KFC’s Marketing Strategy – Actions that Led to KFC’s Success
KFC (Kentucky Fried Chicken) – A household name is one of the biggest fast-food chains in the world. Who wouldn’t want to devour the spicy crispy fries with world-class juicy sandwiches? Of course, we all would love to! KFC, headquartered in Louisville, Kentucky, is the second-largest food chain after McDonald’s. Founded in 1952, it has been more than 70 years since its inception. The best part is that fried chicken still caters to customers’ taste buds. Today’s blog will share a comprehensive analysis of KFC’s global marketing strategy.
Segmentation, Positioning & Targeting of KFC’s Marketing Strategy
KFC uses demographic segmentation to serve the market according to customer requirements. The majority of consumers are young and young adults. They used to serve similar menus globally. Therefore, they were using an undifferentiated targeting strategy. However, recently, KFC started to customise and localize the menu. This gave them higher acceptability amongst the target audience. Also, they changed their positioning strategy from a product-based strategy to a much more value-based strategy.
KFC is strongly positioned amongst consumers for the chicken menu. This is because few outlets offer vegetarian. However, when it comes to something non-veg, KFC is nothing short of fantastic. The chicken wings and chicken bucket is favorite amongst everyone. This targeting technique is the main reason why most non-vegetarian lovers love KFC. Let us share the details on the 4P’s of KFC’s marketing strategy.
Product Strategy of KFC
The product strategy is a brief outline of the products that a firm needs to sell its customers. For example, KFC is popular for its world-class chicken burgers and fries. However, the list doesn’t end here. KFC’s international marketing strategy keeps on introducing new items within the menu. Thus, it helps build a strong product strategy and supports marketing.
Some of the best products of KFC include:
Rice bowls
Chicken/Veg zinger burgers
Fiery chicken wings
Veg strips
Boneless chicken wings
Veg longer
French fries
Promotion Strategy for KFC
The promotion strategy is connected to the ways in which the products of a firm can be promoted in the market. For example, KFC promotes itself vigorously as the world’s second-largest fast-food giant. The promotion occurs through television ads, magazines, newspapers, and commercial hoardings. KFC has also sponsored the Big Bash League in Australia and many cricket games. Another critical aspect of KFC’s digital marketing strategy is the slogan “It’s Finger-Lickin”, good that reminds its audience about lip-smacking food products and delicacies.
Pricing Strategy of KFC
The pricing strategy established by the firms sets up the prices of their products to garner the audience’s attention effectively. KFC utilises a discriminatory pricing policy for all products. The products have different pricing and ratings. The food items sold in India are highly affordable. KFC promotes itself through multiple mediums like TV, social media, News Papers, and more. However, it is still lagging on sponsoring huge events.
The products sold in different countries have different pricing. Therefore, KFC used price skimming and market penetration technique. This means that when their competitors entered the market, KFC reduced the price a lot, and while introducing new products, KFC kept the prices to a minimum compared to the later stages. This helps them in getting the desired attention.
Placement Strategy of KFC
The placement strategy relates to tracking the places where a firm can contact potential buyers for the products. But unfortunately, when it comes to KFC’s market development strategy, KFC’s marketing team is extremely conventional to chalk out the grounds of their restaurants.
With its audience-winning strategies, KFC has become a big giant today. It has got more than 15000 outlets in 100 different countries. All the outlets of KFC are strategically opened in different areas where colleges, schools and offices are there. The reason is, that the youth is much more indulgent in fast-food products than the aged population of the country.
Distribution Strategy of KFC
With more than 18000 restaurants offering finger-licking fast food worldwide, KFC’s story and market strategy evolved a lot. The strong tie-ups and collaboration with supply chain partners have helped them serve the customers much better. KFC always keeps its outlets in premium areas like malls and shopping places. Also, the KFC outlets carry out delivery for online orders. Thus, KFC covers both offline and online deliveries.
Competitor Analysis in Marketing Strategy of KFC
KFC faces strong competition from Kokoriko, McDonald’s, Kyochan, and other local/national food companies. There are also local fast-food joints that offer head-on competition to KFC in developing nations. In developed nations, different fast-food companies like Subway eat up their market share.
Two of the primary competitors of KFC are McDonald’s and Subway. Both of them are in the category of burgers and sandwiches. McDonald’s specializes in the burger category while Subway specializes in sandwiches. However, subway has still not reached its distribution potential while McDonald’s and KFC are consistently at loggerheads with the global presence.
Brand Equity of KFC’s Global Marketing Strategy
At present, KFC is presently ranked 147 in the global ranking table. With sustainable positive brand positioning, the company was capable to create top of the mind awareness (TOMA). Moreover, KFC’s global marketing strategy is catering to the left-out segment that helped its brand building by introducing the veg menu and localisation strategy. Another crucial factor that strongly helped KFC is the continuous branding initiatives along with above-the-line and “below-the-line” marketing strategies.
Market Analysis in the KFC Global Marketing Strategy
More than 50% of the sales of KFC come from developed nations. However, the markets have a stagnant growth rate. On the other hand, developing nations like India have a very high potential for KFC. The market is still growing, but fast-food chains have a lesser acceptance rate in the developed market. Developed nations are becoming more health-conscious. Thus, only developing nation will share the market dynamics.
Quality and A Myriad of Products
The products of KFC go through a series of quality checks. This is a part of KFC’s global marketing strategy. The quality checks help retain their customers and the company’s goodwill. KFC sells a wide array of chicken preparation and ensures the best quality control. The quality check starts right from the beginning when they choose the raw materials in the manufacturing factories, the nutritional factors, cleanliness, and the process of making. Even the delivery to the outlets is checked consistently.
With the use of smartphones, new technology, and the internet, people’s online lives have become faster and easier. KFC also offers excellent direct online delivery, not just in collaboration with the delivery partners like Zomato & Swiggy. When it comes to KFC’s marketing strategy and promotions, who can forget the “Design Your Own Bucket” campaign by KFC.
The campaign participants had to come up with colorful and creative KFC buckets. The promotion got 5500 entries. And not just that, they also leveraged the occasion when cricket legend Sachin retired. They conducted bucket entries with the picture of Sachin when he retired.
Then there was the Currycature campaign by KFC’s promotion strategy, where the participants chose either a male or a female character with a wacky yet Indian touch and upload their pictures. The Wow Menu Option campaign was also on a 500/- rupee note. The KFC app allowed users to scan currency notes of Rs. 500 which would allow the users to buy various food within this budget.
The result of all these campaigns was KFC got featured in the top 5 socially devoted brands, the engagement became 3X times the industry average and it got placed in the top 5 fastest growing social media brands in the country.
How KFC Used Social Media to Turn Their Haters of It’s Fries into Fans
Did you know? With a budget of just £230,000, KFC used social media, print, and outdoor promotions to transform its haters of fries into fans. At KFC, the fries were the most complained about the product. It is a problem with every menu. 1/3rd of the complaints was about the chips. The chips were described as “bland” or “soggy”. This had a major impact on the brand image of KFC, especially because people showed high discontent on Twitter.
The Initial KFC Action
When they realised the problem, the fast-food chain changed the chips recipe in Ireland and the UK. It changed to a “tastier & chunkier fry”. The new chip was scoring great in research, but it also underperformed in real-life tests. This was because people had gotten used to the old chips and many loyal customers wanted to stick to the older version.
KFC’s global marketing strategy needed to shift its perception among the new and lighter users to grow the brand. This means it could not rely on the existing customers who accepted the old chips and fries. They had to change the fries. The main challenge was to manage the overall transition process to the new recipe of chips. This had to happen in such a way that the loyal fans who didn’t want the change didn’t feel that they were losing out.
The Next Step
KFC created messaging that talked about how the new fries were better than the old. However, the feedback from the test was that it wasn’t working well. Thus, KFC’s global marketing strategy took a new approach. They used behavioral economics. They realized that it had a loss aversion problem. People didn’t just dislike the new fries, but they were afraid of losing the old ones. Thus, highlighting the features of the new fries would not be enough.
Instead, KFC needed to acknowledge the problems with the old fries so that the new fries are seen as their “savior”. So, they launched the campaign “Ain’t No Small Fry” on Twitter. This was also backed up with the traditional media, where KFC paid to amplify the criticism of the old chips to the existing fans and also those who had tried to criticize the new chips. This was followed up with ads on the new chips.
The Results
There was a risk to this approach, but it paid off. Suddenly KFC’s new fries were at the top of the news. It also became the most-read story on the BBC. All of these were just on a budget of £230,000. The initial Twitter campaign had 3 million impressions. Overall, KFC’s marketing strategy campaign got a 25% share of voice in the quick-serving restaurant category along with 13.9 million images throughout social media. The best part is that this approach also led KFC to become the winner of the Social Media Awards at the Marketing Week Masters in the UK & Ireland.
KFC’s global marketing strategy campaign had a significant impact on business as well. It garnered a 62% increase in awareness of the new fries, which was well above 50%. Also, it had a 38%-point increase on the pre-campaign test. The taste scores increased throughout every measure. KFC’s trustworthiness increased by 4% and the food quality by 1%. KFC UK and Ireland got almost 670,000 more buyers through the campaign.
Some More Examples of KFC’s Global Marketing Strategy Campaigns
Undoubtedly, KFC took part in a wide array of campaigns to endorse its products. Not only social media, but they also took help of other modes of communication to reach out to people. Since KFC is a global brand, it had to invest in campaigns all around the globe to bring its products to its customers.
On TV programs like What’s My Line and I’ve Got a Secret were highly popular. They also took a great step when they hired actor Henderson Forsythe to play the Colonel in a TV program known as “The Colonel’s Way”. From then on, many actors played the Sanders role on-screen. This added to the brand value.
Awards & Recognitions
No doubt KFC is a successful company. KFC’s global marketing strategy has led it to receive various marketing excellence awards. KFC won the Marketing Excellence Awards in 2014. They attained Gold for Excellence in Market Research & Consumer Insights and Silver for Excellence in the Direct Marketing category. KFC won silver at the Loyalty & Engagement Awards for the best CRM strategy. They also got silver for the Best Use of Consumer Analytics & Insights. KFC is also recognized as the Relationship Marketing Agency of the Year at the Loyalty & Engagement Awards 2014.
In Conclusion
KFC created a revolution in the world of food lovers. They are constantly seeking ways to create good quality food and value for their customers. That’s what KFC’s global marketing strategy is all about. In today’s world, KFC is focused on retaining the brand and the customers’ loyalty. As the second-largest food chain in the world serving exclusive chicken dishes, KFC has been able to rule the market successfully. This is quite evident from the popularity, recognition and awards it received.
The KFC marketing strategy primarily includes SEO, content marketing, email marketing, social media marketing, and video marketing. However, the company pays special attention to social media marketing and uses the most popular digital marketing platforms to highlight its price and customer satisfaction.
KFC was successful because it created an authentic brand with a memorable name and specific recipes so customers could always expect high-quality food when they visit one of their restaurants.
Coupons, entertainment, premiums and exhibitions, have all been utilized by KFC to enhance their sales. The company has come up with various incentives that attract its customers to buy their various chicken products.
KFC advertises using the slogan "Its Finger-Lickin' Delicious" to persuade customers of the quality of its delectable food offerings. KFC is able to connect with its customers and communicate with them while educating them about its products and services thanks to its strong social media presence.
KFC's history of sustainable packaging innovation includes our commitments to make all customer facing plastic packaging recoverable or reusable and to source all fiber based packaging from certified or recycled sources.
We're not about novelty for novelty's sake. We have deep roots and we have an original founder. We cook our chicken from scratch and our restaurants celebrate that story. We use natural, high-quality materials and have all the conveniences to make our guests feel welcome and comfortable.
KFC quite early realized that time means money. KFC serves its customer fast, saving their time which encourages consumer to come to its services again and again. Retention of customer is higher in KFC and it is one of the major reasons behind the success of KFC.
The major markets for KFC include China (7,166 stores), the United States (3,943 stores), Japan (1,140 stores), South Africa (955 stores), the United Kingdom (928 stores), Thailand (853 stores), Malaysia (743 stores), Indonesia (742 stores), Australia (699 stores), and Canada (601 stores).
KFC focuses on unique recipes, menu items, restaurant design, and digital innovation to distinguish itself from competitors and attract customers worldwide.
By accumulating customer information through a loyalty program system, KFC can improve customer knowledge and provide menu personalization, offering each loyal customer what they love and are most willing to buy.
KFC uses mass media to advertise new products and promotions such as television and internet advertisem*nts. For example: Facebook. Subsequently, KFC uses direct marketing by distributing flyers throughout housing areas which consist of cut out discount coupon for products to get immediate response from consumers.
The "finger lickin' good" slogan was trademarked in 1956. After a local KFC television advertisem*nt had featured Arizona franchisee Dave Harman licking his fingers in the background, a viewer phoned the station to complain.
KFC offers a large menu, including sandwiches, sides, desserts, drinks, sauces, fill ups, buttermilk biscuits, and other products. In addition to its restaurants, the Company operates an online ordering system and home delivery service in certain markets. KFC additionally also franchises its restaurants.
HACCP is a management system for the assurance of food safety. The process includes identifying, evaluating and controlling hazards i.e. physical, biological and chemical to ensure food safety. It is applied from receiving of raw materials at our restaurant until serving to our customers.
Transparent: Along with communicating with customers. KFC was also transparent about the steps they took to bring the operations back to normal by providing a link to a page with all key information. Gratitude: KFC showed their gratitude to all the stakeholders involved by publicly thanking everyone who was impacted.
FareShare takes good-to-eat surplus food, which is unsold or unwanted by the food industry, and redistributes it through a network of almost 10,000 local charities and community groups.
A superior customer experience depends on several factors including customer service, product quality, marketing, technology and in-store experience. KFC has focused on all these areas to offer its customers a superior experience. Its focus on customer experience has transformed into higher sales and superior growth.
"We are so confident that our products will meet the expected standard and are of good quality, that we are willing to replace or refund your purchase, no questions asked, if you are not entirely satisfied with it," says KFC in the formal sheet of conditions that goes with the offer.
While embracing its principles of cooperation, respect, responsibility, transparency, and innovation, Kfc's main focus is on boosting the success of its business partners, employees, and consumers. KFC stresses earning the favorite of targeted consumers in their mission statement.
The five critical success factors are strategic focus, people, operations, marketing, and finances. How to find success factors? The first step in finding and identifying success factors is understanding the overall objective of a project and the processes required to achieve it.
Critical Success Factors (CSF) are specific elements or action areas a business, team, or department must focus on and successfully implement to reach its strategic objectives. Successful execution of these success factors should generate a positive outcome and create meaningful value for the business.
In the US, KFC's slogan is “Finger lickin' good.” The company stuck with this when moving its campaign into China, where unfortunately this phrase translates to “We'll eat your fingers off.”
Case studies usually agree on how this happened. KFC won this food fight because it localized better and faster, while McDonald's moved into the Chinese market with an outdated recipe for success that had worked when it expanded into other markets.
Key to KFC's success in the country has been its aggressive catering to Chinese tastes, with menu items that will never make their way to US restaurants. While KFCs in China serve fried chicken, they also serve a variety of local dishes like egg tarts, congee (rice porridge), and the "Dragon Twister."
KFC popularized chicken in the fast-food industry, diversifying the market by challenging the established dominance of the hamburger. By branding himself as "Colonel Sanders", Harland became a prominent figure of American cultural history and his image remains widely used in KFC advertising to this day.
KFC is one of the most successful fast-food chains in the world, with over 25,000 locations in 145 countries and territories. It has a brand value of $12.87 billion and ranks second after McDonald's as the largest fast-food chain globally.
On an 18-year quest spanning 24 countries and five continents a fast food lover hunting for the best KFC in the world has decided the finest “finger-lickin' good” chicken is in Mongolia.
KFC also puts a significant focus on making employees feel valued. This is manifested in the way employees treat each another, and is also achieved through the company's reward package. For example, all employees are eligible for a bonus through a range of schemes.
Direct marketing is a strategy where you address your audience without involving intermediaries. This means that you don't use third-party platforms like social media channels or blogging software. Instead, your communication with customers is done through channels that allow for a more direct, one-to-one conversation.
Emails, online adverts, flyers, database marketing, promotional letters, newspapers, outdoor advertising, phone text messaging, magazine adverts, coupons, phone calls, postcards, websites, and catalog distribution are some examples of direct marketing strategies.
The image of Colonel Harland Sanders is the most recognizable element of the KFC logo. The Colonel is shown in a white suit and black tie, with his signature goatee and glasses. The image of the Colonel is a nod to the company's founder and his original recipe of 11 herbs and spices that is still used today.
The logo of KFC represents the historical heritage of the company, depicting the portrait of the founder of the brand, Colonel Sanders. Harland Sander's image is accompanied by bold KFC lettering and a timeless and powerful color palette, composed of red, black, and white. Why did KFC choose its logo?
Hope is food and houses.I think that hope means that… you have enough trust.” Add Hope provides meals for 100,000 children every day and we thank you for your support. Remember that you can add hope in-store 365 days of the year.
KFC has divided the market into following psychographic segmentation: Classified by Social Class: Upper, Middle and Lower Class. Classified by Lifestyle: Luxury and Extravagance. Classified by Personality: Highly social, food loving, modern and ambitious individuals.
Differentiation: In a differentiation strategy a firm seeks to be unique in its industry. KFC follows a differentiation strategy as the recipe for its products is very unique and never been imitated.
A marketing strategy is a plan where a company or firm implements promotional tactics with the aim to win prospective customers over to become customers. Some examples of marketing strategies include promoting brand awareness on the Internet via social media platforms and search engines.
The most effective marketing strategies are those that are targeted toward a specific audience, focused on key benefits based on the audience's point of view and interests, and delivered at an appropriate time – when the audience is most likely to be attentive to and interested in the message being delivered.
Product differentiation enables firms in a monopolistic competitive industry have a competitive advantage over their rivals. For example, chicken sold by KFC, Red Rooster or Nandos may come from the same supplier. However, each of these restaurants cook, pack, or serve their end product differently from each other.
KFC uses a direct distribution channel. explanation A direct distribution channel is a type of distribution channel that involves a direct relationship between the producer and the consumer. In other words, the producer sells the product directly to the consumer, without going through any middlemen.
KFC (also commonly referred to by its historical name Kentucky Fried Chicken) is an American fast food restaurant chain headquartered in Louisville, Kentucky, that specializes in fried chicken.
KFC uses an integrated low cost/differentiation leadership, since it can count on its brand name and original taste and recipes to be unique while at the same time compete on price using the benefits of cost savings from economies of scale.
A differentiation strategy is an approach businesses develop by providing customers with something unique, different and distinct from items their competitors may offer in the marketplace. The main objective of implementing a differentiation strategy is to increase competitive advantage.
Michael Porter defines three strategy types that can attain a competitive advantage. These strategies are cost leadership, differentiation, and market segmentation (or focus).
Introduction: My name is Corie Satterfield, I am a fancy, perfect, spotless, quaint, fantastic, funny, lucky person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
