Strategic Marketing Managment on KFC PAKISTAN
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Strategic Marketing Managment on KFC PAKISTAN
- 2. Strategic marketing managment on KFC Presented by:Ashfaq ahmad To Sir shahzad khan ID:5161 CITY UNIVERSITY PESHAWAR
- 3. INTRODUCTION • KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky. • KFC is a brand and operating segment, called a "concept" of Yum! Brands since 1997 when that company was spun off from PepsiCo.
- 4. CONT... • KFC primarily sells chicken in form of pieces, wraps ,salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts.
- 5. History 2007 1997 1952 1930 KFC started by Harland Sanders The first franchise was opened in South Salt Lake, Utah Yum! Brand the parent to KFC was started in October 7, 1997 KFC’s revenue was $520.3million
- 8. CONT... • Presently KFC is branched out in nine major cities of Pakistan (Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad, and Islamabad) • with 45 outlets nation-wide. • Opening the first KFC outlet in Gulshan -eIqbal , Karachi in 1997.
- 9. Cont... • Presently KFC has provided employment to over 1200 Pakistanis, which adds up to 6000 individuals directly dependent on KFC Pakistan. • The Government of Pakistan receives over Rs.10 to 11 million per month from KFC Pakistan as direct taxes
- 10. Changing name to KFC • The reason they changed from Kentucky fried chicken to KFC was that people got conscious when they read the word ‘’FRIED’’ which gave them an impression that its not healthy because it contains fat, so Kentucky fried chicken had to change their trade name from KENTUCKY fried chicken to KFC. JUST TO avoid the fatty impression. •
- 14. Strength • • • • • • Good taste Brand equity Global experience Operations Trademark recipes Strong customer focus
- 15. Weaknesses • • • • High prices Image of ‘’Fried’’ Only chicken related recipe Most of product having close substitute in market • Inconsistent quality of service in many outlets • Lack of control in join venture agreements
- 16. Opportunities • • • • • Increase outlets Underdeveloped market abroad Increase trends to take meal out of home Earn bigs profits as population increase Availability no of franchises to other cities
- 17. Threats • • • • • New entrants/better quality brands Health conscious eating habits Animal care activists No support from govt agencies Intensive competition
- 19. Proposed Strategies • Product Development • Market Development • Market penetration
- 20. SPACE MATRIX Financial Strength Return on Investment +5 Increase in EPS +3 Leverage +4 Working Capital +5 Increase in Cash Flow +5 Average financial strength +4.4
- 21. Industrial strength Growth Potential +5 Profit Potential +5 Ease of entry +2 Technological changes +3 Average +3.75
- 22. Competitive advantage Customer loyalty -2 Market share -1 Products quality -1 Product Life Cycle (Growth) -3 Control over suppliers and distributers -2 Technological Know How -2 Average competitive advantage -1.83
- 23. Environmental stability Technological Changes -3 Inflation Rate -4 Ease of exist from market -5 Demand Variability -4 Competitive Pressure -3 Average -3.8
- 24. SPACE Analysis Total of X-axis 4.4 – 3.8 =0.6 Total of Y-axis 3.75 – 1.83 =1.92
- 25. SPACE Matrix FS Conservative Aggressive +6 +5 +4 +3 (1.92, 0.2) +2 +1 CA IS -6 -5 -4 -3 -2 -1 +1 -1 +2 +3 +4 +5 +6 -2 -3 -4 Defensive -5 Competitive -6 ES
- 27. BCG Matrix Relative Market Share Position High 1.0 Industry Sales Growth Rate High +20 Medium Medium .50 Stars Low 0.0 Question Marks High Market Share High Growth rate Profit potential 0 Cash Cows Low -20 Ch 6 -27 Dogs
- 28. Strategy • Market development • Product development • Market penetration Reason : High market share and High growth Opportunity
- 29. Weight Product Develop ment Market Develo pment Product penetra tion Economy QSPM Key External Factors 4 4 4 4 Political/Legal 4 2 2 2 Technological 4 4 4 2 Social 4 4 4 3 Competitive 4 4 4 3 Brand equity 4 4 4 3 Customer Loyalty 4 3 3 3 Financial Position 4 3 4 3 Strong trade mark recipes 4 3 4 2 Quality product and services 4 4 4 2 Total 40 35 37 27 Key Internal Factors
- 30. Decision • Propose Strategy: Market Development. • Alternative strategy: Product Development