UNIVERSITI TEKNOLOGI MARA

UITM KELANTAN BRANCH

PRINCIPLES AND PRACTICE OF MARKETING

(MKT420)

GROUP ASSIGNMENT 2
(A CASE STUDY ON MARKET SEGMENTATION, TARGETING AND
POSITIONING: *KENTUCKY FRIED CHICKEN*)

PREPARED FOR:
PUAN ASMA SHAZWANI BINTI SHARI

PREPARED BY:
WAN MOHAMED HAFIZ BIN NIK MOHAMED 2023299478
SYAFIQ DANIAL BIN ZURITA 2023449662
QAIDZARULKHAIDIR BIN SHAIFUL BAHRIN 2023261212
MUHAMMAD MAJDI ILMAN BIN MAH DAHWI 2023479684
MOHAMAD DANIAL HAIKAL BIN MOHAMAD RUSLAN 2023491972
TABLE OF CONTENT

NO CONTENT PAGE
* ACKNOWLEDGEMENT
1. INTRODUCTION
MAIN CONTENT
2.1 MARKET SEGMENTATION
2.
2.2 MARKET TARGETING
2.3 POSITIONING
3. CONCLUSION
4. REFERENCES
Acknowledgment

All praise to ALLAH S.W.T. for showering His blessings on us while we worked to
accomplish the group assignment. Furthermore, we are grateful for all the opportunities,
hardships, and strength bestowed upon us to complete the task.

We want to express the most profound appreciation to Madam Asma Shazwani binti
Shari for her assistance and encouragement during the process of completing the group
assignment on time.

Full gratitude goes to all the group members for their support, help, and
encouragement in completing the assignment. Without any cooperation and effort from all
group members, we would not have been able to complete the assignment successfully in the
given period.
INTRODUCTION

KFC, short form for Kentucky Fried Chicken, is a globally renowned fast-food chain
celebrated for its iconic fried chicken. Founded by Colonel Harland Sanders in the 1930s, KFC
has become a household name, known for its secret blend of herbs and spices that imparts a
distinct and flavorful taste to its crispy chicken offerings. With a red-and-white striped branding
that includes the image of Colonel Sanders, KFC has achieved widespread recognition and
operates in numerous countries. Beyond its signature fried chicken, the menu features a variety
of sides, embracing a family-friendly atmosphere with meal deals and kid-friendly options.
KFC's commitment to quality ingredients, innovation, and community engagement has
solidified its position as a global fast-food giant, offering a satisfying and familiar dining
experience to millions around the world.

At the heart of KFC's success lies the legacy of Colonel Sanders, a charismatic figure
whose image is inseparable from the brand. With his iconic white suit, black string tie, and
welcoming smile, the Colonel embodies the spirit of the original recipe that forms the backbone
of KFC's acclaimed fried chicken. The secret blend of herbs and spices, known simply as the
Original Recipe, is the alchemy behind KFC's finger-licking goodness. Each piece of chicken
is meticulously coated and deep-fried to perfection, creating a crispy exterior that gives way to
succulent, flavorful meat. It's this unique taste that has captivated taste buds across continents.
It began as a local delight in Kentucky and transformed into a global culinary ambassador.
KFC's red-and-white logo, often adorned with the smiling face of the Colonel, is a symbol
recognized in bustling cities, quaint towns, and remote villages alike. The brand's expansion
into numerous countries has made KFC a cultural touchstone, adapting its offerings to cater to
diverse palates.
2.0 MARKET SEGMENTATION

2.1 Demographic Segmentation

Demographic segmentation could be defined as the method of segmenting the market

into several divisions such as religion, family size, age, ethnicity, income, nationality, education,
occupation, and social class (Kotler, Armstrong, & Opresnik, 2018). Demographic
segmentation is a crucial aspect of market segmentation, wherein a business divides the market
based on various demographic factors. One of the key supports of KFC's market segmentation
strategy is demographic segmentation. This strategy allows companies like KFC to understand
and provide to the various needs of their customer base more effectively. In the case of KFC, a
global fast-food giant, demographic segmentation plays a crucial role in shaping marketing
strategies, product offerings, and overall business decisions.

Recognizing that it appeals to all generations, KFC offers to various age groups.
Marketing messages are adapted to resonate with different age demographics, ensuring that the
brand remains relevant across generations. Marketing messages are tailored to address the
unique preferences and interests of different age demographics. KFC has presented a menu that
satisfies the preferences of both children and adults. For families, KFC offers value-oriented,
family-sized meals, creating an image of a convenient and enjoyable dining experience for
parents and children alike. Family-oriented meals are strategically included, appealing to
parents with children and reinforcing KFC's image as a family-friendly restaurant. By
understanding the distinct needs of children, adults, and seniors, KFC ensures that its offerings
remain inclusive and appealing across the entire spectrum of its consumer base.

In addition, income is used as another division in demographics segmentation because

it implies the buying power of the community based on the expandable income. KFC offers a
variety of menu or meal options at different price points, making it easier to choose according
to a wide range of income levels. Throughout this, it makes the community much more
comfortable in choosing the products based on their appropriate expense. Special promotions,
discounts, and value meals are often being introduced to attract budget consumers while
offering the same quality of products.
2.2 Geographic Segmentation

Geographic segmentation is a pivotal component of market segmentation that involves

dividing a market based on geographical boundaries. For a global brand like KFC (Kentucky
Fried Chicken), understanding and embracing the diverse cultural and regional nuances is
essential for sustained success. It is the division of the market into different geographical units,
for example, states, nations, regions, cities, countries, or neighborhoods (UKessays, 2018).
Geographic segmentation influences KFC's marketing strategies, menu offerings, and overall
approach to meeting the unique demands of customers in different locations around the world.

KFC has a widespread global presence, with outlets in numerous countries spanning
diverse continents. Each location poses a unique set of challenges and opportunities due to
variations in culture, dietary habits, and local preferences. One of the key aspects of KFC's
geographic segmentation strategy is the adaptation of its menu to suit local tastes. This involves
incorporating regional flavors, ingredients, and cooking styles to appeal to the specific tastes
of customers in different areas. KFC places a strong weight on cultural sensitivity in its
marketing and operations. As we can see in their advertisements, promotions, and even the
design of physical outlets are often adjusted to resonate with the cultural norms and values of
the local population.

2.3 Psychographics Segmentation

For a global brand like KFC, psychographic segmentation offers valuable insights into
the diverse preferences and behaviors of its customer base. Psychographic Segmentation means
dividing a market into various groups based on lifestyle, personality, or social class
characteristics (UKessays, 2018). KFC places itself not only in its offerings in meal selection
but also in satisfying experiences. This segmentation shows how KFC applies psychographic
segmentation to connect with consumers on a deeper level, shaping its marketing strategies and
product offerings accordingly. This psychographic segmentation establishes KFC as a go-to
choice for those who are seeking a delicious and convenient dining solution. Psychographic
segmentation helps KFC identify different lifestyle segments within its customer base. For
example, health-conscious consumers may prefer lighter menu options, while those seeking
indulgence may be attracted to premium or specialty items.

2.4 Behavioural Segmentation

Behavioral segmentation is a marketing strategy that divides consumers based on their

behaviors, patterns of product usage, and responses to marketing stimuli. Behavioral
segmentation divides people and organizations into groups according to how they behave with
or act toward products (Kotler, Armstrong, & Opresnik, 2018). In this aspect, KFC segmented
the market based on taste, quality, and price of the products. KFC analyses consumer buying
patterns to identify how frequently they purchase the products, the size of their orders, and the
preferred menu or meals. For budget-conscious customers, KFC introduces value meals and
special discounts, providing an affordable option without compromising on taste.
MARKET TARGETING

Every business aims to satisfy the tastes and preferences of all the customers. However,
the tastes and preferences of customers are different and hard to fully satisfy if the business
only focuses on single products. Therefore, market-targeting strategies will help companies or
businesses to provide products that will satisfy the customer and meet the exact needs and
expectations of customers. There are 4 market-targeting strategies which are differentiated
(segmented) marketing, undifferentiated (mass) marketing, concentrated marketing, and
micromarketing. KFC seems to have focused on micromarketing (local or individual marketing)
which is their target to promote their products to 4 different groups such as children, teenagers,
young adults families, and budget customers.

KFC applies various efforts to satisfy all their target groups by presenting different
kinds of meals according to the selective group. For example, KFC presents different choices
of kid’s meal combo in their menu to fulfill the target market which is the children. KFC also
fulfills the needs of families or small groups by providing several choices on the menu known
as Family Buckets or Box Meals. Families can choose this option because it is more economical
and offered at reasonable prices. For example, families or small groups can choose 6-pcs
Holiday Buckets which come with 6 pieces of chicken parts, 5-pc of hot & spicy shrimp, 1
whipped potato, and 2 medium-sized glasses of soft drinks at only RM56.50 that can be eaten
among 4 to 6 people.

KFC has been promoting its products through many ways to attract more customers
such as Media Social, Television, Flyers, Coupons, and many more. As we all know, KFC also
has a very easily accessible website and application that customer can use to buy their products.
In this digital era where all gadgets are important things, customers can buy through their
website or using the app and enjoy the promotions offered on the platforms. This platform helps
KFC persuade customers to buy the products offered at KFC and can be a great opportunity to
provide a good reaction and welcome from the customer.
MARKET POSITIONING

Market positioning is like finding the perfect spot for your favorite chair – it's where a
brand decides to sit in people's minds. KFC uses demographic segmentation to serve the target
market that has both vegetarian and non-vegetarian customer segments (Arun, 2023). For KFC,
it's all about making fried chicken that everyone loves. KFC's main thing is making chicken
that's not just good but "finger-lickin' good." They've got their secret recipe, a mix of special
herbs and spices, that makes their chicken taste unique. This is what they are known for, and
it's their special flavor that makes people choose KFC for their fried chicken cravings. This
expertise creates a perception of authenticity and mastery, making KFC the ultimate choice for
those who seek a delicious and unique fried chicken experience.

The value proposition is the full mix of benefits on which the brand is differentiated
and positioned. KFC's value proposition covers a combination of factors that make it a
preferred choice for customers in the highly competitive fast-food industry. KFC has observed
their customers who frequently visit their restaurant and try to understand the reasons that make
their customers loyal and keep choosing their products.
CONCLUSION
In conclusion, KFC stands as a stable icon in the fast-food industry, celebrated for its
legendary fried chicken and global influence. From Colonel Sanders' legacy to the secret blend
of herbs and spices that continues to captivate taste buds, KFC has carved out a distinctive
place in the hearts of millions. As the brand navigates an ever-changing culinary landscape, its
commitment to innovation, family-friendly values, and sustainability positions it for continued
success. By embracing recommendations that align with contemporary trends and consumer
expectations, KFC has the opportunity to not only preserve its storied history but also to evolve
and thrive in the dynamic world of fast food. As patrons savor the next bite of that crispy,
flavorful chicken, the future holds exciting possibilities for KFC's continued journey.
REFERENCES

Arun, R. (2023, November 22). KFC Marketing Strategy 2024: A case study.

Simplilearn.com. Retrieved from https://www.simplilearn.com/tutorials/marketing-case-

studies-tutorial/kfc-marketing-strategy-case-

study#:~:text=KFC%20uses%20demographic%20segmentation%20to,Teens%20and%20you

ng%20adults

Kotler, P., Armstrong, G., & Opresnik, M. O. (2018). Principles of Marketing,

Seventeenth Edition. United Kingdom: Pearson Education Limited. Retrieved from
https://open.lib.umn.edu/principlesmarketing/chapter/5-2-how-markets-are-segmented/

UKEssays. (November 2018). Marketing Concept and Market Segmentation at KFC.

Retrieved from https://www.ukessays.com/essays/marketing/marketing-concept-and-market-
segmentation-practice-by-kfc-marketing-essay.php?vref=1