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Jinnah University for Women

Department of Business Administration

Submitted by: Misbah (JUW28831)


Course TitleBrand Management
Course code:  MKT631/ BBA MKT 4051

Submitted To
Miss Nida
Brand : KFC (Kentucky Fried Chicken)
 History of brand:
KFC (Kentucky Fried Chicken) was founded by Colonel Harland Sanders, an entrepreneur who
began selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great
Depression. Sanders identified the potential of restaurant franchising, and the first "Kentucky
Fried Chicken" franchise opened in Salt Lake City, Utah, in 1952. KFC popularized chicken in
the fast-food industry, diversifying the market by challenging the established dominance
of hamburger. Branding himself "Colonel Sanders", the founder became a prominent figure in
American cultural history, and his image remains widely used in KFC advertising.
KFC was one of the first fast-food chains to expand internationally, opening outlets in Britain,
Mexico, and Jamaica by the mid-1960s.  Throughout the 1970s and 80s, KFC experienced mixed
success domestically, as it went through a series of changes in corporate ownership with little or
no experience in the restaurant business. In the early 1970s, KFC was sold to the spirits
distributor Heublein, which was taken over by the R. J. Reynolds food and tobacco
conglomerate, which later sold the chain to PepsiCo. The chain continued to expand overseas,
and in 1987 KFC became the first Western restaurant chain to open in China.
 What is brand?
According to AMA (American Marketing Association) ,a brand is “ name, term, sign, symbol,
or design or a combination of them intended to identify the goods and services of one seller or
group of sellers and to differentiate them from those of competition”
So, KFC tends to be cooking their food served to the consumers unlike what other QUICK
SERVICE RESTAURANT does. Other QUICK SERVICE RESTAURANT tend to be serving
meals cooked in a central kitchen, frozen and then reheat for the consumer. KFC on the other
hand are making the food which tends to be more quality than their competitors.
 KFC came up with the pressure fried chicken which set them apart from other chicken
restaurants.

 Brand Stategies
Prices and pricing strategy of KFC

Pricing is the next element to examine in the Marketing mix of KFC. As KFC operates around
the world, it has adopted a geographical pricing strategy i.e. prices vary from one country to
another. Likewise, it pursues competitive pricing policies to stay in line with the prices of its
competitors so that customers have little or no justification to switch to the competitors based on
the prices of the products.

Digital Marketing Strategy of KFC 

The KFC marketing strategy primarily includes SEO, content marketing, email marketing, social


media marketing, and video marketing. However, the company pays special attention to social
media marketing and uses the most popular digital marketing platforms to highlight its price and
customer satisfaction. 

KFC's Email Marketing Strategy

KFC restaurants create bulk mailings using the AMP technology to target its mobile phone users
too. Its AMP emails are different from ordinary emails as these mails have interactive elements
in the form of order buttons, product carousels, subscription forms, sliders, animations, an
interactive showcase of meals, and more so that the emails do not get lost in the potential
customer's inbox. The company also uses this strategy to segment its audience and personalize its
email campaigns, targeting specific audiences. Their brand awareness campaigns lead to
valuable conversions later.

 Brand promise
Promises by KFC

OUR SERVICE VALUES


At KFC, we have a passion for food, and serve it with pride. We believe that you should come to
work as the best version of yourself and treat every guest like a friend. And it's our job to ensure
that every guest leaves happy.

OUR FOOD

Our food is always craveable. We are the original fried chicken experts, and everything we do
celebrates our passion for serving finger lickin’ good food. Whether it’s a spin on our world-
famous iconic recipes, innovative ways to serve fried chicken, or new menu items inspired by
our original roots, everything we make must be uniquely KFC. We’re proud to serve wholesome,
abundant, hot meals the way they should be served—made with high-quality fresh chicken,
freshly prepared by real cooks in our kitchens.

OUR RESTAURANTS

We’re not about novelty for novelty’s sake. We have deep roots and we have an original founder.
We cook our chicken from scratch and our restaurants celebrate that story. We use natural, high-
quality materials and have all the conveniences to make our guests feel welcome and
comfortable. From our table designs to the sounds in our restaurants, we create a friendly and
lively place that makes you want to stay and enjoy your time with friends or family. We are
always evolving in the name of chicken, from innovating new ways to order to creating exciting
new restaurant formats, we are not afraid to constantly try new things that make it easier to enjoy
our chicken.

 Brand Elements

The white and red background features three vertical lines. The Colonel's face in black contour is
placed on the white line with the KFC italicized wordmark underneath it. The KFC logo is bright
and welcoming, it is a perfect option for the fast-food industry, which evokes a sense of warmth
and hospitality.

 Brand vs product

Brand Product
 Packaging:  the new packaging  Core benefit level :KGC courageously
design enhances the perception of KFC and selflessly defend everyone's right
brand by the same powerful block in to health. KFC is the biggest fried
the company colours on each package. chicken chain, so it's clearly a popular
choice. Plus, there are various non-
 Service provider: the Company chicken side dishes that you can add to
operates an online ordering system and your order. And some people enjoy
home delivery service in certain the side dishes so much that that's all
markets. KFC additionally also the order!
franchises its restaurants.  Generic product level: KFC uses
 Customer Advice: KFC uses natural, high-quality materials and
information to improve their products have all the conveniences to make our
& services, to look at site trends and guests feel welcome and comfortable
customers interests and to make their and prices are affordable.
website better.  Expected product level: A superior
 Warehousing: KFC always keeps its customer experience depends on
outlets in premium areas like malls and several factors including customer
shopping places. Also, the KFC outlets service, product quality, marketing,
carry out delivery for online orders. technology and in-store experience.
Thus, KFC covers both offline and KFC has focused on all these areas to
online deliveries. offer its customers a superior
experience. Its focus on customer
experience has transformed into
higher sales and superior growth.
 Augmented & Potential product level:
KFC always tried to gives something
extra special to their customers like
coupon, codes, family deals.
 For e.g. Midnight Deals,family deals
for weekend, meal box at low cost.

 Consumers

1. the current image for fast-food is a little dated. It does not have a desire and a present
perception that describes to younger consumers or people who continue looking for a
healthier lifestyle." KFC regularly take care of their customers with the best food and dining
experience in the quick-service restaurant business. KFC suggests a diversity of menu items
with low fat, low-calorie options, which is a suitable theme and best solution for a
wholesome lifestyle.

2. KFC always keep on trying to fulfill a reasonable expectations of cusumer because Customer
satisfaction and service excellence are closely linked. It is excellent and satisfactory if the
service is receivedthe customer expectations, and it is perfect and quality if the service
exceeds customer expectations. When a company's consumers are happy and confident in the
quality of its services, this can lead to increased sales and a positive brand image.

 Firms

1. Campaigns are often the main way that you interact with the public and get your
organisation's message out to people. You can use campaigns to mobilise and involve people
in your work. You can also use campaigns to pressurise decision-makers, to educate the
public and to change behaviour.

Some of campaigns of KFC are:

 KFC campaign highlights benefits of home delive


 KFC “First bite“ by Mother
 KFC “love you too“ by Mother

2. competitive edge:
Strong brand image:
KFC has maintained a strong brand image worldwide. The QSR industry has grown and is
populated by a very large number of brands. While the US is the leading market for KFC
products, the company has expanded its business globally and enjoys a leadership position in
several more markets too.
However, brand image is a key driver of demand and popularity in the QSR industry. It depends
on several things. A strong brand image requires a heavy focus on quality, service, and
marketing, among other things. Apart from that, it leads to higher brand recall and repeat
purchases. In the QSR industry, a strong brand image also results in higher brand loyalty. KFC’s
focus on quality, menu innovation, and marketing has led to a stronger image in the global
market. It has also resulted in higher sales and revenue. 
Strong popularity and demand:

KFC enjoys higher popularity and stronger demand in various parts of the globe. In the US, the
leading competitors of KFC in the QSR chicken segment include chick-fil-a and Popeyes.
However, there is not even a single brand that competes with KFC directly in the QSR chicken
segment at a global level. As a result, the company faces little direct competition in most markets
excluding the US. Overall, the level of competition from other leading brands that serve
substitute products is high.  KFC being the single largest brand in the QSR chicken segment
enjoys superior demand and popularity as well as customer loyalty. 

Strong global footprint:


KFC has expanded its business globally to 146 countries and territories. Its global presence is
also a leading source of competitive advantage for the brand. Across the world, there are very
few brands that operate in the QSR chicken segment. So, its global presence has helped it reduce
the competitive pressure and find faster business growth. It operates 25,000 stores across the
world. In the United States, the company operates 3,981 stores.
Supply chain management:

Supply chain management is also a critical source of competitive advantage for the QSR brands.
All the leading brands that enjoy a strong competitive moat in the global market have focused on
managing their supply chains. KFC’s supply chain has helped it maintain its quality standards
and achieve cost-effectiveness. While the brand faced a severe supply chain crisis a few years
ago, it has transformed its supply chain strategy since then.

Marketing:

Another critical source of competitive advantage in the QSR industry is marketing. The industry
is marked by heavy competition. There are several brands competi/ng for market share in the
industry. So, all the leading brands focus heavily on marketing. To achieve faster growth, they
invest in menu innovation, customer service and marketing. Apart from digital channels, KFC
uses its store and outdoor advertising for promotions. Social media is also a key marketing
channel KFC utilizes for promotions and customer engagement. Yum brands spent more than $1
billion on advertising in 2020.

Menu innovation:
One of the key attractions of KFC is its diversified menu. The company serves a wonderful and
diversified menu of mainly chicken items. It has also included some vegetarian items on the
menu to attract vegetarian customers. With time, the company has continued to invest in menu
innovation to make it more attractive for the customers worldwide. For example, the company
introduced a new chicken sandwich in 2021. It is available across all KFC restaurants in the
United States. It introduced new items in 2020 as well. THe company keeps expanding and
changing its menu composition to suit the changing tastes and preferences of the customers
worldwide.
Customer experience:

An important aspect of the restaurant business is the customer experience. Superior customer
experience leads to higher customer loyalty, superior sales, and higher revenue. Customer
experience is a critical factor that affects consumer behavior and leads to repeat purchases. A
superior customer experience depends on several factors including customer service, product
quality, marketing, technology and in-store experience. KFC has focused on all these areas to
offer its customers a superior experience. Its focus on customer experience has transformed into
higher sales and superior growth. 

 Role of brand with services

Over the years, KFC has used a number of business strategies that have enabled them to evolve
from a one man business to a multi-billion dollar enterprise. One of the skills that it first utilized
was ensuring that one’s skills and knowledge is invaluable. The success of a business is greatly
affected by the level of expertise the company brings in. it is obvious that the higher the level of
skills and expertise, the greater the potential of business success.It is advisable that people set up
businesses based on their own set of skills and areas of expertise just like the founder of KFC,
Colonel Harland Sanders. His knowledge and expertise in preparing chicken meals contributed
to the success and expansion of KFC

1. the strategy that was adopted was the strategy of achieving uniqueness.
Being able to be set apart from other competitors goes a long way into
improving the growth rate of any business. This is only achieved by doing
things differently. It is therefore advised that the entrepreneur skims the
market first in order to establish what they could do that is different from
their competitors and it also has to be appealing to their customers. The way
products are produced, packaged, delivered, or even service delivery to the
customer has to be unique and different from other competitors. KFC came
up with the pressure fried chicken which set them apart from other chicken
restaurants. It also included a special blend of recipes and herbs that made
their chicken taste different from the others. Sanders became very popular in
the 1930’s for using this technique.
2. Persistence and focus is another strategy that KFC adopted when it started
its business. At the start of every business it is never a guarantee that the
business will be a success. It may take some time for the sales to go up and
at times the business may even experience a loss.Persistence and focusing
on what works and what doesn’t ensures that in the long run the business
becomes a success. Colonel Sanders lost his business at the age of 65 but re-
built it in ten years. This saw him opening a total of 600 franchises which
saw him earn approximately $300, 000 before tax.

3. Advertising is a good way of ensuring that their customers are constantly


reminded of how good their ‘finger licking’ chicken is. Coupons,
entertainment, premiums and exhibitions, have all been utilized by KFC to
enhance their sales. The company has come up with various incentives that
attract its customers to buy their various chicken products.

4. For instance it offers free meals to the customers after the customer has
spent a certain amount of money buying their products. A coupon is issued
to the customer who in turn will use it to get their free meal. They also offer
free meal vouchers using the print media whereby the customer cuts out the
voucher and goes to one of their outlets to collect their meals.

5. KFC has mostly utilized the push and pull strategy whereby it has managed
to draw customers towards their products. It is famous for its company
jingle, 'finger licking good'. They use it to create an impact to their
customers and inform them of the product that they are selling.

 KFC as a strong brand

KFC is the largest and the most popular Fried chicken restaurant chain in the world, there are
more than 80 countries open more than 14,000 KFC restaurants in the world, they receive 1,200
million customers every day(KFC 2011). The strengths behind KFCs strong brand recognition
are as under
The First-class Management System
1. Focus on QSCV
Quality
The selected products have very strict standards about weight,quality and so on.in addition, to
ensure the quality and taste every chicken absolutely for customer satisfaction, chicken must be
sold after fry in the preservation time,or fried chicken must discarded(Baidu wenku 2011).

Service
Making customers feel kind, comfortable and fast in KFC, and meet customers’ requirements.
KFC has a receptionist system which receptionist will help customers to order food, bring
customers to suitable places and look after children were playing in the playground(Baidu wenku
2011)..
Clean
There is a strict and complete clean health system in KFC,including clean conveniently and clean
daily, weekly and monthly regularly so that providing a comfortable and clean environment for
customers(Baidu wenku 2011)..

Value
Value not only displayed in delicious products, also is reliable quality, kind polite service and
comfortable health dining environment(Baidu wenku 2011)..

2. Professional Training
All these employees in the KFC who are must take part in international training and pass the test
to guarantee strict quality control.In addition, all supplies should participate in training and study
the Hazard Analysis Critical Control Point (HACCP) courses so that all supplies use the global
standard set(M2online 2009).

3. Concentrate on safe ,hygeian and nutritive food


Audit and Test
The company pay more attention to food safety and hygiene. They regularly embark on audits of
food safety and hygiene test to suppliers’ facilities. Thereby they can achieve the international
standard(M2 online 2009).

Advocate balanced nutrition


KFC advocated “the balanced nutrition and healthy life” food health policy which eating
sensibly with appropriate exercise and KFC offer all kinds of menu items that lower fat ,lower
calorie choices(So good 2011).

4. Localized marketing
According to local customers’ eating habits, KFC continuous innovation new products for them
and KFC hire local employees for providing better services.

 Factors Responsible for Branding Challenges

1. Economic downturn the challenges that are faced by kfc are income. At initial time kfc
is target an audience who are financially good that belongs to upper class families. This
was not successful as it was as it was limited to some group of population. To increase
the overall sell it changed the strategy in recent years and planned to target people of
mass by introducing different meals. They modified prices of meals so that middle class
people can be part of it because the success of an organization completely depemds upon
the sell thus the consumption of product and services affect economic behaviour so the
decision were made regarding the consumption behaviour. The important factorthat
affects the economic conditions payment methods. Thus all the payment methods are
available so that its adds up flexibily to customers.
2. Increased competition KFC has Many competitors in the world. The challenge faced by
the KFC due to competitors Is they are selling same kind of stuff in comparatively low
prices. The cost of company is high thus it is not possible to sell the product with good
quality at fewer prices. The competitors may steal the selling strategy of company that
could act as hindrance. The challenge of KFC is due to increasing opyions in the market
and also build brand loyalty. The sales growth of company is affected by the sales of
other companies. there are many companies which are selling same services thus it has
become difficult for KFC to stand out among all.

3. Media transformation KFC has spent approximately four years building the
“foundations for transformation” around a few key enhancements to its experience.

‘Owning the point of hunger’: KFC has been exploring ways to use technology and
data to connect with people when they are deciding what to eat. “A little fact: 57%
of people choose where they are going to eat within one hour [of eating],” said
Ostrom. “How do we get in front of those customers to make sure they choose
KFC.” That means geo-fencing stores for up to half a mile to deliver the right
message when a potential customer is nearby and deciding what to have for lunch.

The power of data: Traditionally QSRs did not operate using a lot of data, he said.
But you don’t need a lot of data to optimize your media spend. “In some markets
we only have 3% of known customer transactions,” he said. “We can take that and
say, ‘What do our best customers buy? What do new customers buy? And how do
we understand what is the right message, to the right person, at the right time. So
we are able to impact our entire media buy to make it more efficient and drive
ROI.”

The power of first-party data: “The QSR space is all about how do we use data to
be more personalized,” he said. KFC is introducing loyalty programs so that it can
deliver more personalization, and the next steps will be about store data generated
from sensors and IoT technologies. “We need to figure out how to start putting the
data together. It is one thing to collect data it is another thing to say how do you
use it real time to make business decisions.”

Restaurant technology: Remember not long ago when Google Glass was derided as
a rare misstep for Google. Not at KFC, which has been using Glass to train
associates by showing them how to make products, and for store visits. “There are
certain stores we can’t actually travel to,” he said. “[Store employees] can wear
Google Glass and we can do store checks and see if they are meeting our
standards.” Similarly, KFC is using Amazon Alexa to train its employees in-store.
“That allows associate to ask questions while they are breading chicken,” he said.

 Brand Equity
KFC has more than 18000 franchises in more than 115 countries around the globe. KFC
has turned out to be one of the multinational enterprise with its global market presence in
the fast food industry. The brand equity that the company used is been the same since its
inception, which has an advantage that the people are more connected and comfortable
with the company, for example, the same face of Colonel Sanders is used in the logo and
packaging until now. Another point of brand equity is that the recipe is maintained
throughout the years without even the tiniest bit of change. Colonel sanders created a
secret recipe by mixing 11 herbs and spices, and the same recipe us used in every outlet
of the company and the recipe is kept confidential. That is the reason that so many
competitors emerged but none could compete at this level.

They have limited products in their company with fried chicken being the highlight. KFC
started the tagline “finger lickin good” which made them very famous and everyone
referred to the chicken as finger lickin good. These kind of taglines affect the emotional
state of the consumers and get associated with the company and build a level of trust for
the product. After a series of other fast food restaurants popped up, the tagline was
changed to “Nobody does chicken like KFC”, which brought the people back to basics, if
they reverted to competitors, that KFC was the initial inventor of the fast food fries
chicken.
These king of branding strategies affect the company majorly in long run and stay with
the company for years. KFC intelligently marketed the band image building customer
loyalty and equity.

 Strategic Brand Management Process

Brand Positioning Model


KFC has different kinds of food products on their menu. They mainly sell fried chicken, burger and
drinks in their numerous chain stores in different countries. They follow the same recipe to maintain the
quality of the food products in all the restaurants. Brand positioning statement of KFC is their slogan
which is “its finger lickin’ good!” This states that customers perceive KFC food products to be very testy.
KFC offers customers freshly produced foods that they can eat wherever they want at the same quality.
KFC food products have a very reasonable pricing in most of the places. But their pricing differs from
country to country. Target customers of KFC have an age group of 4-50 years. 

 KFC position them as a brand who’s food Products of can be enjoyed as a family or in an environment of
social gathering. They emphasize at creating good memory and positive feelings towards their products.
Whenever you think of KFC you have to think of somebody. It can be your family, friends, loved ones or
somebody else, somebody to share the fun of eating and to share the teste. This is the target of KFC. Their
unique recipe makes the taste and memories attach to the eating, unforgettable. KFC creates ‘attributes’
around their product as a level of positioning. They highlight the product functionality which is “tasty”
food. KFC has a very unique recipe for their products which is also their core competency. KFC often
launches different new products as a pod. McDonald is a major competitor of KFC.
KFC’s current positioning is very effective but not diversified. They should adopt to new changes to
dominate the market. 
KFC currently has the image of selling fried chicken. But recently they are facing trouble from several
groups as they are protesting against KFC claiming that their products are oily which is making young
generations obese.
As customers are becoming more and more health concourse and their taste is shifting towards healthy
foods, KFC should also position them as “Healthy Fast Food chain”. They should connect to customers
with the new message and make their existing customers conscious about health too. This way KFC can
retain their existing customers and also enter into a new market segment.
Brand resonance Model

1. Behavioral loyalty: KFC customer regularly perform and repeated purchase as it a reference
for chicken fans.
2. Attitudinal attachment: by the symbol of the grandfather in KFC’s logo, customers have a
certain attachment to the brand and consume it when they need a home alike meal.
3. Sense if community: KFC owns a community website with loyal customers express their
opinions and give feedback about the brand. KFC also has 56 million facebook fans and 1.6
millions Instagram fans.
4. Active engagement: when KFC launches a new product or a new offer, customers invest their
time, energy and money to try it.

Brand Value Chain


Identify competitive advantage sources
By conducting the Value Chain Analysis of KFC during the planning process, possible sources
of competitive advantage can be identified. The firm/company is a collection of different
activities that share relatedness to some extent. KFC cannot trade all activities in the external
market. The Value Chain approach suggests that a company can consider these activities as
economic rent sources. These activities can also act as barriers to new entrants or cause cost
disadvantages to competitors.

Identify complex inter-relationships and interdependencies


KFC can identify various internal and external linkages among activities through the value chain
lens. The internal linkages are- interrelationships between activities within same organisational
units and external linkages are between business units of same or different firms. Studying these
interrelationships can help a company take benefit from coordination and joint optimisation.

Improved flow of materials, information and finances


The use of Value Chain Analysis can optimise the finances, products and information flow.

 The improved information flow can help the company identify and exploit new
opportunities and reduce external threats. The continuous Value Chain evaluation can
result in timely filling important gaps that may affect a firm's productivity.
 The effective implementation of the Value Chain Analysis of KFC can improve the
material and product flow due to improved demand and sales forecasting. The inventory
management also improves as KFC can minimise the delays by tracking activities
throughout the supply chain.
 Modern customers place high importance to the quick response and convenient access to
the important product related information. The unexpected interruption in the information
flow can affect the customer-supplier relationship. KFC Value Chain Analysis and its
implementation can highlight and remove the bottlenecks to the information flow.

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