Marketing Management Project
Marketing Management Project
Project
“Sub 80 Burger”
PRELUDE
• Kentucky fried chicken was franchised in 1952. KFC
operates in 72 countries. KFC Corporation, based in
Louisville, Kentucky, is the world’s most popular chicken
restaurant chain.
• Nearly fifty years ago, Colonel Sanders invented what is
now called “home meal replacement”…. Selling complete
meals to harried, time-strapped families. He called it,
“Sunday Dinner, Seven Days a Week”.
• KFC is part of Tricon Global Restaurants, inc., which is the
world’s largest restaurant system with nearly 30,000 KFC,
Taco Bell and Pizza Hut restaurants in more than 100
countries and territories
• The Colonel made his first franchise deal on a handshake in
1952; PEPSI CO bought KFC in 1986. By then it had 6600
units in 55 countries. Today KFC has more than 10,000 units
in over 79 countries, with U.S. system sales of $4 billion.
Each week nearly 49 million customers come through KFC’s
door for the chicken they crave, made from recipes no one
can match.
KFC WORLD WIDE
U.S.A INTERNATIONAL WORLD WIDE
LICENSED 58 61 119
U.S.A 120,400
INTERNATIONAL 153,400
KARACHI 12
LAHORE 7
HYDERABAD 1
FAISALABAD 1
RAWALPINDI 1
PROMOTION:
• Unlike McDonald’s,
KFC’s promotion is
highly
decentralized.
• It adopts cultural
values for their
advertisements.
THREE C’S
• COMPANY
• COMPETITORS
• CUSTOMERS
KFC is the company, which offers fresh
food in less than 3 minutes. Its customers
are upper and lower class members.
KFC’s competitors include direct
competitors (McDonald’s) and indirect
competitors (local restaurants).
Reasons for Introduction of Sub
80
Sub 80 was launched in Pakistan a year ago due to non availability of a
budget burger, which was spicy in taste. KFC wanted to explore that
section of the market due to which it introduced their Sub 80.
• Newness to Market
• Newness to Company
• New to the World Products
• New Product Lines
• Addition to Existing Product Lines
• Improvements in and/or Revisions to Existing Products
• Repositioning
• Cost Reductions
The product which was introducing is an extension of the existing product of
KFC i.e. “Sub 60”; rather than being a totally new product to the
company or the market.
Key Facts and Figures
• Name: Sub 80
• Price: Rs. 80
• Life span of failed product: 4-6 months
• Bread: 6” sandwich (same as Sub 60)
• Taste: Extra Spicy
• Fillet: Grilled chicken
• Sauce: Chilly Mayo & BBQ
Market niche:
• KFC produced Sub80 burger that was first of its
kind in Pakistan.
• Sub80 is a spicy grilled chicken burger, which
was specially introduced in Pakistan keeping in
view the taste buds of the subcontinent.
• A gap existed for varieties of burgers other than
the routine burgers hence a novelty could
capture and maintain new and old market and in
turn help increase KFC’s market share.
• Varieties in burger flavors could impose a
competitive edge over KFC rivals like
McDonalds and AFC.
KFC Sub 80 was a market
oriented product…How?
• The marketing concept holds that the key to
achieving organizational goals consists of the
company’s being more effective than competitors in
creating, delivering and communicating superior
customer value to its chosen target markets.
• The KFC understood the market need and respond
very positively to it.
• Though there wasn’t high level of innovation involved
in introducing Sub 80 but delivering customers the
best, as compared to its competitors, it was Relative
marketing approach followed by the innovators.
Marketing Environment
The marketing environment of KFC can be concluded as
follows:
Demographics:
• The KFC Sub 80 was launched in Pakistan to cater to
the needs of people generally of age 15-50, any one
mostly who has a taste for spicy food.
• It included both men and women, with an income of
around 0.2 million and above per year.
• It was mostly consumed by young adults, mostly
university going students, and fresh working graduates.
Economic Condition:
• FMCG products are directly related to economic
conditions.
• In Pakistan the buying power of consumers is on the
rise and the economy is going in the right direction
as Pakistan’s economy is an industrializing
economy, since the rich class and the upper-middle
class demands new type of goods.
Social/Cultural Change:
• Sub 80 was introduced because Pakistan socially
accepts spicy food.
• And it has been integrated in to our culture, like
Sindhi biryani is very famous; this biryani originates
from Sindh, and is spicy in taste.
Technology:
• Different organizations require different structures
partly because of technology, knowledge, tools,
equipment and work techniques used by an
organization in delivering its product or services.
KFC grasps the fantastic technology in its
operations.
• They own Computer Aided Manufacturing (CAM)
system to control production process.
• CAM makes it possible to change machines steps
automatically by computers.
• For instance, they have fryer that operates on the
principle of CAM.
• For example, the computerized fryer first tells the
cook whether the oil is enough heated to put the
chicken in or not, also the fryer determines the time
of cooking.
STRATEGY FORMULATION
Vision
• While introducing the new product for KFC, we kept
into view the vision of the multinational fast food
chain, KFC – who are known as the “chicken
experts” worldwide.
Mission
• KFC’s mission is to maintain and entrance their
position as the leading chain (WQSR) serving good
value, innovative chicken based products throughout
– we as potential marketers were very careful as we
designed our products for KFC keeping in view all
the time their mission.
Marketing Objectives
We also took also consideration the objectives and goals already mentioned in
the first part of our project while planning a meaningful strategy for our new
product.
• The Sub 80 was introduced to cater to the budget
market, and as Pakistan is still a developing country, it
has a large lower middle and middle class, for which
this Sub 80 was targeted.
• High service quality can be represented by speedy
work, reliable servicing and sincere attitude to the
customers. All these can be achieved by well-trained
service staff working in a well-equipped kitchen.
• The Sub 80 was also marketed as the spicy burger
which suited the taste of the local people.
• KFC’s Sub 80 could be viewed as a core competency
that can give them a competitive edge over KFC’s
rivals.
KFC’s VALUES:
• Dedicate our organization and our selves to excellent service and
delighting customer.
• Focus resources to support restaurant operations because that is where
we service our customers.
• Recognize and respect the contribution of each individual at KFC.
• Expect each individual to achieve his or her fullest potential and provide
support to enable each person to meet the highest expectations of
performance.
• Pledge to be open, honest and direct in our dealings with one another.
• Adhere to the highest standards of personal professional of integrity at
all times.
• Confront issues willingly but never attack personality.
• Encourage new and innovative ideas because these gave keys to our
competitive growth.
• View failed attempts as learning opportunity.
• Reward results, not simple efforts.
• Commit to deliver consistent growth and sales, profit and size of
organization.
• Commit to teamwork as this surpasses individual effort.
• Share information, ideas and credit broadly within the organization
Marketing Research and methods to
collect information:
Marketing research was done before launching the product through different
mediums.
Survey Research
• KFC conducted survey through questionnaires and informal
interviews. Questionnaires were distributed in the KFC restaurant, different
offices, open market and Bazars. They went out in the market to know people’s
likings and disliking.
Observational Research
• They also conducted research by observational method, the
company representatives simply observed the market, pointed out the market
need compared with each and every aspect of the product demanded by the
customers, observed what exactly their customer want, their need…
Experimental Research
• They offered their customers a promotional meal before making
their mind whether they want to buy it or not, whether they are comfortable with
their newly launched Sub 80. This way includes in the experimental research
because by doing this KFC can get feed back from the customers on the spot, and
they can improve their product on the very right time
Research Methods:
Following types of research methods were used:
Questionnaire:
• KFC Sub 80 conducted their feed back by giving
questionnaires to collect the primary data from the people.
• They carefully developed, tested and debugged the
questionnaire before they are administrated on large scale.
In questionnaires they included both open ended and close
ended questions.
• Close ended questions helped them to find out the specific
information of the target market.
• They gave questionnaires at office areas and get the feed
back in positive result but it was failed due to the extra spicy
flavor, which did not suit people in summers.
Story telling:
• When the customers came to restaurant for meals, they
regularly used to complaint about the spiciness of the burger,
and the side effects it produced in hot weather.
SURVEY REPORT ON K.F.C
CUSTOMER'S CATAGORY
STUDENTS
BUSINESS
SERVICES
OTHERS
The kind of people who used to go to KFC. Based on the nature of their work.
•It was conducted after the survey that mostly students prefer to go to KFC
than other people. The second in majority were people who are in services.
That covers the majority of this country.
FREQUENTLY VISITS
OCCASIONALLY
MONTHLY
WEEKLY
VERY GOOD
FINE
UN SATISFACTORY
Quality of the product. Based on the nature of the food given to customers.
•According to the survey the quality of the products like chicken, burgers,
buns, cold drinks etc. etc.. is considered very good among the people of
this city.
TASTE
EXCELLENT
GOOD
AVERAGE
VERY GOOD
FINE
HIGH
NORMAL
Pricing Strategy
• They have priced ‘Zinger Extreme’ at an attractive and economical price to
attract their target consumer i.e. the middle and upper class.
• This is a Package Deal which is going to include a Zinger Extreme, Fries
(small) plus a regular Soft Drink priced at Rs.220 (inclusive of taxes).
• The product could be bought separate at Rs.160.
Competitive Strategy
• Their competitive advantage is based on the fact that their new product
“Zinger Extreme” was included in a package deal with is spicy taste and
economically priced deal compared to others plus a combination of value
and innovativeness has been kept into account.
Promotional Strategy
They used an effective combination of advertising and public relations to
communicate with their customers.
Advertising:
• Advertisement plays an important role in success of any product, it
depicts the overview of the product we will be using some more sources
of advertisement to attract more people.
• Billboards in busy localities
• Pamphlets
• Signboards
• TV ads
Direct marketing:
• KFC can bring complete hassle-free meals and serve at your specified
premises so direct marketing can be done in “Home Delivery Services”
to make consumer more aware about the product.
Events / Experiences:
• Meeting with trade people or customers can also be arranged at KFC.
• It arranges Kids birthday parties and other seminars to know the better
idea of consumer preferences and taste.
Recommendations
Despite of the relaunch of Sub 80 as Zinger Extreme, there are
some issues that should be focused upon:
• Focusing more on its advertising compaign to
create awareness about spicy product
• Focusing on its sales promotion by some incentives
like ‘buy 2…get 1 free’ and gifts
• Making the decisions decentralizing
• Reducing its price a bit for more competitiveness
• Offering Zinger Extreme with cheese to resolve
some spicy effect for health concious customers
Refferences
• KFC ‘H’ Block
• Mr Salman Zafar
(Franchise Manager)
• Internet