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1.0 Company Background The company which been used to do the case study above is KFC.

Commonly, the first KFC restaurant was opened in 1973 on Jalan Tunku Abdul Rahman. Today there are more than 390 KFC Restaurants nationwide and still counting. Great tasting chicken has become synonymous with KFC; and has been enjoyed by Malaysians ever since. In fact, KFC Malaysia has developed a distinctive Malaysian personality of its own. KFC is an establishment that is run by Malaysians and managed by Malaysians; It took upon themselves to create a selection of food that would make Malaysia proud on the international scene. Kentucky Nuggets, for example, was conceived in Malaysia and then found its way to KFC worldwide. Today, Kentucky Nuggets is one of KFC's successes. "Meals on Wheels" was also developed in Malaysia. It was created for the purpose of bringing great tasting chicken to places where a KFC Restaurant might not be available. So, any offices or companies can hold functions at any place and anytime. At KFC, it is recognize that improving the quality of life and economic vitality of the communities in which it conducts business is in the best interest of the company, company patrons, employees and industry. And to show the appreciation for Malaysian support for making KFC a market leader; the KFC Malaysia wanted to give something back to the community. So, Projek Penyayang KFC was developed to provide food to 80 homes every quarter. Projek Penyayang KFC was founded in 1995 in an effort to enable thousands of orphans and underprivileged children to enjoy KFC meals. Over 6,500 children are treated to a finger lickin' good food every year. This year marks the 10th Anniversary of Projek Penyayang. Currently, KFC are still conducting other programme for Malaysian charities. And we will continue to extend a corporate helping hand whenever and wherever we can

2.0 Situational Analysis 2.1 Introduction The situational analysis for KFC is done by using the SWOT analysis. SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It accomplishes this by assessing an organizations strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions for an organization) and threats (potential unfavorable conditions for an organization). SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives (a strength or opportunity), or if it indicates an obstacle that must be overcome or minimized to achieve desired results (weakness or threat). 2.2 Internal Factor 2.2.1 Strengths The main strengths for the KCF Malaysia are its good name and popularity in Malaysia society. The KFC Malaysia is opened in Malaysia in year 1973 on Jalan Tunku Abdul Rahman and today there are 390 unit KFC outlets throughout Malaysia. This strong and giant business network had built the popularity and famous name among the Malaysia citizen. The respective KFC opened nearly each town areas throughout the whole Malaysia. At the same time, the quality and various favors of its products such as spicy and ginger chicken also make KFC become more and more preferred by the Malaysia citizen compare to other competitor such as Mac Donald and Sugar Bun. It can be proved by the long queue of people to buy the new products especially during the first week the respective products been new release in the outlets. Normally, the respective products will be finished in a shortest time. It proves the popularity of the new release products.

2.2.2 Weakness The main weakness of the KFC too many outlets and the outlet is managed by using franchise methods. Even though the quality of each branch will be monitored by the headquarter but due to too many branches, it is not an easy task for the headquarters to monitor the outlets. Even some of the outlet is located at far away from the headquarters and it is too hard to the personnel from the headquarter to go to the branch or outlet from inspection and checking. Thus, the quality of certain branches is achieved the certain standards and it will affect the good names of the KFC products and the customers will lost their confident on the KFC products.

2.3 External Factor 2.3.1 Opportunities The busy and hectic life create more and more opportunity and space for the KFC to developed further as well as expand their business to the higher level. It is because the hectic and busy life makes lots of people like working adult no time to eat at home and most probably fast food such as KFC will be the ideal venue for them to settle their lunch as well as dinner. Most of the young working adult will rather than eat at KFC and not go back to eat their dinner. It is because the traffic jam will make them reach home lately around 8.30pm. So, they will rather than eat in KFC while waiting for the release of the traffic jam such as in Kuala Lumpur town area. At the mean time, the hot temperature in the afternoon will be another opportunity for the KFC to develop their business. It is because most of the working people will choose the food court with the air-conditional services and KFC shall be a good place for them with a rational price. Therefore, more and more working adults will spend their afternoon time in KFC and not in any open space food court.

2.3.1 Threats The main threat for the KFC development is the current economic crisis which happened around the world. The respective economic crisis had make most of the people no more extra money to spend in the luxury food. Some of the working adults even bring their own food from home. It is aim to save more money as the life expenses will become higher and higher. Only the saving from other unnecessary parts such as enjoy the meal in KFC will enable the people save more money in spend in the more crucial parts such as education as well insurances. At the mean time, the expenditure trend of the youngster also becomes one of the threats for the KFC. As for today, most of the youngster will prefer to leave in a style and modern life. They willing to spend over hundred to buy a shirt or spend even over a few thousand to get a hand phone. Most of them are willing starving and save the money to get the luxury and fashion products so they can shows their ability to their friends. Such situation had made less and less youngster willing to spend money in food such as KFC. Therefore, it is a crucial threat for them.

3.0 Business Portfolio Analysis

HIGH

Market Growth

Star SPICY PRODUCT

Problem Child BURGER

Cash Flow ORDINARY MEAL SET


LOW

Dog KIDS MEAL

HIGH

Market Share

Figure 1.0: BCG Matrix for KFC and MAC DONALD Legend: KFC MAC DONALD

3.1 Problem Child As for the KFC, the main problem child product is the burger. It is because burger is the most welcome and prefer by the customers compare to other company like MacDonald which burger is their cash flow. It is because most of the people express their opinion that burger in Mac Donald is more delicious compare to KFC. Nevertheless, KFC also spend lots of time and modal to bring in the new products of KFC such as Ginger Chicken Burger and others. All of these products still not be able to compete with the strongest competitor in burger making, Mac Donald and Burger King in Malaysia.

3.2 Star The star product for the KFC will be its spicy products as such hot and spicy chicken. It is because the respective hot and spicy products are most welcomed and preferred by the customers and the KFC itself also done the most advertisement on it. At the mean time, the secret recipe to make the hot and spicy chicken will also enable the respective products becomes the most outstanding chicken in Malaysia. The spicy and hot flavor is very suit to the taste of Malaysia citizen as majority of the Malaysia citizen is like to eat the hot and spicy food.

3.3 Cash Flow The main cash flow for the KFC product is their set meal whereby it consists of 3 types of set meal, namely set meal A, B and C. The set meal is getting the highest sales and generates most cash for the company. It is because most of the working adults or even family will prefer to order the set meal. It is because the set meal is cheaper than the ordinary one. Furthermore, the set meal is completed with three to four kinds of KFC products. Therefore, the customer can taste three to four different food products from KFC at once.

3.4 Dog Overall, the kids meal will be the dog product for the KFC. It is because the sales for the KFC for kids are too little. Lots of parent prefers to order the set meal and share with their children or kids rather than order a single kids meal. As for them, it is more expensive and the kids are not necessary are able to finish the respective kids meal.

4.0 Short and Long Term Goals & Objectives Short Term As for the short term, the KFC targeted two main goals and objectives. First at all, open 50 more outlets throughout Malaysia in next 5 years. It is because the management of KFC aim to increase the sales and volume of daily sales products within 50%. The respective increment will be used to do more research and development job in order to maintain as well as improve quality of the company products. At the mean time, the KFC also set the objectives of become fast food franchise with the most outlet and branches in Malaysia. It can be done by open more and more outlet and branch throughout the country. It is important as it can enable the KFC to dominance the whole fast food franchise market in Malaysia.

Long Term As for the long term objectives, the KFC is aim to become one of the listed company in KLSE. It aims to put the company as Berhad and enable the people in Malaysia to buy their shares in the stock market of Malaysia. Besides that, the KFC also aims to become the best fast food franchise company throughout the whole Asean include China and Korea. It is because for this time being, the China market is strongly control and dominated by the KFC main competitor, Mac Donald. The conquer of KFC in China market will ensure their profits and margin increase drastically then after.

5.0 Marketing Strategy Implementation 5.1 Market Segmentation There are two main elements which took into account for the market segmentation analysis, namely demographics and psychographic.

5.1.1 Demographics The changing demographics within the Malaysia especially more and more youngster population will do the favor for the KFC Holding Sdn Bhd. Therefore, the research and development department of KFC will need to design more and more food products which suit to the youngsters taste as the respective group of people will become the major customer for the KFC in the future.

5.1.2 Psychographic The respective psychographics are including personal traits, lifestyles and values. As for today, the lifestyle for the youngster in Malaysia is close to the fancy, luxury and busy life. Therefore, the KFC should design more luxury looks and meanwhile easy to bring and easy to eat products. It is very important as the respective customer can bring the food to outside and enjoy them outside of KFC building.

5.2 Market Targeting As for the main target of the market of KFC products, the detail as listed down below:

Youngster 16 years old 35 years old Working adults

Young Kids

Overall, the youngster who 16 years old to 35 years old will be the main target of the KFC products as they have the willingness and eagerness to spend the money. As for them, spend money is not a problem and they willing to spend more as long as the food is in good taste. Besides that, the second target group of KFC products is working adults. Such hectic life working adults will be one of the major customer of the KFC products as well as due they are lacking of time in go back home to enjoy their meal. Lastly, the young kids will be the minor part of customers whereby they will come accompany by the parents and share the food with their parent. They seldom have their own meal set as they might not be able to finish.

5.3 Market Positioning Today, KFC Holding Sdn Bhd is try to position their market to the family value. Lots of the advertisement will emphasize the important of the relationship between the family members and one way to tighten up the respective relationship is go to enjoy the dinner with the family members in KFC. Therefore, KFC will be position themselves as an ideal venue for everyone to feel the love and caring from the family members.

5.3.1 Marketing Mix

As for marketing mix, the KFC need to diversify the other product line. In other words, the KFC holding should create more and more different kind of products such as spicy, sour, sweet and bitty products in order to suit different taste of the customers. It is very important as it will make the KFC more special and unique compare to other ordinary fast food franchise such as Mac Donald.

At the mean time, the KFC also need to improve the quality of the certain products such as burger. It is because they still left behind in producing the burger for the customer. The strong competitor, Mac Donald is far more famous than them. The improvement of burger will enable them to compete closer with Mac Donald.

Lastly, KFC also need to review the set meal by diversify more and more type of set meal in various prices. It is because not everyone in the society are affordable to pay existing price in order to enjoy the foods. Thus, the adjustment in set meal with a fair price will make the respective even more welcome by the customers.

6.0 Conclusion As a conclusion, KFC is a strong competitive and potential company. The KFC products been well established and positioned in the existing market and KFC also well known as one of the most successful fast food franchise throughout the Asean country especially Malaysia. The unique and secret recipe had make their star products, hot and spicy chicken very different from the others competitor. Therefore, lots of cash been generated from the respective hot and spicy chicken products. However, there are still some strategies been proposed so that the sales and business of KFC will become even greater and better in the future and gain the competitor advantages in the respective fast food industry.

7.0 Reference

A. Internet Center for Management and Business Administration, Inc. (2006). The BCG Growth Share Matrix. http://www.netmba.com/strategy/matrix/bcg/ (8 September 2008). B. Wikipedia. (2008). SWOT Analysis. http://en.wikipedia.org/wiki/SWOT_analysis (8 September 2008). C. Wikipedia. (2008). Competitor Analysis.

http://en.wikipedia.org/wiki/Competitor_analysis (8 September 2008) D. KFC Holding Sdn Bhd. (2008). About Us. http://www.kfc.com.my (8 September 2008) E. Wikipedia. F. Wikipedia. (2008). (2008). Positioning Market (Marketing). Segment.

http://en.wikipedia.org/wiki/Positioning_(marketing) (8 September 2008). http://en.wikipedia.org/wiki/Market_segment (8 September 2008) G. Introduction to Marketing. (2005). Editor: Shawn Bellamy. USA. Mgrawhill, Pg 78 98. H. SWOT Analysis. (2004). Editor: Kenny Fredelin. Australia. Genuine, Pg 10 34. I. Boone, L., Kurtz, D. 1992. Contemporary Marketing. Fort Worth, TX: Dryden Press.

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