ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 2. Marketing Essentials

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Table of Contents
I. Overview of KFC in Vietnam 8
II. Executive Summary 8
 III. Situation Analysis 8
1. Marketing Environment and the impact of KFC 8
1.1. Micro environment of KFC 8
1.2. Macro Environment of KFC 9
2. Marketplace Information 10
3. Core competitor’s Marketing Mix 12
4.  Customer Analysis 14
5. KFC’s internal capabilities 15
5.1   SWOT analysis 15
5.2 . Competitive advantages 18

IV.  Marketing Campaign Objectives and Issues 18

V.  Marketing  Strategy 20
5.1 Positioning map 20
5.2 Segmentation 21

VI.  Creative concept 21

6.1 Customer insight 21
6.2 7P’s 22

I. Overview of KFC in Vietnam

II. Executive Summary

III. Situation Analysis

1. Marketing Environment and the impact of KFC

1. Microenvironment of KFC
a. Company 
KFC is the multinational company that has a chain of fast-food restaurants all over the
world. KFC is growing rapidly, by having their strong relationship with their customers and
the trust, which they have developed, in the past years employed are the main factors of
the company, and so they are very much concerned. The company has a very organized
check and balance system, which is used for the evaluation of the employee and the
individual outlet as well. 

In 1997, KFC opened its first restaurant in Ho Chi Minh City. Up to now, the restaurant
system of KFC has grown to more than 140 restaurants, present in more than 32 major
cities/provinces across the country, employing more than 3,000 employees
(kfcvietnam.com, 2020).

https://kfcvietnam.com.vn/vi/gioi-thieu.html  
 b. Customers 
The customer portfolio of the food and beverage industry is large. However, target customers of
this industry are young people with good income and willingness to pay for a delicious meal.
Besides choosing delicious food, there is an increasing number of people who are concerned about
health issues. They are based on customers' demand to deliver the best food and service quality.
Customers have many choices of dishes because there are many competitors in the fast-food
industry. So the market competition is very fierce. The major customer group of the industry is
individual customers. 

c. Competitors 
In Vietnam, the fast-food market is highly competitive. The fast-food market is not only fried
chicken, chips but also traditional dishes such as Pho, Bun, Banh Cuon, etc. Therefore, the pressure
to compete with competitors and the number of substitute products on the market is not small at
all. However, in the fried-chicken industry, KFC’s main rivals are Lotteria, Jollibee, and Texas
Chicken. This competition makes it quite difficult for KFC to maintain or even broaden its customer
base. After opening its first stores in Vietnam, KFC underwent a difficult time getting a foothold in
the market. With advertising strategies and menu changes to match the taste of Vietnamese
customers, KFC has successfully positioned its brand and competed with other competitors.
Marketplace information and core competitor marketing section will explain in more detail the
competition among brands in the fried chicken industry.  

d. Publics 
After many years of operation, the food and beverage must focus on public communication and
they have made a good impression on customers, the media, and the press. They have a lot of
reviews on their service quality, helping their marketing in a mouth-to-mouth style and helping KFC
overcome bad reviews. 

Besides, companies regularly do community activities and charity. In addition to helping the
society, they can also create a good reputation from these activities. KFC is one of the prominent
companies in the fast-food industry that regularly does charity bringing delicious meals to
customers, KFC also brings charity activities to society such as lunch with fried chicken for children
at Que Huong Humanitarian Center or fried chicken meal for the sisters and brothers at the Hiep
Binh Chanh Disability Sponsoring Center (KFC, 2020). And in the future, KFC will continue to
promote more charitable activities to contribute to society and the community. 
https://tuyendung.kfcvietnam.com.vn/hoat-dong-kfc/hay-la-chinh-minh/kfc-viet-nam-dong-hanh-
cung-chuong-trinh-di-bo-lawrence-sting-1 

e. Suppliers 
Suppliers play a very important role for fast food companies in general and KFC in particular.
Vietnam is a purely agricultural country so cultivation and husbandry are two main developed
industries. Therefore, the number of raw material suppliers to the industry is numerous, including
small and large-scale suppliers. That creates a huge advantage for this industry when it is possible
to use local ingredients while reducing input costs. 
For example, chicken farming accounts for 72-73% of the total annual poultry (nhachannuoi.vn,
2020). Therefore, with KFC - a fast-food company specializing in chicken, the source of raw
materials for chicken is very diverse, plentiful, and has many choices about suppliers. 
However, some companies using typical materials have to be imported, which has both advantages
and disadvantages. The advantage is a specific ingredient that creates a dish with a unique flavor
that helps the company easily compete with competitors in the industry. The disadvantage is that
 the cost of transport and storage is high, causing many businesses to choose to source materials
from the country as much as possible.

http://nhachannuoi.vn/tinh-hinh-chan-nuoi-nam-2019/ 
 

f. Marketing intermediates 
Market intermediaries are people or companies that help the company in advertising and market
access. In the early period of entering the Vietnamese market, it was very difficult for the company
to approach customers. If companies in the industry want to reach more customers, they must
have the right marketing strategy. Some companies will have a marketing department within their
organizational structure, others will cooperate with marketing intermediaries. the number of
marketing companies in the market is increasing, and their marketing plans are more and more
effective, which makes it easier for companies to implement the marketing projects they want.
Businesses often pay for marketing much money to run marketing projects for their new products. 

2. Macro Environment of KFC

a. Political
KFC's operations and other restaurants in the industry are influenced by government policies on
fast food business regulations. Restaurant owners should learn carefully about Law No. 55/2010 /
QH12 of the National Assembly: LAW ON FOOD SAFETY and comply with the regulations outlined in
the law (vanban.chinhphu.vn, 2021). Governments also control the license given for open the fast-
food restaurant and other business regulations need to follow such as for a franchise business. The
Vietnamese government does not mention as much about restricting the use of greasy foods to
limit obesity as in the United States. This is also an advantage for KFC in the Vietnamese market.
http://vanban.chinhphu.vn/portal/page/portal/chinhphu/hethongvanban?
class_id=1&_page=1&mode=detail&document_id=96032 

b. Economics 
The tax rate is an important factor affecting business activities, mainly income. At present, the tax rate
charged by the state for the food and beverage industry has risen. According to the People's Committee
of Hanoi, foods and drinks that are not good for health such as soft drinks, fast food, instant noodles
need to be excise tax (vietnamnet.vn, 2018). So when the tax rate increases, the price of products
increases, affecting consumer demand. This is an objective factor under government control. This is
also a challenge for companies to continue to comply with tax rates and to maintain and expand sales.
https://vietnamnet.vn/vn/kinh-doanh/tai-chinh/lo-dan-beo-phi-danh-thue-dac-biet-nuoc-ngot-bo-
quen-do-an-nhanh-426991.html 

The world is currently recovering from the economy after the crisis. The economy is being affected by
the Coronavirus disease. According to Viet Bach (2020), Vietnam is one of the few countries that have
well-controlled the Covid-19 epidemic but is still severely affected by the economy, showing clear signs
of recovery after 9 months, after the Covid-19 epidemic has been checked. checked through 2
outbreaks (March and July). In the first quarter of 2020, the growth rate will reach 3.82%, the second
quarter will decrease to 0.39%, the third quarter will increase again to 2.62%, bringing the growth rate
of 9 months of 2020 to 2.12%. . Although the growth is still a positive number, this is the lowest
increase compared to the same period of the years in the period 2011-2020 and is one of the few
countries with positive growth.Notably, GDP per capita is estimated at 2,750 USD, an increase of nearly
35.6 USD compared to 2019, lower than the growth rate of 2019 (an increase of about 144 USD)
(thanhnien.vn,2020). However, it still has a negative impact on the service industry in general and the
fast food industry in particular. many chain stores and private stores were closed. Nevertheless, there is
still an advantage due to lower rental rates and lower interest rates, which also helps business owners
reduce money pressure. In order to cope with pandemic, besides social distance, the Ministry of Health
in Vietnam also conducts research on vaccines to prevent epidemics and is in the stage of clinical trials.
If this plan is feasible, the epidemic will be contained (vass.gov.vn ,2020). Therefore, the economy will
also recover in the future, the unemployment rate will decrease, and the demand will also increase. 
https://ncov.moh.gov.vn/-/vac-xin-covid-19-made-in-vietnam-vuot-tien-o-du-kien 

 dựa vô dịch covid viết lạ yếu tố kte mà ngành sử dụng, (giá trị đất, mặt bằng, thất nghiệp, giảm tiêu
dùng,). dịch - nhiều cửa hàng đóng cửa- giá thuê mặt bằng giảm xuống- lợi. lãi suất cho vay- giảm áp lực
về tiền. nghiên cứu vaccine, đang có khả thi, khi có vacxin thì nền kinh tế sẽ phục hồi, giảm tỉ lệ thất
nghiệp, nhu cầu ăn uống tăng cao

https://vass.gov.vn/nghien-cuu-khoa-hoc-xa-hoi-va-nhan-van/Tac-dong-cua-dai-dich-Covid-19-den-
tang-truong-kinh-te-va-phat-trien-ben-vung-o-Viet-Nam-104 
https://thanhnien.vn/tai-chinh-kinh-doanh/nam-2020-moi-nguoi-dan-thu-nhap-binh-quan-2750-usd-
1294008.html?fbclid=IwAR2FE5wiiFptSkV2vHrYHnGUsFlRz_V6pdnf3_eA56kjvWQZ9USmbrpwmb0 
thêm số liệu về tax, tax tăng riêng cho ngành hay chung, tax tăng giảm hay bình ổn. tăng trưởng kte tác
động tiêu cực hay tích cực. tuy nhiên ngành dịch vụ bị anh hưởng tiêu cực, nhiều cửa hàng bị đóng cửa.

c. Social          
People nowadays are so busy that they don't have time to cook home-cooked meals. People have
been drawn to the fast-food industry because of its comfort, quick service, delicious food, and
attractive environment. As a result, consumer demand is rising, allowing fast-food brands to boost
sales and expand its brand. Their primary target customers are the young, and those with a steady
income who prefer fast food. However, more and more young people are concerned about their
health and appearance, and the regular consumption of fast food leads to a rapid increase in
obesity, heart disease, and diabetes. And high calories in fast-food including dishes on restaurants'
menu is seen as one of the causes, it makes consumers feel more reserved and cautious when using
this type of food. This is a major challenge not only for KFC but also for the fast-food industry. At
the same time, with many food safety scandals like super-speed and passive raising chickens,
feeding chickens with foods containing growth hormones to shorten the breeding time creates
scandals for industry. This is a problem that companies need to give importance to build a stronger
reputation. thay KFC bằng industry 

Nutrition table in dishes at KFC (nutrition-charts.com, 2021)

d.  Technology 
This is a dynamic and changing environment, high-tech application to production and business is
also crucial for companies, especially in the Facebook network, which is used by more than 24
million Vietnamese. This helps ads accessible to more consumers. In the age of technology
development, there are many apps created to serve the industry such as BAEMIN, GRABFOOD,
 NOW, etc. These apps often link with banking online apps, and this makes transactions more
convenient. các hoạt động quảng cáo thuận lợi, giao dịch nhanh hơn
 According to Ictnews (2020), scientists are currently cooperating with 3D Bioprinting Solutions of
Russia to develop the technology of producing chicken meat in the laboratory. Based on the use of
bio-3D printing, they hope to come up with a line capable of "printing" Nugget chicken balls from
chicken cells and plant materials. https://ictnews.vietnamnet.vn/kham-pha/khoa-hoc/kfc-san-
xuat-thit-ga-tu-cong-nghe-in-3d-sinh-hoc-258921.html 

e. Environment
Our world is getting concerned about environmental issues and businesses operating here should
not just care for profit, but careful usage of world resources for sustainable development and care
for environmental safety and health for our future generation. 
Because deforestation for farming is condemned, it causes farmers not to have arable land and
suppliers who supply meat are less. Another issue is that there are more and more food
contaminated pesticides and animal fed with a hormone growth food blend. Therefore, owners of
fast-food restaurants are considering switching to foods that provide protein but not the meat in
their diets.
Besides, food processing factories should pay attention to the treatment of waste and emissions to
avoid negative impact on the environment.
Restaurant has changed non-biodegradable packaging such as plastic straws and plastic bags to
environmentally friendly packaging.
 

bao bì, khí thải, phá rừng làm trang trại, thực phẫm nhiễm thuốc trừ sâu, động vật bị tiêm hocmon.

f.  Legal
To operate in Vietnam, the fast-food industry must comply with the laws set forth by the state. which
includes commercial laws on franchising, the law on food hygiene and safety, ... In addition, they have
to pay tax according to Official Letter 510 / TCT-KK (registration, declaration and tax payment for the
application. dependencies) (luatminhkhue.vn 2019). This tax payment will contribute to promoting the
economic development of Vietnam. https://luatminhkhue.vn/cong-van-510-tct-kk--dang-ky--ke-khai-
va-nop-thue-cho-don-vi-truc-thuoc.aspx 

2. Marketplace Information
According to Dcorp R- Keeper, there were 7,000 fast food outlets in Vietnam in 2018, compared to
540,000 food and beverage companies. Therefore, the projected figure of the total fast food
industry is about  64 billion.Despite a long presence in the Vietnamese industry foreign fast food
companies have long failed to capture a larger market share , KFC first opened its doors in 1998 ,
and by means of business strategy fried chicken products KFC has created confidence and
preference among Vietnamese consumers.

There are several branches of the fast-food industry, including pizza (Pizza hut’s revenue is 749 billion VND
in 2019), , ice cream(Kido’s revenue is 940 billion VND in 2018) , Pho 24’s revenue is 120 billion VND and so
on . Not to mention the chain of hundreds of trolleys, Vietnamese-style fast food shops with fresh desserts,
burgers, rice cakes, sticky rice…
Chicken is one of the largest sales divisions of small branches and specialist restaurant chains. Today's fast-
food industry is dominated by KFC, Lotteria, and Jollibee. 
The revenues of 3 leading fast-food chains in Vietnam including KFC, Lotteria, Jollibee totaled VND 4,3
trillion in 2019, Specific numbers, in turn, are 1,500 billion VND, 1.680 billion VND, and 1,100 billion VND
(vnexpress, 2020). Reflecting the success of KFC, the firm posted sales in 2019 of VND1.5 trillion, a 1.3
percent rise from the previous year. Joint Venture Company Limited recorded the growth rate is still
positive, but lower than the increase of 7.5% and 18% of the period two years ago. Lotteria and Jollibee are
two main primary competitors, each with a market share of 26% and 7%, respectively. From the above
results, we can see that KFC's growth rate is relatively slow each year when compared to the other two
companies.
 

 
 
 However, the most important distinction is gross profit margin from operating activities. This chain has
made a profit of over 100 billion VND in the last three years. Meanwhile, has changed dramatically, but
Lotteria, like Jollibee, tends to lose revenue. This may be attributed to varying accounting systems for
manufacturing prices, such as input matẻials or parent company formulas.
 

According to Kfcvietnam (2021), the Vietnam market - a new market with 140 restaurants
compared to more than 34,000 in the KFC chain worldwide, employing more than 3,000
employees while also creating more jobs in the supporting industry in Vietnam. KFC
decides to invest in brand growth, restaurant system design, and marketing campaigns in
the first step in order to create a potential customer base.

 Market trend
 With a population of over 80 million people, 65 percent of whom are under
the age of 35, and a phenomenal 5-year economic growth trend (2005-2010),
Vietnam is an incredibly appealing market. This contributes to fast food
companies.
According to Yum Restaurant International, Vietnam is a new market and has many opportunities to thrive.
The more customers familiarize and accept this food. According to a report published by Ho Chi Minh City-
based market research company Q&Me, KFC is by far the most frequently visited fast food restaurant chain
in Vietnam, with 45% of respondents frequenting its locations.
(https://www.warc.com/newsandopinion/news/kfc-leads-in-vietnam-but-fast-food-growth-slows/44041)
 

Young people were potential KFC clients. The consumers in this age range came from generation Y, and
they were between the ages of 18 and 24. However, they might be from the under 35 age demographic,
KFC approach the youth market in order to hit the psychology of young people who were interested in
Western cuisine.This was also the target of KFC's long-term business plan, which was in line with the
demographics of Vietnam's youth. KFC was the most popular fast food brand among student groups and
students in Vietnam. This was also the target of KFC's long-term business plan, which was in line with the
demographics of Vietnam's youth. KFC was the most popular fast food brand among student groups and
students in Vietnam.
 
KFC had extended their network, concentrating on metropolitan areas such as Hanoi, Saigon, Da Nang, Hue,
and others with easy transit, shopping malls, supermarkets, and amusement parks.
In HCM city, the fast food chain KFC experienced a surge in 2006, when customers decided to consume
more fast food due to its flavor and comfort.KFC has altered the flavor, scale, and style of its products to
cater to Vietnamese customers. KFC distinguishes itself with an 11-spice mix that gives fried chicken a
distinctive flavor. In addition, KFC also collects information before entering HCM City, most people in the
South like to eat sweets. KFC has added a variety of products processed with Vietnamese flavours, such as
Crispy Chicken with Lemon Leaf, Crispy Chicken without Bones, Soft Bread, mixed Cabbage, and particularly
some chicken rice dishes, to its conventional menu. KFC has generated interest and enthusiasm among
domestic customers by extending into new materials. (https://www.kfcvietnam.com.vn/en/about_us)

A recent survey also showed that 70% of people like to eat at fast food restaurants.

However, KFC continues to face strong competition from Lotteria and other potential competitors. As a
result, KFC will need to prepare for the future.

3. Core competitor’s Marketing Mix

a. Product
The secret formula of 11 herbs and spices which cost millions of dollars and it still
defines the irresistible flavor of KFC today.
  traditional dishes such as fried chicken and hamburgers, KFC tried to provide more
options in order to satisfy Vietnamese tastes such as fillet fried chicken, sandwiches,
 gravy chicken rice, mixed cabbage, and jumbo…especially egg tart is famous in KFC
menu. 
The size of hamburgers is also smaller to fit Vietnamese customers. KFC focuses on the
quality to catch up with customers’ demand and also takes care of customers’ health. 
In 2007, KFC found out that the normal oil contains high linolenic acid (8%) which could
cause a heart attack. .Therefore, they introduced a savory blend of six secret herbs and
spices and slow-grilled to juicy perfection which has less fat, calories, and sodium than
the original recipe fried chicken. This new recipe was applied in 5500 KFC restaurants
around the world, including Vietnam
Furthermore, in2004,  the bird flu epidemic exploded in most of the countries in Asia so
KFC imported chicken from North America as well as made close processing to ensure
food safety. Since KFC has a long-term strategy in Vietnam, they spend more time on
gaining market share and getting the loyalty of customers here.
b. Price

Price decision is a vital role to capture the market share. Although KFCextremelysucceeded in
foreign markets and became one of the best in the fast-food industry, they virtually had no
reputation when setting the first step penetrating in Vietnam. And KFCwasso smart that they used
a low price strategy when coming to Vietnam in 1997 in order to capture the market share before
other big competitors such as Lotteria, Mcdonald's Realized How potential Vietnam was. The
purpose of this low price strategy was that they wanted to retain a large number of loyal
customers. The other objective KFCconsidered when using this strategy was to maximize their
market share in comparison with other competitors in the Vietnamese market. In the fight for fast
food, KFC knew how to make itself more special than the others by possessing unique competitive
ideas such as combining 2 partitions into one called combo with lower price than having 2
separate dishes.

c. Place

Today, urbanization is growing very fast, most of the citizens become much busier and more
hurried. Therefore, fast-food plays an important role in their daily life. Besides, the youth seems to
be delighted with Western culture, they like modern style. That can explain why KFC Vietnam only
opened their stores mainly at commercial centers, department stores in big cities like Ho Chi Minh
And Ha Noi. KFC restaurants are designed to show both modern and quick service with eye-
catching decoration. Facilities are active and dynamic in red. When we go inside a KFC restaurant
we will see the brightness of KFC from logos to menu displays. All these designs seem inviting to
the youth

d. Promotion 

KFC has a website as well as a presence in social networking websites like Facebook, Twitter,
Instagram, and YouTube. It also has depended on mass media for promotion. The KFC
advertisements appear in print as well as broadcast media. Print media include newspapers,
magazines featuring a tempting display of KFC offerings, special offers, and prices. It also uses
billboards and hoardings on internal city roads as well as highways for advertisements. It is famous
for its taglines like 'Finger Lickin Good', 'Nobody Does Chicken Like KFC' and 'So Good' and these
are always included in the promotional activities. To promote its brand, KFC regularly has
charitable activities. This restaurant chain has contributed money to the charity fund of the
Association of Orphans and Disabled Children in Go Vap District. In addition, KFC also established a
volunteer team, KFC Team, to participate in charity activities, help orphans and disabled children,
and sponsor domestic sports tournaments.
e. People

• The people involved in providing services to the customers 

• The staffs working in the outlets are trained by the company itself 

• They are provided with certain guidelines to communicate with the customers

e. Process

•The process starts when the customers visit the outlet.

 • It also involves if the customers order the products online 

• The easier and convenient the process it will lead to greater customer satisfaction

f. Physical evidence 

• This refers to the physical environment of the outlets where the customers visit. 

• The interiors are made according to the certain standards given by the parent company

 • This also helps in creating a positive influence on the customer satisfaction 

• There is the use of good technology equipment

4.  Customer Analysis

CUSTOMER SEGMENTATION

In Vietnam, KFC has a new step in segmenting the market. KFC’s segmentation in Viet Nam concentrated on
HCMC and Hanoi with 45 restaurants (HCM city) and 19 restaurants (Hanoi).

Segment Demographic Psychographic Behavioral Geographic

characteristics characteristics characteristics characteristics
Age: 6-35 Lifestyle: High Occasions: day-off, urban : HN and
Income: Upper interest in fast birthday party  HCM
low to medium food  Usage rate: High
gender: Both or often ask Benefit sought: fun, eat
gender parents to go eat and play 
fast food (6-15) Users Status: potential
like to celebrate in and regular
places with Loyalty status: medium
amusement areas to high level 
Personality :
energetic and
native

Life style :  Occasions: Holiday,

-High interest in day-off, party, concert,
party and concert great night out.
(16-24) Usage rate: Medium
 -Spend more on Benefit sought: Fun,
 recreational activity drunk feeling, getaway
than any other age from the hectic
group Users status:
- Regularly dining Potential/regular/ first-
outside time users
Personality : Loyalty status:  medium
energetic and fun to high level (easily
attracted by other
brands)
- romantic place  City : Hanoi and
_Family- oriented -Drunk feeling  HCM city 
mindset (20-35) -Warm feeling 
Loyalty status : low to
medium 

CUSTOMER TREND

quẹt thẻ 

thích tiếp cận những món ăn mới 

In recent years, the food and beverage (F&B) industry in Vietnam has been marked by strong
growth. The changing eating habits of Vietnamese, with health being prioritized over convenience,
was cited by market observers as a barrier. A survey by VietnamCredit found that consumers' top
priorities when buying foods and drinks are Nutritious (60.3%) and Organic (51.5%).

The emergence of alternative segments, such as the expansion of the convenience stores which
also serve fast-food has also slowed growth for fast food brands, according to Euromonitor.

The pandemic has also had a significant result in the increase in eating food outside. The Q&Me
survey also found that most consumers (87%)  ordered food online from fast-food chains. Of
these, KFC was the most ordered at 52%, followed by Lotteria (30%) and Pizza Hut (21%). “Now”
was the most popular delivery app for fast food online orders with 24% of the respondents opting
for it, followed by GrabFood (20%). 

Because the trend of using payment cards and internet banking to be connected to the delivery
app makes purchases more convenient.

https://www.warc.com/newsandopinion/news/kfc-leads-in-vietnam-but-fast-food-growth-
slows/44041 (2020) 

Take a look at our survey to find out about Vietnamese fast-food eating trends as well as popular
chains. 
5. KFC’s internal capabilities
5.1   SWOT analysis
STRENGTH (S) WEAKNESS OPPORTUNITY (O) THREATS (T)
(W)
1. Reputation: (1) Price: quite (1) Demand (1) Competition:
KFC is the world's high for increases: People like Lotteria, Jollibee and
second-largest Vietnamese to eat convenient and so on are all well-
fast-food chain. from quick food without known brands that
(Toplist Viet, 2020) 35,000VND to taking too much time to are rival of KFC
2.  Franchise 100,000VND or process. (2) Disease: KFC's
store system: over (2) Consumer primary product is
over 140 (2) Human income: According to fried chicken, and
restaurants in Resources: Anh (2020), the many of its
Vietnam Lack of average income of the restaurants have
(Kfcvietnam. 2021) experience, Vietnamese population been hit by its H5N1
training costs, will rise by around USD outbreak.In addition,
(3) Customer but not long- 35.6 in 2020 compared covid 19 also has a
service: Free ship term work. That to 2019. The growth is significant impact on
service and there are leads to human poor relative to KFC's revenue
product promotions instability previous years due to because it causes
for customers (3) Menu: Food the negative effects of the KFC system to
(4) Financial rich in calories Covid-19. Because of stop working for a
resources: and cholesterol Covid's influence, the long time and still
According to can mostly income of Vietnamese incur costs of renting
Kfcvietnam (2021), cause obesity people also increases, premises.
the entire KFC is (4) Confusing which shows that in the (3) Consumer
owned by the Yum brands: future, the income level health: Most
Company. The Lotteria, will still grow steadily Vietnamese people
Company has over Jollibee all put health issues
39,000 restaurants in have red logos and priority issues
124 countries around like KFC's,
the world.  which makes it
This shows a strong easy for
financial source and it customers to
is an advantage for confuse
 KFC on the market in brands.
Vietnam.
(5) Business
location:
concentrated in
crowded places:
shopping malls,
supermarkets or in
the city center
(6) Product quality:
According to
Kfcvietnam (2021),
the KFC processing
chicken is new
chicken, 11 herbs
and spices. The
chefs are also heavily
qualified to guarantee
the nutritious
consistency of the
food according to
Yum standards!
International
Restaurant Group in
the United States.
(7) Time to enter the
market: KFC was
one of the first fast
food brands to enter
the market in 1997 in
Ho Chi Minh.
(Kfcvietnam, 2021)

5.2 . Competitive advantages

KFC's competitive advantages relative to KFC's rivals are Lotteria, Jollibee, and
McDonald's in the Vietnam market. First of all, KFC is the second largest food chain in
the world, behind McDonald's and also one of the first fast-food chains to penetrate
the Vietnamese industry, so that KFC can quickly take advantage of its brand
advantages and presence in the Perennial market to grab and boost the company's
market share and sales. In addition, all KFCs are part of the Yum Group. According to
Kfcvietnam (2021), with almost 39,000 restaurants in more than 125 countries and
regions, with more than 1 million staff and partners, the world's largest organization
specializes in restaurant systems. In the Fortune 500 list, Yum! ranked 213 with revenue in
2012 of more than 13 billion US dollars. This enables KFC to have strong financial
resources to develop strategies for competing with rivals. Finally, with 11 herbs and
spices, KFC uses totally fresh chicken. According to Yum! International Restaurant
Group, the chefs also ensure the quality of the product, giving KFC a unique taste.
Furthermore, the service is friendly and the atmosphere is warm. The golden key to
opening the door to KFC's success in Vietnam.

IV.  Marketing Campaign Objectives and Issues

 1. Objective 
KFC's ambition is to increase KFC's total sales revenue by 5% in Vietnam, especially
in metropolis cities like Hanoi, Ho Chi Minh, Hai Phong and Da Nang in a year.

2. Issues

According to Minh (2020), in 2019, the total revenue of these three chains reached nearly
4,300 billion VND, an increase of more than 11% compared to 2018. KFC Vietnam has
revenue in 2019 of nearly 1500 billion VND, only an increase of 1.3% compared to 2018.
The growth rate is still a little increase but lower than the year two years ago, respectively
7.5% and 18.3%. Therefore, KFC should launch campaigns to boost sales of the
company. 
While KFC chains in 2019 only hit 16-18 percent , Lotteria and Jollibee maintained in the
region of 50-60 percent , compared to many large-scale restaurant chains. This result
may be attributed to various accounting systems of manufacturing prices, relating to input
materials or formulations from the headquarter.
With revenues up 1.3 percent in 2019, but down from two years ago. Furthermore, due to
the Covid-19 virus, KFC began to decrease in 2020. KFC is currently concerned about
this. As a result, KFC must choose a brand that would be recognized by a large number
of people in order to widen the market and raise sales.
(https://vnexpress.net/chuoi-ga-ran-kfc-lotteria-jollibee-kinh-doanh-ra-sao-
4163173.html#:~:text=N%C4%83m%202019%2C%20t%E1%BB%95ng%20doanh
%20thu,11%25%20so%20v%E1%BB%9Bi%20n%C4%83m%202018.&text=B%C3%A1o
%20c%C3%A1o%20t%C3%A0i%20ch%C3%ADnh%20ri%C3%AAng,3%25%20so%20v
%E1%BB%9Bi%20n%C4%83m%202018.)

https://etime.danviet.vn/chuoi-ga-ran-kfc-lotteria-jollibee-kinh-doanh-ra-sao-
20200917151754202.htm 
V.  Marketing  Strategy
5.1 Positioning map

      The positioning diagram depicts the two features, "Year of Existence in Vietnam" and
"Speed," which reflect KFC's role in the Vietnamese fast-food industry. KFC's food
consistency and prices are considerably higher than those of international brands like
Lotteria, McDonald's, and Jollibee. In truth, KFC objects are still called intermediates.
Provided that the KFC's target is youth and that this is also the KFC's long-term strategic
goal, which is in line with Vietnam's youthful demographic system, this positioning
mechanism is justified. According to analysis, KFC is the most popular fast food commodity
among a group of students. KFC has extended its network, concentrating on young people
and shopping malls, stores, and entertainment areas, especially in major cities with
accessible transportation.

1. Marketing strategy
Customer insight
Gamer customers
Young people in Vietnam enjoy online gaming, so making sales games to increase revenue,
enhance their leadership status, and build deeper ties with the community is a smart idea
video gamer
Gamers are concentrated, adaptable people who don't want to be bothered by their
environments, which includes food. They often need fast and dry food, mainly if it can be
consumed while seated in front of a computer screen with only one hand. Fast food has long
been a favorite of gamers, who have ordered simple, fast, and time-saving dishes under the
slogan "Delicious finger-licking" from KFC.
 KFC National Chains is also ready to sponsor finance, equipment, services, or supplies to
support significant championships, including the Spring LCK, Summer VCS, or World
Championship of the year, and understanding Player thinking and external challenges make up
the iconic game.

 
2. Segmentation
Through research data (collected), KFC is the most used product by the group of pupils and
students (78%) and 49% for those with incomes below 1 million VND. This proves that young
people are the primary consumers of KFC products, and those with low income are the main
customers of KFC. Also, through the collected results, if you do not buy KFC products, Lotteria
accounts for 45% of customers' trust, thereby seeing that Lotteria is the main competitor of KFC. 
( https://ladigi.vn/chien-luoc-marketing-cua-kfc-tai-thi-truong-viet-nam )
KFC is mainly aimed at young people from 17 to 29 years old, families with children. Due to many
reasons, KFC has chosen the market as young people under the age of 30. With market definition,
KFC mainly focuses on the dynamic trend and the ability to access Vietnamese young people's
culture quickly. Besides, KFC also pays special attention to children, and it can say that they affect
their perception from the very beginning.
 
 
 
Socio-
demographic Occupation: Children, young adult, office worker, streamer,
characteristics especially gamer
_ Age range: 15 - 30 years old (This is a dynamic age, with the
fastest access to culture compared to other generations.
Regularly using fast food. Not only that, but this is also found
to be the age with the most players) KFC mainly focuses on
the dynamic trend, the ability to access culture quickly of
Vietnamese young people. In addition, KFC also pays special
attention to children, and it can say  that they affect their
perception from the very beginning.
_ Income: average salary (4 million to 6 million / month) and
high salary (more than 15 million / month)
_ All genders

Geographic There is much access to electronic devices everywhere,

Characteristics particularly in modern cities and heavily populated areas
with a high population density and many internet users.
 Behavioral Gamers need extreme concentration, flexibility and do not
characteristics want to be influenced by any surrounding agents, even
eating. Therefore, they always need fast and dry food can
mostly eat right in front of the computer screen with just one
hand.  
Every day, players spend at least 2 hours playing or watching
the tournament. They will not be willing to leave the
computer screen to do other things, even going out to buy
food.
Children often ask parents about birthdays or parties at KFC
stores. They usually like stores with integrated play areas,
love to eat sweet foods and crust.

Psychographics -Fast food is a favorite food for games because of its convenience,
characteristics quick ordering, and saving time
-Create convenience comes from one-click ordering food right in-
game
- The delighted fast-food children because of its variety and
deliciousness

 
 
3. Target customer
Traditional customer
KFC is aimed at people on a steady income who prefer chicken cooked with a deep-fried
food. They have a variety of chicken recipes to satisfy the tastes of their diverse customers.
Through visual stimulation and sublime advertising, they attract the attention of the
audience, which leads to people wanting to try their food, some just enjoying it.

Young people play games in Viet Nam

KFC will continue to be the most successful fast food brand among Vietnamese youth until
2020. In addition, KFC has selected the gaming community as the focus of media events in
Vietnam rather than funding the tournament, acknowledging the success of e-sports. And
League of Legends is the target demographic since it is the world's most successful esports
game, with nearly 3 million players in Vietnam alone (My Le, 2019).

II. Creative Concept

1. Customer insight
Young people play games in Viet Nam.
In Vietnam, League of Legends is a game loved by young people, so game sales to increase
sales strengthen its leadership position by creating deeper cohesion. With the League of
Legends gaming community.
Gamers are people whose concentration, versatility do not want to be disturbed, including
food, by the environment. They always need fast, dry food, significantly if they can eat
 with just one hand right on the computer screen. Fast food is a gamers' favorite dish
because it is simple and easy to order and saves time that matches KFC's "Finger Licking
Good" slogan over the years.
KFC National Chains are also willing to sponsor finances, equipment, services, or supplies to
support the big championships, including Spring LCK, the Summer VCS, or the World
Championship during the year, as well as knowing the mindset of the Gamer and the
various external challenges that make up the iconic League game.
Traditional customer
Customers like the fun atmosphere, cozy restaurant space with main red colors, polite and
luxurious decoration. One place that can integrate a play area, suitable with the needs
of Vietnamese families when there are children and the income of each household.

                 2. 7p
 
  Gamer Traditional
customer
( especially
children )

1. Product Packaging changes with game

themes Fast food include:
Change to a particular chicken coca, fried chicken,
order using boneless chicken or french fries.
nugget for one-handed enjoyment
of the chicken Use
environmentally
friendly
decomposition
paper or plastic
packaging, change
the packaging
according to
Vietnamese
holidays 

Phát triển sản phẩm

 Sản phẩm cũ thị trường mới  mới ( dạng combo
Mở rộng tệp khách hàng k cần nhiều trên nền tảng sản
chi phí  phẩm cũ )  ở thị
Thêm hoạt tiết phù hợp với chiến trường cũ vì những
dịch  nơi khác chưa đủ
  điều kiện , cần
nhiều chi phí và
chưa đủ ổn định về
thị trường

 
2. Price Combo "Ăn là thắng " for
gamers and streamer and
spectators: including 1 bucket
of boneless chicken or 1 piece
of Traditional Chicken + 1
French Fries (medium) + 1
Pepsi (medium) for only 95k.
• Combo " người hùng gà rán
" for gamer and streamer and
audience: includes 2 boneless
chicken buckets + 1 nugget +
1 Egg Tart + 1 Pepsi (medium)
priced at only 105k.
Gía mở rộng , mở ra giá mới
tệp khách hàng và đối tượng
mục tiêu mới tăng doanh thu
cho công ty 
Combo Kiddie 1 for
kids: includes 1
piece of Non-Spicy
Crispy Chicken or 1
Traditional Chicken
+ 1 French Fries
(medium) + 1 Pepsi
(medium), priced at
only 55k.
• Combo Kiddie 2
for kids: includes 1
piece of Non-Spicy
Crispy Chicken + 1
Egg Tart + 1 Pepsi
(medium) priced at
only 55k.
Đánh sâu thị trường
, nhắm đến mục
tiêu khách hàng
hiện tại của công
ty , giảm trên nhóm
trẻ em tăng combo
giảm giá
 3. Promotion Promotion
 Advertising on social network: The promotion will
youtube, Facebook, Home of the be applied for
game, through the famous streamer traditional
KFC has created 2 convenient fried customers using
chicken combos for gamers to design code from watching
for eating with one hand regarding streamers from
the menu. To order, gamers need to gamers or
click on the KFC-LOL icon without log- promotional codes
out of the game and buy like before. from KOLs, making
KFC's delivery service will be or reviewers, and
delivered to your doorstep within 30 influencers.
minutes. Advertising on the
KFC organizes offline activities at panel, TVC in
their chain stores such as offline crowded areas,
events for the Vietnamese gaming with traffic jams at
community, cosplaying League of peak hours such as
Legends characters, or designing a central street
space for gamers and fans to watch frames.
matches. . Giving away KFC coupons
to those who accurately predict the
tournament results
- Change the app wallpaper during
tournament time

4. Place

Almost all activities occur on social networks, so the location is usually through ordering,
advertising, and directly at KFC stores.

Input : Những partner cung cấp : thực hiện việc duy trì lấy hàng từ địa phương 
Output : Store đặt ở vị trí ngã tư đường có bãi đỗ xe , đường 2 chiều , đường lớn gần với
trường học và công ty , trung tâm thương mại 

Output nhà phân phối :duy trì trên social network delivery , now , shopee 

5. People

If the consumer has some problems when using the service or for any other reason, there will be
a hotline for users to respond immediately and find appropriate solutions for the system. The
software will have a customer support staff.

   Besides, users do not have to go to the store to purchase food during the Covid 19.
the outbreak, the delivery mechanism would be through shipper and push-button
service.

Duy trì các hoạt động training staff và tiếp tục cải thiện dịch vụ

Chương trình huấn luyện  gương mặt đại diện để thể hiện hình ảnh KFC tốt nhất 

6. Process

Traditional customers:  can pay via direct payment, banking, or scan a code

Gamer: Put fried chicken right in the game

Unlike other brand advertisements that affect the game, the KFC-LOL logo is compact, flexible,
easy to order, and does not distract gamers while playing the game.

 
7. Physical evidence
Change booth during the game event, change staff's color tone and color to match the occasion.
during that time, TVCs run regularly on the store's TV. Regular cosplayers, as well as gamers, will
increase customers' attention

WBS Name of Task/ From To  Content of Program/ Dept/ Person no.Of
Programs Plan/ Note  in charge person

1 Market Research 4- 4-Apr Research 40

Mar team 

1.1 Research 4- 18-Mar youth trends - 20

packaging Mar Vietnamese tradition -
associated with the
league of legends

Research price list 4- 11-Mar Competitor price 10

of competitor Mar research - compare
with KFC prices
Research 5- 5-Jun trend - improvement - 10
application  May customer retention-
collab with the League
of Legend
2 Product/ Service Development 267
development team

2.1 Packing 19- 26-Mar contact IT & Design design team 7

development Mar department - graphic
design according to
research ideas

Product 27- 27-Apr produce a few product 100

development Mar according to the team
blueprint, test and put
it into the big
production process
 product test 27- 30-Mar check product quality: product 10
Mar water permeability, etc team

product transfer 28- 4-May packing - transfer delivery 50

Apr process to KFC's team 
branches
Official launch 10- 15/8/2022 KFC stores will put the sales team 20
Jul new packaging into
operation

2.2 Price development 12- 12-Apr offers codes for financial team 10
Mar traditional customers,
and combos for gamers 

Price test 13- 13-May Testing at KFC sales team 9

Apr restaurants - looking at
the percentage of
customers who buy
combos at new prices

Official launch 15- 15/8/202 put into official for the sales team 30
Aug 2 entire KFC system
2.3 App development 4- 3-Mar collab with the League of Marketing 10
Feb Legends (in that team
condition)- make a
contract with a partner

Product 15- 15-Jun Design and create order IT & design 15

development May software team

Product test  17- 17-Jul employees in the IT & design 10

Jun company test-fix errors team
encountered-Pass it
over to the partner for
them to add to the
gaming software

Official launch 15- 15/8/202 Legendary alliance

Aug 2 partners will add to the
game officially
3 Marketing activities Run The campaign

3.1 Run advertisement 5- 5-Aug Marketing 25

Mar team

3.1. TVC
1

Film TVC 5- 5-Jun filming skip, studio, Marketing 10

Mar design/ edit team team
 Running Ads 6- 5-Aug Showing ads at Marketing 15
Jun crowded areas every team
rush hour ( twice a
day), cinema, airport,...

3.1. Planning online 1- 30-Jul SocialMedia Ads such Marketing 8

2 and offline ads Jun as Youtube, Facebook, team
Instagram. Design
leaflets
3.2 Promotion

3.2.1 Collab with KOLS 1- 1-May Discount Code 5

and Food May
reviewers

3.2. Collab with 1- 1-Aug Delivery App Code 5

2 gamers/streamers May
4 Evaluation

4.1 Rate of research 4- 5-Jun Customer satisfaction:

customers Mar High/ Develop the
responses interaction between
customer and KFC
stores

4.2 Market Reaction

4.2. Business partner  4- 4-Jun Delivery app and

1 Mar League of legend are
receive positive
feedback when collab
with KFC

4.2. Competitors 4- 4-Jul Race to collab with

2 Jun online games and
create discount code

4.2. Suppliers and 4- 4-Jun The number of

3 Vendors Mar customers especially 
the young adult are
increase
2. Channels Of Marketing

 2.1. Social Media

KFC has been interested in the media for a long time. They use community media to provide
consumers with genuine and significant interactions, build a knowledge channel that offers
enough data and reward schemes, and respond to all consumer requests. KFC would benefit from
increased cooperation not only in terms of its name but also in terms of the quality of its customer
support.


 KFC has used a completely different approach in this new effort. KFC also used a KFC-LOL
logo in the game so that players can order food quickly.
  Create a new image of Colonel KI in the ads and in the game.
 In the era of thriving Social Media, KFC is not out of the game when using Facebook,
Instagram, Twitter ... or banner ads to promote its coverage to the public. 

• In addition, customers can reflect their comments on the Fan page of KFC.

2.2. TVC 

• KFC is now recruiting KOLs in this initiative on YouTube and through most blogs.

• Advertise on commercial centers' LCD systems, such as BigC, metro, vincom

2.3 Offline

KFC hosts offline events for the gaming world, such as cosplaying League of Legends characters or
creating a design room for players and fans to watch matches.

KFC also adorned its restaurants with a series of images from the League of Legends online,
including POSM and the game's characters.

But KFC had to pay a significant expense from promotional video creation by uploading it on the
website to execute this advertising strategy. Not just that, but it takes money to print and make
signs and banners for offline ads.

A full and adequate advertising strategy needs to be developed, as KFC pays a little for
advertisement, while Vietnam, particularly in the rural areas, is a famous brand worldwide but still
very fresh.
REFERENCE

vnexpress. (2020). Chuỗi gà rán KFC, Lotteria, Jollibee kinh doanh ra sao. [online]
Available at: <https://vnexpress.net/chuoi-ga-ran-kfc-lotteria-jollibee-kinh-doanh-ra-sao-
4163173.html> [Accessed 3 March 2021].

Kfcvietnam. (2021). Kfc Việt Nam | Kfc Việt Nam. [online] Available at:
<https://kfcvietnam.com.vn/vi/gioi-thieu.html> [Accessed 15 February 2021].

Anh, V., (2020). Năm 2020 mỗi người dân thu nhập bình quân 2.750 USD. [online] Báo
Thanh Niên. Available at: <https://thanhnien.vn/tai-chinh-kinh-doanh/nam-2020-moi-nguoi-
dan-thu-nhap-binh-quan-2750-usd-1294008.html> [Accessed 15 February 2021].

Toplistviet. (2020). Top 10 Chuỗi Thức ăn Nhanh Lớn Nhất Thế Giới - Toplist Việt Nam.
[online] Available at: <https://toplistviet.com/top-10-chuoi-thuc-an-nhanh-lon-nhat-the-
gioi.html#:~:text=9.-,KFC,v%C3%A0o%20n%C4%83m%201930%20t%E1%BA%A1i
%20Kentucky.&text=Hi%E1%BB%87n%20KFC%20c%C3%B3%2018875%20c%E1%BB
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