Sales and Distribution Management Project

Topic-

SALES ACTIVITIES AND SALES FUNCTIONS OF

KFC

Submitted by: Gayathry Suresh

Submitted on: 26th November, 2022

3rd Semester, MBA

Introduction

American-based Kentucky Fried Chicken (KFC) is a well-known international brand of fast

food restaurants. The most well-known restaurant chain in the world offers chicken pieces in
a variety of preparations. More than 12 million people visit the company's many restaurants
each day, which are spread throughout 109 different nations. This dish is thought to have
been created more than 50 years ago by Harland Sanders. The partnership is a part of Yum!
Brands Inc., the largest restaurant chain in the world.

Segmentation, Positioning & Targeting of KFC’s Marketing Strategy

KFC segments the market based on demographics to better meet customer needs. Most
consumers are teenagers and young adults. Previously, comparable menus were served
everywhere. They were therefore employing a non-differentiated targeting approach. KFC
has recently begun to localise and customise the menu, though. They gained greater
acceptance from the target market as a result. Additionally, they switched from a product-
based positioning strategy to one that was considerably more value-based.

For its chicken cuisine, KFC has a large consumer following. This is due to the dearth of
vegetarian options in stores. KFC, however, is just outstanding when it comes to meat-based
foods. Everyone enjoys the chicken wings and chicken bucket. The majority of non-
vegetarian fans of KFC enjoy it mostly because of this targeted strategy. Let's go over the
specifics of KFC's 4P marketing plan.

Product Strategy of KFC

The product strategy is a brief outline of the products that a firm need to sell its customers.
For example, KFC is popular for its world-class chicken burgers and fries. However, the list
doesn’t end here. KFC’s international marketing strategy keeps on introducing new items
within the menu. Thus, it helps build a strong product strategy and supports marketing. Some
of the best products of KFC include:

 Rice bowls
 Chicken/Veg zinger burgers
 Fiery chicken wings

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 Veg strips
 Boneless chicken wings
 Veg longer
 French fries

Promotion Strategy for KFC

How a company can advertise its products in the marketplace is related to its promotion plan.
For instance, KFC actively markets itself as the second-largest fast-food juggernaut in the
world. Advertising in periodicals, newspapers, and commercial hoardings are some of the
media used for promotion. The Australian Big Bash League and numerous cricket matches
have both been sponsored by KFC. The catchphrase "It's Finger-Lickin," which serves to
remind its audience of mouth- watering food items and delicacies, is another crucial
component of KFC's digital marketing approach.

Pricing Strategy of KFC

The prices of the products are determined according to the firms' established pricing strategy
in order to effectively attract the audience's attention. KFC has a selective pricing strategy
across the board. The prices and reviews of the products vary. In India, food is quite
reasonably priced. KFC advertises across a variety of platforms, including TV, social media,
newspapers, and more. But it still falls short in terms of supporting significant events.

The prices of the goods sold in various nations vary. KFC therefore employed a market
expansion strategy and a price skimming strategy. This indicates that KFC drastically cut
pricing when its rivals joined the market, and it kept prices low while launching new goods
compared to later stages. They gain the desired attention as a result of this. The prices of the
products are determined according to the firms' established pricing strategy in order to
effectively attract the audience's attention. KFC has a selective pricing strategy across the
board. The prices and reviews of the products vary. In India, food is quite reasonably priced.
KFC advertises across a variety of platforms, including TV, social media, newspapers, and
more. But it still falls short in terms of supporting significant events.

Placement Strategy of KFC

The placement strategy involves keeping track of the locations where a company can get in
touch with potential customers for its products. Unfortunately, KFC's marketing staff uses

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rather traditional methods to indicate the locations of their outlets when it comes to their
market development strategy.

KFC has grown into a huge colossus thanks to its techniques for attracting audiences. It has
more than 15000 locations throughout 100 nations. KFC has intentionally opened all of its
locations near offices, colleges, and other educational institutions. The youth of the nation
engage in fast food far more than the country's elderly population, which is the reason.

Distribution Strategy of KFC

KFC's history and marketing plan have changed significantly, with more than 18000 outlets
serving mouth- watering fast food globally. They have been able to serve the clients
significantly better because to their close relationships and cooperation with supply chain
partners. KFC consistently installs its locations in upscale settings like malls and shopping
centres. Additionally, KFC locations offer delivery for online orders. KFC offers both offline
and online delivery options, thus.

Competitor Analysis in Marketing Strategy of KFC

Kokoriko, McDonald's, Kyochan, and other regional and international food businesses are
fierce rivals of KFC. Local fast-food restaurants can compete directly with KFC in
developing countries. Different fast-food chains, like Subway, eat up their market share in
developed countries.

McDonald's and Subway are two of KFC's principal rivals. They both fall under the umbrella
of burgers and sandwiches. McDonald's focuses on hamburgers, whereas Subway focuses on
sandwiches. Subway hasn't yet reached the extent of its spread, while McDonald's and KFC
are perpetually at odds over dominance of the world market.

Brand Equity of KFC’s Global Marketing Strategy

KFC is now listed as having a global ranking of 147. With consistent, good brand
positioning, the business was able to raise consumer awareness (TOMA). Additionally,
KFC's worldwide marketing strategy is addressing the underserved group that contributed to
the development of its brand by offering the veg menu and localization plan. Along with
above-the-line and "below-the-line" marketing tactics, KFC's ongoing branding endeavours
were a significant contributing factor.

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Market Analysis in the KFC Global Marketing Strategy

More than half of KFC's sales are made in industrialised countries. The markets, however,
have a growth rate that is sluggish. On the other side, KFC has a huge potential in emerging
countries like India. Although the fast-food franchises are less popular in the developed
market, the market is still expanding. Health consciousness is rising in wealthy countries.
Thus, the market dynamics will only be shared by one developing country.

Quality and A Myriad of Products

KFC's goods go through a number of quality inspections. This fits into KFC's overall
marketing plan. The quality inspections aid in keeping their clients and the reputation of the
business. KFC offers a variety of chicken preparations and maintains the highest standards of
quality control. The selection of the raw materials in the manufacturing plants, the nutritional
considerations, the level of cleanliness, and the production process are all the first steps in the
quality check. Even deliveries to the stores are regularly inspected.

Online Presence and KFC Promotion

People's online lives have gotten easier and faster with the usage of cell- phones, modern
technology, and the internet. Not only does KFC collaborate with delivery partners like
Zomato & Swiggy, but it also provides outstanding direct online delivery. The "Design Your
Own Bucket" campaign by KFC is a huge part of the company's global marketing strategy
and promotions. KFC launched this new KFC App with many features to allow customers to
easily customize their meals; quickly save and order online, delivery, receive newest
promotion, discounts and earns exclusive offers. They add more value to the customers using
the App

Participants in the campaign had to design vibrant and unique KFC buckets. The contest
received 5500 entries. Not only that, but they also took advantage of Sachin's retirement from
cricket. When Sachin retired, they held bucket draws with his picture on them.

Then there was KFC's Currycature campaign, which involved choosing a man or female
figure with an eccentric yet Indian flair and uploading photos of themselves as that persona.
On a 500 rupee note, the Wow Menu Option promotion was also printed. Users of the KFC
app could scan Rs. 500 bills to purchase a variety of foods within their price range.

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The end consequence of all these activities was that KFC was listed among the top five social
media-loving brands, its engagement increased to three times the industry average, and it was
ranked among the top five social media brands in the nation for quickest growth.

How KFC Used Social Media to Turn Their Haters of It’s Fries into Fans

The Initial KFC Action

The fast food business modified the recipe for the chips in Ireland and the UK after realising
the issue. A "tastier & chunkier fry" was introduced. The new chip was doing well in research
but poorly in practical tests. People had grown accustomed to the older chips, and many
devoted customers preferred to continue with them.

To expand the brand, KFC's global marketing strategy required to change how new and
lighter users perceived the company. This implies that it was unable to count on the repeat
clients who were happy with the old chips and fries. The fries have to be changed. The
biggest difficulty was controlling the overall transition to the new chip mix. This had to
happen in such a way that the loyal fans who didn’t want the change didn’t feel that they
were losing out.

The Next Step

KFC developed marketing that emphasised how the new fries were superior than the old.
However, the test's response indicated that it wasn't performing satisfactorily. KFC's global
marketing strategy changed as a result. Behavioural economics was applied. They came to
the conclusion that it had a loss aversion issue. Not only did many not enjoy the new fries,
but they also feared losing the traditional ones. Therefore, listing the benefits of the new fries
would not be sufficient.

Instead, KFC needed to admit that the previous fries had issues in order for the new fries to
be viewed as their "saviour". They thus started the "Ain't No Small Fry" campaign on
Twitter. This was also backed up with the traditional media, where KFC paid to amplify the
criticism of the old chips to the existing fans and also those who had tried criticized the new
chips. This was followed up with ads on the new chips.

The Results
This strategy came with a risk, but it was profitable. Suddenly, news stories focused on
KFC's new fries. It also became the BBC story with the highest readership. All of this was
only possible with a £230,000 budget. Three million people were exposed to the initial

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Twitter promotion. KFC's marketing effort garnered 13.9 million photographs across social
media and a 25% share of voice in the quick-serving restaurant industry. The best part is that
KFC won the Social Media Awards at the Marketing Week Masters in the UK & Ireland as a
result of this strategy.

The global marketing effort for KFC also had a big effect on sales. It increased public
knowledge of the new fries by 62%, a significant rise above 50%. Additionally, it improved
38% of a point from the pre-campaign test. Every measurement saw an increase in the taste
scores. KFC's credibility rose by 4%, and the calibre of the meal improved by 1%. Through
the promotion, KFC UK and Ireland saw over 670,000 more customers.

Some More Examples of KFC’s Global Marketing Strategy Campaigns

Undoubtedly, KFC took part in a wide array of campaigns to endorse its products. Not only
social media, but they also took the help of other modes of communication to reach out to the
people. Since KFC is a global brand, it had to invest in campaigns all around the globe to
bring its products to its customers.

On TV programs like What’s My Line and I’ve Got a Secret were highly popular. They also
took a great step when they hired actor Henderson Forsythe to play the Colonel in a TV
program known as “The Colonel’s Way”. From then on, many actors played the Sanders role
on-screen. This added to the brand value.

Conclusion

A revolution in the world of foodies was started by KFC. They are always looking for new
methods to provide their clients with high-quality cuisine that is also affordable. That is the
main focus of KFC's international marketing plan. KFC is concentrated on keeping the brand
and the patrons' loyalty in the modern environment. KFC has been able to successfully
dominate the industry as the second-largest restaurant chain in the world that specialises in
high-end chicken dishes. The popularity, acclaim, and accolades it has gained are fairly clear
evidence of this.

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