Kfc Swot Analysis Essay

Introduction

The purpose of this assignment is to have a clear understanding on marketing principles. The assignment has focused on important areas like investigating on how to use the concepts of segmentation, targeting and positioning and how to use the marketing mix in different contexts.

The report was provided by the module lecturer to assess our competency on marketing principle and to find out how we have applied it to the questions by giving the opportunity to select an organization and identify its unfulfilled marketing need as its marketing manager. KFC known as Kentucky Fried Chicken is a fast food restaurant chain that specializes in fried chicken and is headquartered in Louisville, Kentucky, in the United States. It is the world 's

Even if KFC increases their prices by a small margin, consumers are not going to switch to another fast food restaurant, as chicken lovers will anyway go to KFC despite the increase in price. But yet the taste of customers can change time to time. Since fast food restaurants target different customers the increase in the price of products can impact the organization in several ways.

SWOT analysis

SWOT analysis is a tool used to analyse the micro environment by analysing internal factors of a business. Below shows the application of the swot analysis to KFC.

Strengths

• It is the second global brand in the fast food industry with a recognised brand name.

• KFC 's secret recipe which is their original chicken recipe would be their competitive advantage over their rivals.

• Half of KFC 's revenue is obtained from the 4000 outlets in china, due to its large population.

• The excellent hospitality and customer services provided by KFC. Weaknesses

• Since consumers are becoming more health conscious, they would prefer to eat elsewhere due to the unhealthy menu of KFC.

• Low salaries being paid has increased the level of employee

The segmentation targets B to C which is business to consumers. After identifying an unfulfilled marketing need in the market, KFC has come up with a new innovative product, known as, the four dip bucket with boneless chicken. The flavours of the four dips are salsa, spicy mango, sweet chilli and oriental.

The below is a plan of the product, price, place and promotions decisions for the two different customer segments for the new product.

Segmentation of the new product of KFC.

Taste conscious Class conscious

The four dip bucket caters to four different variations in a single product as consumer tastes differ from one another. This new product introduced by KFC is targeted at the upper class and middle class and the product is priced reasonably. Table 5.0 - Segmentation of the new product