(Tiểu luận) fc is an abbreviation for kentucky fried chicken

turned from chicken in the food industry to fast food and competed with the dominance of hamburgers in the market at the time.. Facing increasing pressure from fried chicken business gro

MARKETING CHANNEL MANAGEMENT

Personal report

MARKETING CHANNEL MANAGEMENTLecture:Nguyen Tien Huy

Class B02E

Student 's name: Nguyễn Thi Kim Tuyền Student's ID:205040398

II MARKETING CHANNEL SYSTEM ANALYSIS 12

II.1 Define target end-users using service outputs 12

II.2 Individual channel members' function and Efficiency Template

II.2.7 Information sharing 19

II.3 Gap analysis 19

II.3.1 Service Gap 20

II.3.2 Cost Gaps 20

II.3.3 Make-or-Buy Channel Analysis 21

III PROBLEM 22

IV SOLUTION 23

V CONCLUSION 24

I.COMPANY INTRODUCTION

I.1.About the company

KFC is an abbreviation for Kentucky Fried Chicken, a brand and operations of Yum! International Restaurant Group (USA) KFC sells fried chicken, a fast food that is becoming more and more popular in populous countries around the world Today, the KFC chain is present in 109 countries and territories around the world, with more than 20,000 restaurants serving 12 million customers every day.

KFC is famous for its fresh chicken products All KFC chefs undergo rigorous training to ensure the unique taste and nutritional quality of their dishes, according to the corporation's standards The recipe of the 11 herbs and spices used by KFC to make their chickens remains a secret business secret, helping to give their products a special flavor.

Company formation and development

KFC was originally founded by businessman Colonel Harland Sanders He started selling fried chicken from a small restaurant in Corbin, Kentucky during the Great Depression Sanders saw the potential of this restaurant franchise early on, and the first "Kentucky Fried Chicken" franchise appeared in Utah in 1952 KFC quickly popularized processed foods turned from chicken in the food industry to fast food and competed with the dominance of hamburgers in the market at the time By branding himself under the name "Colonel Sanders", Harland became a prominent figure in American cultural history, and his image is still widely used in advertising of KFC to this day

KFC opened its first store in Vietnam at the end of 1997, at the Saigon Super Bowl Trade Center Despite facing many difficulties when the concept of "fast food" is still completely foreign here, and

continuously suffered losses during the first 7 years of operating 17 stores in 7 years

But with a reasonable approach strategy, KFC Vietnam's restaurant system has so far grown to more than 140 restaurants, present in more than 19 major cities/provinces across the country Every year, KFC attracts about 20 million domestic visitors, accounting for about 60% of Vietnam's fast food market and contributing to creating jobs for more than 3,000 workers

KFC's original product is the original Original Recipe fried chicken pieces, discovered by Sanders with the "11 Herbs and Spices Recipe" Since the early 90s, KFC has expanded its menu to offer diners a wider variety of dishes beyond chicken such as chicken fillet sandwiches and rolls, as well as salads and side dishes , fries and coleslaw, desserts and soft drinks, the latter offered by PepsiCo Facing increasing pressure from fried chicken business groups in particular and similar fast food in Vietnam such as McDonald's, Lotteria, Burger King, Jollibee KFC has processed some more dishes to serving delicious Vietnamese food such as: Roasted chicken with foil, Crispy Chicken Without Bones, Crispy Chicken with Basil, Chicken Rice, Fish Bar Some new dishes have also been developed and introduced in the market Vietnam, contributing to increase the diversity in the menu list: Mixed cabbage, Mashed potatoes, Jam cakes, Egg tarts and many specific meals for each group of people.

Advantages and disadvantages of the company & competitor

Advantages - Great financial resources from parent system spread in many localities to easily reach a wide range of customers.

- Golden fried chicken dish, delicious taste of freshly prepared

- Diversity of products : Jollibee's first strength lies in its extensive menu , not to mention that the recipes used by Jollibee have all been tested, tested for safety and comply with Jollibee's main strength lies in the consistency of

chicken The

transformation from 11 different spices and herbs is the cause of millions of “credits” dukfc "everywhere" - Professional service style

-The service style is quite unique, the common feature is self-service create equality and equality Besides, the service style is polite and Professional career helps you get the food in the shortest time, true to the meaning of fastfood store.

- Diverse menu, suitable for each locality - Business location: KFC stores all have very nice locations, located right in front of - Always ensure the quality of our products is always the highest

the services it provides to customers Therefore, customers who have been to Jollibee often tend to return to buy more in the next time thanks to the

deliciousness of food and the assurance of quality that Jollibee brings.

- Convenient location and open 24 hours with more than 1150 stores, delivery services, food drivers operating 24 hours, Jollibee is highly appreciated for its service space when the brand tries to bring new Experience for

- Developing a family brand : Jollibee knows very well who its customers are and what they want Therefore, the cultural tradition of dining with family is

level, satisfying please every customer - Strong human resources, well-trained and professional.

cheat - Price: considered to be relatively high, there are not many meals with softer prices suitable for the low-income consumer segment (in Vietnam, the number of This import is quite crowded) Meanwhile, Vietnamese street food is very diverse, fast, and is considered to be delicious and much more attractive than fast food chains that are "both expensive and monotonous"

- Human resources: due to many reasons, human resources are unstable and change often often makes staff inexperienced leading to many shortcomings in serving customers

- The trend of healthy eating no matter what, fast food has been ingrained in people's subconscious as a type of unhealthy food This is the first weakness of Jollibee in the process of conquering consumers - Too dependent on the Philippines market The small number of Jollibee stores in markets outside the Philippines has shown that overseas users may choose international brands rather than a brand coming from A little-known island nation - Poor in marketing Compared to other fast food brands such as McDonald's, Burger King Jollibee only spends a very modest budget for its marketing activities So, despite penetrating many

and preparing food… At the same time, it also costs a lot of money to use and train, but time to use staff is short Not for long.

-Brands that are red and white are susceptible to jollibee.

markets around the world , Jollibee is still a brand that few people know.

II MARKETING CHANNEL SYSTEM ANALYSISII.1 Define target end-users using service outputs

KFC defines a clear distribution strategy, hitting young people's psychology who prefer Western cuisine Potential customers, the target of KFC is young people This age group mainly belongs to Generation Y from 18 to 24 years old However, they may also fall under the age of 35, the age of perception This is also the goal of KFC's long-term business strategy, in line with the young population structure of Vietnam.

KFC is the most widely used fast food product by students in Vietnam.

KFC is an attractive venue for people of all ages KFC is more pleasant for children Many restaurants in developed and developing markets set up playgrounds or play areas for children This gives parents a great opportunity to put their children in a healthy environment where they play and eat.

The portrait of KFC's target customer and also the end consumer can be described as follows: Demographics:

- Geographical location: KFC's target customers live in urban areas, in the Top 5 big cities (HCMC, Hanoi, Da Nang, Hai Phong, Can Tho).

-Age: KFC mainly targets young people from 18 to 29 years old,

families with children Due to many reasons, KFC has chosen the market as young people under the age of 35 This is the most dynamic age group with the fastest access to culture compared to other age groups With the fast food market still so new, it is very wise to segment this market By creating young loyal customers KFC shows its aim to dominate the market in the future.

- Income: Vietnam is a developing country with a low per capita income compared to other countries in the region and the world Therefore, KFC determines that people with a good income can use the product often, but people with low income can also become KFC customers, but the level of product use may not be frequent .

-Job : Corresponding to the age base, KFC identifies for itself a large

market of students, young office workers.

Market segmentation by psychology: If in the past Vietnamese

people were important to family meals, now, with the trend of integration, people are becoming more and more busy, and relationships are expanding, which means that the time spent on family meals is very important Family meals are also shortened… Fast food has become quite an attractive option That's an advantage for fast food products like KFC.

Behavioral segmentation: The primary sought-after benefit of

customers in the fast food market is convenience Like other competitors in the industry, KFC directs its products to this fundamental benefit.

- Attitude: KFC's target customers like convenience and trends, want to experience new things, love fast food, especially deep-fried dishes - Life behavior: KFC's target customers often gather with friends or study or work, have little time to cook; They often look for quick, compact and convenient solutions.

II.2 Individual channel members' function andEfficiency Template

II.2.1 Physical possession

 Distribution channels are of two basic types: Direct Channels and Indirect Channels A Direct Channel (also called an integrated channel) is a distribution channel in which KFC uses its own employees and physical assets (e.g warehouses, company-owned restaurants, delivery vehicles) ) to deliver products directly to end users An indirect channel is a distribution channel in which a business uses independent agents to distribute products to end consumers KFC uses a direct channel.

 More and more companies are realizing that customer satisfaction is not possible without efficient and effective delivery To organize channel functions efficiently, this resulted in a system called Vertical Marketing System (VMS) There are three types of VMS: Management channel system, enterprise, and contract KFC chooses to use the Contract Channel System -this is a VMS in which the relationship between channel members is formalized by a written contract.

 In the Contract Channel System, KFC uses the Franchise system This is a formal contract that binds the franchisor to the franchisee The franchisor holds the product trademark and licenses the franchise They pay royalties and promise to follow the standards and guidelines set forth in the contractual agreement This often includes issues such as claim fees, rights and responsibilities of both parties, franchise assignment, and grounds for termination.

 Once the Franchise system is set up, the next step is to determine the Intensity of Delivery This refers to the number of locations through which a company sells its products in a given market area The three types of distribution intensity are: Intensive Delivery, Exclusive Distribution, and Selective Distribution KFC uses selective distribution - this involves the use of several stores per commercial area The key to channel management is to strategically manage the channel's relationships with its affiliates intermediate Prerequisites

include interdependence, trust, and support All of these lead to Goal Setting & Planning.

When you think of the KFC franchise, you most likely think of “Kentucky Fried Chicken”, colonel sanders.

 The fried chicken chain brand has come a long way since its beginnings in Louisville, kentucky

 KFC is owned by its parent company, YUM!Brand (YUM), which owns other major restaurant chain brands such as Taco Bell and Pizza Hut.

KFC is one of the smart brands that has fully utilized the benefits of communication and image promotion to bring its "fried chicken" products closer to customers It is a combination of traditional and modern channels to create awareness and promote their products such as TV, magazines, social networks, outdoor advertising, print newspapers, etc to promote brand image mine.

It is KFC's product that sets it apart from its competitors, and its strong social presence will also allow KFC to interact and engage with customers more with its products.

KFC's slogan "finger lickin' good" since 1956 is one of the top marketing campaigns and has become one of the most famous slogans of the twentieth century.

KFC is a brand of Yum group beside 3 companies The others are Taco Bell, Pizza Hut and Long John Silver - all global brands These companies all open about 3 new restaurants every day and are all restaurants largest international retail industry Every day, KFC welcomes 8 million more customers goods worldwide Due to such large-scale business characteristics, it can be said that KFC's financial potential is very abundant

Having entered the Vietnamese market since 1996, it took KFC 7 years to have the first co-profit In the following years, the financial situation is "fluctuating", uneven.

By 2019, the financial statements of KFC Vietnam Joint Venture Company Limited recorded a net revenue of VND 1,498 billion, an increase of just over 1% compared to 2018 The growth was much lower than the 18% increase and 8% in 2017 and 2018.

KFC's gross profit margin in the 2016-2019 period is also low, ranging from 13-18% (high cost of goods sold) However, due to the control of selling costs, the business still reported a profit of 78 billion dong in 2019 Profit after tax in 2017 and 2018 was 88 billion dong and 94 billion dong, respectively.