SUPERIOR UNIVERSITY, LAHORE

Assignment Title:

MARKETING PLAN

Submitted by:
Fareed Nawaz (MBTW-F20-018)
Moeez Hassan (MBTW-F20-008)
Mahnoor Irshad (MBTW-F20-012)
Abeera Irfan Hashmi (MBTE-F20-002)

MARKETING MANAGMENT
SUPERIOR UNIVERSITY, LAHORE

P a g e 1 | 18
 TABLE OF CONTENTS

1. Introduction 03

2. Introduction of Products 04

3. Product Variants 04

4. Brand Logo (History) 05

5. 7Ps of Product (KFC) 06-10

6. 4Cs of Product (KFC) 10-11

7. SWOT Analysis 12

8. Pestels Analysis 12-14

9. Product Segmentation 14-15

10. BGM Matrix 16

11. Product Life Cycle 16

12. Comparative Analysis 168

P a g e 2 | 18
 MARKETING PLAN ON

KENTUCKY FRIED CHICKEN (KFC)

Introduction:
Kentucky Fried Chicken (KFC) one of the most recognized fast food chains
in the world started in the early 1930's by Kernel Sanders in the Southern USA
as a minor franchise operation. Colonel Sanders has become a renowned
personality all over thousands of KFC eating place globally.
Quality, service and cleanliness (QSC) characterizes the most serious
victory features to KFC's global achievement. It has charters in more than 80
countries with 11000 digit. Heublein, Inc. managed KFC, soon after, KFC is part
of Yum! Brands, Inc., however in the case of Pakistan KFC form the relation of
purity for Customer and better quality service.

P a g e 3 | 18
Products
There are 2 hot selling products of KFC in Pakistan
✔ BURGER
✔ FRIED CHICKEN

Product Variants
ZINGER BURGER
A newly breaded chicken sandwich, made by hand
each day of the week, will be more spicy and crispy
than one that's made in a workshop and freezing,"
Zinger is made with an infused chicken breast
double-breaded in the chain’s Extra Crispy
Breading with a trademarked spice blend that
includes different constituents.
The Zinger is already a fan favorite in more than
120 countries across the world, and in many countries the term "Zinger" is identical with a fried
chicken sandwich. It has liked popularity across the globe.
Like all KFC chicken, the Zinger is made with 100% real chicken from Pakistan poultry.
It is inspected before delivery and doesn’t contain any steroids, hormones and food dyes.

FRIED CHICKEN
Also known simply as fried chicken, is a dish
comprising of chicken pieces that have been coated
with seasoned flour or batter and pan-fried, deep
fried, compression fried, or air fried. The breading
adds a crisp covering or crust to the external of the
chicken
Much has been made in KFC's history of its
trademarked blend of 11 secret herbs and spices.
However, in the cookery world, it's basically the
equivalent of an urban tale — no one has been able
to confirm precisely what comprises that trademarked blend.

P a g e 4 | 18
HISTORY:
KFC was picked up by PepsiCo in 1986,
it had grown to approximately 6,600 units
in 55 countries and territories. Due to
planned reasons, in 1997 PepsiCo spun
off its restaurant businesses (Pizza Hut,
Taco Bell and KFC).

KFC has franchises in following cities i.e.

 Lahore
 Rawalpindi
 Multan
 Peshawar
 Hyderabad
 Karachi
 Faisalabad
 Sialkot
 Islamabad
KFC wore the title of being the market leader in its business. Offering delightful and hygienic
food in a comforting environment made KFC a dependable fast food brand. Chicken is Halaal
in Pakistan and is purchased from Pakistani Poultry forms.
Apart from accomplishing the commitment of serving delicious, fresh and hygienic food and
at the same time providing the customers with the ultimate entertainment; KFC also plays
part in the economic growth of our country.
● There is a manpower of 1200 Pakistanis working in KFC Pakistan.
● The Government of Pakistan earns over ten millions per month from KFC Pakistan as direct
taxes.
● 95% of all food and wrapping material used in KFC Pakistan is bought locally, which sums
up to a purchase of over Rs.350 thousand per month.
● KFC Pakistan budgets roughly Rs.40 million against opening of new outlet, which is a huge
amount for our construction industry.
● Annual revenue in Pakistan 2.5 billion.
● KFC doesn’t purchase its goods from Pakistan.

P a g e 5 | 18
Product 7Ps:
1. Product
a. Planning:
● Their sighting is
categorized as
customer product as it
has no intermediates.
● KFC offers good
treaties.
● Quality and price of
food is normal.
● Their merchandise
contains
Belongings (Burgers,
Chicky Meals etc.)
● Services: (hygiene,
speedy service, festivities, and summits).

b. Product Strategy:
It was unnerved here as a state-of-the-art product. KFC has got one formation line but
later in order to protect their marketplace they presented goods in similar line. New
product ideas are created from:
● Customer services (comments cards)
● Gallops survey (mystery shoppers)

They have a Quality Assurance section that chooses the new product invention.
Quality Assurance department prepares selection of new ideas and product’s achievability
report. This department does the practical assessment (whether it is practical to produce
the new product or not). The products are tested outwardly by contribution trials to
customers by giving them free samples. KFC uses marketing, print media, billboards and
most recently televised marketing for elevation. KFC adds a new product in its present
variety based on

● Their participants
● Product’s tolerable demand
● The fulfilment of key financial criteria
● Its compatibility with eco-friendly standards

c. Product Line:
KFC product line includes all chicken based products.

Burgers:
1. Zinger Burger.
2. Chicken & Fillet Burger.
3. SUB60

P a g e 6 | 18
 4. Zinger Jr.

Chicken:
5. 1 piece
6. 2 piece
7. 5 piece
8. 10 piece

Combos:
1. Chicken Meals
2. Sandwich Meals
3. Family Meals

Desserts & Beverages:

1. Fruit Salad
2. Regular & Large Drink
3. Regular & Large Mineral Water
4. Tea
5. Scoop of Walls Ice cream
6. Coffee

Snacks & Side Orders:

7. 5 & 20 Pieces Nuggets
8. Arabian Rice
9. 5 & 10 Pieces Hot wings
10. Dinner Roll
11. Regular & Large Fries
12. Hot Shots
13. Corn on the Cob
14. Hot & Crispy Soup
15. Cole Slaw
The product mix strategies are in relation to:
a) Opponents: KFC has a head-on race with McDonalds so wherever they place
their products; KFC goes there as well. Locally in Pakistan KFC face a close struggle
with the local brands like AFC (Al-Baik Fried Chicken), Fried Chicks, Dixy Chicks etc
which are making more or less the same product as KFC.
b) Qualities: The brand KFC is so strong that it is the characteristic itself.
c) Place and Quantity: KFC goods are based on high quality and prices.

d. Product Mix Expansion:

a) Line Extension: Through presenting new meals offers.
b) Alteration of existing products: Quality Assurance department does it. The
department decides which product should be sold and when (seasonal products as
rice and soups offered in winters).
c) Functional modification: It is also decided by the Q.A. department to introduce new
recipes.
d) Quality modification: KFC has moved to masses rather than the original recipe.

P a g e 7 | 18
 e. Product Life Cycle:
KFC presented itself, has grown and now it is at maturity stage for the last ten years in
Pakistan.

f. Product, Brand, Packaging and Labeling:

a) Brand Name: KFC.
b) Color: Red, white.
c) Symbol: Colonel Harland Sander’s picture and KFC written with it.
d) Master Brand: The brand itself is so dominant, that it immediately comes in mind.

KFC Brand:
● KFC's brand individuality, the logo features Colonel Harland Sanders, one of the best-
recognized icons in the world.
● KFC is trademarked registered brand.
● It is characteristic, adjustable to addition to product line.
● It suggests something about product.
● It is lawfully protected and listed.

Brands Equity:

The brand equity is very high as the value added by brand to the product
effects the product selling.

Brand Strategy:
KFC is marketing the entire output under products own brand.

Complimentary branding:
Pepsi & Nescafe

Packaging Strategy:
KFC makes its own throwaway wrapper. If they need promotion Pepsi contributes in
refining the wrapping superiority. KFC does family packet. They use paper material for
packaging to avoid health hazards and ecological pollution.

Labeling:
KFC does brand labeling. Some of its products also have informational labels such as Halal,
Veggi Burgers and Chicky Meals.

2. PRICE:
a. KFC Pricing Strategy:
In introduction stage KFC entered the market using market-skimming strategy. Their
products were high price and targeted only upper class. Gradually they dribble down
focusing on the middle class to penetrate the market. Also KFC follows one price plan.
Price is determined according to the rates of the raw materials and policies of the Govt.
The political and legal forces often affect the policies of KFC and ultimately results in
change of prices that is due to imposing of taxes.

P a g e 8 | 18
3. PLACE:
a. Distribution Channel:
KFC has only one station of circulation i.e. direct where the goods are shifted to the
consumer in a straight line. KFC has no traders.

b. Distribution Of Customer Goods And Services:

● KFC does delivery of user goods directly to the customer.
● KFC also does distribution of services to the consumer like parking, sitting, home
delivery, etc.
● KFC gets Wheels! KFC launched its first mobile unit, which took the streets of Karachi
by storm. The mobile unit has been designed to provide to the needs of those who
are on the go, and have little time to stop by at a eatery. It also provides a unique
expediency of liking the delightful KFC contribution anytime, anywhere, thus making
fast food truly fast and suitable.
● KFC intends to further develop its mobile network countrywide through more such
units.

c. Intensity of Distribution:
KFC does intensive distribution on its outlets. (All and everything on every outlet).

d. Vertical Marketing System:

KFC has business vertical marketing system because it is centrally owned by its lesser Yum
Brands. KFC is affected by the geographic distribution (they have few outlets then
its competitor McDonald’s). The unit value of the items is comparatively lower then
McDonald’s. KFC has a well-equipped sitting area for the customers and a Chicks play area
for the kids.

4. PROMOTION:
The logo features Colonel Harland Sanders that is one of the best logo in the world has created its
name as a standard in the market. Today the Colonel’s Spirit and heritage are reflected in KFC’s
brand identity.
KFC by its commercials derives the desire in the customer to come and enjoy healthy food in their
chosen restaurant. They spend 2% of its profits on advertisement. They use print media and most
recently doing televised marketing to promote it products. Their promotion media involve:
Newspapers, Pamphlets, Billboards and Television. KFC does both the primary demand advertising
(“Become a Chicken Fanatic”) and the selective demand advertising (e.g. “Zinger Meal”). In its
advertising it give informative messages like “Faryad: Keep the city Clean”. KFC does institutional
advertising to stimulate demand. When KFC offers new products then it does product advertising.
KFC’s ad’s act as counteracts which means to drive the customer to KFC i.e. it uses pull promotion
strategy.
KFC have joint sale campaigns with different companies like HP, Philips, Value Meals, Pepsi-Cola.
And most recently with ARY Gold digital and World Call Internet services. Also KFC Honored
Partners are Del Monte, Culligan, Shan and Peek Freans (EBM).
PSO had made a scheme in which PSO had given the coupons of KFC having 10% off. (1 coupon
was given after each purchase of 10 liters of petrol).

P a g e 9 | 18
 5. People of KFC
KFC’s parent company Yum! Brands Inc. which runs some other brands, has around 1.5 million
employees around the world. The company has invested a lot of money in technology for the
purpose of employee training and development.
KFC declared its plan to create 5,400 jobs in the UK and Ireland by the end of 2020 (BBC, 2020). It
takes employees’ safety and welfare very seriously. However, it should be declared that it was
fined £1million after two workers burned on arms with boiling hot gravy at a restaurant in the UK
(Lightfoot, 2017).

6. Processes in KFC
Each KFC business function goes through a method. For example, food ordering method is very
straightforward. Consumers can pop into a restaurant and order their meals. Likewise, they can
do so via the websites of KFC’s delivery partners. They can also order food via KFC’s official website
which will direct them to a delivery partner’s website.

7. Physical environment of KFC

KFC brought about some new interior designs in 2014. The new ‘informal and stylish’ interiors with
a ‘semi open-plan kitchen’ idea in mind, were introduced in some restaurants to make the
restaurant’s internal atmosphere more family friendly. Its official website looks nice and user-
friendly as well

Product 4C’s:
1) Customer
KFC has mostly utilized the push and pull plan
whereby it has managed to draw clients 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. In their announcements, they
show person consuming a piece of chicken and this
in turn makes the customer desire to have a piece
of the KFC chicken.

2) Cost
Vendor should know the prices are just right for the current market state. It is advised that the
prices should be accommodated every now and then to suit the clients’ needs and the market
pricing. This therefore calls for an rise and a drop in the prices.
Promotion is a good way of ensuring that their customers are constantly reminded of how good
their ‘finger licking’ chicken is. Vouchers, entertainment, rewards and displays, have all been
utilized by KFC to enhance their sales. The company has come up with various motivations that
attract its customers to buy their various chicken products.
When pricing their products, KFC has looked at also financial factors. The income bracket
determines which people the company will most likely target. In the beginning, their main focus
was on the upper class but as years went by its focus moved to contain the lower and middle class
people.

P a g e 10 | 18
 3) Convenience
First of all, the company may choose to sell its goods straight from its location or scatter agents on
the ground to advertise and sell to possible customers. On the other hand, a company may utilize
a variety of policies such as marketing or through collections and mail orders.
Either way, the company has to come up with a strategy that ensures the customer receives crucial
data that will equip them with knowledge to make a buying judgment (Tracy 2004). The company
must therefore ensure that the customer is able to access these services through the strategic
location of the business. KFC has utilized this strategy fully by coming up with a variety of facilities
that they give to their clients.

4) Communication
Skills use this strategy to inform the consumer of their products and services. This in a straight line
affects the sales of the businesses goods if the promotion is done in the right way. Advertising
clatters are the most common way of endorsing products and services to customers. The way it is
done will highly impact the customer’s interest.
A slight alteration to the advertisement saying goes a long way to improve the company sales as
the customers will always be chatting about the products. It is of important try out various ways
of marketing, upholding and export of products. The same form of advertising may only work for
a short period of time before the customers miss helpfulness.
Therefore to continue keeping the customer attentive in the company’s products and services, the
form of presenting and promotion has to be re-evaluated from time to time (Tracy 2004). KFC uses
promotion as the main tool for apprising their customers of numerous offers on their chicken
goods. To begin with, their logo of the smiling colonel is most likely an image that makes customers
companion KFC with chicken.
They use a company jingle, ‘finger licking good’, to create the power to their clients. They show a
normal person wolfing a piece of chicken and this in turn makes the customer longing to have a
piece of the KFC chicken pieces. This attitude has worked meritoriously in India where there is the
largest market for chicken lovers.
KFC uses advertisements to ensure that their customers are continuously prompted of how good
their ‘finger licking’ chicken is. In order to enhance its overall image, the company promoters
various administrations such as the cricket team which advertisements the company logo on their
uniforms when they go for their matches and tournaments. By using tools such as coupons,
entertainment, rewards and expositions, KFC has managed to enhance its sales.

SWOT Analysis:
1) Strengths:
● Eldest and finest in Business
● High Kindness
● Does not have any Core participant In chicken serving
● Large Number of Outlets at prime places
● Attends variety of items under single tariff
● Loyal customers
● Faces frequent advantages of being a Cosmopolitan Organization e.g. frugalities of scale,
government motivations etc.

P a g e 11 | 18
 2) Weaknesses:
● Presence of International competitors in the market e.g. McDonalds (specialized not in chicken
serving but in burgers).
● Imported raw material rise their prime cost.

3) Opportunity:
● Cheap and easy convenience of labor.
● Increase feasting of fast food has increased the market size.
● Consumer prefer “All under one roof” in order to increase their sales business they can
increase or add the attended items.

4) Threats:
● Entrance of New participants into the market
● High political unpredictability/uncertainty

PESTEL Analysis:

1) Political Factors:
a) Government Policies: Although KFC is a foreign company, but they have to obey the
policies of the Government where he runs its business actions. KFC has handled this
situation very considerately and conform the policies of the Government as advocate
by the government in order to run this kind of business.
b) Price Policies: Price policies are also an important factor. KFC maintain & design its price
guidelines keeping in view the income & income distribution of the people living in the
country. That’s why all the classes are the target market of KFC.
c) Political Stability: Political permanence is very important if KFC want to become the leader
in fast food business in Pakistan. So this is also an important political influence.

2) Economic Factors:
Following factors are included in the fiscal factors of the KFC:

a) Income: Income is an important reasonable factor of the KFC. This factor decides which class
KFC is going to target. In the early time of KFC them centering on the upper class but they
introduce some meal through which we can say that they target the middle & the upper
level as well.

P a g e 12 | 18
 b) Consumption Behavior: KFC also appraised the breakdown comportment of the people, their
liking and abominating and make decision.
c) Payment Methods: Payment method is an important factor in the efficient factor of the KFC.
They check the comportment regarding the payment methods of the people. They check
whether the gives money in the form of cash or plastic money.

3) Social/Cultural Factors
Social / Cultural Factors includes the following things:

a) Social Class: As we discuss earlier that KFC target all the class including the upper class, upper
middle and lower middle class etc.
b) Culture: Though the culture of KFC from where they come is unlike but they adopt the
Pakistani culture also.
c) Religion: KFC not only adopt the Pakistani culture but also the Religion as well. They offer
Halal foods to the regulars, which is the symbol that they adopted the Muslim religion.

4) Technological Factors
Following are the factors included in the technological factor of the KFC:

a) Pace of Change: Pace of change mean rate of change. KFC has strategy to introduce new
technology whenever they think that it is a time to introduce new technology.

b) Research & Development: Research & Development is also an important factor in the High-
tech factor. KFC always upkeep the work of research & development in order to introduce the
new technology.
c) Capital Formation: Capital formation means stock of machinery. KFC has a stock of
machinery in order to run its business activities. In other words KFC has a good amount of
Capital Establishment.

5) Legal Factors:
Following are the important factors which is included in the proper/legal factor of the KFC:
a) Business Law: Just like the Government Policies the business units which is working in
Pakistan also adjust the law concerning the landscape of business. KFC also realizes this factor.
b) Social Responsibilities & Ethics: Social Tasks & Ethics are the important factor. KFC tries his
level best to this factor.

P a g e 13 | 18
Product Segmentation:

 MARKET SEGMENTATION:
Previously they were directing on single segment that was through Niche Marketing by
offering “Combo Deals”. Now they are focusing more on other classes as well. They are
dealing in masses by announcing value deals; most recently introduced “Zinger Junior”.

1) Benefits:
Colonel’s value combo meals introduced beforehand were exclusive and so there were
less sales but through their current offers, they have increased the sales by offering low
prices.

2) Purpose:
Inflation highly disturbs the purchasing authority of the customers. And here the
purchasing power of many customers is low. To cover this major sector, they have
introduced cheap meals, so that it is in reach of the commonalities.

3) Want Specification:
The people here need a approachable and family restaurant, which must be inexpensive
for them.

 CONSUMER MARKET SEGMENTATION:

1) Region:
Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad and
Islamabad.

2) Geographic:
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-e-Iqbal, Karachi in 1997, and
KFC wore the title of being the market leader in its industry. Serving delicious and germ-
free food in a soothing environment made KFC everyone’s favorite. Since then, KFC has
been continuously familiarizing new products and opening new restaurants for its
patrons.

3) Demographic:
Age: There is no age limit. It focuses on people lying under every age group.

Gender: Focuses both genders.

Family life cycle: It focuses on the whole family.

Social Class: Upper class, upper middle and lower middle classes are focused.

P a g e 14 | 18
 4) Psychographic:
Personality: Ruthless, self-possessed and gregarious.

5) Behavioral:
Benefits Desired: Taste and cost for money.

 BUSINESS MARKET SEGMENTATION:

1) Customer Location:
All restaurant branches are located in accord with customer’s convenience. Like: Gulberg,
Defense, Barket Market, Cavalry Ground, Shadman, Thokar Niaz Baig and Mall Road.

2) Customer Type:
Industry: KFC specializes in Chicken Based Products. It has high sales bulk as
they have great business. New outlets are being opened because they have
greater sales volume (as per day worth 4.5 million is being consumed).

Size: There are 35 branches with 6,000 employees including Restaurant Supporting
Centers.

3) Purchase Criteria:
Main emphases are on quality and lead while (i.e. the time taken to receive the purchased
Product). Quality is not negotiated on price.

4) Transactions:
● Buying Situation: Warehouse orders and Conservative Re-buy
● Usage rate: Heavy users
● Purchasing procedures: Building, Leased Vendors, Monthly Credit

P a g e 15 | 18
BGM Matrix:

 BCG (BOSTEN GROWTH MATRIX)

1) Question Mark:
Currently KFC have launched a new product. They have also tried to come into the brews
market by initiation its new brand of shakes called KRUSHERS. While Twister as a new
produce it comes in the type of the Question Mark in the BCG Matrix. It has a low market
share thus fetches low income. KFC is promotion a lot to propagate this product so there
is a lot of disbursement on it. There is no revenue generated by the company by this
product. Firm is decided to remove this item from the customer area.

2) DOG:
KFC’s Arabian Rice comes under this grouping. Although company had thrown this product
much earlier, it has still failed to become a triumph. As KFC is known more for its non-veg
food, this also results in low petition for this item. It has a low market share and although
low on disbursement (as company does not spend on its promotion), it does not bring in
much income as demand is low. The product is mostly CASH NEUTRAL.

3) CASH COW:
KFC’s rice spice is the most operative product of the company. It has the chief market
share among all the other goods. It has good privilege in the market and carries in huge

P a g e 16 | 18
 sales revenue. The expansion and other incidentals are also low and thus this product is a
CASH SARPLUS for the business.

4) STAR:
The interstellar merchandise of the company is its crispy Chicken Zinger Burger. It has a
extraordinary market share and takes in tall income. But it also has high emergent outlay
involved. The profit therefore is commonly not very high elated in by this product. This
creation is no cash flow condition for the firm.

Life Cycle:
1) Product Development
There are negligible sales.

2) Introduction
Unavailability of profit and sales growth reduces to zero.

3) Growth
Profit increases with the rapid increase in growth.

4) Maturity
Sales growth are lessen and profit approaches to zero.

5) Decline
Profit decreases and sales increases.

P a g e 17 | 18
Comparative Analysis:
KFC vs McDonald’s
KFC and McDonald’s are two of the most prevalent fast food handcuffs liked in the world. They are the
famous restaurants that have expanded huge acceptance over the years. When it comes to hamburgers,
McDonald’s is always the top option whereas when it comes to fried chicken, KFC is always the first thing
that springs to mind. The reason for this is because the very goods of these two chains have become their
emblems and thus, their identities. The difference between McDonald’s and KFC comes down to mainly
the cuisine that they serve.
Distinguishing between the two will help obtain the best out of the products that the two brands offer
their customers.
• McDonald’s is general for its hamburgers. KFC is popular for its fried chicken.
• KFC was initiated in 1930. McDonald’s was launched in 1940.
• The logo of KFC topographies a caricaturized image of Colonel Sanders. The logo of McDonald’s is
a large yellow ‘M’
 KFC and McDonald’s are both prevalent fast food chains in the US and all over the world.
 KFC and McDonald’s are both asked for animal rights if whether or not they consider better
animal welfare standards.
 KFC and McDonald’s have different disparities of dishes. However, they both feature chicken in
their tariffs.
 McDonald’s main product is hamburgers while KFC’s main product is fried chicken.
 McDonald’s other proposals include breakfast menu, desserts, chicken sandwiches and French
fries. KFC’s other offers include chicken wraps, sandwiches, and salads, roasted and grilled
chicken cuisines and desserts.
 KFC is 10 year older than McDonald’s.

Comparative Analysis:

Kentucky Fried Chicken

Company Name: McDonald’s
(KFS)
Type Subsidiary Public
Headquarters: Louisville, Kentucky's Chicago, Illinois, United States
Revenue US$27.9 billion (2020) 21.08 billion USD
More than 25,000 KFC
More than 38,000
Number of Locations outlets in 145 countries and restaurants around the world
territories in the world
KFC is a chicken restaurant-
Specialization McD’s specializes in hambers.
like-thingy

Fried chicken Hamburgers

Cheese burgers, hamburgers,
Chicken sandwiches Wraps
French fries, chicken products,
Products French fries Soft drinks
desserts, soft drinks and
Milkshakes Salads Desserts
breakfast items.
Breakfast

Website www.kfc.com www.mcdonalds.com

P a g e 18 | 18