The History Of Internal Environment Analysis Marketing Essay

The internal assessment of strengths is they have strong competitive of market strategies. KFC strengths are the well-known of brand names. KFC is recognized in fast food industry and established a long history. KFC has developed variety favor of chicken in order to target more customers. For example, the original fried chicken, extra crispy, tom yam fried chicken, spicy chicken and so on. In the last five decades, the KFC’s has used the secret recipe of 11 herbs as well as the spices to make the chickens. Besides, KFC is 1st chicken restaurants chains among the entire chicken restaurant.

Moreover, the quality of fried food KFC is also strength to KFC. KFC are constantly improving the quality of chicken. KFC is aim on high quality as well as ensure standard of food safety to maintain KFC standards. Other than that, KFC has strong distribution strategy. Firstly, they focused on building the outlets at strong location. For example, the shopping mall, universities, and airport and so on. Secondly, KFC is also established 2 in 1 unit of for sell Pizza Hut and KFC.

In 2008, KFC follow the Food Standards Agency commitment to produce the healthier food in order to help customers enjoy a healthier and balanced meal. Other than that, KFC is also provides the nutritional information of the food for their customers and increase more healthier meals of the menu. KFC is also focused on ethically and environmentally. For example, KFC reduce the packaging of burger by using the cardboard box instead of wrapped paper.

Moreover, KFC has a strong trademarks and most identifiable brand in fried chicken. KFC had refocused internal strategies in order to grow its franchise restaurant to grow and all over the world.

The weaknesses of KFC is lack of innovative because KFC serves only the fried chicken products and does not offer the differentiate products for the customers. It will make the customers switch to competitors easily.

Besides, KFC is lack of focus on research and development and also lack knowledge about their customer. KFC chicken is contained of high salt and high calories. It consider as unhealthy food .Since the people nowadays are more emphasize on healthy food and boycott the fast food. Other than that, KFC is lack of home delivery services compare with others fast food chain like McDonald and Pizza Hut. Thus, it makes KFC lack of competitive advantage. Lastly, KFC menus are no flexibility. The customer are lack of freedom to choose the food their liking .For instance the customer can’t to change the coke to lemon juices, they have to order hold set of meals.

Porter’s Competitive Strategy Model

Generic strategic developed by Michael Porter is a core idea about how a firm can best compete in the marketplace. There are three generic of strategies, such as low cost leadership, differentiation and focusing. Each of the strategies can produce different return for a firm in an industry. In these competitive environments, every of organization has to measure and choose which of the strategies able to help the firm in order to achieve its company goals. KFC is adopting the differentiation strategies in order to maintain the fast food market leader in industry Malaysia.

Differentiation strategies is dependent on differentiation are designed to appeal to customers with a special sensitivity for a particular product attribute. (John A & Richard B). KFC are differentiation their products by using product differentiation, service differentiation, personnel differentiation as well as new product development.

The main areas of KFC are emphasizing on the KFC fried food. The product differentiations of KFC are the tasty of fried food and chicken and contains secret of 11 herbs and spices. Apart from serving the tasty fried food, they are also aim on high quality as well as ensure standard of food safety to maintain KFC standards. For example the chickens delight, fiery grilled chicken, hot and crispy chicken, tom yam chicken as well as original recipe of chicken. The variety of tasty fried chicken able to differentiation and one step ahead from the competitors. Moreover, KFC will be launch “Veg burger”, which is vegetable burger in order to target more customers’ bases. (Koelling & Moeslein, 2010) Other than that, KFC obtained certified by Jabatan Agama Islam Selangor by ensure Halal procedures are met.

The KFC also focused on service differentiation in order to differ from others competitors. The field of service of KFC is conduct by CHAMPS Recognition Specialist. The main attributes of CHAMPS are C-Cleanliness, H-Hospitality, A-Accuracy, M-Maintenance, P-Product Quality and S – Speed of Service. The CHAMPS covers of the evaluation of the cleanliness and sanitation of the KFC outlets , the staff personal hygiene , the hospitality of service as well as accuracy of serving order ,good maintenances of equipment , quality of the food product and the speed of service. KFC personnel will follow strict control of CHAMPS in order to ensure the foods served to their customers are fresh and safe. For example, KFC have a Mystery program known as CHAMPSCHECK use to evaluate feedback of customers. KFC use the feedback taken from this evaluation in order to improve the services standards.

In personnel differentiation, employees can play an important role in a service sector. Thus, the CHAMPS KFC will conduct in training programs for all the employees in order to provide a standards of services. In the areas of training included of the attitudes of the personnel, health and safety issues, and the customers’ expectations in order to create customer satisfaction. Thus, it can help KFC to increase the loyalty of customers and also build ups a well image for KFC.

New product developments are to carrying out the research and development in order to focus on changing customer taste and preferences food products. By using R&D can help to produces the products in order to meets customer’s needs. For example, KFC launch the coleslaw to serve the health conscious segments .Other than that, KFC is also introducing new products by differentiation themselves from competitors. Such as , the product innovations such as egg tart, golden pocket to offer more alternatives for the customers.

Ansoff product/market matrix

The ansoff product / market matrix is a series of suggested growth strategies which use to set a direction for the business strategy. These in included of four product market combinations are the ways to grow via existing products and new products and in existing market and the new market. These include of:

Market penetration

Market penetration is the business focuses on selling existing products in the existing markets by increase the market share of current products. KFC always use the sales promotion to maintain their customers and build the relationship with their customers. For example, KFC Malaysia 50% Off Dinner Plate from 13 September, by purchase the dinner plate on 6 p.m. to 9p.m can get 50% off on next purchase of KFC Dinner plate. By using this strategy can helps KFC to attract larger of market share. Besides, KFC is also maintaining their market sales by using advertising through the RTM1 and RTM2 on morning and afternoon. KFC used TV and radio commercials to advertising the KFC products through Chinese, Malay as well as English language in order to reach all Malaysian.

Market development

Market development is the strategy where the business seeks to sell its existing products for the new markets. The approaching of this strategy included of use the new product dimensions or packaging, the different prices policies to attract the different customers as well as develop more KFC outlets in Malaysia.

KFC offer the new product as well as the new packaging in order to target more market share. For example, KFC is constantly to launch the different toys and the different packages of the kid’s meals in order to target on the children. Moreover, KFC is also offer the multi grain burger to target on niche market. For example, KFC is target on healthy conscious customers. The Multigrain burger as a warm sandwich which contained of the creamy mayonnaise, fresh lettuces and fluffy golden scrambled. Thus, it can attract more customers who are concern on their healthy. Besides , KFC is offer the different prices policies to attract more customers .For example , the breakfast set is RM4.50 onwards , variety bucket RM47.90 for 6 person , the snack box RM4 and so forth.

Product development

Product development strategies are used to introduce the new products into the existing market. This strategies are require the business to develop the modify products which can to attract the existing customers. Thus, KFC has innovation the burger ingredients and launch out the Zinger burger in order to satisfy the customers’ needs and wants. Zinger burger is different with the normal burger, which are contain 2 pieces of crispy fried chicken with the cheese and vegetables. It is a new launch special burger of KFC in order to target the customers in existing market.

Diversification

Diversification strategy is to generate the new products in new markets. For adopt this strategies must have a clear ideas about what aspects to gain from this strategies as well as the assessment of risks. The Dessert is the diversification of KFC. For example the egg tart , variety favor of crushers, Choco chip cake , little bucket parfait, apple pie and so forth.

BCG Matrix

Boston Consulting Group (BCG) Matrix is the corporate portfolio analysis tool. It provides a graphic representation, such as star, cash cow, question marks as well as the dog. It is use for an organization to examine different businesses on the basis of their related market share and industry growth rates.

According to this matrix, business could be classified as high or low according to their industry growth rate and relative market share (SBU).

Stars-

The Star category is representing the business units having a large market share in a fast growing market. Besides, these categories of products can helps to generate cash because of the fast growing of the market. However, these categories of the products requires strong financial to support in order to maintain the market share. The KFC ‘s products in these categories are the Zinger burger and Xtreme Burger .If these categories of products successful, a star can becomes into a cash cow when industry matures.

Cash Cows-

The cash cow category is representing the business units having a larger market share but slow growing industry. Cash cow are the categories require a little of investment and use to generate cash in order to investment in others business units. These SBU are the main source of cash and the core business of a firm. The Chicken burger and variety favors of chicken pieces are in these cash cow categories. The chicken burger and the chicken pieces are the base products of KFC. However, if the cash cow loses their appeal, it will be leads to pursue the retrenchment policy.

Question Marks-

The question marks categories is represent the business units which have low market share and locate in a high growth industry. The question mark requires huge financial resources in order to maintain and gain more market share. KFC are use the cheese wedges, chicken rice and breakfast set in order to gain good commercial prospective as well as gain more market share. However, if this categories being ignored, the question marks will become a dogs, while if the investment was successful, it can become to a star.

Dogs-

These categories are the business is having a weak market shares in a low growth markets. Because of the low market share, these business units may face the cost disadvantage. For example, the fruit salad, French fries dessert of KFC. These categories of business are facing the weak market share because of the high cost to maintain and ineffective in marketing strategies. Thus, the number of dogs will be avoided as well as minimized by an organization.

Marketing mix strategies

Product

KFC is the most popular chicken restaurant chain in the world. KFC included of variety of food. These included of chicken delight (Original Recipe®, Extra Crispyâ„¢, Twister® and Colonel’s Crispy Strips® chicken, Hot and Crispy ) , snacks (Popcorn Chicken, Hit Wings, Boneless chicken strips) , burger (Chicken Zinger, Tower Zinger, colonel burger) , Signature sides( Corn on the cob,  Coleslaw, Fries) , Desserts (Soft wirl, Chamorro, Brownie Sundae) , crusher (Frappe, Iced Mocha, Iced cappuccino ) and so forth.

Moreover, KFC will introduce a new product “VEG burger” in 2013 order to target the health conscious customer. The meat components of the burger will be replaced by the special vegetarian “meat”. The burger will launch in three sizes in small, medium and big sizes.

Price

The price of KFC is affordable compares with others fast food restaurants. KFC are used the optional pricing and bundling pricing strategies to target their customers. The customers can buy the a la carte from the basic menu and add on of others items. The pricing of the product ranges from RM6 to RM 10. Besides, KFC has offer variety of set meals for their customers, there are the combo bundle with a burger, a coke drinks with a small packs of fun fried worth RM6.90.

KFC is also penetration price strategies for the Veg burger. For example the large of veg burger will launch at RM8, which is lower than the “Zinger chicken burger” that offered RM10 in KFC.

Place

Place is the most important factors of KFC. By increase more market share, KFC must choose a right placement in order to target the right customers segments. Most of the outlets of KFC are located places with high traffic number of customer. Such as airport, shopping malls as well as Universities. (Kotler, et al, 2007) Other than that, KFC has extent their working hour from 16 to 24 hour for several outlets in order to lets customers to enjoy their favourite meals at the midnight.

Promotion

KFC promotions are the activities by offer the gift coupons, T shirt, kids’ meals as well as the TV show at morning. KFC is always held the sales promotion to create the product awareness as well as persuade their customers to visit KFC always. For instance, buy 1 dinner plate in order to get 50% discount on next purchase. Besides, KFC is also offer the free gift bundle with the kid’s meals. KFC use the advertising to reach their customers in morning in order to target on the kids. For example the morning show on every weekend in order to promote the kids meals .Others than that, the ads through the newspaper is used to reach the office workers or teenagers. For example the chicken meals worth RM7.90 on lunch time. Thus, the working peoples can have a meal at KFC on lunch time. Other than that, KFC is also used the vehicle and train to advertise the burgers and other products both the buses and the trains.

Process strategies

The time management is important for a fast food industry. KFC must as fast as possible to serve their customers after they places the ordered. Thus, by having this in mind, KFC will service every customer by maximum of 3 minutes. Besides, they also will increase the number of employees during the peak hours in order to shorten the waiting periods of the customers.

People

Human capital is the vital factors of firms. Human capital can be competitive advantage of a firm if they are able to provide hospitality of services. Thus, KFC will recruit and provide training for their employees. The training included of safety measures, hygiene and food regulation. Besides, the employees also will be train in customer handling, the behaviour and expectations of customers. KFC is also emphasizing on motivation and teamwork. Teamwork will be encourage by the KFC in order to create a friendly working environment .The employees will be get award of 20% salary increment as well as get the award bonuses for working during the public holiday.

Physical

A clean and attractive atmosphere is important to attract the customers as well as maintain the customer’s relationship. KFC outlets will provide an enjoyable environment for the customers in order to let customers can enjoy when having their meals. KFC is also places the poster words “welcome’ and ‘have a nice day” at every corner. Other than that, KFC is also provides the WIFI services for their customer to let the customers can surfing in the KFC.

KFC Zinger Double Down Special Combo Promotion

Posted by lee on Nov 14, 2012 in Food & Drink http://www.mudah.co/kfc-zinger-double-down-special-combo-promotion/1262/

Posted by lee on Sep 13, 2012 in Food & Drink

http://www.mudah.co/kfc-malaysia-dinner-plate-promotion/955/