Also the local fast food joints are giving head on competition to KFC in the developing nations. Yum Brands which is the parent company of the Pizza Hut and have KFC … Example: KFC … In addition to enhancing the quality of food and how it is served, the dining experience is elevated by an attractive decor. To be attracted to eating super quality and tasted fried chicken products, people need to be part of a particular lifestyle segment. Its chicken wings, and chicken bucket is a favourite with everyone. Segmentation KFC has divided the market of India into distinct groups of customers with diverse demands, tastes and behavior who require distinct products or marketing mix. How to Become a Virtual Assistant and Work Remotely? The consumers of KFC are the young as well as young adults.It used to serve the same menu all around the world which means that it was using undifferentiated targeting strategy. It identifies the needs of the target market by selecting the … Geographic segmentation 2. Registered Data Controller No: Z1821391. Customer of KFC are the people from different age group, all who want to satisfy their taste buds with the finger licking delicious chicken menu. With regards to geographic segmentation KFC has a large market as it is an international fast food outlet. Demographic segmentation refers to dividing up the market based on the income, gender, religion, family, race, occupation, and nationality of the consumers (Cravens & Piercy, 2006). To identify which segments are profitable to market not enough. Sustained positive brand positioning has helped the company in creating top of mind awareness (TOMA) . Disclaimer: This work has been submitted by a university student. Companies need to design a marketing mix to cater to each of these segments. For effective segmentation following criteria is used by the firm (Kotler and Keller, 2006): 1. 4. A cross-cultural study on brand identity reported that Chinese children had more favorable impressions of KFC than did their US counterparts . In demographic segmentation, the market is divided into groups based on an age, gender, family size, income, occupation, religion, race and nationality. Popeyes is a chain with Louisiana heritage and flavorful authentic food ().KFC … It used to serve the same menu all around the world which means that it was using undifferentiated targeting strategy. Behavioural Segmentation Behavioural Segmentation is dividing a market into groups based on the attitude, consumer knowledge, and use or response to a product. The market segmentation can be understood if the KFC separates their target market into some groups. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. The market segmentation is divided into four parts (SONDEREGGER, 2011). KFC deals internationally and has number of outlets in various countries. Companies’ task is to identify the segments and then decide which one to target. KFC is facing strong competition from McDonalds, kokoriko, kyochan and many other local & national fast food companies. All work is written to order. 18 Opportunities to develop and create the following in Mauritius. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Based on this, new products are introduced (kfc.com). The next section will look into how KFC position itself. Since the segment belongs to high and middle income group, therefore prices are set on a higher side. Class conscious 4.Combination of price and quality. In India KFC focuses how geographically its customers demand different … Presence in developed & developing nations is helping the company in strategizing its future growth plans as it is giving them exposure & experience which is essential element in and fast food industry’s success. In India the … KFC divides the market on demographic basis in the following manner: Segmentation based on ethnic groups plays important role, for example in Australia KFC has segmented its market on ethnic group basis and have introduced Halal Food for the Muslim community. Both of them are in the burger category and where McDonalds offers burgers, Subway offers sandwiches. Place is another marketing mix used by KFC. Marketing Strategy for Kfc 5183 Words | 21 Pages. To enhance further experience of customers, improvement of food flavor, plated meal packaging and updated facilities are being implemented. Its Hot wings, Sandwiches and Grilled chicken are stars since majority of its sales comes from these menu items. KFC’s has different market segment as compared to street food store selling cooked rice. 2008). Free resources to assist you with your university studies! Actionable: This criterion shows that how an effective marketing program can be formulated to get results from the selected segment. KFC also includes country wise local accepted menus such as fish zinger and Arabian rice according to the demand of the customers. Segmentation, targeting, and positioning – Popeyes and KFC Introduction In this assignment I will compare the marketing strategies for the brands Popeyes and KFC. One of the methods is online feedback about the service and products quality and taste. KFC is currently ranked 147 in the global brand ranking table. KFC initially focused on single segment through Niche Marketing with the offers of Combo Deals, but now the company is focusing on other classes and has increased the target market. KFC introduces side dishes on a regular basis to ensure customer flavor and quality expectations are met. World’s 2nd largest fast food chain and largest chicken restaurant on the basis of sales is KFC, the successful brand of the parent company YUM! Psychographic Segmentation means to divide a market into various groups based on lifestyle, personality, or social class characteristics. Demographic Segmentation In demographic segmentation, the market is divided into groups based on an age, gender, family size, income, occupation, religion, race and nationality. KFC believes that consumers seek more food variety and flavor than what most burger chains serve every day, therefore according to the President of KFC they will continue to offer new products that broaden KFC’s appeal to a wider audience. 20 Reasons for KFC to go overseas. The KFC strategy is that it positions itself in local markets as a pleasant, bright, air conditioned restaurants with casual atmosphere. They have been reasonably successful in identifying and catering to this segment and this can be determined by their growth from USA to its global presence all over the world. Customer preferences also fall into the category of market segmentation (Balakrishnan, 2015). Our academic experts are ready and waiting to assist with any writing project you may have. KFC with its 750000+ workforce, serves fresh delicious fried chicken to customers in nearly 18000 restaurants across the world in 120+ countries. The innovative design for both interior and exterior of KFC restaurants attract customers. Promotion relates to the activities by the companies through which they communicate the products and influence target consumers to buy it. One of the major competitors of KFC is McDonalds and Subway. So, KFC target supper and middle classes. Geographic Segmentation Dividing the market into different geographical units such as nations, states, regions, countries, cities or neighborhood. In developed nations the different fast food outlets are eating up each other’s market share. In this aspect KFC segmented the market on the basis of taste, quality, and price. But when it comes to non vegetarian, KFC is just superb. Your email address will not be published. The company also can fine-tune the marketing program and activities to better reflect competitors’ marketing (Kotler and Keller, 2006). They are four … Due to this individual design restaurants receive aesthetic package to enhance drive-by appeal and differentiates KFC from other fast food restaurants. Consequently the emphasis on ‘we do chicken right’ KFC also differentiates its service in the form of the take away, dine-in experience, and KFC on Wheels (scribd.com). At the same time also targets children who love to get free toys with meal. Many researchers have found that organizations who have grip on the marketing concept, achieve superior performance. KFC has worked to satisfy customer needs by developing menu items that become accustomed to a portable, on-the-go society and consumer’s changing tastes. For health conscious young adults, KFC has introduced Tran’s fat free fried chicken and burgers with same traditional taste (servinghistory.com). Real Gross Domestic Product (GDP) grew by 1.5% in 2016 after gains of 1.1% in 2015. Let's stay in touch :), Very interesting and insightful. Despite these changes in the food environment … KFC divides market on the basis of psychographic variables like: Life Style (Lifestyle is not specific) Personality (Personality is ambitious and authoritarian) 3.5 Behavioural Segmentation In … Regarding promotion both segment products are highlighted separately. Following are the different possible segments in this regard. KFC always believes in keeping its outlet in premium areas as well as in malls and shopping complexes. Company Registration No: 4964706. KFC makes differentiation with competitors like MacDonald, King Burger and Subway by using the finest products and developing of a premium brand. KFC initially focused on solitary … Further from the products it offers, KFC differentiates itself on the basis of the experience it provides: the right place, the right chicken, and the right celebration! In KFC, they have considered four variables for market: 1. Theodore Levitt of Harvard explains that marketing focuses on the needs of the buyer and provides is preoccupied with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it (Levitt, 960). KFC targets families and young consumers which means positioning the products to “three generation” from middle and upper middle income segments. Using the above mentioned segmentation means, KFC has narrowed down its business to cater to specifically two main target markets, *well off, taste and quality seeking adults who are normally brand conscious, innovators & trend followers. These groups can afford higher pricing. It’s time to put this information into practice. KFC believes in customer’s satisfaction and regularly conducts market research to gather information. Billboards, Newspapers Ads, Posters, Internet Banners, TV Ads, Transit Ads, and Leaflets are used to advertise the KFC products to further catch the attention of the stated segments. KFC has an international presence and has a number of outlets in different countries. Moreover it has transformed its positioning strategy from product based to value based in recent times. The job is not to find the right customers for the products, but the right products for the customers. Accessible: This criterion determines that how consumers in the segment are reached by suitable marketing communications? KFC is following market concept as it is focusing on the customer and making improvements in the menus according to the need and wants of the customer. Market Segmentation by KFC In the light of all these segmentation criterion, KFC selects the segments on geographic, demographic, psychographic, and behavioral basis. For well of, taste and quality seekers Big deals and more caloric products are available whereas for health conscious consumers low fat products are prepared. KFC is one of the worlds most popular fast food joint, having a great specialty in burgers. This is not an example of the work produced by our Essay Writing Service. KFC (Kentucky Fried chicken) uses demographic segmentation to serve the market as per the customer needs & wants. Certain variables are involved in market segmentation; they are age, distance and purchase sizes etc. Demographic Segmentation The market is divided into groups based on an age, gender, household size, income, occupation, religion, race and nationality in demographic segmentation. According to the President and Chief Concept Officer of KFC Corporation, “They are raising the quality bar across the board and continuing to differentiate KFC from other fast food restaurants.” KFC customers are getting a better eating experience through great tasting real food, freshness, diversity and quality”(Business Wire, 2001). KFC has also segmented the children group by introducing the Zinger Junior. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. Market Segmentaion is a way by which an organization or firm divides its target market into different homogenous groups in other to identify and meet the needs of its target customers.. You can follow me on Facebook. KFC is synonymous with fried chicken and it challenged the established fast food market of … KFC has adopted cost base pricing strategy. How to Create a Market Segmentation Strategy. I’ll like to read more of your articles. Customers always look for a dinning place with attractive atmosphere. Geographic segmentation:KFC has outlets internationally and sells its products according to geographic needs of the customer. Actually marketing is gardening instead of hunting. Introduction. *Health conscious, young adults who are interested in fast foods but prefer natural ingredients and low fat substitutes. New Hot & Fresh programs are continuously designed to improve freshness and flavor from the kitchen to the counter. Psychographic segmentation and 4. In addition, to capture the widely prevalent vegan market, KFC also added plenty of vegetarian items. Business shifted to a customer centered in which “sense and respond” philosophy concept came in Instead of a product-centered, “make-and-sell” philosophy. In this aspect KFC segmented the market on the basis of taste, quality, and price. Psychographic Segmentation means to divide a market into various groups based on lifestyle, personality, or social class characteristics. After understanding the unique … To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Perhaps the most important type of segmentation bases is the psychographic segmentation. KFC have set different prices for different products for both the segments. To attract the segment KFC has developed advertising slogan which is, “Nobody does chicken like KFC”. These KFC outlets can also carry out delivery for online orders of KFC. This excellent targeting technique is the reason that most non vegetarian lovers flock at KFC. KEF divides he market … Fast food is defined as food that is quick to prepare & serve 2. Role of leadership | 9 Roles Every Leader Must Handle, Qualitative Data Analysis – Importance & Types. Substantial: It is to know, whether chosen segment is large enough to necessitate consideration and whether it is profitable or not. Differentiable: This criterion is set to know how the segments are different from each other and how they respond differently to various marketing mix elements and programs? KFC uses geographic, demographic, behavioural and psychographic segmentation. They demand quality and taste, therefore KFC can charge higher price as compared to a cooked food store to this segment. KFC also provides free home delivery to its customers from the restaurants. (Philip Kotler, 2008). Positioning is the place, a product occupies in the minds of consumers’ relative to competing products. Study for free with our range of university lectures! Items sell more than the chicken in the South India. Geographic segmentation 2. Use the following market segmentation … KFC uses its attributes to Position its Product. KFC is strongly positioned in the minds of consumers for its Chicken menu. Within each … 5 THREATS OF KFC IN MAURITIUS. Demographic segmentation 3. Against competitors KFC positions itself with high quality, hygienic and affordable fast food products in an assortment of complete meals. Before the introduction of the new Product test marketing is also being done, for example KFC tested its product Double Down before its introduction (tradingmarkets.com). Another factor which strongly helps KFC is its continuous branding initiatives with above the line as well as below the line marketing tactics. KFC tend to link their products directly either sex in fulfilling the inner desires. 3. No plagiarism, guaranteed! They should be among those who enjoy the luxury and indulgence connected with the brand. The consumers of KFC are the young as well as young adults. Marketing KFC has reached this segment as it is present in so many countries and in many cities of Australia. Demographic segmentation 3. The criteria for this purpose will be the level at which KFC is doing to meet the needs, wants and demands of the customer and how effectively it is using its resources to achieve the desired results. Keeping in view the geographic need of the customers, KFC sells it product the reach the target market worldwide. It is division of the market into different geographical units, for example states, nations, regions, cities, countries, or neighborhood. *You can also browse our support articles here >. It is also highlighted that meals are made more appetizing by supplementing with fresh, tasty side dishes and rich home style dessert. It also offers a variety of deals to differentiate its products from its competitors. It’s been more than 75 years since its inception and still, KFC’s original recipe of fried chicken is satisfying the taste buds of customers because it is finger licking good!!. If you need assistance with writing your essay, our professional essay writing service is here to help! KFC poisons against competitors by focusing on pure and fresh food to create a distinct and clear position in the minds of KFC customers. Although more than 50% of its sales come from Developed nations but those markets have stagnant growth rate and developing nations like India, China and many others have big potential for KFC. Demographic segmentation relates to dividing the market into groups based on income, age, education, gender, family size, religion, occupation, race and nationality. In each restaurant a comprehensive customer care program is being incorporated to monitor, evaluate, and optimize the customer experience (Business Wire, 2001). Most of the customers can be defined as youngsters or young adults who can shell out a minimum amount of money to have a delicious meal. Geographically KFC is present in so many cities such as it is present in Melbourne, Sydney, Brisbane, Perth, Richmond, and in other cities of Australia. 2 Market Analysis for KFC. Demographic Segmentation The market is divided into groups based on an age, gender, household size, income, occupation, religion, race and nationality in demographic segmentation. The market is divided into groups based on an age, gender, household size, income, occupation, religion, race and nationality in demographic segmentation. Other menu items those in veg, desserts & in chicken (even burgers) are question marks since KFC is not able to differentiate itself on these menu items from others like McDonalds or local fast food joints. Companies focus on high level innovations to meet customers’ needs and are likely to be more successful. Geographic Segmentation: Geographic segmentation divides markets according to geographic criteria. An important part of the marketing mix is price which customers have to pay to purchase the KFC products. The really very good article gives us an understanding of the International Marketing Strategy of KFC worldwide. Following are the different possible segments in this regard. VAT Registration No: 842417633. For example, In India, KFC … Through market segmentation, targeting and positioning the company divides its overall market into smaller segments to be served effectively. Popular menu items like Spicy BBQ Wings, Popcorn Chicken, Extra Crispy Chicken, and Crispy Caesar Twister have all been introduced to meet the need of customers. Now, you know what market segmentation is, why it’s important, and the four types of market segmentation. With the identification of two target segments but profitable segments KFC is practicing a niche market strategy. KFC is a brand and operating segment, called a PRODUCT – All products are made with exotic ingredients to make the fine taste. Subway is yet to reach its complete distribution potential but KFC and McDonalds are constantly at loggerheads with their vast global presence. We're here to answer any questions you have about our services. KFC used the Demographic Segmentation, Geographic segmentation, and Psychographic segmentation. KFC breaks its business into different geographical segments like… Marketing mix – Click here to read the Marketing mix of KFC, SWOT analysis – Click here to read the SWOT analysis of KFC. Density wise mainly its presence is in urban and sub urban areas there is no climate specificity. There is difference in terms of the needs of customers. Marketing Strategy of Pizza Hut uses a mix of geographical and psychographic segmentation variables to make its products available of in the market. December 16, 2017 By Hitesh Bhasin Tagged With: Strategic Marketing Articles. The next section discusses KFC’s current marketing mix for the mentioned segments. It has added in its menus as fish zinger, salad, Arabian rice etc according to the demands of the customer. Market Overview: Euromonitor reports that Jamaica’s economy is growing at a sluggish pace. Fast Food Market was valued $647.7 Bn in 2019 & to reach $931.7 Bn by 2027, at a CAGR of 4.6%. With its introduction of Veg-menu and localisation strategy, it is now catering to the left-out segment which will help in its brand building. 5. Geographic Segmentation of KFC. Measurable: It is the level to which the size and purchasing power of resulting segments is measured. To attract both the segments, KFC sponsors various games and uses the slogan, MAXIMUM ENJOYMENT IN MINIMUM TIME. They are demographic segmentation, psychographic seg… brand. 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