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KENNY ROGERS ROASTERS

1.0 Executive Summary

Kenny Rogers Roasters was started 22 years ago in the summer of 1995. Kenny Rogers
Roasters also known as KRR is the market leader in the variety of food offering a healthier
alternative to traditional fast foods. Kenny Rogers’s annual sales exceeded Php5 million, while
countless awards and accolades have been bestowed its chain over the past 22 years . KRR has
more than 25 units nationwide whilst its rapid growth has attracted many investments and
brought it many competitors such as KFC and Burger king. Recent initiatives attract customers
beyond Kenny Rogers Roasters traditionally health conscious consumers should increase the
company’s share of the fast food market.
KRR's marketing program addresses health, fresh, custom-made sandwiches and variety of
roasted chicken expectations of consumers through a number of approaches Kenny Rogers
Roasters concept of serving fresh made sandwiches on fresh baked bread, made right in front of
customers and oven-fresh roasted chicken, the way they like it has proven to be a winning
marketing strategy in Philippines. Their customers have really respond to the high level of service
that Kenny Rogers restaurants are famous for. They have also become popular with health
conscious customers in the Philippines who are searching for higher quality fast food options.
Kenny Rogers Roasters’ low initial investment and ability to fit into unusual spaces are
other reasons for their success. Without the need for heavy equipments for cooking a KRR
restaurant is the perfect business for the small spaces and tight real estate of the Philippines.
1.1 Introduction
According to Kenny Rogers Roasters future market expansion strategies they have
planned to open hundred locations in the Philippines by 2010. In this marketing plan I am going to
discuss and explain what are the Kenny Rogers Roasters existing strengths, weaknesses,
opportunities, threats, their marketing strategies, marketing mix , branding strategies and their
recent and future changes which are effect their marketing success as a company. And also , as a
marketer ,I discuss what are the changes they can do to minimize deviations from their original
marketing objectives .
In this plan I use my marketing knowledge to evaluate KRR marketing strategies and, will be
discussing their potential growth from my point of view as a marketer. For this I use some
marketing theories and concepts for explain my ideas. First I use small marketing environment
audit using SWOT analysis.
2. Situation Analysis
A situation analysis is an honest valuation of the opportunities and potential problems
facing a prospective or existing company, through analysis a deeper understanding of an industry
, competitor and possible optioned can be examined.
Kenny Rogers Roasters is the market leader in the roasted chicken offering a healthier
alternative to traditional fast foods. Subway’s annual sales exceeded Php5 million, while countless
awards and accolades have been bestowed its chain over the past 22 years . KRR has more than
25 units worldwide whilst its rapid growth has attracted many investments and brought it many
competitors such as KFC and Burger king. Recent initiatives attract customers beyond KRR
traditionally health conscious consumers should increase the company’s share of the fast food
market.
Being part of a highly competitive and dynamic market, Kenny Rogers Roasters face a
strategic marketing challenge as to what specific marketing mix to use in order to sustain a
different advantage while maintaining sales growth and above all profitability.
Kenny Rogers Roasters effectively competes with dine dining restaurant and fast food
chains segment of the market. Including healthier meals into his menu and giving much attention
to obesity and diabetes have supported consumer’s choice for KRR. However, KRR has not been
satisfied thus far, instead, more intensified efforts have been made to improve business during
the dinner hour. Additional menu options have also been added to answer competitor’s trends
and to place more focus on the children’s segment.
SWOT analysis can be helpful to highlight subway’s 1) Internal strength and weaknesses
along with 2) the external opportunities and threats.
2.1 Competitive Analysis
“The purpose of analyzing competitors is to try and asses what they will do. This will enable
the organization to respond accordingly. Competitive advantage is about relative competitive
position competitors are sometimes used as benchmarks.” (CIM, 2005)
Kenny Rogers Roaster is not without competitive pressures, chief competitors include KFC,
McDonalds, Pizza hut, Jollibee. KFC and Pizza hut are the world largest with 33,000 restaurants in
over 100 countries. Four of the company’s highly recognizable brands KFC, Pizza Hut, Long John
Silva’s and Taco Bell, are global leaders of the Mexican, Chicken, Pizza, Quick service sea food
categories.
McDonald’s corporation is the world’s largest food survives relating chain with 31,000 fast
food restaurants in 119 countries. The company also operates restaurants under the brand names
“the Boston Market” and “Chipotle Mexican Grill”. McDonalds operates largely in the U.K and is
headquartered in Oak Brook, Illinois employing 447,000 people.
2.2 SWOT Analysis
“ However, since marketing is such a complex function , it seems illogical not to carry out
a pretty through situation analysis at least once a year at the beginning of the planning cycle , in
the same way that an annual financial audit is carried out” ( McDonald, 2002 )
“One useful way of doing audit is in the form of a number of SWOT analyses. A SWOT is a
summary of the audit under the headings, internal strengths and weakness as they relate to
external opportunities and threats” (McDonald, 2002)
KRR roasted chicken are well positioned to leverage their strength and address reasonable
threats, weaknesses and opportunities. The table below highlights these Strengths, Weaknesses,
Opportunities and Threats.

STRENTHS WEAKNESSES
 Size and number of stores and channels.
 Menu reflects demand for fresh, healthy and  Décor is outdated.
fast.  Some franchisees are
 Use of nontraditional channels. unhappy.
 Worldwide brand recognition.  Service delivery is
 Customizable menu offerings. consistent from store
 Low franchisee start up cost. to store.
 Franchisee training is structured, brief and  Employee turnover is
designed to assure rapid start up and success. high.
 No control over
franchise situation in
given market area.

OPPORTUNITIES THREATS
 Continue to grow global business.  Franchisee unrest or
 Update décor to encourage more drive in litigation.
business.  Food contamination
 Improve customer service model. (Spinach).
 Continue to expand channel opportunities to  Competition.
include event wagons.  Interest costs.
 Improve franchisee relations.  Economic downturn.
 Experiment with drive-through business.  Sabotage.
 Expand packaged dessert offerings.  Law suits.
 Continue to revise and refresh menu offerings.
 Develop more partnerships with more
producers and toy manufactures to promote
new movie releases through children’s menu
packaging and co-branding opportunities.

Strengths
Kenny Rogers Roasters main identifiable strength is their size and number of stores and
channels. This gives better advantage for Kenny Rogers Roasters when it competes with other
competitors. When we consider their product line, menu reflects demand for fresh, healthy and
fast .And they have better customizable menu offerings as well. Kenny Rogers Roasters use
nontraditional channels to develop their markets. Kenny Rogers Roasters product is mainly
targeting for healthy product, they facilitate positioning their Kenny Rogers Roasters has better
world wide brand recognition which will be discussed later part of this plan deeply. Low franchisee
start up cost is another strength they have when penetrating the market. On the other hand their
Franchisee training is structured, brief and designed to assure rapid start up and success. These
are the main strength which Kenny Rogers Roasters can use their marketing developments.

Weaknesses
According to marketing point of view their main weaknesses are outdated décor in their
franchise outlets. It reduces their competitive advantages in market. Some of their franchisees are
unhappy. And their service delivery is consistent from store to store. Other main weakness of KRR
is their employee turnover is comparatively very high. KRR doesn’t have control over franchisee
situation in given market area. For better marketing growth Kenny Rogers Roasters should critically
evaluate these weaknesses and make them manageable under some certain level.

Opportunities
Kenny Rogers Roasters has number of opportunities become stronger in the roasted
chicken market rather than competitors. Kenny Rogers Roasters is continuing to grow global
business. They can update décor to encourage more drive in business. Better opportunity to
improve customer service model. They can continue to expand channel opportunities to include
event wagons, improve franchisee relations and expand packaged dessert offerings. Kenny Rogers
Roasters can experiment with drive through business like McDonald already doing. To minimize
competition Kenny Rogers Roasters should continue revise and refresh menu offerings. Develop
more partnerships with more producers and toy manufactures to promote new movie releases
through children’s menu packaging and co-branding opportunities.

Threats
Main threats we can identify for Kenny Rogers Roasters might be the food contaminations which
are more popular recently). Franchisee unrest or litigation, emerging competition are the other
threats which Kenny Rogers Roasters face. Like every other companies Kenny Rogers Roasters face
the economic downturn threat these days. Sabotage and law suits are the other main threats for
Kenny Rogers Roasters.

3.0 Marketing Strategy


Marketing strategies reflects the company’s best opinion as to how it can most profitably
apply its skills and resources to the market place. It is invertible broad in scope. “Marketing
strategies are the means by which a company achieves its marketing objectives and are usually
concerned with the four “P” s. (McDonald, 2003)

Kenny Rogers Roasters marketing program addresses health, oven-fresh roasted chicken,
expectations of consumers through a number of approaches. The most notable were the television
commercials featuring Iza Calzado. These commercials emphasize the healthy aspects of a Kenny
Rogers Roasters roasted chicken by highlighting the 245 pounds Calzado lost by eating a Kenny
Rogers Roasters healthy plate diet..

The Kenny Rogers Roasters example represents marketing and product strategies that are
classic examples of focusing on market demand, consumer trends, product leveraging, and
innovation. The marketing strategies of creating clear brand recognition, brand and product
association, and market demands, have strategically positioned Subway to advance market share
into the near future. These marketing strategies are also repeatable fundamental marketing
strategies transcending the fast food market.

Kenny Rogers Roasters has a customer care team, dedicated specialists who are in constant
communication with consumers.

Success factors for fast food franchisees will include products and marketing targeted to
healthier menu selections, brand consistency, low start-up costs, franchisee support, and
consumer convenience. Kenny Rogers Roasters represents a poignant example of a fast food
franchisee ready for success in the future fast food market. Their strategies transcend the fast
food market and apply to many other markets and products

Branded fast food continuing to move into other nontraditional venues such as colleges,
airports, military bases, hospitals, and amusement centers. Part of their marketing strategy, Kenny
Rogers Roasters includes identifying which venues and retail chains would be most amenable to
quick-service brands.

3.1 Mission
“ Mission is an organization’s rationale for excising at all and/or its long term strategic direction
and/or it’s values ; its basic function in terms of the products and services the organization
produces for it’s clients” (CIM , 2005 )
Kenny Rogers Roasters Mission
“To be your home away from home, a casual dining restaurant
that offers friendly service in a comfortable setting.”

3.2 Core values and Philosophy

“To be the preferred choice for delicious


and healthy chicken meals.”

3.3 Marketing objectives


Kenny Rogers Roaster main marketing objectives are maintain positive, strong growth each
quarter and achieve a steady increase in market penetration. Kenny Rogers Roasters posses good
information about the market and knows a great deal about the common attributes of the most
prized customer. This information will be leveraged to better understand who is served, what their
specific needs are, and how Kenny Rogers Roasters can better communicate with them through
marketing. Kenny Rogers Roasters use marketing segmentation, targeting and positioning
strategies to develop their market.
4.0 Target Markets
The process of breaking down the total market for a product or services into distinct sub
groups or segments , where each segment might represent a distinct target market to be reached
with a distinctive marketing mix.“ A market segment consists of a group of customers or
consumers who share the same or similar needs” (McDonald, 2002)
Segmentation Methods
1. Demographics (Age, Life cycle , Gender , Income , Occupation, Religion , Education
, Race ,Nationality )
2. Geographic ( Location , Regional , Urban , Density , Climate )
3. Psychographic (Social class , Life style , Personality )
4. Behavioral (Occasions , Benefit sought , User stages , Usage rate , Loyalty status )

Kenny Rogers Roasters Segmentations


Age group – (18 – 39) Kid’s meals
Income level – (c 1)
Healthy Life style
Urban Areas (South east etc…)

Kenny Rogers Roasters is always improving their geographic segmentation from their early
development ages. By studying Kenny Rogers Roasters’ geographical expansion we can identify
what kind of segmentation they include their marketing strategies.

We can see Kenny Rogers Roasters target some kind of cultural and religious segments
while keeping their original values maintaining. Wherever Kenny Rogers Roasters restaurants are
located, the core menu stays relatively the same—with the exception of some cultural and
religious variations. World travelers can expect the same high quality ingredients regardless of
what nation they are visiting.

On the other hand Kenny Rogers Roasters always target different kind of age segments,
through their existing product lines and product developments, specially improving kid’s meals.

4.1 Targeting
Marketers do targeting for segmented markets. After the market has been segmented into
its segments according to their segmenting strategies he will select a segment or series of
segments and “Target” it /them. Resources and effort will be targeted at the first is the single
segment with a single product. Secondly the marketer could ignore the differences in the
segments, and choose to aim a single product at all segments. Finally marketer will target a variety
of different segments with a series of differentiated products.“ The advantage of target marketing
is marketing effort can be focused on the market segment(s) that offer the greatest potential for
the company to achieve its objectives “ (Lancaster & Reynolds, 2003)
Year 2003 Kenny Rogers Roasters improves the nutritional content of its Kids Pack meal by
switching the carbonated soft drink to a juice box and changing from a high calorie cookie to fruit
roll up fruit snack that is high in vitamin C. Many of the Kids Pack toys are now designed to inspire
physical activity. The web site includes a resource for parents striving to manage their children’s
diet and exercise levels. Parents and children can also Iza Calzado about how he lost her weight or
how they can incorporate fun exercises into their everyday lives.

The increase in sales of the roasted chicken has been a result of decreases in consumer
interest in hamburgers and fries and increases in demand for healthier options. Sales of health
plate are growing 15 percent annually, outpacing the 3 percent sales growth rate for burgers and
steaks.

4.2 Positioning
Positioning is all about “Perception “. The term “Positioning “reefer’s to the consumer’s
perception of a product or service in relation to its competitors. “ Positioning relates to the
task of ensuring that a company’s market offerings occupy a predetermined place in selected
target markets, relative to competition in that market “ (Lancaster & Reynolds, 2003)

Kenny Rogers Roasters positioning their products by continuing to build the brand on the
"freshness" platform. The Kenny Rogers Roasters chain is expanding its universe of potential
customers as a place for "TASTY" and "HEALTHY" food. This positioning, communicated via an
effective advertising campaign, will serve to make the Kenny Rogers

5.0 Marketing Mix


Marketing mix consist of four Ps. Product, Price, Place and Promotion. Available marketing
tools to target customers (Lancaster & Reynolds, 2003)
Product
The marketing mix combines many factors, but customers view marketing effort in more
tangible terms of the product (or service). (Lancaster & Reynolds, 2003)
Kenny Rogers Roasters menu offered a wide variety including salads, pasta, dinners, soups,
healthy muffins and desserts. They offer wider menu and better quality fresh products .In 1996
healthy plates, is first introduced. In 1997 additional health plates were added to their menu
including grilled sausages and baby back ribs. In 2005 Delicious, grilled patties are added to the
Kenny Rogers Roasters menu

Kenny Rogers Roasters pride them on always having the freshest ingredients available for
clients, and they hide nothing from them. All their products are made on the spot while the
customer chooses what grilled or roasted chicken they want. Unlike most fast food franchises,
nothing is deep-fried or frozen.

Price
Price is a potent element of the marketing mix because of its direct impact on customers,
the company and the economy. Kenny Rogers Roasters use upscale pricing little higher than
normal subs in the market. They offer differential pricing strategy with value pricing. But create
value products by service in terms of quality.

Place
This is concerned with activities needed to move the product or service from the seller to
the buyer. (Lancaster & Reynolds, 2003)
Kenny Rogers Roasters target is open another 100 locations in Philippines by 2010. Kenny
Rogers Roasters use their major selling locations as franchisee shops and their another new market
development places in nontraditional places like Airports ,amusement parks ,business centers
,coliseums and stadiums ,colleges and universities ,convenience stores ,convention centers
,hospitals, military bases ,recreational facilities ,elementary and secondary schools ,supermarkets
and travel centers/truck stops. People who in any kind of Kenny Rogers Roasters sales point are
on hand to ensure customer’s needs are matched with the right product and to explain the
different options available.

And Kenny Rogers Roasters do market research on the location preferences and they close
poor and predatory franchisees regarding customer satisfaction. They upscale to stripped down
shops to quasi deli restaurants. At Kenny Rogers Roasters, you don’t wait for your order. You order
it at the counter and watch it being made by the highly efficient team of staff. When the product
is ready, you pay and take it with you. No bills, no queues, no hassles.

Promotion
Promotion covers four areas. Advertising, Personal selling, Public relations and Sales
promotions. The target for the Kenny Rogers Roasters chain's media buying is adults aged 18-49,
in order to maximize our buying power with a skew toward programming that delivers better to
the younger 18-34 audience. The goal of the chain's current advertising campaign is to increase
the brand presence in the consumers’ "consideration set"--that is, which fast-food restaurants
consumers consider when deciding where to eat.

The majority of the advertising is done via national TV during prime time, sports and late
programming on major broadcast networks and cable networks. Additional advertising is done via
local markets on TV, radio and in print. Kenny Rogers Roasters restaurants also promote
advertising messages and specials in-store with point-of-purchase material such as posters, menu
translates, etc.

5.1 Branding Strategy


Kenny Rogers Roasters brand position as a very healthy fast food chain providing healthier
and fresher food brand value. Positioned between a stripped down version of subs and full theme
restaurant. Service is more like a fast food style but in terms of food quality, quantity, presentation
and fresh, puts it closer to theme restaurant.

6.0 Recent and Future Changes in Marketing Environment at Kenny Rogers Roasters
Although, Kenny Rogers Roasters has achieved better marketing position and brand image
in the fast food industry, they face much kind of challenges in marketing environment. Specially
most of the recent challenges are been created by economic down turn in the world. Economic
downturn is being affected all of the markets in the world as well as fast food market. So each
every marketer are finding ways, how to survive in this environment and what strategies have to
use to develop their own market activities. Kenny Rogers Roasters also badly affected from this
crisis environment.
On the other hand there is a emerging competition for Kenny Rogers Roasters product line.
Especially for their health conscious products. Because, all the other fast food competitors are
introducing and improving their health conscious product line, which Kenny Rogers Roasters use
to maintain leadership. Being part of a highly competitive and dynamic market, Kenny Rogers
Roasters faces a strategic marketing challenge as to what specific marketing mix to use in order to
sustain advantage while maintaining sales growth and above all profitability.
Kenny Rogers Roasters effectively competes with burger chains and others that are in the
fast casual segment of the market. Including healthier meals into his menu and giving much
attention to obesity and diabetes have supported consumer’s choice for Kenny Rogers Roasters.
However, Kenny Rogers Roasters has not been satisfied thus far, instead, more intensified efforts
have been made to improve business during the dinner hour. Additional menu options have also
been added to answer competitor’s trends and to place more focus on the children’s segment.
Like all kind of companies Kenny Rogers Roasters also facing the rapidly advancing of
technologies. Kenny Rogers Roasters also introduces and gets use of new technological
innovations to expand and penetrate their markets. When they designing décor for franchisees
they widely use new technological designing tools.
Food contaminations are increasing in recent years and Kenny Rogers Roasters marketing badly
effect from it. In future it will be more due to lots of pollutants in environment. On the other hand
genetically modified food rejections also will be a big challenge for all kind of food produces
specially for fast food producers. And environment friendly groups always make problems for meat
and in future it will accelerate, so Kenny Rogers Roasters should have think about alternatives for
meats like flavored soy products, but Kenny Rogers Roasters can take advantage of that problem
since Kenny Rogers Roasters go for healthy and low calorie food product marketing .