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Pestle Analysis KFC
BusinessManagementMarketing

PESTLE Analysis KFC | KFC PESTLE

by Shamsul

 

PESTLE Analysis KFC | KFC PESTLE

 

Kentucky Fried Chicken (KFC) is a well-liked name in the fast-food market. It is currently operating in more than 100 countries and everyone is familiar with the face of Colonel Sanders. KFC is best known for its spicy aroma and crispy fried chicken. It is really challenging to run a massive corporation such as KFC. With PESTLE Analysis KFC, you will understand the political, economical, social, technological, environmental, and legal factors of this giant fast-food restaurant. These factors effectively represent the challenges and working strategies of a company.

 

PESTLE Analysis KFC | KFC PESTLE

Political Factors:

KFC did not utilize an acronym of their real name. The term ‘’Fried Chicken’’ coupled negatively with the brand, that’s why they decided to change the name in order to protect the brand image. Honestly, KFC is the only fast-food chain in the world with unhealthy food. In comparison with Burger King and McDonald’s, they still serve high-calorie chicken. That’s why they use a smart move by removing the word ‘’fried’’ from their brand’s name that creates a great impact on the mind of customers. KFC also indulged in recent political drama when they mock the McDonald’s and Donald Trump’s tweet. Some users digest it as a harmless joke but some of the users consider it a bad joke which results in the negative publicity of the company.

 

PESTLE Analysis KFC | KFC PESTLE

Economical Factors:

As YUM is a parent company of KFC including Taco Bell and Pizza Hut. These fast-food chains are working well in other regions of the world but struggling in China. In the Chinese market, most of the companies are not growing and some of them experiencing a continuous decline in profits. The biggest problem is due to the ‘’fried chicken’’ that they have removed from their abbreviation. But, many health-conscious people still refused to eat some of its deals that are high in calories and fats. KFC’s main menu mostly consists of fried chicken which is a major weakness of the company. Fortunately, KFC is focusing on vegan items in order to attract vegan and diet-conscious users. Recently, they have created fried chicken sandwiches. They also created two types of vegan fried chicken such as vegan nuggets and boneless wings. Most of the users came just to try these new offerings. In short, these new creations proved beneficial for the company in terms social and economically.

 

PESTLE Analysis KFC | KFC PESTLE

Social Factors:

There are several fast-food companies that struggling with several social issues. These issues can create a bad impact on the brand and also erode the trust of the customers. The main social issue of the KFC is its mismanagement of worker’s wages. Some customers are also concerned about the material such as chicken and the use of unnatural elements like hormones. Some companies expose the mistreatment of animals which results in the boycott of these fast-food companies. It is important for KFC to remove its unethical practices in different segments so that people start trusting you.

Another main factor in this process is a high-calorie food. Most of the menu of KFC is filled with this kind of food. Due to the obesity crisis, most people blamed these fast-food chains. There is only one way to improve their image is adding vegan items to its menu. This is the only way to attract diet-conscious eaters or consumers.

 

PESTLE Analysis KFC | KFC PESTLE

Technological Factors:

Like other fast-food chains, KFC is also investing in new technologies for the betterment of workers. By improving the working environment for workers, customer service will automatically improve. That’s why they are hiring more tech-savvy and young people that can use the new technology on the spot like voice-activated tests. In Australia, KFC introduced a social media platform for employee communication. Now, employees can share new ideas and ask questions on this platform with each other which results in the betterment of both employees and the company. In addition, KFC is also adopting the newest technologies for easier ordering, kiosks, and deliveries. With this technology, you can place your order before reaching the counter. This process makes the ordering system much easier for consumers and they don’t need to wait in line for their turn. It is a ‘’click and collect’’ technology which is only in Australia and observed a 20 percent increase in profits.

 

PESTLE Analysis KFC | KFC PESTLE

Environmental Factors:

This giant fast-food chain is a big contributor to the environment. KFC’s paper company is directly related to deforestation, which openly impacting the health of the environment. Moreover, its unethical practices also cause the endangerment of the wildlife and environment. Due to these reasons, most of the consumers reduce to use KFC’s offerings. It is really important for the company to adopt eco-friendly practices in order to win the trust of green customers. Additionally, these kinds of practices also reduce waste and expenditure. In this way, KFC can improve its brand name.

 

PESTLE Analysis KFC | KFC PESTLE

Legal Factors:

According to recent stats, KFC works in more than 120 countries around the globe. In order to make their operations smooth and uninterrupted, they need to follow the laws and regulations of each country. They should pay taxes on time and fulfill the requirements of labor laws. Further, they also focus on the maintenance of restaurants so that people can enjoy themselves while eating. In case of any illegal practice or activity, they may face lawsuits and court processes that break the company’s name and reputation in the eyes of customers globally. That’s why it is important to fulfill the need so legal factors in each location to avoid the risk of a nuisance.

 

PESTLE Analysis KFC | KFC PESTLE

Conclusion:

In today’s world, KFC is an honorable name in the fast-food chains. Despite all the negative political stunts and controversies, they are trying to add a vegan menu to attract more customers. They are also working on the exploitation of new technologies in order to improve customer service. These steps will increase the profit game of KFC and also give a competitive edge over its competitors. According to experts, if KFC follows all the laws and regulations then it will probably continue to grow in the relative industry.

 

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PESTLE ANALYSIS and Its Impacts in Marketing

PESTLE Analysis of Starbucks | Starbucks PESTLE

Difference Between PESTEL or PESTLE Analysis

 

 

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KFC Marketing
BusinessManagementMarketing

SWOT Analysis of KFC | KFC SWOT Analysis

by Shamsul

 

SWOT Analysis of KFC | KFC SWOT Analysis

 

Before reading the KFC SWOT Analysis, let me give a brief introduction about the famous fast-food chain. Kentucky Fried Chicken is one of the biggest American fast-food chains in the world. It is headquartered in Louisville, Kentucky. KFC is famous due to its fried chicken offerings. In terms of the restaurant chain, it is the second-largest food chain in the world. It was established in 1930 and currently, the company is operating in over 118 countries with 18875 outlets.

It is famous due to its original taste and is a subsidiary of the Yum brand. Chicken sandwiches, Hot WingsTM, Kentucky Grilled Chicken, and Extra CrispyTM Strips are some famous chicken dishes of KFC. The brand is going strong in terms of popularity and revenue. They are also planning to open more franchises across the world. They follow the operation methods to run this business. Some of the offerings of KFC are given:

  • Hot wings.
  • Popcorn nuggets.
  • Signature combo.
  • Kids meal.
  • Classic meal.
  • Family meals.

With the help of KFC SWOT analysis, you can easily understand the strengths, weaknesses, opportunities, and threats of KFC. This thing helps the company to grow its revenue and chances in the competitive market. The strengths of KFC shows the better working and weaknesses describe the factors in which they are lacking. The opportunities help them to grow more and threats assist them to fight certain things that aren’t good for their business. Let’s discuss the SWOT analysis of KFC in detail:

 

SWOT Analysis of KFC | KFC SWOT Analysis

Strengths of KFC:

  • Strong Global Presence:

There is no doubt that KFC has a strong global presence in the world. With 18875 restaurants globally, it is the second-biggest fast-food chain. The main strength of KFC is due to its parent brand ‘’Yum’’ that has a robust presence across the globe. This kind of global presence makes the KFC stronger in terms of presence and value.

  • Rapid Growth:

From its launch, KFC is doing very well in terms of growth and revenue. It is currently operating in Asia including China. They opened 743 restaurants in China in 2015 and this statistic is increasing. Moreover, they inaugurated 5000 restaurants in more than 110 countries. Due to this rapid and positive growth, it is a strong fast-food chain in the world.

  • Robust Financial Condition:

In terms of revenue, KFC has seen a powerful financial performance internationally and locally. In 2015, they generated 16 billion dollars globally. What is more, the company also gaining encouraging profit from Russia and Europe which is a great strength of KFC?

  • Competitive Edge Over Rivals:

KFC has successfully outsmarted the competitors in China and create a big lead. In emerging markets, it also did well and develop a strong market position. In short, we can say that KFC is a leading brand in the globe.

  • Diversity in Offerings:

The biggest strength of KFC is its wide variety of products and offerings. They have both vegetarian and non-vegetarian items on their menu. This thing easily attracts customers or users. In addition, they also introduce value meal offers. Signature combo, hot wings, popcorn nuggets, classic meals, and family meals are some of the best offerings of KFC.

  • Loyal Consumer Base:

KFC’s customer base is very huge and loyal, too. It is due to their special and quality offerings. Crunchy chicken is one of the best-selling items of KFC. Due to this kind of fan base, you can easily guess the growth and profit game of KFC.

  • Trade Secret:

The trade secret of KFC is behind its scrumptious crunchy chicken which is prepared from ‘’11 herbs and spices’’. This recipe gives a special aroma and taste that is loved by many customers.

 

SWOT Analysis of KFC | KFC SWOT Analysis

Weaknesses of KFC:

  • Problems on Food:

Maintaining food quality is a difficult task for fast-food brands. As a result, KFC had experienced a huge backlash regarding quality issues such as the presence of trans-fats in the chicken menu. Due to the increasing amount of health-conscious people, this thing can create a big difference in the revenue system. This thing can force the customers to try new fast-food chain. They like the food that cooked in hygiene conditions and environment. This is a major weak point of KFC. As the KFC’s menu is mainly based on meat-based items, so it can also affect calorie-conscious people.

  • Problems on Franchisee Workings:

It is a common issue in several restaurant brands. It is important for a global brand to maintain a specific operating process otherwise they will face specific franchisee operating problems. There are several other issues like menu diversity and operational problems that can cause trouble. It is another major weakness for famous and global brands.

  • Ineffective Supply/Demand Network:

KFC is also facing supply chain problems regarding the supply of chicken. This thing has impacted the KFC in terms of quality and revenue. Due to this reason, they had to close few outlets in the UK. Supply and distribution network requires logistic efforts and innovation. This weakness can also damage the reputation of KFC and affect the company’s profitability and growth.

 

SWOT Analysis of KFC | KFC SWOT Analysis

Opportunities of KFC:

  • Strong Growth in Emerging Markets:

According to marketers, emerging markets hold a good potential for businesses and trades. There are several countries like Russia and China that can offer a great boost to KFC in terms of growth due to their population and increasing demand for food. KFC can also focus on other emerging markets. In my opinion, it is a great opportunity for KFC to expand its working and business to different countries and markets in order to take lead from competitors.

  • Health-Conscious Offerings:

Modern people are more conscious about food and health, and KFC can use this thing in favor of its business. They can introduce new and healthy items to its menu in order to attract more customers. They should focus on the low-calories food and also maintain the taste to catch the attention of consumers.

  • Affordable Items:

No one can predict the buying decision of customers. But it is a fact that people attracted to affordable but high-quality items. They want healthy food at a reasonable price point. KFC should revise its pricing policy and introduce cost-effective deals.

  • Inclusion of Vegetarian Menu:

Recently, KFC started dealing with vegetarian menus and created a separate category. But they have few varieties in this category as compare to competitors. They can add more versatility to its vegetarian menu to attract vegetarian customers. In this way, they can earn more profits and recognition.

 

SWOT Analysis of KFC | KFC SWOT Analysis

Threats of KFC:

  • Competitors:

From its beginning, KFC has a competitive edge over its competitors. But the fact is that it is not on the top right now which shows that it is lagging in some sectors. It is due to the presence of heavyweights like McDonald’s, Burger King, etc. There are several brands that are also doing well due to their innovative offerings and working. They can create a big threat to KFC’s market share and customer base.

  • Liking from Millennial:

KFC is a well-liked fast-food brand of millennial due to their offerings. But the world’s population mostly consists of Gen-Z and this thing can affect the company’s profitability and market share. They need to be innovative in their offerings and rates so that they can attract younger generations.

  • Rising Prices of Resources:

The rising cost of labor, raw material, and operation charges can affect the sales and revenues of KFC. This one is a major threat for KFC. Climate change and other similar threats can also influence the brand. It is necessary for KFC to manage these things with maximum attention to increase its revenue game.

 

SWOT Analysis of KFC | KFC SWOT Analysis

 Summary:

This SWOT analysis of KFC shows the comprehensive working. It highlights the strengths, opportunities, weaknesses, and threats of KFC. In this way, you can understand the internal as well as external strategic factors of KFC.

 

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Reebok Marketing Strategy | Reebok Marketing

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KFC Marketing
BusinessMarketing

KFC Marketing Strategy | Marketing Strategy of KFC

by Shamsul

KFC Marketing Strategy

When a delicious fast food dish especially chicken based comes to your mind, the first name you think of is always KFC. It is among the top chicken restaurants selling the best quality products worldwide. KFC is a successful brand having the highest sales in this industry. It is in operations for the last 75 years and offers the original taste with a high satisfaction rate. People love to visit this chicken restaurant worldwide to enjoy the finger-licking products at a reasonable price.

Remember, KFC has more than 750,000 workers offering delicious and tasty fried chicken to clients in more than 18000 restaurants worldwide. According to the latest reports, it has a huge network of franchises in more than 120 countries. This makes KFC is a more prominent and famous fast food restaurant for the people who love to have spicy, hot, and delicious fried chickens. Business strategies and approaches of this fried chicken restaurant depend on a successful KFC Marketing Strategy. Studying the marketing strategies of KFC is important for the entrepreneurs and businessmen looking to have a hub in the food industry.

Segmenting, Targeting and Position:

KFC which stands for Kentucky Fried Chicken uses segmentation on a demographic basis to serve the food lovers in markets. It takes special care about the client’s food tastes and preferences. The customers at KFC are kids, young adults as well as old.

KFC uses an undifferentiated targeting strategy as it has the same food menu as all other food restaurants have in the world. With the pass of time, KFC has started to create different types of menus after having a competition with McDonald’s. Now they have localized menus according to the preferences of their customers and market acceptability. Previously it was using product base positioning strategy. It is also transforming the positioning strategy. KFC is now moving towards value-based positioning strategy.

Because of the top chicken menu, it is present in the minds of food lovers. A very few outlets of KFC offer vegetarian category foods. It has no comparison when it comes to discussing nonvegetarian. It is a superb opportunity to try a wide range of chicken foods. This is a big reason why most non-vegetarian people love to visit this superb fried chicken spot.

 

Marketing Mix: Find more about KFC’s marketing mix.

SWOT Analysis: Get more details about SWOT Analysis of KFC.

Mission: “To deliver top quality healthy chicken-based foods to consumers. KFC is determined to produce chickens in a healthy environment free from all germs. It ensures high safety, hygienic and quality features while producing fried chicken foods.”

 

Marketing Strategy of KFC

Competitive Advantages of KFC Marketing Strategy

Studying the marketing strategy of KFC also tells about its advantages. This fried chicken restaurant is producing high-quality tasty foods from the last 75 years. It adds original and quality ingredients. It has a wide range of food choices on the menu. Whether you are a vegetarian or a non-vegetarian, you will find great tastes here. These things help KFC (Kentucky Fried Chicken) to grow its business worldwide. It is present in developed as well as developing countries. This is a plus point for the restaurant to get more fame and popularity with high sales. They create marketing plans and strategies according to the place of work. They have a unique status in the food industries of all the countries.

 

BCG Matrix of KFC Marketing Strategy

We can’t move forward in the marketing strategy of KFC until seeing its BCG Matrix. Grilled chicken, sandwiches, hot wings are the Stars of its menu from the very first day of work.

The Question Mark category contains food items such as dessert, chicken (Burgers) and vegetable items. The restaurant is not very successful to get a remarkable sale record on these foods. Competitors such as McDonald’s and other local food restaurants are able to create differentiation in this matter.

Distribution Strategy of KFC Marketing Strategy

As mentioned above, KFC has more than 18000 restaurants offering finger-licking quality foods worldwide. In order to meet with the customer load or pressure, they offer distribution services to ensure the availability of food products according to demand. They have strategic partnerships and strong tie-ups with local supply chain services. They are using different supply chain partners to serve the customers in a perfect way.

KFC has a strong habit of making the franchises in elite areas of the city. They prefer to choose busy roads, shopping malls, entertainment areas, and even hospitals. These outlets also offer home delivery to customers booking orders online. KFC (Kentucky Fried Chicken) is among the top services dealing with online as well as offline deliveries.

Brand Equity of KFC Marketing Strategy

KFC enjoys a high status in the global brand ranking. It is 147th on this list. This positioning remains sustainable due to successful company marketing. It employs quality TOMA (Top of Mind Awareness). Localization strategy and the addition of vegetables in the menu are some effective steps to keep sustainable brand equity. These steps are very helpful for brand building in any country.

KFC also maintains the brand equity is the brand initiative strategy. This amazing strategy has a great impact on brand equity when it unites with the above-mentioned strategies. KFC (Kentucky Fried Chicken) continuously offer new products. In some cases, it doesn’t launch a new food recipe but ads something interesting with it. For example, a meal with extra cheese or mayonnaise would be attractive for the buyers. There are so many similar examples present in the brand equity strategy of this restaurant.

Marketing Strategy of KFC

Competitive Analysis of KFC Marketing Strategy

KFC is a top brand but it has so many strong competitors. The top competitors of this food service are Kokoriko, McDonald’s, Kyochan and so many others. Local food companies and services also create tensions for the KFC. The scenario is different in developed countries as there are different competitors in the food business taking market shares.

Subway and McDonalds are the most prominent competitors of KFC. Both offer a wide range of burgers, sandwiches, fried chicken foods, and others. Subway is a little weak in the competition but McDonald’s has similar features and statistics as KFC has in the world.

 

Market Analysis of KFC Marketing Strategy

The marketing strategy of KFC highly depends on market analysis. It varies from country to country. This restaurant is more famous in developed nations. This is a reason it gets more than 50 % of the revenue from these countries. Developing countries such as India, Pakistan, and China are attractive markets for KFC (Kentucky Fried Chicken) because huge growth potential is present there.

No doubt, there is low acceptance of fast food companies and services in developed markets but KFC is still getting growth. Health-conscious is a big factor in developed countries. This is why sales and growth trends in these countries are unstable. KFC takes a huge interest in standards. It is among the food services having a low negative profile.

Marketing Strategy of KFC

Customer Analysis of KFC Marketing Strategy

KFC is an attractive place for everyone. It is a place where people from all age groups want to go. Whether you are a kid, a young adult, or an old person, you will find something attractive on the menu. KFC is more pleasant for kids. Numerous restaurants in developed and developing markets set their playgrounds or eve play areas for the kids. This gives parents a huge opportunity to bring their kids into a healthy environment where they play and eat. For young people, KFC is a blessing. As we mentioned above, KFC has a strict policy of making its outlets in elite areas of cities. Young couples willing to have some time in a decent environment always prefer this restaurant. Enjoy the peaceful sitting arrangement with healthy foods. On the other hand, mature people who don’t like noisy places also love to choose KFC. They can have superb fried chicken dishes such as hot wings, hotshots, chicken pieces and more. Order these things with a big jug of fresh beverages.

For all these age groups, KFC is an affordable place. They can order spicy and healthy foods on a low budget. The biggest advantage of visiting this restaurant is the availability of attractive deals. KFC presents lots of interesting and valuable deals for its customers. Each deal contains a combination of preferences. For example, if you love to have hot wings with a glass of fresh Coke then there will be a deal for it. Deals are money-saving for buyers. Customers visiting KFC (Kentucky Fried Chicken) to enjoy a family meal can choose deals according to individual taste and choice. On the other hand, families can choose a big meal including several burgers, dozens of hot wings, chicken pieces and beverages.

 

 

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