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

6. KFC'S LOGO
1952
1978
1991
1991
1997
today

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

26. Market share
5
15
kfc
mcdonalds
55
25
K&N'S
Burger king

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