Chapter- 04

4.1 Marketing Strategy

Running a successful business is not like a field of dreams; you can build it but they might not
come true. You have to let people know about the product or service you offer, and persuade
them to buy or use it. And you have to let people know about your product or service repeatedly.
For this, marketing strategy is very important. Your marketing strategy consists of: The "what"
has to be done. Inform consumers about the product or service being offered. Inform consumers
of differentiation factors.
So it helps the company to decides which customers it will serve (segmentation and targeting)
and how (differentiation and positioning).It identifies the total market, then divides it into
smaller segments, selects the most promising segments , and focuses on serving and satisfying
the customers in these segments. And this marketing strategy provides the goals for your
marketing plans.

Figure: Marketing Strategy

KFC has marketing strategy emphasis on the following facts:

         Market Segmentation
         Market targeting
         Differentiation
         Positioning

4.2 Market Segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics or
behaviours and who might require separate products or marketing programs. KFC mainly focus
on following market segments.
4.3 Demographic Segmentation
Demographic segmentation consists of dividing the market into groups based on variables such
as age, gender, family size, income, occupation, education, religion, race and nationality. As one
might expect, demographic segmentation variables are amongst the most popular bases for
segmenting customer groups. Also, for practical reasons, there is often much more data available
to help with the demographic segmentation process.
KFC give their concern in following demographic segmentation:-

Age:
One of the first variables of demographic segmentation is age. This is because consumer needs
and wants change with their age.
 In KFC Generally there is no age limit focus by the KFC. The target and focus is on each and
every individual in a society. KFC finds its largest demographic in the young of any society.

Life cycle stage:

 Closely connected to age, the life cycle stage of a consumer group defines what will be the need
of that particular customer. For this KFC offer kids meal with toys and veggi burger for old age
people. This demographic segment cannot be said as an “Age” segment because these customers
are in specific phase of their “Life”.

Income:
Another popular basis for segmentation is income. A person’s income level combined with its
accumulated wealth is the major determinant of the consumers’ willingness to purchase a
product. Income is the main decisive factor that influences consumers purchasing power.
Consumers with low incomes may not be able to purchase their desired products whereas
consumer with higher incomes may not be satisfed with the existing product.
In KFC Income is an important key factor for KFC. This factor decides which class is to be
targeted. In the early rise of KFC they focused on the upper class but slowly are introducing
economy meals that attract the lower to middle classes.

Social Class:
This plays a vital role in the demographic factor of the KFC. Generally they target upper class,
upper middle class, middle class and middle lower class. Because the items KFC sell are very
expensive.

4.4 Geographic segmentation

The market is segmented according to geographic criteria—nations, states, regions, countries,
cities, neighbourhoods, or zip codes.. With respect to region, in rainy regions you can sell things
like raincoats, umbrellas and gumboots. In hot regions you can sell summer wear. In cold regions
you can sell warm clothes.
KFC in Bangladesh only focus following geographic segmentation. These are:-
City:
Because Bangladesh is a developing country and the fast food business highly profitable in only
Dhaka and Chittagong city that’s why KFC only focus on this two city.
Key Spots:
 Tourist spots
 Commercial Areas
 University Canteen

4.5 Psychographic Segmentation

Psychographic segmentation is dividing a market into different groups based on social class,
lifestyle, or personality characteristics is called psychographic segmentation.
KFC divides market on the basis of psychographic variables like:
 Life Style (Lifestyle is not specific)
 Personality (Personality is ambitious and authoritarian)

4.6 Behavioural Segmentation

In behavioural segmentation, consumers are divided into groups according to their knowledge of,
attitude towards, use of or response to a product. It is actually based on the behavior of the
consumer.
Occasions:
The first form of behavioral segmentation is selling product in different occasions. In Bangladesh
KFC can permit their customer to celebrate various occasions. They also offer their customer on
cricket match “KFC Popcorn Chicken”, on Valentine’s Day special couple discount offer.
Benefits:
Several products are targeted towards the benefits sought by the customer. For this KFC only
focus some social class.
Loyalty Status:
There are two ways to grow a business. First is to acquire new customers and second is to retain
your existing customers. The more loyal your customer is to you, the more your customer base
will increase. That’s one more kind of behavior which marketers target. In case of KFC, they
have some advantage because they are well known chain international fast food company.

4.7 Market Targeting
Market targeting is the process of evaluating each market segment’s attractiveness and selecting
one or more segments to enter.
After a company has defined market segment it can enter one or many of these segments. A
company should target segments in which it can profitably generate the greatest customer value
and sustain it over time .A Company with limited recourses might decide to serve only one or a
few special segments. A company with a great number of recourses might decide to serve two or
more segments.

4.8 Market Positioning
Positioning is arranging for a product to occupy a clear, distinctive and desirable place relative
to competing products in the minds of target consumers.
After a company has decided which market segments to enter, it must decide how it will
differentiate its market offering for each targeted segment and what positions it wants to occupy
in those segments. A product position is the place the product occupies relative to competitors
products in consumer’s minds. Marketer wants to develop unique market positions for their
products. If a product is perceived to be exactly like others on the market consumers would have
no reason to buy it.
KFC promotes a “high quality poison” for its products. It produces high quality products,
chargers a high price, distributes through high class dealers and advertises in English newspapers
with a high circulation. KFC is communicating through physical size and ques that people use to
judge quality.

For KFC management the image their customers carry in their mind is the most important factor.
That is why for them the product quality, which is almost, standardizes the entire world except
little differences because of local requirements & the promotions are very critical factor. The
people which are their customer and the physical evidence, the environment customers get in the
KFC are the focus that built KFC’s image in the customer mind that is why they are always
trying to bring positive changes in the environment so that every time their customer enter the
KFC, can feel the difference. They think that trough continuous efforts they have developed such
a brand image in their customer’s minds that their customers have become brand loyal. I order
words they have got brand equity.
4.9 Differentiation

Differentiation is actually differentiating the market offering to create superior customer value.
Once KFC chosen a desired position it has taken strong steps to deliver and communicate our
position to target consumers. KFC differentiated their market offering for each targeted segment
and what positions it wants to occupy in those segments.