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Marketing Management Project

KFC introduced the Sub 80 burger in Pakistan to fill a gap in the market for an affordable yet spicy burger option. The Sub 80 consisted of a grilled chicken fillet with spicy chili mayo and BBQ sauce between a 6-inch bun and was priced at 80 rupees. However, the Sub 80 was discontinued after 4-6 months due to lack of commercial success. KFC aimed to capture market share with the new product by catering to Pakistani tastes and preferences for spicy food on a budget.

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100% found this document useful (1 vote)
4K views48 pages

Marketing Management Project

KFC introduced the Sub 80 burger in Pakistan to fill a gap in the market for an affordable yet spicy burger option. The Sub 80 consisted of a grilled chicken fillet with spicy chili mayo and BBQ sauce between a 6-inch bun and was priced at 80 rupees. However, the Sub 80 was discontinued after 4-6 months due to lack of commercial success. KFC aimed to capture market share with the new product by catering to Pakistani tastes and preferences for spicy food on a budget.

Uploaded by

tamur_ahan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Marketing Management

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

COMPANY 1,633 1,129 2,762

FRANCHISED 3,441 3,619 7,060

LICENSED 58 61 119

JOINT VENTURE 482 482

TOTAL 5,132 5,291 10,423


KFC has employed 273,800 employees all over the world. In Pakistan,
Lahore there are 900 employees

U.S.A 120,400

INTERNATIONAL 153,400

WORLD WIDE 273,800


Corporate History of KFC
Pakistan
• Food, Fun & Festivity, this is what KFC is all about.
• Leading the market since its inception, KFC provides the ultimate chicken
meals for a chicken Loving Nation.
• Be it Colonel Sanders secret Original Recipe Chicken or the Hot & Spicy
version, every bite brings a YAM on our face. At KFC we can proudly say,
"WE Do Chicken Right".
• Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has come a
long way.
• With over 10,000 outlets in the world, KFC has maintained its title, for the
last 60 years, of being the Chicken Experts.
• Opening the first KFC outlet in Gulshan-e-Iqbal, Karachi in 1996, KFC Wore
the title of being the market leader in its industry.
• Serving delicious and hygienic food in a relaxing environment made KFC
everyone's favorite.
• Since then, KFC has been constantly introducing new products and
opening new restaurants for its customers. Presently KFC is branched out
in nine major cities of Pakistan (Karachi, Lahore, Rawalpindi, Faisalabad,
Multan, Peshawar, Sialkot, Hyderabad, and Islamabad) With 34 outlets
nation-wide.
Facts:
Apart from fulfilling our commitment of serving delicious, fresh
and hygienic food at the same time providing our customers
with the ultimate entertainment, KFC also plays part in the
economic development of our country. As
• Presently KFC has provided employment to over 1200
Pakistanis, which adds up to 6000 individuals directly
dependent on KFC Pakistan.
• 95% of food and packaging material used in KFC Pakistan is
procured locally, which sums up to a purchase of over Rs.35
million per month.
• Each new outlet developed by KFC Pakistan costs
approximately Rs.40 million, which is a huge amount for our
construction industry.
• KFC and Pakistan... Growing Together.
KENTUCKY FRIED CHICKEN IN
PAKISTAN
• PRODUCTS:
• Among other products of KFC, major well-
known products throughout the world are;
• Chicken Original Recipe (In Pieces )
• Snacks.
– Zinger Burger.
– Fillet Burger.
– Colonel’s Chicken Burger.
– Big Double.
– Nuggets.
• Hot Wings.
• Side Orders
– French Fries.
– Arabian Rice.
– Corn on the Cob.
– Dinner Roll.
• Drinks / Desserts.
– Fruit Salad.
– Pepsi / Mirinda / 7 Up.
– Mineral Water.
– Rass Bhara.
– Tea.
• Nescafe Coffee.
PERFORMANCE OF EXISTING
PRODUCTS
• KFC, a world renowned name in chicken is operating in 72
countries. But we focused our study to the limited
environments of Pakistan.
• During our research and analysis of the outlets of KFC in
Pakistan we conducted extensive surveys of KFC in Pakistan
we conducted extensive surveys and interviewed KFC
personnel to gain a better understanding of how well existing
products are doing in the Pakistani market.
• Among the products of KFC, major well known products
available throughout Pakistan, we have got crispy chicken,
zinger burger, zinger tower, arabian rice, colonel’s brownie,
colonel’s soup and freshly made fries – plus other varieties of
chicken burgers.
• All of these products are doing a great business in Pakistan
and people generally prefer KFC because the products
mentioned above are tailored to the customer needs, are
economical and most important of all completely hygienic
whereas health conscious people are concerned.
PRICE:
• Chicken Original Recipe (In Pieces) 48.00 / Piece.
• Snacks.
– Zinger Burger. 120.00/ piece.
– Fillet Burger. 110.00/ piece.
– Colonel’s Chicken Burger. 60.00 / piece
– Sub Sixty 60.00 / piece.
– Big Double. 90.00 / piece.
– Nuggets. 70/ 5 Pieces.
– Hot Wings. 63 / 5 Wngs.
• Side Orders
– French Fries. 40.00(Regular)
– Arabian Rice. 40.00 Rs.
– Corn on the Cob. 35.00RS
– Dinner Roll. 10.00/ piece
• Drinks / Desserts.
– Fruit Salad. 30.00/Cup.
– Pepsi / Mirinda / 7 Up. 25.00 (Regular)
– Mineral Water. 25.00 (Regular)
– Rass Bhara. 25.00 Rs
– Tea. 12.00Rs.
• Nescafe Coffee. 35.00 Rs.
PLACE:
In Pakistan there are 24 KFCs, which are in major cities like;

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

How many times a customer visits KFC. Based on their


average visits to the restaurant during a given period of
time.
•Mostly people occasionally go to KFC because they need a day
off or two to make plans to go to a place like KFC. And they
mostly enjoy going to a place occasionally because they may
get too much of a single thing.
QUALITY

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

Taste of the products. Based on the taste of the customers.


•A lot of citizens considered the taste of the products of KFC good.
• This is due to the reason that people of Lahore mostly like to eat
continental dishes.
•This is a famous thing about Lahore.
ATMOSPHERE

VERY GOOD
FINE

Atmosphere of KFC. Based on customers and other


restaurants.
•KFC provides one of the best atmospheres in the market of fast
food joints.
•Which is appreciated and confirmed by the citizens of Lahore.
PRICES

HIGH
NORMAL

Prices of KFC’s products


•The only drawback this company has is that the prices they have set of
their products are considered to be a little bit high.
•This was compared against the prices of a few fast food joints in Lahore.
Target market of KFC Sub 80:
The target market of Sub 80 includes,
• Budget conscious consumers
• Taste for extra spice
There is a large population of Pakistan, which goes out to fast
food restaurants like KFC to enjoy their meals. Their
favorites are budget meals like Sub 60. Budget meals in are
in greater demand because of a variety of reasons, which
can be from a person who is less hungry, to a person who
wants to enjoy KFC with limited amount of financial resource,
other reasons may be that budget burgers may be preferred
by parents for their children, as children tend to leave behind
the main portions of the proper meal burgers.
• Basically the KFC is targeting the general public of Pakistan,
by introducing the Sub 80, which is a budget burger, and is
spicy in taste, it goes in accordance to the taste of Pakistan,
and the budget of Pakistani’s, as still a good 30% of Pakistan
in living below $1 income line.
Market Segmentation Strategies:
• The market segmentation strategy for Sub 80 is the niche
market. Niche marketing is the process of finding and serving
small but potentially profitable market segments and
designing custom-made products or services for them. For
big companies those market segments are often too small in
order to serve them profitably as they often lack economies
of scale. Niche marketers are often reliant on the loyalty
business model to maintain a profitable volume of sales.
• Sub 80 is categorized as a niche market product because it
is catering to the budget minded people, as well as fulfils
their desire for a spicy burger, and also that it has been
specially made for their class of people.
• There was a market gap present because no other fast food
joint was trying to explore the lower middle and middle class
of Pakistan. KFC took the opportunity by introducing Sub 80
in to the market. Also as people like spicy food, no other fast
food joint like McDonald was trying to introduce new recipes
which were according to the taste of the region having extra
spice in it.
Product development process:
• The new product Sub 80 which was introduced 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.
• The planning process that we are going to discuss
for our new product applies beautifully to the
hypothetical situation we have created w.r.t. our new
product’s strategy and planning.
• Our new product planning is guided by extensive
surveys, analysis and an evaluation of customer
needs which is an ever changing factor.
– New Product of KFC
– Name= Sub 80
– Price = Rs. 80
PLANNING FOR THE PRODUCT:
• Customer Needs
Analysis
• Idea Generation
• Screening and
Evaluation
• Business Analysis
• Product Development
• Marketing Strategy
Development
• Testing
• Commercialization
Sub 80 PLANNING: STEPS
• A new product does not have to be a high technology break through to be successful but it
must provide customer satisfaction.
• First of all we analyzed the customer needs and wants by conducting various surveys.
• Finding promising new ideas was our starting point which was confined to the range of
incremental improvements of existing product.
• Idea generation consisted of search, marketing research, internal and external development
etc.
• After this all the new ideas generated were screened and further evaluated to test their
viability.
• Two questions were asked:
– Is the venture of commercially feasible?
– Is the idea compatible with the organization’s missions and objectives?
• In the business analysis we estimated the commercial performance of the new product
concept, for e.g.; we studied the revenue forecasting, preliminary marketing plan, cost
estimations and profit projections etc.
• During the product development stage we specified various criteria according to which the
new product had to be developed.
• In the “Marketing Strategy Development” following points were taken into considerations
– Target Market
– Planned Production Positioning
– Sales / Market Share / Profit Goals
– Price / Distribution / Marketing Budget
– Long Run Sales
– Profit Goals
– Marketing Mix Strategies
PRODUCT POSITIONING
The product of KFC Sub 80 was
positioned:
• As a product to the
younger population of
Pakistan
• People with low budget
• People having spicy taste
• It was positional as a very
hip product
• It was positioned as a
product for the innovators
who always dare to try
something new
POSITIONING CONCEPT
• Positioning concept indicates the perception or association that management of KFC wants the
general consumers to have concerning the new product.
POSITIONING STRATEGY
• While developing the positioning strategy they focused on the “Marketing Program Decisions”. This
marketing strategy consisted of
– Product Strategy
– Distribution Strategy
– Pricing Strategy
– Promotion Strategy
– Competitive Advantage
Product Strategy
• The single product introduced for the existing product line is the Sub 80. They have created this
product keeping in view the demand of the general consumer market.
Distribution Strategy
• They have developed a decentralized marketing system (i.e. management of distribution process
directly from the producer to the end user or consumer). KFC has its outlets in various locations
throughout the state which are going to cater to our needs for the distribution process.
Pricing Strategy
• They have priced Sub 80 at an attractive and economical price to attract our target consumer i.e. the
middle class. This is going to be a Package Deal which is going to include a Sub 80, Fries (small)
plus a regular Soft Drink priced at Rs.120 (inclusive of taxes).
Promotion Strategy
• They used an effective combination of advertising and public relations to communicate with their
customers. Advertising strategy is going to include mostly the print media i.e. newspapers and
magazines. Except these, brochures, pamphlets, signboards etc. are also going to be used.
Competitive Strategy
• The competitive advantage is based on the fact that their new product “Sub 80” is included in a
package deal with is very economically priced plus a combination of value and innovativeness has
been kept into account.
Branding Policy
The branding strategy for a firm reflects the number and nature of common and
distinctive brand elements applied to the various products sold by the firm.
• When a firm uses an established brand to introduce a new product it is called a
brand extension. Brand extensions can be classified into two general categories:
– category extension
– line extension
• KFC’s Sub 80 is a line extension of KFC. In a line extension, the parent brands(an
existing brand that gives birth to a brand extension) used to brand a new product
that targets a new market segment within the product category currently served
by the parent brand, such as though new flavors,forms,colours,added
ingredients,and package sizes.
• KFC recognized that one of their most valuable assets is their brand; hence it
decided to leverage that asset by introducing a host of a new product named Sub
80 under its string brand name.
The imminent advantage to KFC of Line extension was to be in terms of:
• Positive Feedback Effects: - KFC’s brand name helped clarify the meaning of
the brands and its core values. Line extensions such as KFC’s Zinger extreme
could help renew interest and liking for the brand and benefit the parents brand by
expanding market coverage.
• New-Product Success: - KFC’s wide recognition could improve the odds of
KFC’s Sub 80’s success. Consumers can make inferences on the basis of the
brand’s previous image. By setting positive expectations, extensions reduce risk
and lower costs of introductory launch campaigns.
KFC’s Sub 80’s failure in the market
occurred because of:
• The burger was extra spicy
• Too many spicy sauces
like chilly mayo and BBQ
sauce were used, which
had never been used
before
• The chicken strips used
were also very spicy
• This kind of flavour did not
suit the people of Pakistan
espcially children, and
most of the people in hot
weather
Packing Strategy
• The packaging strategy employed by KFC Sub 80 was to allow for
packaging and labeling efficiencies in terms of economies of scale.
Similar or virtually identical packages and labels for KFC’s Sub 80 was
aimed to lower production costs and, if coordinated properly, more
prominence in the KFC restaurants by creating the “a good effect”.
• KFC used red length long, cardboard packing for the Sub 80. the color of
the packing was similar to the taste of the burger, as red represents
spices.
• It has been a nice and easy packing to open and close for the
consumers as well as the staff of KFC. The packaging also kept the Sub
80 warmer for a longer time so the consumers can enjoy it warm till they
take it to their tables or cars.
• The box also helped retain the Sub 8o ingredients and its freshness.
• Well-designed packages can create convenience and promotional value.
The various packaging elements like colour, size, shape, and graphics
must be harmonized in order to achieve marketing objectives for the
brand and satisfy the desires of the consumers.
Porter’s 5 Forces Model:
Threat of buyers bargaining power
• Highly Elasticity (high demand fried
chicken)
• Too many options and substitutes
– FMCG, McDonald etc
Threat of suppliers bargaining power
• Bargaining power of suppliers is low.
• Fixed rates
Threat of intense segment rivalry
• Low entry barriers
• Too many big giants in the market like
– McDonalds
– Subway
– AFC
Threat of substitute products
• There are a lot of competitors in the
market making substitute chicken
products in the market
Threat of new entrants
• Low entry barriers
Points of Parity
• These are those attributes which are expected from a
particular product category as these have been already
established by previous brands like McDonald’s ‘Spicy Chicken
Cheese Burger’ and for KFC ‘Sub 80’ these were shape and
extra spicy taste.
• If we take KFC, McDonald’s, AFC etc. into account, the
similarities between these are they all lie into Fast Food
category, all above provides more or less the same products
and quick services but with different tastes.
Points of difference
• New concept of long shape burger except for round shape by
any company in the market
• Extra Spice
• Low budget
Relaunching of KFC Sub 80 as “Zinger
Extreme”
Soon after the failure of KFC Sub 80, they introdced
‘Zinger Extreme’ as the improved form of Sub 80,
after eliminating its drawbacks
POSITIONING STRATEGY
While developing the positioning strategy they focused
on the “Marketing Program Decisions”. This marketing
strategy consists of
• Product Strategy
• Distribution Strategy
• Pricing Strategy
• Promotion Strategy
• Competitive Advantage
Product Strategy
The single product they introduced for the existing product line is the Zinger
Extreme. They have created this product keeping in view the demand of
the general consumer market.
Sub 80 was failed in the market due to the following reasons:
• The burger was extra spicy
• Too many spicy sauces like chilly mayo and BBQ sauce were used,
which had never been used before
• The chicken strips used were also very spicy
• This kind of flavour did not suit the people of Pakistan espcially children,
and most of the people in hot weather
Realizing all these facts, KFC introduced ‘Zinger Extreme’ that
succeeded, despite of its spicy taste, because of
• Neutralizing effect (olives inside neutralize the spice effect)
• Removing chilly mayo sauce
• Providing a drink with the deal
Distribution Strategy
• KFC has developed a decentralized marketing system (i.e. management of
distribution process directly from the producer to the end user or
consumer).
• KFC has its outlets in various locations throughout the state which are
going to cater to our needs for the distribution process.

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

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