Title: How can a sales promotion strategy increase sales?

A case study of KFC, Marble

Arch.

Acknowledgement

First, I am very grateful to almighty God who enabled me to complete my dissertation.

After that I would like to thank my honourable supervisor who guided, advised and help me
continuously during planning and writing my dissertation.

I would like to thank my parents, husband and brother who always inspire me and my friend
Sharif who share his knowledge with me during dissertation time.

I would also like to thank RGM of the KFC and supervisor Shikdar who provided me
valuable information of the organization.

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 Chapter 1

Introduction

1.1 Introduction:

Recently, for marketers sales promotion is a very important tool and its significance has been
growing appreciably over the years (Dang et al., 2005). The effects of the growth of the sales
promotion depends on different dimensions such as consumers’ price perceptions, brand
choice, brand switching behaviour, evaluation of brand equity, effect on brand perception and
soon. (Kotler, 2002; Blattberg and Neslin, 1990). Sales promotions optimistically influence
shot-term sales (Priya, 2004).
The main aim of this research is to get the answer to the question of how can a sales
promotion strategy increase sales. This introduction chapter represents:
 Background of the research;
 Research aims and objectives;
 Research questions;
 Company overview;
 Rationale for the topic selection;
 Purpose of the research;
 Methodology used;
 Limitation of the research and
 Structure of the dissertation.

1.2 Background of the research:

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For centuries sales promotion has been much known. Traders have been used free samples,
money-off and additional price (e.g. two for one) etc. to attract customers for a long time.
(Egan, 2007). American Marketing Association (AMA), 1988 defined the sales promotion as
a media and non-media marketing demands applied for a prearranged, short time in order to
stimulate trial and impulse purchases, increase consumer demand, or improved product
quality (Wells et al., 2003). Currently, sales promotion is given more emphasize than
advertising in the UK and its growth has been increased by several factors including: the
progress towards relationship marketing and worthwhile loyal customers, the appearance of
promotion-literate consumers who look forward to promotions with certain product types,
price-sensitive customers look for value for money promotions due to recessions, etc. (Smith,
1998). By using sales promotion strategy, extra incentives are offered to consumers, sales
representatives and trade members to take action. Some roles of sales promotion includes: it
provides the product or service additional value and encourage consumer to respond; supplies
the manager immediate outcome results; less costly than advertising; offers the recent
requirements of the customers for getting more value from the products; and responds to
changes of marketplace (Wells et al., 2003).

Sales promotion comprises some strategic role to take part in the promotional mix. Usually
sales promotion is a short-term tactical tool that can be used offensively to provoke the trial
of new products, or defensively for well-known products to keep shelf space and consumers.
Actually sales promotion is oriented to purchaser deals and temporary price reduction, in
particular, do modest to supply to the overall tactic adopted for an organisation or even
manufactured goods (Davis, 1992; O’Malley, 1998). So, sales promotion must be a part of
an advanced and longer-term approach. If sales promotion is coordinated with the other
performance of the promotional mix, such as advertising and long time planning, then the
proper strategic effect of sales promotion activities can be achieved (Fill, 2005). The reasons
for the effectiveness of sales promotion strategy include: sales promotion makes it possible
one offer to assemble on the preceding one; set up a stability of communication; enables to be
in touch image and functional values, so sales promotion works harder; it can save time and
money; it is capable to be incorporated with other marketing programme activities such as
advertising, public relation and it offers a better technique to join promotion (Cummins,
1990).

1.3 Research aims and objectives:

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The aim of this dessertation is to provide the answer of “How can a sales promotion strategy
increase sales”? In this perspective the following objectives have been set:

1) To review literature about strategy, marketing, branding and how sales promotion
strategy can be effective regarding increasing sales.
2) To identify the main objectives of the sales promotion strategy set by KFC.
3) To identify the main reasons for the growth of sales promotion strategy of KFC.
4) To investigate the ineffectiveness of sales promotion strategy of KFC.
5) To investigate the effectiveness of sales promotion strategy of KFC.
6) To investigate the measurement of the effectiveness of sales promotion strategy used
by KFC.
7) To provide recommendations to KFC in order to improve the effectiveness of the
sales promotion strategy that is used by this fast food company to increase sales.

1.4 Research questions:

The research process will concentrate on the basis of research questions that are one of a
number of key questions. Research questions are frequently the predecessor of research
objectives (Saunders et al., 2003). In this research the following research questions are
selected to meet the requirements:

1) How can strategy be defined and what are the generic approaches to strategy?
2) What are the strategic roles of branding in the fast food restaurants market?
3) How can marketing communications play a vital role in the development of brand?
4) What are the effective and ineffective sales promotion strategies?
5) How can KFC make sales promotion strategy effectively to increase sales?

1.5 Company overview:

KFC (Kentucky Fried Chicken) is part of Yum! Brand incorporated which is the world’s
largest restaurant company. Yum! Brand incorporated comprises of 5 central parts, quick
service restaurant (QSR) concepts e.g. KFC, Pizza Hut, Taco Bell, A&W and Long John
Silvers. In the mid 1930, KFC was originated from Colonel Sander’s first cafe in Corbin
which is a small town next to Louisville, Kentucky, USA (Employee handbook, KFC). In
1965, the concept of KFC was initiated in Britain and the first store was operated in Preston.

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In 1986, KFC was followed by the joint venture operation with Trust house Forte and
PepsiCo. In 1997, PepsiCo Inc. declared to become independent restaurant company. Then,
KFC turned into the part of the Tricon group which is the world’s largest restaurant group. In
2002, the name of Tricon changed into YUM! Brand Inc. Because of the changes in the
ownership, the potency of the KFC brand has been spreading out of the UK & Ireland
restaurant network in more than 700 locations, some are company and some are franchisee.
The first US quick-service restaurant was KFC to enter into the UK. The success of
exceptional restaurant values has also resulted in the British operation performing as a
guidance stand for many of the new KFC restaurants functioning throughout Europe (Web 1).
The year, 2009 was KFC's greatest success increasingly in Britain, with sales growth in a row
at a well 10 per cent year on year. Such is its assurance that it strategy to expand its current
780 outlets with additional 45 to 50 over the next six years (Campaign, 19 th February, 2010).
In the recession, KFC held strong growth in the market as individuals were drawn to cheaper
deals. Chief executive Martin Shuker stated that he thought the chain was not only obtaining
market share from competitors like McDonald's, but that the division as a whole was rising.

1.6 Rationale for the topic selection:

The topic was selected due to the personal interest of the researcher in the area under
discussion of sales promotion strategy especially in fast food industry. The topic is related to
the effectiveness of sales promotion strategy to increase sales. In this recession, sales are
down in most of the places and sales promotion is a strategy that can boost the sales by
offering incentives to promote people in particular product, brand. Recently, most of the
consumers want to switch brand if they get better offer from other brand.

KFC, the fast food industry has chosen as a case study because KFC mainly brings
promotions to increase their sales when faces less busy in the store, also competitors.
Normally most of the retail companies bring promotions occasionally, seasonally to boost
their sales. But the fast food industry is quite different in the area of sales promotion.

There are also interesting sides conducting to this research that the objective and
measurement of the sales promotion, how strategic effects of sales promotion can be achieved
and find out the ineffectiveness of the sales promotion. As a result the data gathering from
this research that can lead to provide a better idea about the effectiveness of sales promotion
strategy regarding increasing sales by KFC restaurant.

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1.7 Purpose of the research:

The main purpose of this research is to get the answer to the question of how can a sales
promotion strategy increase sales. Recently sales promotion has given more emphasize than
other promotional tools. Consumers are always expecting the offer such as coupons, rebates,
price reductions etc. because now they are more conscious about the product, price, brand
and they have more options in this competitive market. Sales promotion is not only increases
sales but also increases the brand value and attracts customers.

1.8 Methodology used:

In this research, qualitative research method has selected for the restaurant general manager
(RGM) and quantitative method has selected for staff and customers for the purpose of
primary data collection. Sampling process is triangle e.g. RGM, staff and customers. For the
purpose of the research design, mainly exploratory and explanatory study has selected and
also some elements of descriptive study are chosen.

1.9 Limitations of the research:

The main limitation of this research is time. Due to triangle sampling process it has taken
long time to contact with restaurant general manager, staff and customers. RGM was in
holiday, that’s why researcher had to wait for interview and staff does not want to speak
before finishing their jobs because of not getting permission from shift manager. So, more
time and efforts were required to collect primary data.

1.10 Structure of the dissertation:

For the purpose of this dissertation, this research has divided into five chapters. The first
chapter represents the introduction, second chapter represents the literature review, third
chapter represents the methodology, fourth chapter represents the findings of this research
and the fifth chapter represents the general conclusions with recommendations are in the
following figure:

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Figure-1: Structure of the dissertation.

Introduction; Background of the research; Research aims and objectives;

Ch-1: Introduction
Research questions; Company overview; Rationale for the topic selection;
Purpose of the research; Methodology used; Limitation of the research and
Structure of the dissertation.

Introduction; Strategy definition and generic approaches to strategy; The

concept of marketing; Corporate level strategy and it’s link with marketing
communications; The definition and the concept of brand; The strategic
role of branding; The role of marketing communications in branding;
Branding through taste, smell and sound in fast food industry; Sales
Ch-2: Literature review
promotion; Objectives of sales promotion; Developing sales promotion
programme; Reasons for the growth of sales promotion; Ineffectiveness of
sales promotion; Strategic approach of sales promotion; Profitability of
sales promotion, Sales promotion of KFC at different time and impact on
sales and Summary.

Introduction; Research aims and objectives; Research design; Data collection;

Ch-3: Methodology
Survey design; Sampling; Data analysis; Limitations of the research and
Summary.

Ch-4: Research findings

Introduction; Findings of qualitative research; Findings of quantitative
research and Summary.

Ch-5: Conclusions and Summary of key findings and Recommendations.

recommendations

Source: Created by the researcher.

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 Chapter 2

Literature review

2.1Introduction:

Sales Promotion is needed to create whenever a marketer wants to enhance the value of its
product by offering additional incentive to pay for a brand or product (Wells et al., 2003).
Sales promotion is a practice that combining a set of communication tools and techniques,
implemented within the framework of the marketing plan intended by the firm, in order to
persuade among the target groups, and also the acceptance or the variation of a consuming or
purchase behaviour in the short and long term (Ingold, 1995).

This chapter represents a conceptual framework of strategy, marketing, marketing

communications, branding and finally sales promotion strategy. This chapter focuses:

 the definition of strategy, generic approaches to strategy;

 the marketing concept and the need for marketing information;
 corporate level strategy link with marketing communications;
 the definition and concept of branding;
 strategic role of branding;
 role of marketing communication in branding;
 branding through taste, smell and sound in fast food industry;
 the definition and objectives of sales promotion strategy;
 developing sales promotion programme;
 reasons for the growth of sales promotion;
 in-effective sales promotion;

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  strategic role of sales promotion;
 profitability of sales promotion;
 consumer responsiveness to sales promotion deals;
 sales promotion of KFC at different time and impact on sales.

2.2 Strategy definition and generic approaches to strategy:

Over the long period strategy is the way and possibility of an organisation, which achieves
benefit in a changing environment through its formation of resources and competences with
the aim of satisfying stakeholder expectations. (Johnson et al., 2008).

In an organization, Generic strategies are a means of generating fundamental strategy. They

are dependent on looking for competitive advantage in the market place. There are four types
of generic options: Cost leadership, differentiation, focus differentiation and cost focus. The
aim of the cost leadership is to put the organization in the midst of the lower-cost producers
in the market. It does not mean the low prices, but more than standard profits come from
charging standard prices. The aim of differentiation is to develop and target a product in
opposition to a main market segment. For the reason that the product is especially developed,
it ought to be probable to add a small premium to the standard price. Differentiation has a
cost but this must be higher than compensated for in the superior price charged. The aim of
focus is to target a small segment of the marketplace. It may be operated by means of a low-
cost focus or differentiated focus approach. (Lynch, 2003).

Strategic advantage

Uniqueness perceived by the customer Low cost position

Industry-
wide Differentiation Overall cost leadership

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Focus differentiation Cost focus
Particular segment only

Figure 1: Four generic strategies. Source: Porter, 1980.

2.2.1 Cost strategy:

Porter stated that a firm has cost benefit if competitors’ costs are higher than the cumulative
cost of performing all value activities (Dees et al., 2002). This cost strategy is focused on
productivity and is usually interrelated to the existence of a practice consequence. This
generic strategy implies critical examination (a) of overhead costs, (b) of productivity
investments intended to improve the assessment of experience effects, (c) of product design
costs and (d) on cost minimisation in service, selling, advertising, and so on. Low cost
comparative to competitors is the major obsession of the total strategy. Cost advantage
establishes an effective protection in opposition to the five competitive forces:

 The firm is in a superior position to resist a potential price war and build a profit at its
rivals’ lowest price level in relation to its direct competitors.
 Powerful buyers are able to drive down prices to the level of the well-organized
competitor.
 Low cost provides a resistance in opposition to powerful suppliers by providing more
flexibility to manage increasing input cost.
 A low-cost position is also capable to provide considerable entry barriers in terms of
scale economies or cost benefit.
 A low-cost position typically is able to place the firm in a good position with
substitutes in relation to competitors in the industry. (Porter, 1980).
Because of the least efficient firms are the first to be aware of the effects of the competitive
struggle, cost leadership gives protection to the firm against all five competitive forces.
(Lambin et al., 2007)

2.2.2 Growth strategy:

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Whether there is a growth of sales, market share, profit of size, then the firms think about
growth objectives in most strategies. Growth is a aspect that persuades firm vitality, motivate
inventiveness and enhances inspiration of personnel and management. Growth is also
essential in order to continue to survive beatings from competitors, appreciation to the
economies of scale and know-how effects it generates (Lambin et al., 2007). Growth is a
factor among the most important strategic decisions particularly how to grow up a business.
A strategic path and a set of guiding precedence are required together with an evaluation of
the most successful strategy for growth (Kourdi, 2009).

There are different ways to growth are as follows:

(a) Organic growth: Organic growth arises when a business grows by utilizing its active
resources. Organic growth may occur for the reason that the market is growing, or
because a company is going progressively better than its competitors or is going
through new markets. The organic growth is based on a firm’s accessible resources,
capabilities, planning, time and cash. (Kourdi, 2009). It may also boost or continue
sales of current products in existing markets. (Lambin et al., 2007).
(b) Integration: When a firm can progress profitability by organizing diverse activities
of strategic significance within the industrial chain, then an integrative growth
strategy is acceptable. It also expresses a range of make-or-buy appreciative firms use
to acquire a prepared supply of strategic raw materials and a ready market for their
productivity (Lambin et al., 2007). .
(c) Diversification: When the firm’s industrial chain provides a little or no vision of
growth profitability, the strategy of growth by diversification is required. This may
take place due to either occupying a dominant position by competitors or turning
down the reference market. It involves access into new product markets (Lambin et
al., 2007).
(d) Specialisation: Specialisation engages in falling non-core activities, or even
redefining and presenting on core operations. On the basis of specialisation, it is
necessitated to do what the firms do satisfactorily better than competitors and
effectively predicting and getting used to market changes (Kourdi, 2009).

2.3 The marketing concept and the need for marketing information:
The marketing concept stands for the entire of the organization is driven by an objective of
serving and satisfying customers in a manner that the organization can achieve its financial

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and strategic objectives. The philosophy of satisfying customers should not be bounded to
those who are instantaneous and immediate contact with the customer, it should be reached
throughout the entire organization. Actually, the effective marketing decisions are dependent
on information in three key areas:

(a) Information on customers: When sufficient information about customers is available

for example, who are the customers, their charateristics, what, where, when, and how
they purchase, then the marketing concept can only be practically implemented.
(b) Information on other organizations: The information of the competitors is essential to
measure the strength, weakness of the organization as well as marketing strategy.
(c) Information on the marketing environment: Outside the organization the environment
consists of a huge number of variables for example, government policy, technology,
economy, culture, changes in legislation, changes in the demographics of the
population etc. that influence the marketing activities of the organization (Wilson,
2003).

2.3.1 Corporate-level strategy and it’s link with marketing communications:

The whole capacity of an organisation and how value will be added to the various parts
(business units) of the organisation is concerned in the corporate-level strategy. This strategy
also comprises of issues of geographical coverage, variety of products/ services or business
units, and how resources will be distributed among diverse parts of the organisation (Johnson
et al., 2008).

Marketing communications stand for the most noticeable face of the organization. The
communications programme plays a fundamental role in the strategic marketing task. In
making a decision about the best uses of marketing communications, the planner must be
concerned regarding the incorporation of the communications programme with the other
elements of marketing mix in order to obtain the greatest degree of synergy; the relationship
among the communications or promotions mix and the other elements of the marketing mix is
shown in Figure-2 (Wilson and Gilligan, 2008).

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 Corporate Strategy

Corporate Objectives

Marketing Strategy
and Objectives

Marketing Plan

Product Price Place Promotion People Physical evidence Process management

Product Packaging Personal P.O.S. Sponsorship Sales E-mail Text

placement selling promotion messaging

Advertising Publicity Exhibitions

and
advertorials

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Figure-2: The promotions mix and its link with the corporate and marketing strategy.

Source: Adapted from Wilson and Gilligan, 2008.

2.4 The definition and the concept of brand:

Assael, 1990, stated that brand is the name, icon, packaging and service appreciation. The
differentiation approach is demonstrated by Kotler (2000), who argues that a brand is a name,
expression, sign, symbol or creation or a combination of these in order to recognize the goods
or services of one seller or group of sellers, and to make a distinction from those of
competitors. Well-known brands can generate strong, optimistic and long-lasting impressions
that are recognized by audiences to be of assessment to them individually. Actually, brands
are items for consumption of the efforts of managers who wish to expand their products with
values and associations that become familiar and meaningful to their customers. In practical,
both managers and customers are involved in branding as a process by which all are capable
to distinguish along with the similar offerings and correlate definite attributes, feelings and
emotions with a particular brand. Branding is a task of long-term exercise that consists of a
important involvement from marketing communications. To move in the direction of
integrated marketing communications and neutral planning, many organisations want to keep
in touch of the balance of their promotional mixes e.g. advertising, sales promotion, public
relations, direct marketing etc. (Fill, 2005).

2.3.1 The strategic role of branding:

Brands have a significant role in the strategic viewpoint. The role of branding includes: to
secure the market share or group brands; to keep reputable positions; to assault competitors’
brands; to present a way of preventing market entry by others, to be active as market entry
barrier and to assist customer retention. To achieve these strategic roles there are three main
aspects of branding: integration, differentiation, and added value Figure-3 (Fill, 2005).

2.3.1.1 Integration:

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Reputable branding is to a certain extent of the consequence of effective integrated marketing
communications. It is important to incorporate the marketing communications so that all the
tools can be applied to support a brand and the messages that are used to express brand values
must be consistent and meaningful (Fill, 2005). For example, sales promotion becomes
effective if it is incorporated with advertising.

Added-value

Differentiation

Integration

Perceived Psychosocial
Performance Meanings

Name
Awareness

Figure-3: The strategic dimensions of branding. Source: Adapted from Fill, 2005.

2.3.1.2 Differentiation:

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Branding should be a process of differentiation and positioning a product so that customers
can be familiar with the product and recognize what a brand stands for, comparative to other
brands (Fill, 2005). For example, if any customer is familiar with KFC brand, he/she must be
kept in mind about KFC chicken.

2.3.1.3 Added value:

Added value is an aspect offering customers to gain extra advantages that one brand can offer
dissimilar benefits to another. These benefits may be either in the form of rational attribute-
based or emotionally based benefits originated through the improved characteristic of the
products. Value is added to brands in the course of three main components e.g. perceived
performance, psychosocial meaning and the extent of brand-name awareness which are in the
table-1 (Riezebos, 2003).

Table-1: Brand added value.

Added Value Component Explanation

Perceived Performance Obtained from consumer perceptions of
relative quality and perceived associations
concerning key attributes.
Psychosocial Meaning Involved to the immaterial associations
consumers build about brands from which
they assume meanings about personality and
expressions of individuality.
Brand-name Awareness The level of name awareness can provide
emotion of familiarity and lessen risk or
uncertainty

Source: Adapted from Riezebos, 2003.

2.3.2 The role of marketing communications in branding:

In the development of brands marketing communications plays a fundamental role by which

items for consumption become brands, that is, how customers can perceive differentiation of
products and recognize what a brand stands for and what its value are.The approach in which
marketing communications is applied to make brands is determined strategically by the

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function that the brand is expected to participate in obtaining an organization’s goals (Fill,
2005). Chernatony and Dall’Olmo Riley (1998) argue that in building a brand marketing
communications can play several roles for example, during brand extensions buyers can see
how the advantages from the recognized brand have been moved or extended to the new
brand. Recently some of the difficulties currently experienced because of the brand extension
strategy which has not been properly supported by marketing communications, or the lower
financial condition that can be moved away from core brand values (Lee, 2004). Ehrenberg’s
(1974) argued that the role of brand-based marketing communications is to repeat purchaser
and strengthen their perceptions in order to protect market share.

The role of marketing communications is also dependent financial resources of the

organization. Advertising is the main approach that can shape brand name associations, it
must need high budget. It is essential to utilize a choice of other communication tools to build
up brands especially when the budget is inadequate or where the target audience cannot be
get in touch with practically or efficiently through advertising. Sales promotion is
comparatively less costly than advertising which is usually perceived as a tool that erodes
rather than facilitates to build a brand because it has a price rather than a value orientation, it
can be utilized strategically. Direct marketing and public relations are also essential
techniques used to create brand values, particularly when customers experience high
participation. A below-the –line approach is required when the availability of financial
resources are very few. Packaging has also important role in brand associations especially
when the brand name will require to be directly interrelated to the function or knowledge of
the product. (Fill, 2005)

2.3.3 Branding through taste, smell and sound in fast food industry:

Smell and taste are recognized as the chemical senses since both are able to illustrate the
environment. They are strongly interrelated. Many studies point out that if food gets ahead of
the smell test we frequently eat with our nose, it will generally expect to leave behind the
taste test. In the brand sense survey, customers are inclined to respond positively to both
smell and taste, or also negatively to both when questioned about the smell and taste of
McDonald’s food. In that survey, customers didn’t dislike the smell but feel affection for the
food, or vice versa. Though we think about interfering with the genetics of what we eat, the
ideas of food design will take over the next decade. Taste is vital, but the sign from the brand
sense study indicate that smell and appearance are categorized together on the scale of

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significance. The food industry is improbably to go away these things be. They carry on in
designing the smell of the product; the sound of the packaging and look for to manage the
sound that the food creates during eating. They will also consider the color and flavour,
generating new levels of sensory preference. (Lindstrom, 2005)

2.4 The concepts of sales promotion:

Sales promotion is a process that involves all the motivation tools which are utilized by the
firm to complement and highlight advertising; the sales force action, and to stimulate more
rapidly and /or generously proportioned purchase of a good or service often locally and in a
non-permanent way (Lambin et al., 2007). There are four types of promotions:

1) Consumer promotion: A direct, indirect or imaginary advantage such as sample,

coupons, rebates, refund etc. that is offered is to customers to encourage the purchase
of a product in this consumer promotion.
2) Trade promotion: The offer that is proposed to retailers or wholesalers, usually
obtaining the form of money allowances, to influence them to hold the brand and
more units than the average amount; to encourage the brand by attributing display or
price reductions and to drive the products in their stores.
3) Commercial promotion: In commercial promotion, the promotional performance is
prepared by distributors and targets their own customers’ base, typically using the
financial support provided by manufacturers.
4) Sales force or network promotion: In sales force or network promotion, the main
aim is to motivate all the co-workers involved in the selling performance (sales force,
wholesalers, and retailers) in the course of individual incentives (Ingold, 1995).

2.4.1 Objectives of sales promotion:

Most of the organisations can apply sales promotion in different ways as a part of their entire
marketing effort (Jobber and Lancaster, 2000). To make the sales promotion effective it must
some objective:

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 1) Increase sales (though it enhances customers for the short term either simply stock up
with the goods or provisionally switch brands during promotion) by worthwhile loyal
customers; locking customers into loyalty programmes; growing repurchase rates of
occasional users; representing new features/modifications or introducing a new
product/ service; expanding new uses; developing image ( awareness or repositioning)
etc.
2) Produce new sales leads.
3) Make happy retailers with a complete package – gain trade acceptance.
4) Obstruct a competitor (by offering incentives to consumers to stock up).
5) Contest a competitor.
6) Generate a database.
7) Create publicity. (Smith, 1998)

2.4.2 Developing sales promotion programme:

In selecting the promotion type the marketer requires to consider some additional decisions:

 The size of the incentive: The example of the size of the incentive is how much must
to be offered e.g. 5p off or 20p off? A certain smallest amount incentive may be
counter-productive.
 Conditions for participation: The example of conditions for participation is
everybody attracted to be involved or what do customers require to do in return, e.g.
collect a number of packet tops?
 Distribution vehicle: The example of the distribution vehicle is on-pack, in-pack,
door-to-door, in store etc. The decisions may be critical in here.
 Duration of promotion: It is very important decision that how long should sales
promotion stay? If it is too short that may miss many consumers or too long that may
drop ‘immediacy/impact’.
 Quantity of promotion: The quantity of promotion means how many packs, prizes
etc. are there?
 Timing and coordination: The example of timing and coordination is seasonality in
market, other retailer activities, production etc.
 Budget: Promotions must be appropriately planned and it depends on budget.

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  Pre-testing: For proper utilizing the objectives and budget, the promotion should be
pre-tested.
 Legality: It is needed to make sure that the proposed promotion is legal.
 Responding to unforeseen events: The example of responding to unforeseen events
is the product of competitors, or a major crisis in the marketplace. Here the marketer
should act in response rapidly and strategically (Lancaster, 2002).

2.4.3 Reasons for the growth of sales promotion:

The main reasons for the growth of sales promotion are the force for short-term profits and
the requirement for liability for marketing communication efforts. The reasons for the growth
of sales promotion are as follows:

 For increasing sales of a product sales promotion is the most effective strategy
especially when the products in the kind are mostly undifferentiated.
 Traditional media costs are high, that’s why alternative types of media must be
regarded.
 Sales promotion’s accountability comparatively simple and fast to decide whether
sales promotion strategy has achieved its objectives due to immediate response of
some kind.
 From the consumers’ point of view, sales promotion minimizes the risk connected
with a purchase by offering coupons, rebates, and discounted prices etc. which are
something of added value.
 At present, consumers are more educated, selective, and less loyal to brand names
than previous so that they can switch brand if they get better offer from another brand.
 Most of the times customers wish short-term price reductions such as coupons, sales,
and price promotions that can change their payment amount.
 Organizations give more emphasize on increasing market share than general product
escalation. Sales promotion persuades customers to switch products and enhance
market share (Wells et al., 2003).
 Distributors are more determined and commanding, insist more promotions to assist
them in making store traffic from manufacturers.

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  Competition is also an important reason that stimulates sales promotion strategy.
Competitors utilize customers and trade promotions more commonly (Lambin et al.,
2007).
2.4.4 Ineffectiveness of sales promotion strategy:

Sales promotion actually is a short-term procedure whose main function is to motivate

consumers to try a brand or switch brands, promoted by the added value of the sales
promotions (Fill, 2005). Papatia and Krishnamurthi (1996) argue that a sales promotion can
actively encourage switching attitude that means diminishes levels of loyalty. The
ineffectiveness of sales promotion can damage the image of brand, sales and cash flow. Sales
promotion can aid to boost sales in the short term by using price promotion such as discount
vouchers, two for one, free extra 20 percent, 10% discount etc but in the long term it can
create negative perception to the brand. Price reduction and discount the brand down to a
point where it drops its brand standards and struggle solely on price that is a not a protectable
competitive advantage. Some sales promotions lessen the core values, the image and the
positioning of the brand and some promotions generate short-term bumps in sales that
followed by an instant jump down in sales, as customers who purchase more in the beginning
and stock up then bring to a close purchasing until finishing their extra stock as shown Figure
4 (Smith, 1998).

Sales

Start promotion End sales promotion

Time

21
Figure-4: Some promotions increase sales for the short term as customers stock up but don’t
come back for twice as long. Source: Adapted from Smith, 1998.

2.4.5 Strategic approach of sales promotion:

The effectiveness of a sales promotion can be determined by decomposing the sales hit
during the promotion time into sales boost because of brand switching, purchase time
increase in speed, and stockpiling. An issue of progressing interest to marketing researchers
and practitioners is how marketing mix tools affect consumers' purchase decisions such as
when, what, and how much to buy and thus the sales of a brand (Gupta, 1988). The strategic
effect of sales promotions is achieved when they are considered or assembled into a three-to-
four year plan of promotional activities that integrated with other promotional tools and the
business strategy. A sales promotion ‘trap’ is built up when competitors commence to
duplicate each other’s performances on the basis of price discount. In practical, the
complementary character of sales promotion and advertising should be developed in the
course of the utilizing universal themes and messages, timing, targeting and allocation of
resources (e.g. budgets). Sales promotions that are designed as a progression of prearranged
actions, be a sign of the promotional desires of a product over the longer term, are more
effective than those sales promotions that are basically responses to competitors’ shifts and
market expansion (Fill, 2005).

A strategic approach includes the applications of planned promotions until it can present a
framework within which shorter-term tactics can be identified. In this way, a sales promotion
strategy can produce the tactical planning creative and more prolific. The strategic
approaches of sales promotions can be achieved by the following ways:

 Identify the needs of customers (and prospects) in terms of promotions.

 Recognize the long-term tactical marketing and sales promotion objectives.
 Generate guiding principle for each product or service representing the way of sales
promotion that is most suitable to the brand’s long-standing image.
 Find out exact budget of the total marketing communications that is accessible for
sales promotions.

22
  To continue the promotions professionally, it is necessary to get support and
assurance from senior management (e.g. marketing director) so that that adequate
management expertise and resources are available.
 Build up a process of assessment so that longer-term activity can be measured aligned
with longer-term objectives.
 Create a promotions file which piles up information and expenditure throughout the
year that can be re-examined closer to the time of planning.
 Observe the sales promotions’ results. Typically a best/ worst/ medium range of
forecasts aid to build some division of management control and criteria for
achievement or failure (Smith, 1998).

2.4.6 Profitability of sales promotion:

Direct observation of detailed sales figure, as generally the case of purchaser goods can
measure the effectiveness and profitability of sales promotions (Lambin et al., 2007). The
productivity of sales promotions is based on consumers’ deal responsiveness within a
particular product type. For example, if customers are reasonably insensible to deals or no
good responses from purchasers, sales promotions are automatically unprofitable. This is
because of diminishing per-unit revenue margin during a sales promotion and the
supplementary sales volume is inadequate to balance the lessening in profit margin. Brand’s
selling price minus its per-unit variable cost is the basic accounting conception of
contribution margin, or simply margin that is very important to this procedure. Variable cost
rises due to cost of offering during running of sales promotion by a brand. As a consequence,
the margin is trimmed down and profit will amplify only if the incremental sales volume is
proportionately superior to the percentage decrease in margin (Shimp, 1997).

2.4.6.1 Consumer responsiveness to sales promotion deals:

The marketplace for any product category is prepared on the basis of customers who are at
variance in their sensitivity to deals. Some customers are very loyal or sensitive to a
particular brand in a category and purchase only that brand. Other customers are extremely
not loyalists on brand and will purchase only those brands whose products are in offer. Most
purchasers are somewhere among these boundaries. Figure 5 represents a framework that
demonstrates various types of consumers in terms of their deal proneness.

23
 As consumers show signs of dissimilar deal responsiveness patterns across product
categories, so the classification of consumers into deal-responsiveness is carrying great
weight. In figure 5, there are two general classes that are on- and off-deal consumers namely
loyalists and switchers. The difference between loyalists and switchers is dependent on
purchase activities while brands in a product category are on offer or not. Loyalists are
consumers whose purchase behaviour reflects that they purchase only the same brand for
long time when brands are on off deal. Loyalists are also divided into deal prone and non –
deal prone. On the other hand switchers are those consumers whose purchase behaviour
reflects that they can switch among different brands even all brands in a category are off deal.
Like loyalists, switchers are also divided into deal prone and non –deal prone (Shimp, 1997).

All
Consumers

On- and off- On-deal-only

deal consumer consumers

Loyalists Switchers

Non-deal- Deal-prone Non-deal- Deal-prone

prone loyalists prone switchers
loyalists switchers

Figure-5: A segmentation model of consumer response to sales-promotion deals.

Source: Adapted from McAlister, 1986.

24
2.4.7 Management of the sales promotion strategy:

Most of the big companies in goods and services need sales promotion audits performed by
sales promotion manager or departments for the following reasons:

 To measure the effectiveness of sales promotion;

 To re-examine the extent to which different kind of sales promotion are performed
comparative to its rivals;
 To determine the expenditure of the different kind of sales promotion utilized, jointly
with trends;
 To check the results of specific sales promotion alongside setting objectives;
 To re examine the level to which sales promotion put in and incorporated with other
elements of the marketing mix;
 To implement a market research for identifying the level to which sales promotion
performance are perceived by distributors, customers and potential purchasers, and
how they make a impact on buying decisions (Wilson et al., 1992).

2.4.8 Sales promotion of KFC at different time and impact on sales:

Usually, KFC lunches sales promotion during less busy time for example after Christmas.
There are some examples of sales promotion which KFC lunches different period of time and
their impact on economics are discussed here. In January 5 th to February 8th, 2009 KFC
brought promotion item of Snack Box with a target customers of teens and students
incorporated with advertising on television, phone boxes, posters etc. and its sales mix 5.1%,
incremental percentage was 89% and weighted average promotion margin (GM%) was
69.9%. After a great success of promotion item named BBQ Box master, 9 th February to 15th
March, 2009 KFC introduced a new super spicy Box master with target customers of who
like real spice taste incorporated with an advertising on TV, phone boxes and posters and its
sales mix 6.1%, incremental percentage was 89% and weighted average promotion margin
(GM%) was 66.4% (Lunch guide, window 2). In the period of March 16 th to April 26th, 2009
KFC lunched Boneless Banquet for one after a great success on 2008 also with a target
customers who are after quality fine food without the fuss incorporated with advertising like
previous on and its sales mix 10.1%, incremental percentage was 47% and weighted average
promotion margin (GM %) was 64.2%. At the same time, KFC introduced another promotion
of Deluxe Boneless Box for family which incorporated with advertising on TV, phone boxes

25
and posters and its sales mix 8.8%, incremental percentage was 66% and weighted average
promotion margin (GM %) was 72.2% (Lunch guide, window 4). This year March 15 th to
April 25th, KFC has lunched BBQ Rods box Meal / BBQ Rods ALC which is also
incorporated with advertising like previous one and its sales mix 8.2%, incremental
percentage was 76% and weighted average promotion margin (GM %) is 66% (Lunch guide,
window 4). These are some examples of promotion and their impact on sales that were
launched by KFC at different period of time.

2.5 SUMMARY:
Sales promotion engages some kind of incentive that offers an extra inducement to increase
purchase and this incentive is supplementary to the basic benefits that offered by the brand
and for short time changes its recognized price and value (Yeshin, 2006). This chapter
presented the knowledge of strategy, marketing, marketing communications, branding and
finally sales promotion strategy. This chapter is started by the strategy definition and generic
approaches to strategy which reflects the cost strategy and growth strategy. Then it focuses
the concept of marketing and the need for marketing information which indicate the
information on customers, competitors and marketing environment are really essential for
strategic marketing decision; corporate level strategy and its link with marketing
communications which indicate the incorporation of marketing communications or promotion
mix and other elements of the marketing mix. This chapter is also representing the definition
and the concept of branding; strategic role of branding; role of marketing communication on
branding and branding through taste, smell and sound in fast food industry. Finally, it stands
for the concept of sales promotion; objectives of sales promotion; developing sales promotion
programme; reasons for the growth of sales promotion; ineffectiveness of sales promotion
e.g. damage perception on brand; strategic approaches of sales promotion e.g. how
effectiveness of sales promotion can achieved; profitability of sales promotion that depends
on consumer responsiveness of sales promotion deal and sales promotion of KFC at different
time and impact on sales e.g. some examples of promotion items, target customers,
incorporation with advertising to obtain strategic effect and their sales mix, incremental and
promotion margin percentage. A conceptual model is given in Figure 6.

Marketing
Communications
26
Cost
Strategy
Strategy
Fast food Sales
Marketing Branding industry promotion
Strategy

Growth Promotion
Strategy

Figure 6: Conceptual model of the research. Source: Created by the researcher.

Chapter 3

Methodology

3.1 Introduction:

This chapter represents the methodology that the process is used to collect the primary data
for the purpose of this research. The structure of the methodology chapter is given in figure
3.1. This methodology chapter focuses the followings:

 Research aims and objectives;

 Research design that consists of exploratory research; descriptive research and
explanatory research;
 Data collection procedure is divided into primary and secondary data. Primary data is
collected by using qualitative and also quantitative method, it also represents the
rationale for choosing qualitative and quantitative method;
 Survey design includes the interview design and questionnaire design;
 Sampling procedure comprises of several steps e.g. define the population of interest,
determine whether to sample, select the sampling frame, choose a sampling method,
determine sample size and implement the sampling procedure.
 Data analysis represents the qualitative and quantitative data analysis.
 Limitation of the research focuses the problem that the researcher faced during the
primary data collection.

27
Figure 3.1: Structure of the methodology chapter:

1) To review literature about strategy, marketing, branding and

how sales promotion strategy can be effective regarding
increasing sales.
2) To identify the main objectives of the sales promotion strategy
set by KFC.
Research aims and 3) To identify the main reasons for the growth of sales promotion
strategy of KFC.
objectives: 4) To investigate the effectiveness of sales promotion strategy of
KFC.
5) To investigate the ineffective sales promotion of KFC.
6) To investigate about the measurement of the effectiveness of
sales promotion strategy used by KFC.
7) To provide recommendations to KFC in order to improve the
effectiveness of the sales promotion strategy that is used by
this fast food company to increase sales.

Research design: (a) Exploratory research

(b) Descriptive research
(c) Explanatory research

(a) Secondary data:

Internal Sources
Data collection External Sources
(b) Primary data:
Qualitative Research
Quantitative research

Survey design Questionnaire design: Quantitative for customer and staff.

Interview design: Qualitative for restaurant general manager.

Step 1: Define the population of interest

28
Step 2: Determine whether to sample

Step 3: Select the sampling frame

 Sampling

Data analysis Qualitative data analysis and quantitative data analysis

Limitation of the
The problems that are faced during primary data collection.
research

3.2 Research aims and objectives:

The aim of this dessertation is to provide the answer of “How can a sales promotion strategy
increase sales”? In this perspective the following objectives have been set:

8) To review literature about strategy, marketing, branding and how sales promotion
strategy can be effective regarding increasing sales.
9) To identify the main objectives of the sales promotion strategy set by KFC.
10) To identify the main reasons for the growth of sales promotion strategy of KFC.
11) To investigate the effectiveness of sales promotion strategy of KFC.
12) To investigate the ineffectiveness of sales promotion of KFC.
13) To investigate the measurement of the effectiveness of sales promotion strategy used
by KFC.
14) To provide recommendations to KFC in order to improve the effectiveness of the
sales promotion strategy that is used by this fast food company to increase sales.

3.3 Research design:

In creation of the research design the researchers must need to think about the purpose of the
research (Wilson, 2003). Also to assume the research questions, it is certainly needed to think
about the purpose of the research. The type of research purpose mostly used in the literature
of research methods is the threefold one of the exploratory, descriptive and explanatory
(Saunders et al., 2007).

An exploratory study is an important means of finding out about what is happening, about
seeking new insights, asking questions and assessing phenomena in a new light (Robson,

29
2002). It is also valuable in clarifying understanding of a problem. There are three main
traditions of conducting exploratory research: (a) searching of literature, (b) conducting
expert in the subject interview and (c) interviewing focus group (Saunders et al. 2007).
Exploratory research will be useful when it is required to obtain an initial understanding of
customer attitudes, emotions, preferences and behaviours. Exploratory research is also
beneficial to establish priorities among research questions and to learn about the realistic
problems of carrying out further research (Wilson, 2003).

The descriptive research aims to represent a precise profile of persons, events or situations.
(Robson, 2002). This research might be an extension of, or an indication to, a piece of
exploratory or explanatory research. It is useful to obtain a clear picture of the phenomena on
which it is necessary to collect data prior to collection of the data (Saunders et al. 2007).
Actually descriptive research signifies that what is happening in the market. Descriptive
information is gathered through descriptive research. Examples of descriptive information
are: (a) the proportion of the population, (b) the customers’ approach towards an
organisation’s products, (c) the level of responsiveness of a particular advertising promotion,
(d) the extent to which the satisfaction of customers with the delivered service, etc. (Wilson,
2003).

Explanatory research represents the study that establishes a situation or problem in order to
explain the casual relationships between variables (Saunders et al. 2007).For example, (a)
relationship between income and expenditure, (b) relationship between awareness of
advertising and purchasing behaviour etc. (Wilson, 2003).

3.4 Data collection:

In answering the research question and also meeting the research objectives it is essential to
consider initially the possibility of reanalysing data that have already been gathered for some
other purposes and also thinking of gathering new data specifically for that purpose
(Saunders et al. 2007). There are two types of data need to be collected e.g. secondary data
and primary data.

3.4.1 Secondary data:

The data that is previously generated for some reasons other than the recently research project
is called secondary data (Wilson, 2003). Secondary data are collected by two basic sources:

30
Internal Sources: The data which are produced by the organization itself is called internal
source, for example, accounting records, sales-force reports, reports from previous marketing
research studies, information from customer loyalty cards, information in the internal
marketing information system, customer complaints records and etc. (Lancaster, 2002,
Wilson, 2003).

External Sources: The data which are produced by sources outside the organization is called
external sources, for example, Government reports, newspapers, periodicals, the internet and
the published research reports (Lancaster, 2002, Wilson, 2003).

Secondary data can be gathered at a tiny proportion of the cost and time involved in primary
data collection, for this reason many studies use secondary data. It is most usually collected
prior to the primary research as:

(a) it may facilitate to simplify or redefine the research requirements as part of a series of
a exploratory research. Information about customer behaviours may be collected from
the internal data held on held on customers and therefore internal data can explain
which customers or which behaviours should be more researched;
(b) without the necessity for further primary research secondary data can actually satisfy
the research needs. Within or outside the organization, somebody may have
previously addressed indistinguishable or very related research questions;
(c) about the potential problems and difficulties the researcher can be alerted by the
secondary data. From the previous research studies secondary data may identify
complications in accessing respondents (Wilson, 2003);
(d) a source of data is usually provided by the secondary data that is both permanent and
available in a form that may be checked relatively easily by others (Denscombe,
2007)

There are some number of disadvantages regarding to the accuracy of the data and also
application to the research project (Wilson, 2003). These are as follows:

(a) secondary data may be provided for a purpose that does not match the need;
(b) right to use may be difficult or costly;
(c) aggregation and explanation may be inappropriate;
(d) no actual control over the data superiority;
(e) preliminary purpose may affect the data presentation (Saunders et al. 2007).

31
In this research, secondary resouces are taken from relevant books, journals and also from
internet.

3.4.2 Primary data:

The data which is collected by a programme of observation, qualitative or quantitative

research, either separately or in combination is called primary data (Wilson, 2003). These are
described below:

3.4.2.1 Qualitative Research:

Qualitative research represents an unstructured research approach with a limited number of

cautiously selected individuals to generate non-quantifiable insights into behaviour,
motivations and attitudes (Wilson, 2003). Qualitative research is open-ended, in-depth and
unstructured responses that are signs of the person’s opinion and view on the subject. It
interprets about the people in the sample are like, their outlooks, their thoughts, the dynamics
interaction of their feelings and facts, their attitudes and opinions, and their follow-on actions.
(Ghauri & Cateora, 2005).

Advantages of qualitative research:

(a) Qualitative research provides the prospect of flexibility (Bryman and Bell, 2007).
(b) Great care is engaged in the selection of the respondents due to the time and efforts.
(c) The researcher gets deeper and more penetrating insights into topic.
(d) This research is concerned with the more understanding things (Wilson, 2003).

Disadvantages of qualitative research:

(a) Qualitative research is too impressionistic and subjective.

(b) This research is too difficult to replicate.
(c) The scope of the findings of this research is restricted.
(d) It represents small number of individuals who are not automatically representative of
huge population.
(e) There is a lack of transparency (Bryman and Bell, 2007). Bryman and Burgess, 1994
stated that the qualitative data analysis procedure is normally unclear.

Rationale for choosing qualitative method:

32
Qualitative approach is selected because it is more flexible to facilitate respondents to make
known and express their own views or to examine their activities. This approach is looking
for summarizing the behaviour, experiences and feelings of the respondents in their own
word and circumstance. It is dependent on the set of facts and related methods from the broad
area of depth psychology. So, this method may be deeper and penetrates the superficial when
the respondent presents their expressions (Malhotra and Birks, 2006).

Qualitative research interview has been selected to take an interview with the restaurant
general manager (RGM) in this research because the respondent can express his feelings,
beliefs, attitudes, idea, motivations on the selected topic in his own views. In structured
interview, it is not possible to get answer from the respondent’s own vision.

3.4.2.2 Quantitative research:

Quantitative research represents a structured research approach with a sample of the

population to generate quantifiable insights into behaviour, motivations and attitudes
(Wilson, 2003). Quantitative research is mostly used as a synonym for any method of data
collection (e.g. questionnaire), or the process of data analysis (e.g. graphs or statistics) that
generates or uses numerical data. (Saunders et al. 2007).

Advantages of quantitative research:

(a) Quantitative research can be replicated more easily and also direct comparison can be
prepared among the results.
(b) It represents a large number of individuals (Wilson, 2003).
(c) This research is usually highly structured, that’s why investigator can easily examine
the precise concepts and issues of the study (Bryman and Bell, 2007).

Disadvantages of quantitative data:

(a) Data collection process is normally less flexible (Wilson, 2003).

(b) The measurement procedure is not real and involves spurious sense of exactness and
accuracy.
(c) The analysis of relationship among variables provides a static view of social life
which is not dependent of people’s lives.
(d) The research is more dependent on instruments and measurements hinder the
correlation between research and everyday life (Bryman and Bell, 2007).

33
Rationale for choosing quantitative method:

Quantitative approach is selected because structured questionnaire refers to the level of

standardization and a comparison can be made among the results. A variety of questions
regarding activity, intentions, attitudes, perceptions, awareness, and motivations, social and
demographic characteristics can be asked to the respondents. In this method, questionnaire is
comparatively simple, data collection is consistent due to the answers are limited to the
alternatives stated. There is variability in the results in unstructured questions, but the use of
fixed-response questions lessens the variability in the end result (Malhotra and Birks, 2006).

Quantitative research approach is selected for customers and also for staff in this research
because sometimes customers and staff are unwilling to response the question in depth; some
customers and staff are quite, they prefer to response by multiple choices than speaking and
they expect structure questions so that they have alternative choices to response easily. More
responses can be achieved by quantitative method.

Distinctions between quantitative and qualitative research:

Several writers have explored the differences between qualitative and quantitative research.
Table 3.2 represents the distinction between qualitative and quantitative research.

Table 3.2 Differences between quantitative and qualitative research:

Qualitative Research Quantitative Research

Depends on meanings expressed through Depends on meanings derived from numbers.
words.
Collected works results in non-standardised Collected works results in numerical and
data requiring classification into categories. standardised data.

Analysis is conducted by the use of Analysis is conducted by the use of diagrams

conceptualisation. and statistics.

Source: Adapted from Dey (1993); Healy and Rawlinson (1994); Saunders et al. 2007.

3.5 Survey design:

34
Survey is the most ordinary method for primary data collection and represents the
administration of questionnaires. When survey needs to be planned, there are four major
issues need to be considered e.g. selection of communication method, maximizing response
to a survey, questionnaire design and phrasing of questions (Lancaster, 2002).

3.5.1 Questionnaire design:

A questionnaire is normally useful to collect data on the behaviour (e.g. past, present or
intended), demographic information (e.g. age, gender, occupation, income), level of
knowledge, perceptions, attitudes and opinions of the respondents (Lancaster, 2002). A
questionnaire has three main objectives e.g. (a) it should interpret the information required
into a set of precise questions, so that respondents can and will answer; (b) it should prompt
respondents to complete the interview and (c) response error should be minimizes (Malhotra,
2004). In this research quantitative method has selected for customers and also for staffs. In
appendix-1 questionnaire for customers is divided into two sections:

Section A: Socio and demographic information.

Section B: Customers’ perceptions on fast food and sales promotion strategy.

Section A, socio and demographic information represents the gender, age, education level,
occupation, income, marital status and nationality of the customers. Section B, customers’
perceptions on fast food represents how customers feel about KFC food and what is their
impression about sales promotion of KFC.

In appendix-2 questionnaire for staff is also divided into two sections:

Section A: Socio and demographic information.

Section B: Staff’s opinion about KFC and sales promotion strategy.

Section A, socio and demographic information represents the gender, age, education level,
marital status and nationality of the staff. Section B represents staff’s opinion about KFC and
how does sales promotion work, how much they get responses from customers on sales
promotion deal and etc.

3.5.2 Interview design:

35
A purposeful conversation among two or more people is an interview (Khan and Cannell,
1957). An interview is used to help for collecting valid and reliable data that should be
consistent with the research questions, objectives, purpose and strategy (Saunders et al.
2007).

There are several types of interview. In qualitative research interview, the answer is much
more detailed and rich, and questions can be varying according to interviewees, replies and
the wording of question and interviewing is much more flexible (Bryman and Bell, 2007).
For this reason, qualitative research interview has been selected in this research to take an
interview with the restaurant general manager (RGM). A relationship between interview
questions and research questions is given in figure 3.2.

Figure 3.3 Relationship between interview questions and research questions.

Interview Questions Research questions

1) What are the main objectives of sales promotion strategy
of KFC?
2) What are the main reasons for the growth of sales
promotion strategy of KFC?
3) What is the ineffectiveness of sales promotion of KFC?
4) How can strategic effect of sales promotion of KFC be
achieved?
5) How can you make sales promotion of KFC more
profitable?
6) How can you measure the effectiveness of sales
promotion strategy of KFC (e.g. research, sales
promotion audit etc.)?
6) How can strategy be defined and what are
the generic approaches to strategy?
7) What are the strategic roles of branding in
the fast food restaurants market?
8) How can marketing communications play a
vital role in the development of brand?
9) What are the effective and ineffective sales
promotion strategies?
10) How can KFC make sales promotion
strategy effectively to increase sales?

Source: Created by the researcher.

3.6 Sampling:

Sampling is an essential and inevitable part of human affairs. It is sometimes probable and
realistic to take a survey; with the purpose of learning each member of the population of
attention. (Lancaster, 2002). In developing a sampling plan the procedure can be summarised
into six steps in figure 3.4.

Step 1: Define the population of interest

Step 2: Determine whether to sample

36
 Step 3: Select the sampling frame

Step 4: Choose a sampling method

Step 5: Determine sample size

Step 6: Implement the sampling procedure

Figure 3.4: The sampling process. Source: Adapted from Wilson, 2003.

Step 1: Define the population of interest:

The population of interest represents the target population or the total group of people that are
examined by the researcher to study and obtain information. Precise explanation of the
population of interest is the basic step in the sampling process (Wilson, 2003). In this
research, the main sample will be staffs, restaurant general manager of KFC, Marble Arch
and customers.

Step 2: Determine whether to sample:

A sample occurs when data is collected from each member of the population of interest. For
interviewing every single person, cost, time and effort are necessary (Wilson, 2003).

Step 3: Select the sampling frame:

The sampling frame is a full list of the population of interest from which the individuals are
selected by the researcher for addition in the research (Wilson, 2003). According to Edwards
et al. (2007), it is need to be careful of the possible problems of using existing database. The
sampling frame should be complete, accurate, and up to date as possible. If the list is
incomplete or inaccurate, it is not possible for each case in the individual to have a chance to
select. So, sampling frame is very important (Bryman and Bell, 2007).

Step 4: Choose a sampling method:

Sampling method can be categorised into probability and non-probability sampling.

Probability sampling:

37
Probability sampling method represents a sample that uses an objective procedure of
selection or a sample that is selected by using random selection, resulting in each member of
the population having an acknowledged possibility of being selected. Probability sampling
aims for keeping sampling error to a minimum (Wilson, 2003; Bryman and Bell, 2007).

Advantages of probability sampling:

(a) The data is more definitive than indicative. The results of the survey are projectable to
the total population (adding or deducting sampling error).
(b) The sampling error may be computed.
(c) The researcher may be confirmed about collecting data from a relatively
representative group of the population of interest (Wilson, 2003).

Disadvantages of probability sampling:

(a) The costs, time and effort of the researcher have increased because of the rules for the
respondent selection and the sample design (Wilson, 2003).

Non-probability sampling:

Non-probability sampling method represents a sample that uses a subjective procedure of

selection or a sample that is mot selected by using random selection so that every number of
the population of interest being unknown (Wilson, 2003; Bryman and Bell, 2007).

Advantages of non-probability sampling:

(a) The cost is some less than probability sampling.

(b) The flexible procedures are required in the selection of the respondents.
(c) Sample sizes are expected to be smaller.
(d) The most important respondents can be targeted by the researcher (Wilson, 2003).

Disadvantages of non-probability sampling:

(a) The data is more indicative than definitive.

(b) Sampling error may not be computed.
(c) The researcher is not confirmed about the degree to which the sample is
representative of the population from which it is drawn.
(d) It is necessary to make certain assumptions by the researcher about the groupings
within the population of interest (Wilson, 2003).

38
Step 5: Determine sample size:

Sample size consists of a number of elements to be integrated in the research. The decision
about the sample size is complex and comprises of several qualitative and quantitative
approaches. Sample size is dependent on the nature of research methods. For qualitative
research method, the sample size is frequently small and for quantitative research method, the
sample size is normally large (Malhotra, 2004). On the basis of this above statement, in this
research purpose, only RGM (Restaurant General Manager) is selected for qualitative
research and 20 staffs and 40 customers (total 60 respondents) are selected for quantitative
research. Among 40 customers 20 are inside the KFC and 20 are outside the KFC, because
customers inside the KFC may have positive perceptions, but in the outside of the KFC, not
all customers have positive approaches.

Step 6: Implement the sampling procedure:

After determining sample size and selecting sampling procedure the researcher must select
the members of the sample and begin the survey. A sample is required to make intrusion
about the population of interest rather than reporting on the description of the sample
(Wilson, 2003). In this research, sample is selected on the basis of the interest of the
respondents.

3.7 Data analysis:

The procedure of qualitative analysis normally occupies the enlargement of data categories,
distributing units of original data to suitable categories, identifying relationships within and
between categories of data, and developing and testing hypotheses to produce well-grounded
summary (Saunders et al., 2003). In analysing quantitative data, there are three main steps are
needed to be considered: Step 1: Coding; Step 2: Data entry and Step-3: Tabulation and
statistical analysis (Wilson, 2003).

The qualitative data is analysed on the basis of the relationship between literature and
findings. The quantitative data is analysed via computerized tool e.g. Microsoft excel and
also represented by using table and diagram.

3.8 Limitations of the research:

The main limitation of this research is time and effort. Due to triangle sampling process it has
taken long time to contact with restaurant general manager, staff and customers. RGM was in

39
holiday, that’s why researcher had to wait for interview and staff does not want to speak
before finishing their jobs because of not getting permission from shift manager. So, more
time and efforts were required to collect primary data.

3.9 Summary:

This chapter started by research aims and objectives and research design. For the purpose of
the research design, mainly exploratory study has selected and also some descriptive and
explanatory researches are chosen. This chapter also represents the data collection procedure
including primary and secondary data. In this research, qualitative research method has
selected for the restaurant general manager (RGM) and quantitative method has selected for
staff and customers for the purpose of primary data collection. Survey design is presented in
this chapter that consists of questionnaire design and interview design. After that this chapter
focuses the sampling process and sampling is selected on triangle basis e.g. RGM, staff and
customers. Finally, this chapter represents data analysis procedure and limitations of the
research.

40
 Chapter-4

Research findings

4.1 Introduction:

In analysis of qualitative research two main factors are very important: academic
understandings of the researcher’s gathering and analysing data and marketing
understandings e.g. qualitative research findings (Malhotra and Birks, 2000). In analysing
quantitative data, there are three main factors are very important: coding, data entry and
tabulation and statistical analysis (Wilson, 2003). This chapter represents:

 Findings of the RGM (Restaurant General Manager Interview);

 Findings and analysis of customers’ questions and answer and
 Findings and analysis of staff’s questions and answer:

4.2 Findings of the RGM (Restaurant General Manager Interview):

In regarding the determination of the effectiveness of the sales promotion strategy to increase
sales, the RGM of KFC at Marble Arch was interviewed. The interview design was
qualitative and rational for chosen this method was mentioned in methodology chapter. The
main purpose of this interview is to identify the objective of the sales promotion strategy of
KFC, reasons for the growth of sales promotion strategy of KFC, the ineffectiveness of the
sales promotion of KFC, effectiveness or strategic effect of sales promotion strategy,
profitability of sales promotion strategy and measurement of the effectiveness of sales
promotion strategy at KFC.

4.2.1 Objectives of the sales promotion of KFC:

41
The first question was set up to identify the objectives of sales promotion strategy of KFC.
To make the sales promotion effective, it is essential first to plan their objectives. In the
literature, the main objectives of sales promotion is to increase sales by rewarding loyal
customers or locking customers by loyalty programme; produce new sales leads; obstruct a
competitor by offering incentives to consumers; contest a competitor; generate a database;
create publicity (Smith, 1998) which was mentioned in the chapter two. In regard to this
question the respondent stated, “The main objective of the sales promotion at KFC is to
create value for the customers; bring more customers in the store; offering more variety of
products in a deal so that it will be more demanded; increase KFC brand’s value and
obviously to increase sales.”

4.2.2 Reasons for the growth of sales promotion of KFC:

The second question was set up to identify the main reasons for the growth of sales
promotion strategy of KFC. This question is important because it is essential to identify the
reasons for that the company runs sales promotion deals. In the literature, the main reasons
for the growth of sales promotion are the force for short-term profits and the requirement for
liability for marketing communication efforts; consumers are more educated, selective, and
less loyal to brand names than previous so that they can switch brand if they get better offer
from another brand (Wells et al., 2003) and competition is also an important reason that
stimulates sales promotion strategy (Lambin et al., 2007) which was mentioned in the chapter
two. In regard to this question the respondent stated, “The main reasons for the growth of
sales promotion of KFC is the promotion items are normally less costly than non-promotional
products, so customers are attracted; promotion is a combination of products that will keep
continuous growth; promotion persuades customers to switch brand; to cope with competitors
and to fulfil sales target.”

4.2.3 Ineffectiveness of sales promotion of KFC:

The third question was set up to find out the ineffectiveness of the sales promotion strategy of
KFC. This question is very useful, because some sales promotion becomes ineffective by
reducing profitability and damaging the perception on brand. In the literature, the
ineffectiveness of the sales promotion strategy can damage the image of brand, sales and cash
flow. Sales promotion can aid to boost sales in the short term by using price promotion such
as discount vouchers, two for one, free extra 20 percent, 10% discount etc but in the long
term it can create negative perception to the brand ( Smith, 1998). In regard to this question

42
the respondent stated, “It is difficult to say the ineffectiveness, because KFC launches sales
promotion especially at the quite time. But, most of the sales promotion is going on for short
period of time and short time planning, because after sometimes new promotion items will be
brought to meet the demand.”

4.2.4 Strategic effect of sales promotion of KFC:

The fourth question was set up to determine the achievement of the strategic effect or
effectiveness of the sales promotion strategy of KFC. This question is most useful because a
promotion becomes successful it achieves it strategic approaches. In the literature, if sales
promotion is coordinated with the other performance of the promotional mix, such as
advertising and long time planning, then the proper strategic effect of sales promotion
activities can be achieved (Fill, 2005). In regard to this question the respondent stated, “For
achieving the strategic effects of sales promotion it is always incorporated with the
advertising in television, newspaper, magazine etc. to inform people about what type of
promotion is going.”

4.2.5 Profitability of sales promotion of KFC:

The fifth question was set up to identify the way of implementing the sales promotion
profitable. This question is useful because if the sales promotion is not profitable for the
company there is no benefit to run it. In the literature, the profitability of sales promotions is
based on consumers’ deal responsiveness within a particular product type. For example, if
customers are reasonably insensible to deals or no good responses from purchasers, sales
promotions are automatically unprofitable. This is because of diminishing per-unit revenue
margin during a sales promotion and the supplementary sales volume is inadequate to balance
the lessening in profit margin (Shimp, 1997). In regard to this question the respondent stated,
“Sales promotion of KFC becomes more profitable by communicating with the customers
and also by setting up individual completion between the cashiers to make more sales.”

4.2.6 Measurement of the sales promotion of KFC:

The sixth question was set up to determine the way of measurement of the effectiveness of
sales promotion of KFC. Measurement is essential to know the performance of the sales
promotion. In the literature, most of big companies have sales promotion audit to measure the
effectiveness of sales promotion performance; to re-evaluate different types of sales
promotion in comparison to competitors etc. (Wilson et al., 1992). Observe the sales

43
promotions’ results. Typically a best/ worst/ medium range of forecasts aid to build some
division of management control and criteria for achievement or failure (Smith, 1998). In
regard to this question the respondent stated, “In store basis KFC measures the effectiveness
of sales promotion by checking weekly sales promotion report of promotion item. In overall
there is also market research for measuring the effectiveness of sales promotion from head
office. ”

4.3 Findings and analysis of customers’ questions and answer:

Section A: Socio and demographic information

This section of the staff questionnaire focuses on the profile of the respondents e.g. gender,
age, education level, marital status, occupation, income per annum and nationality. This data
is helpful for researcher, because it can aid to find out how these factors influence on the
perceptions of the KFC food and the sales promotion strategy. Demographic information is
vital because of the growing up and living in various demographic places has an impact on
consumers’ buying behaviour and lifestyle (Malhotra and Birks). Socio and demographic
information is the data of the demographics on area or place basis. If this information is not
available the sampling will be more difficult and less reliable (Ghauri and Cateora, 2005).
There are 40 samples are selected for this responses. Among them 20 respondents are in
inside KFC and 20 are in outside KFC.

Ques 1: Gender

Gender is an important issue because it shows which gender types mostly consume KFC
food. From the observation of manager’s point of view, their female customer is more than
the man. Among the 20 respondents inside KFC, highest 70% respondents are female and
lowest 30% respondents are male. In outside the KFC, among 20 respondents, 60% are
female and 40% are male. The number and percentage of respondents are given in Table
4.3.1 and Figure 4.3.1

Table 4.3.1: Number and percentage of gender and respondents:

Options Number of the Percentage Number of the Percentage

respondents respondents
inside KFC outside KFC
Male 6 30% 8 40%
Female 14 70% 12 60%

44
 Total 20 100% 20 100%

Figure 4.3.1: Percentage of gender and respondents:

Inside KFC Outside KFC

Ques 2: Age
Male, 30%

Male
Female
Age is very Male, 40% Male
Female
important
because it Female, 60%
is related
Female, 70%
it represents
in which age
customers are
interested in fast food. From the news from the store of Marble Arch, all age type people
have come, but young generation is more and also depends on promotion type, but target
customers depends on type of promotion. Among 20 respondents inside KFC, highest 60%
respondents are 16-25 years old, 20% respondents 26-35 years old, 10% respondents are 36-
45 years old, 10% respondents are more than 45 years old and no one is under 16. In outside
the KFC, among 20 respondents, 50% respondents are 16-25 years old, 35% respondents 26-
35 years old, 15% respondents are 36-45 years old and no one is under 16 and more than 45
years old. The number and percentage of age and respondents are shown in Table 4.3.2 and
Figure 4.3.2.

Table 4.3.2: Number and percentage of age and respondents:

Options Number of the Percentage Number of the Percentage

respondents respondents
inside KFC outside KFC
Under 16 0 0% 0 0
16-25 12 60% 10 50%

45
 26-35 4 20% 7 35%
36-45 2 10% 3 15%
More than 45 2 10% 0 0%
Total 20 100% 20 100%

Figure 4.3.2: Percentage of age and respondents:

Inside KFC Outside KFC

More than 45; 10%

36-45; 15%

Under 16 Under 16
36-45; 10% 16-25 16-25
26-35 26-35
36-45 36-45
16-25; 50%
More than 45 More than 45
26-35; 20% 16-25; 60%
26-35; 35%

Ques 3: Education level

Education level is very significant aspect because it manipulates the behaviour of consumers
(Ghauri and Cateora). Among 20 respondents in inside KFC, highest 50% respondents are
secondary level, 30% respondents are college/university level, lowest 20% respondents are
post graduate level and no one is in between no formal education and others options. In
outside KFC, among 20 respondents, lowest 25% respondents are secondary level, 35%
respondents are college/university level, highest 40% respondents are post graduate level and
no one is in between no formal education and others options. The number and percentage of
education level are shown in Table 4.3.3 and Figure 4.3.3.

Table 4.3.3: Number and percentage of education level:

Options Number of the Percentage Number of the Percentage

respondents respondents
inside KFC outside KFC
No formal education 0 0% 0 0
Secondary 10 50% 5 25%
College/ University 6 30% 7 35%
Post graduate 4 20% 8 40%
Others 0 0% 0 0%

46
 Total 20 100% 20 100%

Figure 4.3.3: Percentage of education level:

Inside KFC Inside KFC

Post grad- No formal education Secondary

uate, 20%
No formal education Secondary, 25%
Secondary Post graduate,
40%
College/University
Post graduate College/University Post graduate
Secondary, 50%
Others

College/ Others
College/ University,
University, 35%
30%

Ques 4: Occupation

Occupation level is very important because KFC, Marble Arch targets the customers who are
working beside the store and also visitors. Among 20 respondents in inside KFC, 35%
respondents are students, highest 50% respondents are employed, 10% respondents are
unemployed, lowest 5% are self-employed and no one is others option. In outside KFC,
among 20 respondents, 40% respondents are students, highest 45% respondents are
employed, lowest 5% respondents are unemployed, 10% are self-employed and no one is
others option. The number and percentage of occupation are shown in Table 4.3.4 and Figure
4.3.4.

Table 4.3.4: Number and percentage of occupation:

Options Number of the Percentage Number of the Percentage

respondents respondents
inside KFC outside KFC
Student 7 35% 8 40%
Self-employed 1 5% 2 10%
Employed 10 50% 9 45%
Unemployed 2 10% 1 5%
Others 0 0% 0 0%
Total 20 100% 20 100%

47
Figure 4.3.4: Percentage of occupation:

Inside KFC Outside KFC

Unemployed, 10% Unemployed, 5%

Student Self-employed
Student
Self-employed
Student, 35% Employed Unemployed
Employed Student, 40%
Unemployed
Others Employed, 45% Others

Employed, 50%

Self-employed,
5%
Self-employed, 10%

Ques 5: Income per annum:

Income level is very important because if consumers’ buying behaviour depends on income
level. Among 20 respondents in inside KFC, 35% respondents have less than £10,000 income
per annum; highest 45% have £10,000-20,000; 15% respondents have £21,000-30,000 and
lowest 5% have £31,000-40,000. In outside KFC, among 20 respondents, highest 45%
respondents have less than £10,000 income per annum; 35% have £10,000-20,000; 15%
respondents have £21,000-30,000; lowest 5% have £31,000-40,000 and no one has more than
£40,000 income per annum. The number and percentage of income per annum are shown in
Table 4.3.5 and Figure 4.3.5.

Table 4.3.5: The number and percentage of income per annum:

Options Number of the Percentage Number of the Percentage

respondents respondents
inside KFC outside KFC
Less than £10,000 7 35% 9 45%
£10,000-20,000 9 45% 7 35%
£21,000-30,000 3 15% 3 15%
£31,000-40,000 1 5% 1 5%
More than £40,000 0 0% 0 0%

48
 Total 20 100% 20 100%

Figure 4.3.5: Percentage of income per annum:

Outside KFC
Inside KFC

£31,000-40,000; 5%
Less than £10,000
Less than £10,000
£21,000-30,000;
15% £10,000-20,000 £10,000-20,000
£21,000-30,000;
Less than 15%
£31,000-40,000; 10% £10,000; 35% £21,000-30,000 Less than £21,000-30,000
£10,000; 45%

£31,000-40,000 £10,000-20,000; £31,000-40,000

35%
£10,000- More than £40,000
20,000; 45% More than £40,000

Ques 6: Marital status

This question is important because it also influences on customers behaviour. Married

consumers are more bounded than single customers. Among 20 respondents in inside KFC,
highest 70% are single, lowest 30% are married and no one is divorced. In outside KFC,
among 20 respondents, highest 55% are single, lowest

45% are married and no one is divorced. The number and percentage of marital status are
shown in Table 4.3.6 and Figure 4.3.6.

Table 4.3.6: Number and percentage of marital status:

Options Number of the Percentage Number of the Percentage

respondents respondents
inside KFC outside KFC
Single 14 70% 11 55%
Married 6 30% 9 45%
Divorced 0 0% 0 0%
Total 20 100% 20 100%

49
Figure 4.3.6: Percentage of marital status:

Inside KFC Outside KFC

Married; 30%
Married; 45%
Single Married Divorced
Single; 55% Single Married Divorced

Single; 70%

Ques 7: Nationality:

Nationality is most important because different countries different culture and behaviour
varies with culture. Among 20 respondents in inside KFC, 20% respondents are Spanish,
20% are American, 15% are France, 10% are Italian, 10% are Indian, 10% are Police, 5% are
Bangladeshi and 5% are Srilankan. In outside KFC, among 20 respondents, 25% are
Bangladeshi, 20% are Indian, 15% are Nigerian, 10% are Ugandan, 10% British, 10% are
Nepalese, 5% are France and 5% are Portuguese. The number and percentage of nationality
are shown in Figure 4.3.7 and Figure 4.3.7.

Table: 4.3.7: Number and percentage of nationality:

Nationality of Number of Percentage Nationality Number of Percentage

respondents the of the
inside KFC respondents respondents respondents
inside KFC outside outside KFC
KFC
Spanish 4 20% Bangladeshi 5 25%
American 4 20% Indian 4 20%
France 3 15% Nigerian 3 15%
Italian 2 10% Ugandan 2 10%

50
 Indian 2 10% British 2 10%
Police 2 10% Nepalese 2 10%
Bangladeshi 1 5% France 1 5%
Srilankan 1 5% Portuguese 1 5%
Total 20 100% Total 20 100%

Figure 4.3.7: Percentage of nationality:

Inside KFC
Srilankan; 5%
Bangladeshi; 5%

Spanish American France

Spanish; 20%
Police; 10%

Italian Indian Police

Indian; 10% American; 20%

Bangladeshi Srilankan
Italian; 10%
France; 15%

Outside KFC
Portuguese; 5%
France; 5%

Bangladeshi Indian Nigerian

Nepalese; 10%
Bangladeshi, 25%

British; 10% Ugandan British Nepalese

Indian; 20%
Ugandan; 10% France Portuguese

Nigerian; 15%

Section B: Customers’ perceptions on fast food and sales promotion strategy:

This section of the customers’ questionnaire focuses on the perception of customers on KFC
food and sales promotion strategy. This data is useful for researcher, because it can aid to find
out their perceptions on KFC food and the sales promotion strategy.

51
Ques 1: Do you like KFC food?
This question is essential because it is related to the preference of customers on KFC food
e.g. some people are vegetarian and some are more sensitive about halal or haram food, they
must not like KFC food. But some places KFC is making halal food. There are two options
in this question e.g. yes and no, if no why? Among 20 respondents in inside KFC, 100%
respondents’ opinion is yes. In outside KFC, among 20 respondents, highest 85%
respondents’ opinion is yes and lowest 15% are no because of vegetarian. All the percentages
are shown in Table 4.3.8 and Figure 4.3.8.

Table 4.3.8: Preferences on KFC food?

Options Number of the Percentage Number of the Percentage

respondents respondents
inside KFC outside KFC
Yes 20 100% 18 85%
No 0 0% 3 15%
Total 20 100% 20 100%
Figure 4.3.8: Preferences on KFC food?

Inside KFC Outside KFC

100% 90%
90% 80%
80% 70%
70%
Inside KFC 60% Inside KFC
60%
50%
50%
40%
40%
30%
30%
20% 20%
10% 10%
0% 0%
Yes No Yes No

Ques 2: How often do you eat at KFC?

This question is important because it shows the exact percentage of how often customers eat
KFC food. An issue of progressing interest to marketing researchers and practitioners is how
marketing mix tools affect consumers' purchase decisions such as when, what, and how much
to buy and thus the sales of a brand (Gupta, 1988). Among 20 respondents in inside KFC,
lowest 15% respondents eat daily, highest 35% 2-3 times in a week, 30% weekly, 20%
respondents eat sometime and none is in every two week and monthly. In outside KFC,
among 20 respondents, 15% respondents eat weekly, 10% monthly, highest 65% sometimes,

52
10% others e.g. never and none is in daily, 2-3 times in a week and every two week. All are
shown in Table 4.2.9 and Figure 4.2.9.

Table 4.3.9: How often do you eat at KFC?

Options Number of the Percentage Number of the Percentage

respondents respondents
inside KFC outside KFC
Daily 3 15% 0 0%
2-3 times in a week 7 35% 0 0%
Weekly 6 30% 3 15%
Every two week 0 0% 0 0%
Monthly 0 0% 2 10%
Sometimes 4 20% 13 65%
Others 0 0% 2 10%
Total 20 100% 20 100%

Figure 4.3.9: How often do you eat at KFC?

Inside KFC Outside KFC

Others, 10% Daily 2-3 times in a week

Weekly, 15%
Sometimes, Daily, 15% Daily
20%
2-3 times in a week
Weekly Weekly Every two week
Every two week Monthly, 10%
Monthly
Sometimes Monthly Sometimes
Others

2-3 times in a Others

Weekly, 30% week, 35%
Sometimes,
65%

Ques 3: What is your perception about sales promotional deals in KFC?

This question is useful because it helps to find out the customer’s perception on sales
promotion deals in KFC. From the consumers’ point of view, sales promotion minimizes the
risk connected with a purchase by offering coupons, rebates, and discounted prices etc. which
are something of added value (Wells et al., 2003). That’s why consumer prefers sales

53
promotion deal. Among 20 respondents in inside KFC, highest 90% respondents’ opinion is
positive and lowest 10% opinion is negative and no one is in others option. In outside KFC,
among 20 respondents, highest 70% opinion is positive, lowest 30% opinion is negative. All
are shown in Table 4.2.10 and Figure 4.2.10.

Table 4.3.10: Perception about sales promotional deals in KFC.

Options Number of the Percentage Number of the Percentage

respondents respondents
inside KFC outside KFC
Positive 18 90% 14 70%
Negative 2 10% 6 30%
Others 0 0% 0 0%
Total 20 100% 20 100%

Figure 4.3.10: Perception about sales promotional deals in KFC?

Inside KFC Outside KFC

90% 70%
90% 70%
80% 60%
70%
50%
60%
50% 40%
Inside KFC 30% Outside KFC
40% 30%
30%
20%
20%
10%
10% 10%

0% 0%
0% 0%
Positive Positive
Negative Negative
Others Others

Ques 4: Do you think that sales promotion damages your perceptions of the KFC
brand?
This question is important, because if sometimes sales promotion runs long time, customers
have got negative impression on brand. Sales promotion can aid to boost sales in the short
term by using price promotion such as discount vouchers, two for one, free extra 20 percent,
10% discount etc but in the long term it can create negative perception to the brand (Smith,

54
1998). Among 20 respondents in inside KFC, highest 55% respondents are strongly disagree,
45% are disagree and none is agree, strongly agree and others. In outside KFC, among 20
respondents, highest 50% are disagree, 40% are strongly disagree, 10% are agree which is
lowest percentage and none is strongly agree and others. All are shown in Table 4.3.11 and
Figure 4.3.11.

Table 4.3.11: Damaging perception on KFC brand through sales promotion deals:

Options Number of the Percentage Number of the Percentage

respondents respondents
inside KFC outside KFC
Agree 0 0% 2 10%
Strongly agree 0 0% 0 0%
Disagree 9 45% 10 50%
Strongly disagree 11 55% 8 40%
Others 0 0% 0 0%
Total 20 100% 20 100%

Figure 4.3.11: Damaging perception on KFC brand through sales promotion deals:

55
 Inside KFC
60%

50%

40%

30% Inside KFC

20%

10%

0%
Agree Strongly agree Disagree Strongly Others
disagree

Outside KFC
60%

50%

40%

30% Outside KFC

20%

10%

0%
Agree Strongly agree Disagree Strongly Others
disagree

Ques 5: Does the sales promotion of KFC incline you to come back?

This question is useful because sales promotion should be so effective that it will bring
customers again after using sales promotion deal. Sales promotion engages some kind of
incentive that offers an extra inducement to increase purchase and this incentive is
supplementary to the basic benefits that offered by the brand and for short time changes its
recognized price and value (Yeshin, 2006). Sales promotion persuades the trial and repeat
purchases of deal (Wilson, 1992). Among 20 respondents in inside KFC, highest 70%
respondents are agree, 25% are strongly agree, lowest 5% are disagree and none is strongly
disagree. In outside KFC, among 20 respondents, highest 60% are agree, 20% are strongly
agree, 15% are disagree and 5% are strongly disagree which is lowest percentage. All are
shown in Table 4.3.11 and Figure 4.3.11.

Table 4.3.12: Sales promotion of KFC inclines customers to come back:

Options Number of the Percentage Number of the Percentage

respondents respondents

56
 inside KFC outside KFC
Agree 14 70% 12 60%
Strongly agree 5 25% 4 20%
Disagree 1 5% 3 15%
Strongly disagree 0 0% 1 5%
Total 20 100% 20 100%

Figure 4.3.12: Sales promotion of KFC inclines customers to come back:

Inside KFC Inside KFC

60%
70%
50%
60%

40% 50%

40%
30% Attractive and profitable Inside KFC
30%

20% 20%

10%
10%
0%
0% Agree
Agree Strongly Disagree Strongly Others Strongly agree
agree disagree Disagree
Strongly disagree

Outside KFC

60%

50%

40%

30% Outside KFC

20%

10%

0%
Agree
Strongly agree
Disagree
Strongly
disagree

Ques 6: From where do you get the information for sales promotion of KFC?
This question is very important because if customers are not informed of the company’s sales
promotion they will not response to particular sales promotion and sales promotion must
become ineffective. The strategic effect of sales promotions is achieved when they are
integrated with other promotional tools and the business strategy (Fill, 2005). RGM also
stated that their sales promotion is incorporated with advertising in television, newspaper,

57
magazine etc. to inform customers. Among 20 respondents in inside KFC, highest 45%
respondents are informed by visiting KFC, 30% advertising and 25% friends and family. In
outside KFC, among 20 respondents, highest 75% are informed by advertising, 15% friends
and family and 10% by visiting KFC. The way of receiving information of sales promotion of
KFC is shown in Table 4.3.12 and Figure 4.3.12.

Table 4.3.12: The way of receiving information of sales promotion of KFC:

Options Number of the Percentage Number of the Percentage

respondents respondents
inside KFC outside KFC
Advertising 6 30% 15 75%
Friends and family 5 25% 3 15%
By visiting KFC 9 45% 2 10%
Others 0 0% 0 0%
Total 20 100% 20 100%

Figure 4.3.12: The way of receiving information of sales promotion of KFC:

58
 Inside KFC
50%
45%
40%
35%
30%
Inside KFC
25%
20%
15%
10%
5%
0%
Advertising Friends and family By visiting KFC Others

Outside KFC
80%

70%

60%

50%
Outside KFC
40%

30%

20%

10%

0%
Advertising Friends and family By visiting KFC Others

Ques 7: The price of the promotion items of KFC is realistic compared to other fast food
restaurants.
This question is really essential because there are lots of competitors in the markets; most of
consumers want to run those places from where they can find fewer prices, but good
promotion. Promotion-literate consumers always look forward to promotions with certain
product types and price-sensitive customers look for value for money promotions due to
recessions (Smith, 1998). Most of the times customers wish short-term price reductions such
as coupons, sales, and price promotions than can change their payment amount. So, sales
promotion persuades customers to switch products (Wells et al., 2003). Competition is also
an important reason that stimulates sales promotion strategy. Competitors utilize customers
and trade promotions more commonly (Lambin et al., 2007). There are five options in this
question e.g. agree, strongly agree, disagree, strongly disagree and others. Among 20
respondents in inside KFC, highest 55% respondents are agree, 45% are disagree and 10%
are strongly agree. In outside KFC, among 20 respondents, highest 50% are disagree, 15%
are strongly disagree, 30% are agree and 5% others e.g. neither agree nor disagree which is
59
lowest percentage. The realistic price of the promotion items of KFC is shown in Table
4.3.13 and Figure 4.3.13.

Table 4.3.13: The realistic price of the promotion items of KFC:

Options Number of the Percentage Number of the Percentage

respondents respondents
inside KFC outside KFC
Agree 11 55% 6 30%
Strongly agree 2 10% 0 0%
Disagree 7 35% 10 50%
Strongly disagree 0 0% 3 15%
Others 0 0% 1 5%
Total 20 100% 20 100%

Figure 4.3.13: The realistic price of the promotion items of KFC:

60
 Inside KFC

Disagree; 35% Agree

Strongly agree
Disagree
Strongly disagree
Agree; 55% Others

Strongly agree; 10%

Outside KFC
Others; 5%

Strongly disagree;
15%
Agree; 30%
Agree
Strongly agree
Disagree
Strongly disagree
Others

Disagree; 50%

Ques 8: Do you think that you can get some extra benefits from the offering of KFC
compared to other fast food restaurants?

This question is important because customers are now concerned about promotions. They always look
for extra incentives from promotion deal. At present, consumers are more educated, selective, and
less loyal to brand names than previous so that they can switch brand if they get better offer from
another brand (Wells et al., 2003). From the conversation with manager, KFC offer extra benefit by
providing good quality of products. There are five options in this question e.g. agree, strongly
agree, disagree, strongly disagree and others. Among 20 respondents in inside KFC, highest
60% agree, 15% strongly agree and 25% disagree. In outside KFC, among 20 respondents,
highest 45% disagree, 40% agree and 15% strongly agree. An extra benefit from the offering
of KFC is shown in Table 4.3.14 and Figure 4.3.14.

Table 4.3.14: An extra benefit from the offering of KFC:

61
 Options Number of the Percentage Number of the Percentage
respondents respondents
inside KFC outside KFC
Agree 12 60% 8 40%
Strongly agree 3 15% 3 15%
Disagree 5 25% 9 45%
Strongly disagree 0 0% 0 0%
Others 0 0% 0 0%
Total 20 100% 20 100%

Figure 4.3.14: An extra benefit from the offering of KFC:

Inside KFC
70%

60%

50%

40%
Inside KFC
30%

20%

10%

0%
Agree Strongly agree Disagree Strongly Others
disagree

Outside KFC
50%
45%
40%
35%
30%
25% Outside KFC
20%
15%
10%
5%
0%
Agree Strongly agree Disagree Strongly Others
disagree

Ques 9: What is the most important reason to eat in KFC for you?

This question is really important because customers always have certain reasons to eat at
particular company. Some like quality of chicken, some like price some promotion etc. With
the conversation of manager, KFC gives more emphasis on quality especially KFC chicken

62
quality is quite different than any other company. Customers who like chicken, KFC is the
first choice to them. Vice president of marketing at KFC, UK and Ireland, Jennelle Tilling
stated that freshness and quality are gradually more significant to the British customer, so it's
better to carry out a campaign on the top secret to grand tasting chicken: quality ingredients,
freshly arranged (Web 3). Among 20 respondents inside the KFC, 45% product, price, quality,
30% just quality, 15% brand and 10% promotion. Outside the KFC among 20 respondents, 40%
product, price quality, 30% quality, 10% brand, 10% promotion and 10% others. The most
important reason to eat in KFC is shown in Table 4.3.15 and Figure 4.3.15.

Table 4.3.15: The most important reason to eat in KFC:

Options Number of the Percentage Number of the Percentage

respondents respondents
inside KFC outside KFC
Price 0 0% 0 0%
Quality 6 30% 6 30%
Product, Price and 9 45% 8 40%
Quality
Brand 3 15% 2 10%
Promotion 2 10% 2 10%
Others 0 0% 2 10%
Total 20 100% 20 100%

Figure 4.3.15: The most important reason to eat in KFC:

Inside KFC
Ques 10: Did you use KFC food more during the
last promotional activity?
Promotion; 10%

This question is useful because the effectiveness

Quality ; 30% Price
Brand; 15%
Quality of sales promotion dependent on the use of
Product, Price and Quality
Brand
Promotion
promotion deal by the customers. The output of
Others
sales promotions is based on consumers’ deal
responsiveness within a particular product type
Product, Price and
Quality; 45% (Shimp, 1997). Some promotions generate short-
term bumps in sales that followed by an instant
jump down in sales, as customers who purchase more in the beginning and stock up then
bring to a close purchasing until finishing their extra stock (Smith, 1998). Among 20

63
respondents in inside KFC, 75% respondents’ opinion is yes and 25% no. In outside KFC,
among 20 respondents, 40% respondents’ opinion is yes and 60% is no. Using KFC food
during last promotion is shown in Table 4.3.16 and Figure 4.3.16.

Table 4.3.16: Using KFC food during last promotion:

Options Number of the Percentage Number of the Percentage

respondents respondents
inside KFC outside KFC
Yes 15 75% 8 40%
No 5 25% 12 60%
Total 20 100% 20 100%

Figure 4.3.16: Using KFC food during last promotion:

Inside KFC Outside KFC

80% 60%
70%
50%
60%
Inside KFC 40% Inside KFC
50%
40% 30%
30%
20%
20%
10%
10%
0% 0%
Yes No Yes No

4.4 Findings and analysis of staff’s questions and answer:

Section A: Socio and demographic information

This section of the staff questionnaire focuses on the profile of the respondents e.g. gender,
age, education level, marital status and nationality. The importance of demographic data was
given in socio demographic information of customers. There are 20 staffs are selected for this
responses.

64
Ques 1: Gender

There are two options in this question e.g. male and female. Among the 20 respondents,
majority, 65% respondents are male and 35% respondents are female which are lowest that
are shown in Table 4.1.1 and Figure 4.1.1.

Table 4.1.1: Number and percentage of gender and respondents:

Options Number of the respondents Percentage

Male 13 65%
Female 7 35%
Total 20 100%

Figure 4.1.1: Percentage of gender and respondents:

Gender

Female; 35% Male

Female

Male; 65%

Ques 2: Age

There are five options in this question e.g. under 16, 16-25, 26-35, 36-45 and more than 45
years old. Among 20 respondents, majority that is 60% staffs are 26-35 years old, 30% staffs
are 16-25 years old, and lowest, 10% staffs are 36-45 in Table 4.1.2 and Figure 4.1.2. No one
is in between under 16 and more than 45 years old.

65
Table 4.1.2: Number and percentage of age and respondents:

Options Number of the respondents Percentage

Under 16 0 0%
16-25 6 30%
26-35 12 60%
36-45 2 10%
More than 45 0 0%
Total 20 100%

Figure 4.1.2: Percentage of age and respondents:

Age
36-45; 10%

Under 16
16-25; 30% 16-25
26-35
36-45
More than 45

26-35; 60%

Ques 3: Education level

There are five options in this question e.g. no formal education, secondary, college/
university, post graduate and others. Among 20 respondents, majority, 60% staffs are post
graduates, 30% college/university and lowest, 10% are secondary level in Table 4.1.3 and
figure 4.1.3. No one is in between no formal education and others options.

66
Table 4.1.3: Number and percentage of education level:

Options Number of the respondents Percentage

No formal education 0 0%
Secondary 2 10%
College/ University 6 30%
Post graduate 12 60%
Others 0 0%
Total 20 100%

Figure 4.1.3: Percentage of education level:

Education level
Secondary; 10%

No formal education
Secondary
College/University
Post graduate
College/University;
30% Others
Post graduate; 60%

Ques 4: Marital status

There are three options in this question e.g. single, married and divorced. Among 20
respondents, majority, 50% staffs are single, 45% staffs are married and lowest, 5% are
divorced that are shown in Table 4.1.4 and also Figure 4.1.4.

Table 4.1.4: Number and percentage of marital status:

Options Number of the respondents Percentage

Single 10 50%
Married 9 45%
Divorced 1 5%
Total 20 100%

67
Figure 4.1.4: Percentage of marital status.

Marital status
Divorced; 5%

Single
Married
Divorced
Single; 50%
Married; 45%

Ques 5: Nationality:

Among 20 respondents, there are 30% staffs are Srilankan which are majority percentages,
20% staffs are Indian, 15% are Bangladeshi, 10% are Pakistani, 5% Polish, 5% are Nigerian,
5% are Ghanaian, 5% are Hungarian and 5% are France which are shown in Table 4.1.5 and
also Figure 4.1.5.

Table 4.1.5: Number and percentage of nationality:

Options Number of the respondents Percentage

Srilankan 6 30%
Indian 4 20%
Bangladeshi 3 15%
Pakistani 2 10%
Polish 1 5%
Nigerian 1 5%
Ghanaian 1 5%
Hungarian 1 5%
France 1 5%
Total 20 100%

Figure 4.1.5: Percentage of nationality.

68
 Nationality
France; 5%
Hungarian; 5%
Ghanaian; 5% Srilankan
Indian
Nigerian; 5% Bangladeshi
Pakistani
Srilankan; 30% Polish
Polish; 5% Nigerian
Ghanaian
Pakistani; 10% Hungarian
France
Indian; 20%

Bangladeshi; 15%

Section B:

Ques 1: How long have you been working in KFC?

These question is useful because who are long time working in the KFC they have more
knowledge about KFC and the sales promotion strategy than those who are working short
time. Among the 20 respondents, majority, 40% staffs are more than 3 years, 35% are 1to 2
years and lowest and 25% are 2 years to 3 which are shown in Table 4.4.1 and Figure 4.4.1.

Table 4.4.1: Length of working time in KFC:

Options Number of the respondents Percentage

Less than 6 months 0 0%
6 months to 1 year 0 0%
1year to 2 years 7 35%
2 years to 3 years 5 25%
More than 3 years 8 40%
Total 20 100%

Figure 4.4.1: Length of working time in KFC:

69
 Years
40%
35%
30%
25%
20% Years
15%
10%
5%
0%
Less than 6
months 6 months to 1
year 1year to 2
years 2 years to 3
years More than 3
years

Ques 2: Did you get more response from your customers during last promotional
activity?

This question is useful because the profitability of sales promotion depends on consumer
responsiveness. The output of sales promotions is based on consumers’ deal responsiveness
within a particular product type (Shimp, 1997). Among 20 respondents, majority, 95%
staff’s opinion is yes and lowest, 5% staff’s opinion is no that are shown in Table 4.4.2 and
Figure 4.4.2.

Table 4.8: Response from your customers during last promotional activity:

Options Number of the respondents Percentage

Yes 19 95%
No 1 5%
Total 20 100%

Figure 4.8: Response from your customers during last promotional activity:

70
 Responses from customers
No; 5%

Yes
No

Yes; 95%

Ques 3: How does sales promotion work at KFC?

Sales promotion is a short term process, so it important to find out by the researcher the
working procedure of sales promotion at KFC. Usually sales promotion is a short-term
tactical tool that can be used offensively to provoke the trial of new products, or defensively
for well-known products to keep shelf space and consumers (Davis, 1992; O’malley, 1998).
Among 20 respondents, highest 85% staff’s opinion is after some days, promotion pattern is
changed always to compete in the market, 5% told that first, boosts the sales, later sales
down, 5% told that promotion goes well for a long term and 5% told that others e. g. depends
on responsiveness which are shown in Table 4.4.3 and Figure 4.4.3.

Table 4.4.3: The way of sales promotion activity at KFC:

Options Number of the Percentage

respondents
First, boosts the sales, later sales down 1 5%
Promotion goes well for a long term 1 5%
After some days, promotion pattern is changed 17 85%
always to compete in the market
Others 1 5%
Total 20 100%

71
Figure 4.4.3: The way of sales promotion activity at KFC:

Working procedure
80%
60%
40%
20%
0%
Working procedure

rs
m
wn

he
t
er

ke
do

Ot
gt

ar
les

on

em
sa

al

th
er

or

in
lat

ll f

te
we
s,

pe
ale

m
es
es

co
go
th

o
n

st
ts

tio
os

ay
o

alw
om
bo
st,

Pr

d
ge
Fir

an
ch
is
rn
tte
pa
on
oti
om
pr
s,

Ques 4: Do you think that sales promotion activity not only attracts the customers but is
ay
ed
m

also profitable for the company?

so
er
Aft

This question is useful because sales promotion is a strategy that inspires customer to buy and
also profitable for the company. The profitability of sales promotions is based on consumers’
deal responsiveness within a particular product type. For example, if customers are
reasonably insensible to deals or no good responses from purchasers, sales promotions are
automatically unprofitable (Shimp, 1997). There are five options e.g. agree, strongly agree,
disagree, strongly disagree and others. Among 20 respondents, 40% staffs are agree, highest
50% are strongly agree, lowest 10% are disagree and none is strongly disagree and others that
are shown in Table 4.4.4 and Figure 4.4.4.

Table 4.4.4: Attractiveness and profitability:

72
 Options Number of the respondents Percentage
Agree 8 40%
Strongly agree 10 50%
Disagree 2 10%
Strongly disagree 0 0%
Others 0 0%
Total 20 100%

Figure 4.4.4: Attractiveness and profitability:

Attractive and profitable

60%

50%

40%

30% Attractive and profitable

20%

10%

0%
Agree Strongly Disagree Strongly Others
agree disagree

Ques 5: Have you seen any uptake in sales or satisfaction during promotion?

This question is important because it is related to increase in sales and satisfaction. During
the promotion time, sales boosts because of brand switching purchase time increase in speed,
and stockpiling (Gupta, 1988). Among 20 respondents all the staffs e.g. 100% responded yes
that given in Table 4.4.5 and also Figure 4.4.5.

Table 4.4.5: Uptake in sales or satisfaction during promotion:

Options Number of the respondents Percentage

Yes 20 100%
No 0 0%
Total 20 100%

Figure 4.4.5: Uptake in sales or satisfaction during promotion:

73
 Sales and satisfaction

Yes
No

Yes; 100%

Ques 6: Should sales promotion be incorporated with other communication tools such
as advertising?

This question is important because if sales promotion is incorporated with other promotional
tools, then customers will more informed. If sales promotion is coordinated with the other
performance of the promotional mix, such as advertising and long time planning, then the
proper strategic effect of sales promotion activities can be achieved (Fill, 2005). Among the
20 respondents, lowest 30% staffs are agree, highest 70% are strongly agree, and none is
disagree, strongly disagree and others with this statement that are shown in Table 4.4.6 and
Figure 4.4.6.

Table 4.4.6: Incorporated with other communication tools such as advertising.

Options Number of the respondents Percentage

Agree 6 30%
Strongly agree 14 70%
Disagree 0 0%
Strongly disagree 0 0%
Others 0 0%
Total 20 100%

Figure 4.4.6: Incorporated with other communication tools such as advertising.

74
 Incorporation with other communication tools

Others

Strongly disagree
Incorporation with other com-
munication tools
Disagree

Strongly agree

Agree

0% 10% 20% 30% 40% 50% 60% 70%

4.5 Summary:

75
This chapter is started by the qualitative data analysis of the findings from the interview from
restaurant general manager of KFC, Marble Arch. There is also interlinked with the literature
and findings which includes objectives of sales promotion of KFC; reasons for the growth of
sales promotion of KFC; ineffectiveness of sales promotion of KFC; strategic effect of sales
promotion of KFC; profitability of sales promotion of KFC and measurement of sales
promotion of KFC. Next, it focuses on the analysis and findings of the customers’
questionnaire which was interlinked with literature review. This is divided into two sections:
section A represents the demographic information of the customers such as gender; age;
education level; occupation; income per annum; marital status and nationality which
influence their buying behaviour and section B represents customers’ perception on fast food
and also sales promotion strategy such as preference of KFC food; how often they eat;
perception on promotion deal; any negative perception on brand; sales promotion inclines
them to come back; from where they get information for promotion; realistic price and extra
offer related to competitors and using more food during last promotion activity. Finally, the
chapter is finished by the analysis and findings of the staff’s questionnaire which was also
interlinked with literature review. This is also divided into two sections: section A represents
the demographic information such as gender; age; education level; marital status and
nationality and section B represents staff’s opinion on KFC and the sales promotion strategy
such as their working length; response from your customers during last promotional activity;
the way of sales promotion activity at KFC; attractiveness and profitability of sales
promotion; uptake in sales or satisfaction during promotion and sales promotion should be
incorporated with other communication tools such as advertising. All the data were presented
in Table and in Figure. The next chapter will represent the general conclusion and
recommendation.

Chapter 5

76
 Conclusions and recommendations

5.1 Introduction:
This dissertation is divided into five chapters. The first chapter was introduction which
includes background of the research; research aims and objectives; research questions;
company overview; rationale for the topic selection; purpose of the research; methodology
used; limitation of the research and structure of the dissertation. The second chapter includes
introduction; strategy definition and generic approaches to strategy; the concept of marketing;
corporate level strategy and it’s link with marketing communications; the definition and the
concept of brand; the strategic role of branding; the role of marketing communications in
branding; branding through taste, smell and sound in fast food industry; sales promotion;
objectives of sales promotion; developing sales promotion programme; reasons for the
growth of sales promotion; ineffectiveness of sales promotion; strategic approach of sales
promotion; profitability of sales promotion, sales promotion of KFC at different time and
impact on sales and summary. The third chapter methodology which includes introduction;
research aims and objectives; research design; data collection; survey design; sampling; data
analysis; limitations of the research and summary. The fourth chapter was research findings
which includes introduction; findings of qualitative research; findings of quantitative research
and summary. The fifth chapter is conclusions and recommendations which will represent
summary of key findings and recommendations in this chapter.

5.2 Conclusions:

77
This research aims to investigate how effective sales promotion strategy that is used by KFC
to increase sales. The researcher was able to identify the aims and objectives of this research.
The first aim and objective of the research is to review literature about strategy, marketing,
branding and sales promotion strategy which was described in chapter 2. The second aim and
objective of the research is identify the objectives of the sales promotion strategy of KFC
which indicate to generate a value for customers, create more demand on products due to
combination of the variety of products by sales promotion deal, create a good image of brand
and ultimately increase sales. The third aim and objective of the research is to identify the
main reasons for the growth of sales promotion strategy of KFC which indicate the
promotional deal has usually lower prices than non promotional items so consumers become
interested to switch their brand, there is a continuous growth due to combination of different
items and also competitor is one of the important factor that increases the activity of sales
promotion. The fourth aim and objective of the research is to investigate the ineffectiveness
of sales promotion strategy of KFC which indicates most of promotions run for short time
and it is the activity of short term planning. Normally KFC runs sales promotion during less
busy time. The fifth aim and objective of the research is to investigate the effectiveness of
sales promotion strategy of KFC which indicate that for obtaining strategic effect sales
promotion of KFC is always integrated with the advertising to convey message to the
audiences. The sixth aim and objective of the research is to investigate the measurement of
the effectiveness of sales promotion strategy used by KFC which indicate that KFC in store
basis always check weekly sales report of promotion item and from head office KFC does
market research on every promotion. The seventh aim and objective of the research is to
provide recommendations to KFC in order to improve the effectiveness of the sales
promotion strategy that is used by this fast food company to increase sales which will be
provided later in this chapter.

The key summary of the findings from respondents of KFC customers in regarding
preference of KFC food was that most of the customers either inside or outside of KFC like
KFC food. Only few dislikes because of KFC has no deal for vegetarian. In regarding the
question of how often Customers consume KFC food, the key summary is that inside KFC
most of the respondents come at KFC in two three times in a week and weekly basis because
they are regular customers, but in outside KFC more than 50% respondents come at KFC in
sometimes to consume their food.

78
In regarding the perception of sales promotion deal in KFC by respondents the key summary
is that most of the respondents both inside and out KFC had positive perception on the sales
promotion deal in KFC. Sometimes sales promotion damages the perception of brand. The
key findings of damaging perception on KFC brand through sales promotion deals, most of
the respondents inside KFC are strongly disagreed and disagreed with this statement and in
outside KFC, there were also most of the respondents were disagreed and strongly disagreed,
but very few were agreed. From this reality, it can be summarised that the sales promotion of
KFC is well perceived by the respondents and it does not damage the perception on brand.

Sales promotion persuades the trial and repeat purchases of deal (Wilson, 1992). The main
findings in relation to inclining customers to come back by the persuasion of KFC sales
promotion deal represent that in inside KFC most of the respondents said agree, some
strongly agree, but very few disagree. In outside KFC, also most of the respondents were
agreed, but comparatively less than inside KFC and there were also reasonable percentages
said disagree and very few strongly disagreed. From this information, it can be concluded that
the KFC promotion should be more harmonious to incline the customers of outside KFC to
come back.

Communications is one of the most important issues that convey message to the customers.
Sales promotion of KFC is also integrated with other communication tools such advertising,
campaign etc. to reach the message to the consumers. In regarding this issue, in inside KFC
most of respondents got information of sales promotion by visiting KFC, after that
advertising and also some were informed from friends and family and in outside KFC most of
the respondents were informed about the promotion deal on KFC from advertising, few from
friends and family and by visiting KFC. So, the key finding from this fact is that advertising
is best communication tool to inform consumers especially who are not regular customers.

Promotion-literate consumers always look forward to promotions with certain product types
and price-sensitive customers look for value for money promotions due to recessions (Smith,
1998). So, customers are very sensible about price. If consumers get realistic price and good
offer, they don’t mind to shift their brand. In regarding to the statement of sales promotion
items of KFC is realistic compared to other fast food restaurants, in inside KFC though most
of the respondents were agreed but large number respondents were disagreed and in outside
KFC most of the respondents were disagreed with this statement and also large number
respondents were agreed. So, from this reality, it can be concluded that the price of promotion

79
item of KFC is not perfectly realistic in comparison to other fast food restaurants and it
should be realistic to promote customers to switch brand.

At present, consumers are more well-informed, choosy, and less reliable to brand names than previous
so that they can change brand if they get superior offer from another brand (Wells et al., 2003). In
regarding the issue of customer can get some extra benefits from the offering of KFC compared
to other fast food restaurants, most of the respondents in inside the KFC supported with this
statement after that some did not supported and in outside KFC the respondents’ percentage
is some higher who did not supported with this statement than who supported. So, from the
reality, it can be concluded that KFC should offer some more extra benefits than the
competitors in their promotion items.

KFC gives more emphasize on the quality and freshness of the product. The most important
reasons for eating KFC food by respondents were product, price and quality in either inside
KFC or outside KFC. The effectiveness of sales promotions is reliant on consumers’ deal
receptiveness within a particular product type (Shimp, 1997). In regarding the issue of
consumption of KFC food during last promotion activity, most of the respondents in inside
KFC used more KFC food during last promotion, but few did not use and outside the KFC
the percentage of respondents is who did use more were some higher than who used more
KFC food during last promotion. The key summary of the respondents of KFC staff in
regarding the same type of previous issue of getting more responses during promotion
activity, 95% staff said yes. So, from the fact, it can be summarized that KFC got more
responses during last promotion from their customers especially who are regular.

The next conclusion from the aspect of the way of promotion activity of KFC is like that after
some days, promotion pattern is changed always to compete in the market by most the
respondents from staff. So, their promotion pattern is short term basis. Most of the
respondents from staffs supported the statement of sales promotion activity not only attracts
the customers but is also profitable for the company. The key finding on the aspect of more
sales or satisfaction during promotion period is that all the respondents from staff said yes
they observe more sales and satisfaction. All the respondents from staff also told that
promotion should incorporated with other promotional tools such as advertising. The sales
promotion of KFC is always integrated with advertising to inform customers about
promotion.

80
As the research has given an idea about the effectiveness of sales promotion strategy in
increasing sales which comprises of grounds for further research and more tactics to be
developed in the future. So, from the above summary of the findings some of the
recommendations to improve sales promotion strategy of KFC will be provided in next
section.

5.3 Recommendations:

The last aim and objective of the research was is to provide recommendations to KFC in
order to improve the effectiveness of the sales promotion strategy that is used by this fast
food company to increase sales. This section will provide some recommendations to KFC to
fulfil the last aim and objective of the research. On the basis of the literature review and
findings of the research there are several types of recommendations are provided in this
section.

5.3.1 Short term planning and short term duration:

Again it needs to repeat literature that sales promotion must be a part of an advanced and
longer-term approach. If sales promotion is coordinated with the other performance of the
promotional mix, such as advertising and long time planning, then the proper strategic effect
of sales promotion activities can be achieved (Fill, 2005). From the findings of the Restaurant
General Manager interview KFC is incorporated with advertising process but it is a short
term planning and short duration approach. So, for getting the strategic effect of sales
promotion KFC promotion should be longer term planning and long duration approach.

5.3.2 Items for vegetarian:

In United Kingdom there are lots of tourists, lots of overseas students, lots of work permit
holders of different nationality. Different people of different nationality have different food
choice and buying behaviour. From the findings of the research there were few respondents
who did not eat KFC food because they are vegetarian and KFC has no deal for vegetarian,
all are chicken food. From this perspective KFC should lunch some items for vegetarian
comparison with other fast food for example Burger King has vegetable burger to attract all
level of customers especially vegetarian.

81
5.3.3: Realistic price:

In the literature, price-sensitive customers look for value for money promotions due to
recessions (Smith, 1998). From the findings of the research, a large number of respondents
especially in outside the KFC were not agreed about the price of promotion item is realistic in
comparison to other fast food restaurants like Mc Donald’s. So, the price of promotion item
of KFC should be realistic related to competitors to persuade consumers shifting brand.

5.3.4 Extra benefits:

In the literature that was presented already in conclusions that at present, consumers are more
well-informed, choosy, and less reliable to brand names than previous so that they can change
brand if they get superior offer from another brand (Wells et al., 2003). From the findings of
the research, most of respondents in outside KFC were disagreed about the statement of KFC
offers extra benefits in relation to other fast food restaurants. In inside KFC, though most of
the supported this, after that also some respondents were disagreed. So, KFC should offer
some extra benefits in compared to its competitors so that customers who are not regular for
KFC will easily switch the brand.

5.3.5 Future researchers:

The findings and data analysis chapter was done by connecting with findings and literature
review. But these findings only collected on the basis of RGM interview; 40 customers and
20 staffs. From only these limited samples it cannot be possible to get actual results and that’s
why it is difficult to concluded perfectly. Data analysis will be better if it will be connecting
with findings; literature review and the real market research that done by KFC head office.
So, the suggestion for future researchers to do data analysis chapter by matching with
findings, literature review and also market research of sales promotion items of KFC that
done by head office.

82
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Web1: http://www.kfc.co.uk/about-kfc/#The-KFC-Story

Web 2: http://www.guardian.co.uk/business/2009/feb/16/fooddrinks-recession

Web 3: http://web.ebscohost.com/ehost/pdf?vid=28&hid=7&sid=73f6bd55-3aa6-4348-b1c0-
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 Appendix-1
Questionnaire for Customers
I am a student of MBA, 3rd semester at the University of Wales Institute, Cardiff (UWIC).
The completion of this questionnaire will take only few minutes, but your participation will
help me to complete my dissertation and as well as my study. Thank you for giving me your
valuable time. The aim of this survey is to get the information about sales promotion strategy
regarding increasing sales. The information you provide will be kept confidential and will
only be used for academic purposes.

Section A: Socio and demographic information:

1) Gender:
Male Female
2) Age:
Under 16 16-25 26-35 36-45 More than 45
3) Education level:
No formal education Secondary
College/ University Post Graduate
Others
4) Occupation:
Student Self-Employed Employed Unemployed
Others
5) Income per annum:
Less than £10,000 £10,000-20,000 21,000-30,000
31,000-40,000 More than 40,000
6) Marital status:
Single Married Divorced
7) Nationality: _______________________________

89
Section B: Customers’ perceptions on fast food:
1) Do you like KFC food?
Yes No If not why? __________________
2) How often do you eat at KFC?
Daily 2-3 times in a week Weekly Every two week
Monthly Sometimes Others________
3) What is your perception about sales promotional deals in KFC?
Positive Nagative Others________________
4) Do you think that sales promotion damages your perceptions of the KFC brand?
Agree Strongly agree
Disagree Strongly Disagree Others_______________
5) Do the sales promotion of KFC inclines you to come back?
Agree Strongly agree
Disagree Strongly Disagree
6) From where do you get the information for sales promotion of KFC?
Advertising Friends and family By visiting KFC
Others ______________
7) The price of the promotion items of KFC is realistic compared to other fast food
restaurants. Do you agree with this statement?
Agree Strongly agree
Disagree Strongly Disagree Others_______________
8) Do you think that you can get some extra benefits from the offering of KFC
compared to other fast food restaurants?
Agree Strongly agree
Disagree Strongly Disagree Others_______________
9) What is the most important reason to eat in KFC for you?
Price Quality Product, Price and quality Brand
Promotion Others__________
10) Did you use KFC food more during the last promotional activity?
Yes No

90
 Appendix-2

Questionnaire for Staff

I am a student of MBA, 3rd semester at the University of Wales Institute, Cardiff (UWIC).
The completion of this questionnaire will take only few minutes, but your participation will
help me to complete my dissertation and as well as my study. Thank you for giving me your
valuable time. The aim of this survey is to get the information about sales promotion strategy
regarding increasing sales. The information you provide will be kept confidential and will
only be used for academic purposes.

Section A: Socio and demographic information:

8) Gender:

Male Female

9) Age:

Under 16 16-25 26-35 36-45 More than 45

10) Education level:

No formal education Secondary

College/ University Post Graduate

Others

11) Marital status:

Single Married Divorced

12) Nationality: __________________________

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Section B: Staff’s opinion about KFC and sales promotion strategy:

1) How long have you been working in KFC?

Less than 6 months 6 months to 1 year
1year to 2 years 2 years to 3 years
More than 3 years

2) Did you get more response from your customers during last promotional
activity?
Yes No

3) Do you think that sales promotion activity not only attracts the customers but is
also profitable for the company?

Agree Strongly agree

Disagree Strongly Disagree Others______________

4) How does your sales promotion work?

First, boosts the sales, later sales down
Promotion goes well for a long term
After some days, your promotion pattern is changed always to compete in the market.
Others ________________________

5) Have you seen any uptake in sales or satisfaction during promotion?

Yes No

6) Should sales promotion be incorporated with other communication tools such as

advertising?

Agree Strongly agree

Disagree Strongly Disagree Others______________

92