mkt 202 group assignment kfc

TheColonel''''s face in a black outlineisplacedonawhitelinewithKFC''''sitalictextbelow.TheKFClogoisbrightandfriendly,aperfectchoiceforthe fast food industry, evoking a feelingofwarmthandhospit

MKT 202 – GROUP ASSIGNMENT

SUBJECT: MKT202 CLASS: MKT1815

Due date: 10/03/2024

Lecture: Nguyễn Thị Lan Anh

KFC,whichstandsfor"KentuckyFriedChicken,"isagloballyrenownedfast-foodrestaurantchain that specializes in fried chicken KFCisheadquarteredinLouisville,Kentucky,UnitedStates

- History: KFCwasfoundedbyColonelHarlandSanders(1890–1980),whostartedsellinghis unique recipe offriedchickeninaroadsiderestaurantinCorbin,Kentucky.TheColonel'ssecretblendof11herbsandspicesbecameahit,andhis reputation for great-tasting chickenquicklyspread

- Mission: To sell in a fast, friendly environment that appeals to pride conscious, healthmindedconsumers

- Vision: To provide food in a quick, pleasant setting that caters to cost-conscious,health-consciouspeople.-

- Core value:TheColonel’svaluesaren’tamarketinggimmick.They’realiveandwellinsideourwallinourfood,ourpeople,ourservice,andourrestaurants

-Logo:

The logo introduced in2018isnotnew.Itistherevised1959edition.Thefonthasbeenslightly altered for clearer endings It'sagoodmovetobringbacktheoldbrandimageandtelltheworldthatthecompanyhaspreservedthevaluesofitsfoundernomatterhowmanyyearshavepassedsincethen

ThemostrecentredesignoftheKFClogowasin2018.Theshapewaschangedtoatrapezoidand the portrait was refined The white and red background has three vertical lines TheColonel's face in a black outlineisplacedonawhitelinewithKFC'sitalictextbelow.TheKFClogoisbrightandfriendly,aperfectchoiceforthe fast food industry, evoking a feelingofwarmthandhospitality.

2.ServiceOrganization’sSituationAnalysis

2.1.Business/companyContext

- KFCoperatesaspartofYum!BrandsInc.,amultinationalfast-foodrestaurantcompanythat oversees other well-known brands such as Pizza Hut and Taco Bell KFC, under theumbrellaofYum!Brands,utilizesafranchisingmodelasitsprimarymodeofoperation

-GlobalReach:KFC'sinternationalexpansionbeganinthe1950s,and today, it has a vastglobal presence As of 2022, there are at least 25,000 KFC stores in 147 countries andterritoriesaroundtheworld.(ListofcountrieswithKFCfranchises,2023)

- Franchise Model:KFCprimarilyoperatesthroughafranchisemodel,wherefranchiseespayfees to operate KFC restaurants and adhere to the company's guidelines regarding menu,quality, and branding.Thismodelallowsforrapidglobalexpansionwhilelocalentrepreneursrunandmanageindividualoutlets

- Sustainability and Ethical Sourcing: KFC is committed to responsible sourcing,emphasizing high animal welfareandenvironmentalstandards.Effortshavebeenmadetoreduce the company's environmental footprint through sustainable packaging and wastereduction

- Digital Transformation: KFC has embraced digital technology to enhance the customerexperience This includes offering online ordering, delivery services, mobile apps, andloyaltyprograms,allofwhichmakeitmoreconvenientforcustomersto enjoy their favoriteKFCmeals

- Healthier Menu Options: In response to evolving consumer preferences, KFC hasintroducedhealthiermenuoptions,suchasgrilledchickenandsalads,alongsideitstraditionalfried chicken offerings These choices cater to health-conscious customers and provide amorediversemenu

2.2.SWOTAnalysis

a.Strengths:

● Presence globally: KFC hasatotalofmorethan26,000branchesin150countriesandterritories around the world In Vietnam, KFC currentlyhas190branches,distributed

in 44 provinces and cities across the country KFC hasawidereachandastronginternational presence ThisextensivenetworkallowsKFCtobenefitfromeconomies

of scale and take advantage of growth opportunities in developed and emergingmarkets KFC's distribution strategy is to create more convenience for customerswhen they want to find the nearest KFCstoreforthemselves.Thishelpssavemoretravel 6 time, and customersdonothavetogotoofarfromwheretheylivetogetamealatKFC.Thisisanotablestrengthwhenanalyzing KFC's SWOT model (TheStrategyStory,2023)

● Franchise model:KFC'sfranchisemodelallowsforrapidexpansionwithrelativelylow investment This approach also allows local franchisees to tailor menus andoperations to regional tastes and preferences, improving customer satisfaction andboostingsales.(TheStrategyStory,2023)

● ThepowerfulcorporationbehindtheKFCbrand:Yum!Brands,thesamecompanythat owns Taco Bell and Pizza Hut,alsoownsKentuckyFriedChicken.Yum!Brandshavetheinfluence,power,andresourcestoelevateKFCasarestaurant because theycontrolsomanyotherfastfoodbusinesses.(EdrawMind,n.d)

● Strong brandvalue:-Amongthe25brandsnamedbyBrandFinance,afamousglobalbrandvaluationcompanybasedintheUKthathasconductedresearch, two fast foodchains, KFC and McDonald's, are both in the top3foodbrands.Themostvaluablefast foodcomesfromourlegendarychicken-flavoredfastfoodproducts.-Thetop3most valuablefast-foodbrandsin2020includeKFC(17.1billionUSD,anincreaseof27%).ThisisanotablestrengthwhenanalyzingKFC'sSWOTmodel (Brade Mar,n.d)

● Effective marketing strategies: KFC employs innovative and culturally relevantmarketing campaigns to maintain brand visibility and engage customers By

leveraging digital platforms and social media,KFCcanconnectwithitsaudienceandgeneratebuzzaroundnewproductsandpromotions.(TheStrategyStory,2023)b.Weaknesses

● Unhealthy Menu: KFC's menuhasmanydishesthatcontainfat,salt,orsugar,makingthem highcalorie and unhealthy dishes Many customers are choosing healthyalternativesaspeoplebecomemorehealth-conscious.The younger generation is nowquite conscious of health anddiet.Nowtheywantfoodsthatarelowincalories.Highcaloriesinfriedchickenarenolongera plus point for KFC 7 Organizations working

on health and obesity alsoopposeKFC.Thesehavenegativelyimpactedthebrand'sbusinessoperations.(EdrawMaxOnline,n.d)

● Problems with Franchises: KFC's operations depend heavily on franchises Thismakes it difficult for brandstocontrolthequalityoffoodandservicesothatitisconsistent across branches There have been many opinions in recent years fromcustomers saying that the quality ofKFC'sfoodandserviceisunevenandhasgonedownquiteclearly.Poorfranchisemanagementcanreduceabrand'ssalesand alsohinderitsimage.(EdrawMaxOnline,n.d)

● High employee turnover:WorkingatKFCofteninvolveslowwagesanddemandingtasks, leading to employee dissatisfaction This results in a high turnover rate,increasingtrainingcostsandoverallexpensesforKFC.(SMInsight,2021)

to health-conscious customers, it will be very profitable for the brand (MarketingTutor,2019)

● The fast food market has great potential: the fast food business market has manydifferent forms, including pizza, hamburgers, culinary services, bakeries, and icecream.Expertssaythatamongthese,restaurantchainsspecializingin chicken dishesare one of the largest segmentsintermsofrevenue.Althoughthefoodisnotgoodforhealth, KFC is still the choice of customers because of its convenience anddeliciousness.KFChasalwaysbeenafastfoodchainthatmanypeoplevisitregularly.(MarketingTutor,2019)

● Technologyanddigitalinitiatives:KFCcaninvestfurtherin technology to enhancethe customer experience, streamline operations, improve efficiency, and possiblyreduce human resources This 8 can include initiatives such as mobile ordering,delivery services, AI-based customer analytics, and the implementation of smartkitchentechnology.(TheStrategyStory,2023)

d.Threat

Economic fluctuations: Global economic conditions and consumer spending patterns mayaffect KFC's business operations During economic downturns or periods of uncertainty,consumers may cut back on discretionary spending, including eating out, which couldnegativelyaffectKFC'ssalesandprofits.(SMInsight,2021)

● Thefastfoodmarketissaturatedindevelopedeconomies.Thefastfoodmarketindevelopedcountriesisalreadyovercrowdedbymanyfastfoodrestaurant chains, andthis has proven to be a threat to KFC as itfindsitdifficulttogrowindevelopedeconomies.(SMInsight,n.d)

● Intense competition: KFC faces fierce competition from McDonald's, Starbucks,Subway, Chickfil-A, Popeyes, Louisiana Kitchen, and other companies in thequick-service restaurant industry CompetitorsreduceKFC'smarketshare.Besides,customers also have toconsiderthiswhenusingKFC'sproductsandservices.(KFCStrengths&Weaknesses,2021)

-McDonald'salsohasmorethan37,000restaurantsworldwide, becoming the largestfast food chain for several units globally.Itservesawiderangeoffoodproducts,including sandwiches, burgers, drinks, and baked goods, among many others.Currently, this is a quick-servicerestaurantchainoperatingin9mostmajorcitiesinmany countries McDonald's is truly a competitor to beat in this industry andcontinues to expand by trying to reach untapped markets Thanks to its sheerdistribution power, McDonald's isprobablyKFC'sstrongestcompetitorinthemarket.(Marketing91,2017)

● Popeyes

- Popeyes is a popularfastfoodchainthathasexpandedgloballysinceitsfoundingin

1972 The chain isknownforitsdeliciouschickendisheswithmildandspicyflavors.Popeyes expandeditsregional,national,andinternationalreachthroughoutthe1980s,anditwasatimeofinnovationandexperimentationforthebrand

-Thecompanyboastsmorethan4,000locationsglobally, including locations in 40states in the United States and more than 30 countries globally They recentlyannounced plans to further expand their franchise businesswith35newlocations.(CompetitorsofKFC,2019) Church'sTexasChicken

- Church's Texas Chicken is an American fast-foodrestaurantchainspecializinginfried chicken and headquartered in Atlanta, Georgia The chain was founded byGeorge W Church Sr on April17,1952,inSanAntonio,Texas,acrossfromTheAlamo.Asof2022,Church'sTexasChickenoperatesinmorethan1,500locationsworldwide

- Church's Chicken is known for its authentic Texas-style fried chicken and richflavors This chain hasbeeninbusinessformorethansevendecadesandremainstrue

to its roots The restaurant chain has expanded globally and is now owned byAmerican private equity firm High Bluff Capital Partners (Marketing91, 2017)BurgerKing

-BurgerKinghasbecomeaformidableforceinthefastfood industry since it firstbegan operating in this field Its main expertise in serving burgers has given it anadvantage, as it can specialize and 10providethehighestqualitypossible.BurgerKing offers tough competition in the market and stands out as one of the majorplayersinthisindustry

- Its continued expansioninbothdomesticandforeignmarketsisasignthatitistrulygrowingtomatchotherplayersinthisparticularindustry.Furthermore,theycanaddmore food products to their menu as a way of meeting the needs of differentcustomers who necessarily wanttoaddmoretotheirburgers.BurgerKingisoneofthe three most widely distributed burger chains globally and is therefore KFC'ssecond-highestcompetitor.(Marketing91,2017)

b.Indirectcompetitor

● Subway

- Subway has been operating in the fast-food industry for over a decade, a clearindicationthatitisabrandnottobeunderestimated.Overtheyears, it has expandedboth locally and globally withtheaimofreachingasmanycustomersaspossible.Building its brand by focusing on expertise in serving submarine sandwiches hasprovided them with a foundation to operate Asaprivatelyownedentity,Subwayhasnearly37,000locationsinover100countriesasof2023

-Theconsistenttrendsthatthisspecificbrand describes are a clear sign that it cannot

be dismissed as a small competitor Instead,itsexpansionandgrowingcustomerbaseworldwidehavemadeitoneoftheleadingcompaniesintheindustry.(Marketing91,2017) Pizza Hut - Pizza Hut has become one of the leading fast-food restaurantchainsbyrecognizingandfillingthegapsleftunexploredbyother service providers.Sinceitsinception,ithasconsistentlystrivedtoprovidethe best service possible andefficientlymeetthespecificneedsofitscustomerbase

- The ability to offer pizza delivery and takeoutserviceswhenneededhasfurtherelevated its position in becoming one of the highly ranked fast-food restaurants

worldwide.Inrecentyears,PizzaHuthasachievedrecordsalesandhighcustomersatisfaction, makingitsoperationsrelativelysmoothinnew11markets.Despitebeing

an indirect competitor, it stronglyinfluencesconsumerpurchasingdecisionsandisconsidered one of KFC's competitive competitors (Marketing91,2017) Domino’sPizza

- Domino's Pizza also offers more orlessthesameserviceasPizzaHut.Itspecializes

in providing pizza delivery services as wellastakeoutservicesinvariouslocationsindifferentpartsoftheworld.Itisspreadacrossmorethan90internationalmarkets

-Domino'sPizza'sexpansionintorelativelynewermarketsandits continued success

in achieving strong sales and profits show that itisnotreallyabrandplanningtoexitthe market anytime soon It has mastered the artofsatisfyingcustomersbothatthestores as wellasatthedeliverypoint,thusmakingiteasierformorecustomerstoassociatewiththebrand.(Marketing91,2017)

3.ConsumerResearch

3.1.Customerprofile

Mostofthesurveyparticipantseatfastfoodregularly,withonly7.1%ofrespondentsreportingthattheyinfrequentlyeatfastfood.ThisindicatesthatfastfoodisbecomingincreasinglypopularinVietnamandhasbecomeapartofVietnamesepeople'seatinghabits

Mostpeoplespendfrom100,000VNDto500,000VNDonfastfoodweekly,accountingfor51.8%;secondispeoplepaylessthanVND100,000,accountingfor32.9%;andfinally,thepersonwhospendsoverVND500,000accountsfor15.3%.Itcanbeseenthatfastfoodisapopularchoiceintheweeklymealsofsurveyparticipantsbecauseofitsconvenience,speedandaffordableprice.

96.5%ofpeoplesurveyedhaveeverexperiencedKFCfood.ThatshowsthatKFCisafamousandpopularfastfoodbrandinVietnam.Everyonehasenjoyedthebrand'sculinaryexperienceandservice

-Only2.4%ofpeoplechoseatlevel1(verycheap)and3.5%ofpeoplechoseatlevel2

-ThenumberofpeoplesatisfiedwithKFC'sservicequalitywas49.4%.ThenumberofpeoplewhofeelverysatisfiedwithKFC'sservicequalityis18.8%

-ThenumberofpeoplewhofeelnormalaboutKFC'sservicequalityaccountsfor28.2%

Fromthisinformation,itcanbeconcludedthatthemajorityofKFCusersfeelsatisfiedwithservicequality

-37.6%ofpeoplesurveyedencounteredproblemswhenexperiencingKFC'sservicethelasttime,showingthatKFChassomeproblemsthatneedtobeimprovedinservicequality.Theseproblemscanincludewaitingtime,staffattitude,facility,foodquality,price,etc.-22.4%ofpeopledidnothaveanyissues.However,thispercentageisstillnotconsideredhighfortheserviceindustry

-IntermsofsurveyingthingsKFCneedstoimprove,themajorityofpeoplechoosetoimproveprices(45.9%),2ndisnoneedtoimprove(37.6%),3rdisstorelocation(32.9%)TherestareServiceStaff,serviceprocess,facilitiesaccountingfor22-26%

+Income:36.8%customershaveincomesrangingfrom1to3millionVND,and24.1%customersunder1millionsuggestingthatKFCisaffordableforthemiddle-incomegroup.+Behavior:51.8%customersusuallyconsumefastfood,and42.1%sometimeschoosetoeatwhentheywantandwhentheyarebusy,indicatingthatKFC'sserviceisconvenientandefficient,whichencouragesrepeatvisits

-OrderingMethod:accordingtowhatwehaveresearched,themajorityofcustomersusetheKFCmobileapptoplaceordersreflectsmodernandconvenientconsumertrendsandalignswiththecurrentlifestyleofKFC'stargetcustomers

-KFCProductExperience:MostcustomershaveexperiencedKFC'sproducts,withfriedchickenandbeveragesbeingchosenby100%oftherespondents.ThissuggeststhatKFC'sfriedchickenhasmaintaineditsappealandconsistencyovertime

-BrandAwareness:Nooneinthesurveydidn’tknowKFC.TheybecameawareofKFCthroughsocialmedia,outdooradvertising,relatives, indicatingthatKFChasconductedeffectivesocialmediamarketing.Theyshouldcontinuetodevelopmoreeffectivecampaigns