(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 MANAGEMENT

Lecture:Nguyen Tien Huy

Class B02EStudent 's name: Nguyễn Thi Kim Tuyền

Student's ID:205040398

I COMPANY INTRODUCTION 4

I.1 About the company 4

I.2 Products 5

I.3 Competitors 7

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 .13

II.2.1 Physical possession 13

II.2.2 Ownership 14

II.2.3 Promotion 15

II.2.4 Financing 15

II.2.5 Risking 16

II.2.6 Ordering 17

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 asecret business secret, helping to give their products a special flavor

Company formation and development

KFC was originally founded by businessman Colonel HarlandSanders He started selling fried chicken from a small restaurant inCorbin, Kentucky during the Great Depression Sanders saw thepotential of this restaurant franchise early on, and the first "KentuckyFried Chicken" franchise appeared in Utah in 1952 KFC quicklypopularized processed foods turned from chicken in the food industry

to fast food and competed with the dominance of hamburgers in themarket at the time By branding himself under the name "ColonelSanders", Harland became a prominent figure in American culturalhistory, and his image is still widely used in advertising of KFC tothis day

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

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

But with a reasonable approach strategy, KFC Vietnam's restaurantsystem has so far grown to more than 140 restaurants, present in morethan 19 major cities/provinces across the country Every year, KFCattracts about 20 million domestic visitors, accounting for about 60%

of Vietnam's fast food market and contributing to creating jobs formore than 3,000 workers

I.2 Products

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

I.3 Competitors

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 operating standards world level

- Is a famous brand in the Philippines

- Customer loyalty : 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

Customers

- 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 always focused on promoting by Jollibee Jollibee's marketing campaigns also focus primarily on family cultural values

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

of unhealthy food This

is the first weakness of Jollibee in the process ofconquering consumers

- Too dependent on the Philippines market The small number of Jollibeestores in markets outsidethe Philippines has shown that overseas users may choose international brands rather than a brand coming from A little-known island nation

- Poor in marketingCompared 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 ANALYSIS II.1 Define target end-users using service outputs

KFC defines a clear distribution strategy, hitting young people'spsychology who prefer Western cuisine Potential customers, thetarget of KFC is young people This age group mainly belongs toGeneration Y from 18 to 24 years old However, they may also fallunder the age of 35, the age of perception This is also the goal ofKFC's long-term business strategy, in line with the young populationstructure of Vietnam

KFC is the most widely used fast food product by students inVietnam

KFC is an attractive venue for people of all ages KFC is morepleasant for children Many restaurants in developed and developingmarkets set up playgrounds or play areas for children This givesparents a great opportunity to put their children in a healthyenvironment 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, CanTho)

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

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

- Income: Vietnam is a developing country with a low per capitaincome compared to other countries in the region and the world.Therefore, KFC determines that people with a good income can usethe product often, but people with low income can also become KFCcustomers, 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 ofintegration, people are becoming more and more busy, andrelationships are expanding, which means that the time spent onfamily meals is very important Family meals are also shortened…Fast food has become quite an attractive option That's an advantagefor fast food products like KFC

Behavioral segmentation: The primary sought-after benefit of

customers in the fast food market is convenience Like othercompetitors in the industry, KFC directs its products to thisfundamental 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 orstudy or work, have little time to cook; They often look for quick,compact and convenient solutions

II.2 Individual channel members' function and Efficiency Template

II.2.1 Physical possession

 Distribution channels are of two basic types: Direct Channelsand Indirect Channels A Direct Channel (also called anintegrated channel) is a distribution channel in which KFC usesits own employees and physical assets (e.g warehouses,company-owned restaurants, delivery vehicles) ) to deliverproducts directly to end users An indirect channel is adistribution channel in which a business uses independent agents

to distribute products to end consumers KFC uses a directchannel

 More and more companies are realizing that customersatisfaction is not possible without efficient and effectivedelivery To organize channel functions efficiently, this resulted

in a system called Vertical Marketing System (VMS) There arethree 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 channelmembers is formalized by a written contract

 In the Contract Channel System, KFC uses the Franchisesystem This is a formal contract that binds the franchisor to thefranchisee The franchisor holds the product trademark andlicenses the franchise They pay royalties and promise to followthe standards and guidelines set forth in the contractualagreement This often includes issues such as claim fees, rightsand responsibilities of both parties, franchise assignment, andgrounds for termination

 Once the Franchise system is set up, the next step is todetermine the Intensity of Delivery This refers to the number oflocations through which a company sells its products in a givenmarket area The three types of distribution intensity are:Intensive Delivery, Exclusive Distribution, and SelectiveDistribution KFC uses selective distribution - this involves theuse of several stores per commercial area The key to channelmanagement is to strategically manage the channel'srelationships with its affiliates intermediate Prerequisites

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

II.2.2 Ownership

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 itsbeginnings in Louisville, kentucky

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

II.2.3 Promotion

KFC is one of the smart brands that has fully utilized the benefits ofcommunication and image promotion to bring its "fried chicken"products closer to customers It is a combination of traditional andmodern channels to create awareness and promote their products such

as TV, magazines, social networks, outdoor advertising, printnewspapers, etc to promote brand image mine

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

KFC's slogan "finger lickin' good" since 1956 is one of the topmarketing campaigns and has become one of the most famous slogans

of the twentieth century

II.2.4 Financing

KFC is a brand of Yum group beside 3 companies The others are TacoBell, Pizza Hut and Long John Silver - all global brands Thesecompanies all open about 3 new restaurants every day and are allrestaurants largest international retail industry Every day, KFCwelcomes 8 million more customers goods worldwide Due to suchlarge-scale business characteristics, it can be said that KFC's financialpotential is very abundant

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

By 2019, the financial statements of KFC Vietnam Joint VentureCompany Limited recorded a net revenue of VND 1,498 billion, anincrease of just over 1% compared to 2018 The growth was muchlower 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 thecontrol of selling costs, the business still reported a profit of 78 billiondong in 2019 Profit after tax in 2017 and 2018 was 88 billion dongand 94 billion dong, respectively