1. Target market: KFC targets upper and middle classes. Typical customers are adults ages 25-54 who are in occupations ranging from white collar office jobs to blue collar construction jobs. The biggest part of their customer base makes between $50,000 and $60,000 dollars a year and are married with children.
2. Positioning: For a product to occupy a clear, distinctive and desirable place relative to “Competing products in the minds of target consumer.” In KFC feedback is taken from the customer in order to know the customer demands and then improvements are made in products. KFC focuses on pure and fresh food in order to create a distinct and clear position in the minds of customers KFC has a strong brand name and they are leading the market in fried chicken.
3. Customers: Same as target market4. Products and services offered: Anything that can be offered to a market to satisfy a want or need. KFC’s specialty is fried chicken served in various forms.
KFC’s primary product is pressure-fried pieces of chicken made with the original recipe. The other chicken offering, extra crispy, is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine. The main products of KFC still are fried chicken but KFC tried to development new products for suitability with modern situation; the menu for health. Moreover, new menu of KFC will emphasize the taste and health.
5. Pricing strategy: Market skimming: KFC globally enters the market using market skimming. Their products are priced high and target the middle to upper class people. Gradually they trickle down the prices focusing on the middle to lower class people to penetrate both sides of the market. We can compare the price of their products with McDonald, Dominoes and Pizza Hut. If the competitor provides the same product at a lower price than the organization usually lowers the price of its product too.
In the case of KFC, Fried Chicken is its main selling point and controls a monopoly over the fast food market (only with fried chicken). It prices its burgers, French fries and soft beverages with relation to its competitors. KFC price their product keeping different points in view. They adopt the cost base price strategy. Pricing of the product includes the govt. tax and excise duty and then comes the final stage of determine the price of their product.
The products are bit high priced according the market segment and it is also comparable to the standard of their product. In the cost based method we include the variable and fixed cost.6. Promotion efforts: At KFC, Promotion is the main tool to bring all chicken lovers attention towards its delicious one-of-a-kind product; the Fried Chicken.
KFC uses the following tools to further enhance its sales. Premiums, Exhibits, Coupons, Entertainment. All KFC outlets offer its customers with various forms of incentives to buy its Chicken. Using coupons that one can acquire after spending a particular amount over a period of fixed time, customers can enjoy the benefits of free meals or free add-ons. Additionally they provide meal vouchers and exciting offers in their print ads, which the customer must cut and bring along.
7. Distribution strategy: Most KFC restaurants are located in the source communities such as shopping malls, the petrol, and lodging en route. Hectic lifestyle of individuals – giving them more time at work and less stress about waiting for food. Commercialization of urban and sub-urban markets leading to more mid-sector people that find high-end eating joints very to expensive.
Mid-sector people are always looking for change which KFC provides in their range of fast food. Quality conscious – people in urban areas are more conscious about the quality of food than rural areas. Urban areas are more populated therefore they help with attracting higher revenues.
