27-08-2012, 03:32 PM
PROMOTIONAL MIX OF KFC
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INTRODUCTION
Major companies such as KFC and Mc Donald's use a bulk of their budget on promotion and getting their brand "out there." In as much as the businesses might have good products and a wide product range, or sold at attractive prices. The company's at hand would still have to generate sales and profits the benefits would have to be communicated to the consumer through promotion.
The promotional mix consists of a blend of personal selling, sales promotion and advertising, public relation tools. The core element in the marketing mix is the company’s product because this provides the functional requirements sought by customers. One of the traditionally used marketing tools by the firms to achieve its marketing objectives is the “Marketing Mix”. The marketing mix plays a vital role in the growth and survival of an organization. A proper and carefully evaluated mix of these elements enables the marketer in achieving a consensus between the expectations of the target customers and the organizational objectives.
History of KFC
Since its inception, KFC has evolved through several different organizational changes. These changes were brought about due to the changes of ownership that followed since Colonel Sanders first sold KFC in 1964. In 1964, KFC was sold to a small group of investors that eventually took it public. Heublein, Inc, purchased KFC in 1971 and was highly involved in the day to day operations. R.J. Reynolds then acquired Heublein in 1982. R.J. took a more laid back approach and allowed business as usual at KFC. Finally, in 1986, KFC was acquired by PepsiCo, which was trying to grow its quick serve restaurant segment. PepsiCo presently runs Taco Bell, Pizza Hut, and KFC. The PepsiCo management style and corporate culture was significantly different from that of KFC.
PepsiCo has a consumer product orientation. PepsiCo found that the marketing of fast food was very similar to the marketing of its soft drinks and snack foods. PepsiCo reorganized itself in 1985. It divested non-compatible units and organized along three lines: soft drinks, snack foods and restaurants. PepsiCo Worldwide Restaurants was created to create synergism between its restaurant companies.
Present Situation
The organization is currently structured with two divisions under PepsiCo. David Novak is president of KFC. John Hill is Chief Financial Officer and Colin Moore is the head of Marketing. Peter Waller is head of franchising while Olden Lee is head of Human Resources. KFC is part of the two PepsiCo divisions, which are PepsiCo Worldwide Restaurants and PepsiCo Restaurants International. Both of these divisions of PepsiCo are based in Dallas.
Structuring
Another strategy of KFC is currently working with is to improve operating efficiencies. This in turn can directly impact the operating profit of the firm. In 1989, KFC centered on elimination of overhead costs and increased efficiency. This reorganization was in the U.S. operations and included a revision of KFC’s crew training programs and operating standards. They emphasized customer service, cleaner restaurants, faster and friendlier service, and continued high-quality products.
In 1992, KFC continued with another reorganization in its middle management ranks. They eliminated 250 of the 1500 management positions at corporate and gave the responsibilities to restaurant franchises and marketing managers.
Price
KFC follows both optional pricing and mixed bundling pricing. A consumer can buy dishes from the basic menu and go for add-ons (Optional pricing) and there are combo offers which comprise a mix of items. The pricing of products ranges approximately from 25 Rs. to 675 Rs. KFC has variety of options in each category, For e.g.: In Bucket, there are menus with 8pcs, 12pcs and also 12pcs variety bucket(Hot & Crispy Original Recipe and Chicken Strips).
Place
KFC initially opened its outlets in metros and Tier I cities, now it has gradually moved to Tier II cities where the buying power is one the rise due to rapid urbanization. KFC has its outlets in all major cities and has overtaken Pizza Hut in Quick service restaurants. By the year 2015, KFC is expected to have 500 outlets in India.
Promotion
KFC does promotional activities by offering add-ons to the existing menu, gift coupons, T-shirts, Kids meal etc. KFC promotes its products through LCD displays kept inside its outlets which promotes their products and kindles desires among consumer. India being the country with largest youth population has favored the growth of KFC and it has become the fastest growing fast food chain in India pushing aside McDonalds’ and Pizza Hut.
Product
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.
Product of KFC:
The main product of KFC is the fried chicken in its various varieties like flavors & snacks, plated meals, sandwiches and sides. Along with this they provide variety of salads and desserts. KFC specialize in Original Recipe®, Extra Crispy®, Kentucky Grilled Chicken™ and Original Recipe Strips with home-style sides, Honey BBQ Wings, and freshly made chicken sandwiches. The product of KFC is unique and is widely famous among the consumers for its Original Recipe® fried chicken that was prepared with its exclusive and secret blend of 11 herbs and spices in the same way as prepared by Colonel Harland Sanders who founded KFC. The products of KFC are customized to suit the tastes of the people in the nation in which it is operating. There are over 300 products of KFC all over the world ranging from the salmon sandwich in Japan made from the commonly available salmon fish to the Kentucky Grilled Chicken in the United States.