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Digital Marketing Plan
Digital Marketing Plan
PLAN
KENTUCKY FRIED
CHICKEN (KFC)
SUBMITTED BY:
MOBASHREEN M I S
MBA II YEAR
1913323036024
DIGITAL MARKETING PLAN
To create awareness among the customers and create goodwill in the market
….
Ansoff Matrix of KFC
Market Penetration: Market penetration deals with the selling of the product or the service
in the particular market. KFC has focused on improving their presence in Brazil and
Argentina. Hence, the market penetration strategy can help in doing the same by placing the
existing products before the new target market. KFC can penetrate in the market of Brazil
and Argentina by increasing the number of outlets. The new outlets of KFC through
franchisee would help to reach out to new customers by selling more existing products and
thereby gain the market share. It would help to secure over the dominant market and
create a strong position in the market.
Product Development: The changes in the demography and the lifestyle of the people has
brought changes in the buying process. KFC should focus on extending the healthier options
by including more veg items and calorie-free items to the customers. This would help to
increase the target market which in turn would increase the sales of the business. People
have more conscious about their health, and hence they preferring calorie-free and fat-free
food. Hence. KFC should develop this product line, and this can increase their reach towards
the customers. It is recommended to KFC to create ‘Try Healthy, Be Healthy’ campaign in
which new healthy products would be launched.
STP:
Segmentation
Geographic segmentation: KFC has outlets internationally and sells its products according to
geographic needs of the customer. In India KFC focuses how geographically its customers
demand different products. In north India Chicken is the main selling product, while in the
south the Veg. items sell more than the chicken.
Demographic Segmentation: In demographic segmentation, the market is divided into
groups based on an age, gender, family size, income, occupation, religion, race and
nationality. KFC divides the market on demographic basis in this way:
Age is between 6-65.
Gender is both males and females.
Family size is 1-2, 3-4, 5
Income is Rs 10,000 n above.
Family lifestyle is almost all.
Psychographic segmentation: Dividing a market into different groups based on social class,
lifestyle, or personality characteristics is called psychographic segmentation. KFC divides
market on the basis of psychographic variables like
Social class- Upper and Middle class.
Lifestyle is not specific.
Personality is ambitious and authoritarian
TARGET MARKET
As the outlets of KFC are in posh area and prices are too high (overhead expenses-rent, air-
conditioning, employees), so KFC targets upper and middle classes. Target market depends
upon size and growth rate of population, Company resources and structural attractiveness
of market segment.
Market Positioning
KFC uses its attributes to Position its Product (Fried Chicken) For a product to occupy a clear,
distinctive and desirable place relative to Competing products in the minds of target
consumer. In KFC feedback is taken from the customer in order to know the customer
demands and then improvements are made in products. KFC focuses on pure and fresh food
in order to create a distinct and clear position in the minds of customers KFC has a strong
brand name and they are leading the market in fried chicken.
5. TACTICS AND ACTION
KFC for its penetration and product development strategy can make use of the following
marketing tactics and actions:
1. Social media advertisement: KFC can advertise about the new product launch in the
social media sites. Facebook, Twitter, YouTube, Instagram and Snapchat have
increased the accessibility of the business towards the customers. The new
advertisements about the new outlets in Brazil and Argentina and the new healthy
food items would increase the awareness of the customers.
2. Pay per Click (PPC): PPC would help KFC to bring customers from different sites to
their page that would encourage to try out their new products. The new healthier
product line that would be launched can be advertised on different websites along
with a link, a click on which can bring the customers to the main page of KFC.
3. Sponsorship: KFC can work on their corporate social responsibility through
sponsoring events. For instance, the positioning strategy and the product
development of strategy revolve around ‘Try Healthy, Be Healthy’. Hence, sponsoring
campaigns and events on health and wellbeing and obesity prevention will not only
increase the goodwill but would increase the trust of the customers and increase
sales.
4. Referral: KFC can develop the customer portal to influence the customers and the
fans to share the positive sentiments about the new products or the outlets of the
business. This would help to strengthen the relationship between the customers and
the business. Social media message and blog post can help to carry out this type of
marketing tactics by KFC.
6. CONTROL MEASURES
The management of KFC needs to develop control measures to ensure that the marketing
plan is successful. The control measure that can be used in this case is illustrated below:
Control Measures for the KFC Marketing Plan
The variables that can be used for the performance standards are:
1. Sales figure
2. Market share
3. Profitability
4. Consumer feedback
The result of the marketing plan can be obtained through survey and feedback. In case, the
results are positive then the marketing plan would be successful and if contrary then
corrections and alternations would be made.
7. OPERATION PLAN
The operation plan for the marketing would include certain factors which are discussed in
this section:
1. Customer Relationship Management (CRM) is essential to establish a connection
with the customers. Innovation and technologies are essential to establish the CRM
and make KFC more customer-centric. CRM would help to better place the brand
and strengthen the relationship with the current and future customers.
2. Website optimisation is essential for KFC as it is a marketing tactic and it would help
to develop the connection with the public. The website of KFC would be more visible
to the public as it would appear higher in the search engine. This would help to
increase the popularity of the brand.
3. The perception of the customers about the new launches and the new outlets would
be acquired through a survey. The customers would be surveyed online in social
media or through websites to know about their preferences for the products.
4. A unique marketing team would be developed for establishing the concepts and
carry out the marketing tactics and also collect data at the end of the marketing.
COMPETITORS:
McDonalds.
Burger King.
Subway.
Dunkin Donuts.
Starbucks.
Pizza Hut.
Domino's Pizza.
Taco Bell.
CONTENT MARKETING:
KFC has two basic content marketing strategies.
One: make weird chicken-related stuff and enjoy lots of media attention.
Two: make actual content on inexpensive platforms like YouTube. Of course, they
sometimes do both.
KFC's current content split is around 75% planned and 25% tactical - though the brand's
working to bring that split closer to 50/50 with the help of its in-house creative team.
The words in black box are the landing page title, the word in red box is the URL of the
landing page, the words in purple box are meta description and the words in brown box are
call to actions.
For paid Ad, KFC is ranked second which is considered at the top positions. To be on the top
rank, KFC must have high CPC and CTR. In addition, only when an internet user clicks on the
paid Ad link, KFC will then have to pay (cost-per-click). Furthermore, the higher the clicked-
through-rate will result a higher advertisement rank as it is by this formula Ad Rank = Max
CPC x CTR. Since KFC is at the Top position, it also means that the link has been clicked a lot
of times by internet users.
However, high relevance of the landing page also results KFC to be at the top rank. For
example, when searched the key word 'fried chicken singapore', the landing page that the
internet user will go to has the information that they want. Therefore, they will stay at KFC
delivery page and not go back to the SERP to search for the correct information they want.
RELEVANCE
This shows that the selection of keywords for KFC’s webpage is of high relevance, as the
search result for KFC’s webpage came out from the keywords ‘fried chicken’ and ‘popcorn
chicken’ and did no came out with irrelevant keywords.
TRAFFIC
Brand keywords have lesser volume searches, an example will be Popcorn chicken KFC
Singapore. Non-brand keywords have a higher volume of searches, an example will be fried
chicken Singapore.
COMPETITION
They usually use long tail keyword phrases with lower competition such as, ‘2 pcs fried
chicken combo’ instead of ‘fried chicken singapore’ as it is not so competitive. KFC is ranked
as the 7th position on the webpage and above it there are other 6 links above are related to
fried chicken but they are not related to KFC. However, if ‘2 pcs fried chicken combo’ which
is a long tail keyword phrase is searched, the first few positions are related to KFC.
Furthermore, which can be seen in the trend, the key words 'fried chicken' and 'burger' are
not frequently search by internet user as compared to 'KFC delivery'. This is because KFC is a
successful brand and people knows it. Hence, they will usually key in the key word 'KFC'
instead of using other key words to find KFC.
EMAIL MARKETING:
KFC collects customer database through the registration of member cards for KFC usage.
This is to enable KFC to collect customer’s information especially regarding the email. KFC
sends regular marketing newsletters, product or service updates, promotions, daily deals,
coupons, voucher codes, discounts. When there is new promotion or new meals, KFC could
send these exciting 1st - hand news to the customer’s email with relative cheap cost and
convenience. This could both inform and remind customers to dine or take away in KFC
restaurants.
MOBILE MARKETING:
KFC set out to build a new personalized communication channel to drive customer
frequency by building true loyalty instead of functional loyalty. Their specific goal was to
increase foot traffic and to take advantage of a dynamic CRM system, loyalty program and a
leading-edge mobile app.
To achieve this goal, KFC focused on customer experience in their mobile app generating
impressive results in just a few months:
25 percent of customers used the app during their visit with KFC driving engagement
through a combination of personalized communication and proximity-based
rewards;
The customer win back campaign with a giveaway of a free and premium Colonel
Sanders sandwich to lost customers had a high open rate of 34%, helped grow
revenue with a 14% “win back” conversion rate;
The restaurant increased visit frequency by performing other simple steps including
automated birthday greetings;
Mobile marketing helped grow same store revenue by 12%.
What KFC proves is that restaurants seeking improved customer loyalty and increased same
store revenue should take a closer look at mobile. According to Google Shopper Marketing
Agency Council, 90% of smartphone owners use their device for pre-shopping and shopping
activities while Customer Insight Group highlights that 73% of customers actually want a
loyalty card on their device. This means that mobile is a preferred method of building loyalty
and brand engagement when it comes to restaurant customers. It’s also crucial to reach
mobile users at key moments when they are deciding on a place to eat. The right mobile app
will work to get more foot traffic in specific locations, grow the CRM database, make
ordering for customers more efficient, and provide staff quality control.
WHATSAPP MARKETING
WhatsApp is going to be the next big platform for marketing not just among youngsters, but
especially among the older audience aged 50 and above. This is because the young crowd is
more active and present on Instagram and Facebook, but the older audience in the 45-50+
age range is much more active on WhatsApp.
The stickers are usually meant either for a particular location or something topical. It's a
good medium where you can remind audiences about your brand. It's all about long-term
brand building and WhatsApp stickers and GIFs help create the recall value we desire our
brands to have.
KFC is taking to sticker marketing on WhatsApp, smaller players operating in a city or state
level are also trying to make the most of the trend. As WhatsApp does not yet support
brands to advertise on the platform, these brands fall back to creating engaging content and
then leveraging WhatsApp’s ‘sharing’ behaviour to reach audience. GIFKaro, a GIF based
content production company. Brands like GIFKaro, Gifskey, Xploree, BobbleAI are some of
the tech start-ups actively helping brands to ‘sticker or gif’ their communication. This kind of
marketing is a well-practiced one in the West.
KFC had partnered with mobile app Tenor for GIFs featuring the brand's mascot alongside
buckets of chicken with love-themed messages around Valentine’s day. These GIFs were
available via Tenor's GIF Keyboard app and also integrated into Facebook, WhatsApp and
Twitter. The campaign was a huge hit.
SMILE TO PAY
Alipay has launched a new way to pay for your KFC in China — by smiling. Redefining the
term “happy meal”, fast food fanatics in China now just need to flash their smiles to earn
their dinner. The service allows customers to process their payment simply by smiling after
placing their order at one of the fast food restaurant’s self-serve screens.
A 3-D camera then scans the customer’s face to verify their identity. An additional phone
number verification option is available for added security.
So far, the facial payment system is only available at a single KFC in Hangzhou, China. The
company behind the technology, Ant Financial, an Alibaba subsidiary, says its Smile to Pay
technology needs about one to two seconds of facial scanning with a 3D camera and a “live-
ness detection algorithm” to check the identity of the person paying, who must also enter
their mobile phone number to help guard against fraud.
CONCLUSION:
KFC is a major quick serving restaurant (QSR) serving over 12 million customers on a daily
basis through its 40000 restaurants in 130 countries. This digital marketing plan views the
marketing strategy that KFC implements. Prior to that, the plan gives an introduction about
KFC, its SOSTAC analysis. Throughout the years, KFC has lost a large number of their market
share to other healthier fast food restaurants due to the fact that consumers have become
more health conscious.
In response to the consumer’s demands, KFC introduced a healthier product that is mainly
targeted at health-conscious people. Being in “Maturity Stage” it has high opportunities of
introducing its new products and deals. In Future it will be expanding its chain by
introducing more outlets all over the world by using proper usage of digital strategies.