them in your chicken. They are super bitter! So we ended
up with this much juice from those calamansi. After all those preps are done, its now just a
matter of mixing all the ingredients, except the annatto oil, in a large mixing bowl. Make
sure to massage the marinade into the chicken so that its equally spread on every inch of
the chicken meat. Dont be afraid of touching the chicken with your bare hands. You dont
need to worry about salmonella, as long as you have soap and water to wash your hands,
youll be fine. We then transferred the chicken into a small sauce pan (or you may use a
small mixing bowl) that would fit our fridge and let it soak up all those flavors for 24 hours.
The longer you marinate, the better. The next day, just before grilling those chicken, we
prepared the annatto oil. This will be used for basting the chicken while its being grilled.
Tip: Achuete or annatto oil is made by steeping 1/8 cup annatto seeds in 1/4 cup hot oil
until you get that dark orange color. Then strain the annatto seed. Its time to grill up those
chickens. So we prepared our grill and made sure the charcoal was spread evenly. This is
important so that the chickens cook evenly. Once done, simply place the chickens on the
grill, back side first. After 5 minutes, flip the chickens and baste with the annatto oil. Do this
several times until the chickens are cooked through. Tip: When you see a clear juice coming
out from those slits on the chicken, thats an indication that the chickens are cooked
through. Once the chickens are cooked, serve them with condiments such as vinegar, soy
sauce and calamansi juice. We love it spicy, so we serve them with chilis.