Background

The UK fast-food market is worth an estimated £8.02 billion annually, amounting to an average
spent of £22 per month per adult. Motivations for purchasing fast foods were predominately
speed and convenience, flavour value of money and quality of ingredients used. Fast food
giants like McDonald’s, Subway, Kansas, with Kentucky Fried Chicken (KFC) in the lead,
dominate the fast food market in UK. KFC is able to please the UK palate with its Finger Lickin
Good; chicken that is part of the well-established dietary habits of the British. The British who
until the1965s, were used to untidy restaurants and unfriendly service, have embraced the
ambience, unique flavour, friendly and fast quick service(FQS) of KFC. As of 2009, KFC had
more than 760 stores and outlets with 22,000 employees, this show its continuous growth since
1965. KFC, It is also the first food chain to introduce a drive-through restaurant in UK. Despite
of heavy competition from other counterparts like McDonalds, Subway and Kansas UK’ s other
food chains like The Chicken Cottage ,Burger King ,Nandos, KFC maintains its leadership in the
fast food market .

MARKETING PLAN:
“A Marketing Plan describes necessary actions in achieving
specific marketing objectives within a time limit, these actions intend to
carry out to interest potential customers and clients identifying your products and /or
services and convince them to buy the product and/or services you offer.”

EXECTIVE SUMMARY:
The following marketing plan of Kentucky Fried Chicken (KFC) describes as a major
Quick Service Restaurant (QSR) operator in UK .It mainly serves chicken related items
with some side dishes.KFC competing the competitors ‘and maintain a strong
relationship with its customers under consideration of its Macro and Micro environment
very efficiently .
KFC has segmented its market on the basis of segmentation like;
Demographic,
Psychographic,
Geographic, and Behavioural .
KFC is showing certain buying behaviour .KFC is following of market penetration,
marketing development and product development for increase of its customers. It
follows production, marketing and social marketing strategies for increasing its market
share and growth.KFC listens to its customers to help them to evolve their menu and the
choices they offer.KFC has strong demand for HALAL products.

WHAT DOES HALAL MEAN?

HALAL is an Arabic word meaning lawful or legal or permitted according to Islamic Law.

SITUATIONAL ANALYSES:
New products and innovations are likely to draw customer’s attention, so each company
requires focusing on developing and reinventing their menu… KFC will be pioneering in
the fast food chain that’s why its needs to be highly sensitive towards cultural demands.
KFC attempted to liven their menu with HALAL Chicken.

SWOT ANALYSIS:
According to Philips Kotler and Kevin Keller, “The overall evaluation of a company’s
Strengths,
Weaknesses,
Opportunities and Threats are called SWOT ANALYSIS”.
It also involves monitoring the external and internal marketing environments. Strengths
and weaknesses represent companies’ internal capabilities, i.e. operating producers,
operating costs, human resources and products producing strategy. Opportunities and
Threats arise from outside the organization, i.e. competition and poultry supply in our
case.

STRENGTHS:
HALAL KFC is the BOMB
KFC will be the latest from the UK fast food chain which will introduce HALAL chicken in
its menu.
The market for HALAL fresh meat is estimated at £400m, equal to 11% of meat sale, so
there is more space for KFC to play and won.
KFC is the 3rd one from UK s fast food chain who signed up for the list of calorie
contends in food.
KFC has Secret Recipe of 11 herbs and spices become strong trademark recipe.KFC
ranks highest among all chicken restaurant chains for its original recipe, convenience
and its variety in menu. Because of all this KFC will be most popular among UK Muslim
community.
There is a huge growth in KFC sales because consumers consider that white meat is
healthier than red meat.
KFC will get license from HALAL FOOD AUTHORITY (HFA), so no doubt anymore about
the chicken.
KFC believe that all employees should follow the SMILE, which is on their stage program
, which means:
Stand up straight, don t lean
Turn to face your customer
Act on what your customer wants
Greet your customer like they are your friends
Eye contact!
KFC becomes World s First Brand visible from space.
Close up of the world’s largest logo – Colonel Sanders – in Area 51
Close up the World Largest LOGO

WEAKNESSES:
Lack of relationship building with employees, they are young, unskilled and they are
working at or just above minimum wage.
KFC only sells chicken
Most commonly KFC cooks its chicken in vegetable oil (Trans fat).This is unhealthy
method of cooking and it hits health and educated conscious people.
KFC s independent strategy about franchises may effect on its new market segmentation
because their target market in a particular area.

OPPORTUNITIES
Need big stockrooms and freezers and chillers as well
KFC will hope that the HALAL chicken range will help in attracts a new range of
customers.
Starts Home delivery
Online order service (like www.justeat.co.uk
Consumers are looking for fast food alternatives to red meat that is one of the best
opportunities for KFC because of its white meat.
Service and cleanliness could be increased
Need more varieties in menu, to embrace healthier choices
To meet the market demands like having roasted or stream chicken which have less oil
content.
Introduce a brand new selling concept like having a buffet style where customers are
able to choose the food from the shelves and make the orders.
Going into burger businesses

THREATS
KFC is not alone; moreover it is followed by its wealthy competitors, including
McDonalds, Burger King and Subway.
Increase of trends of more vegetarians
There is always a threat from new competitors trying to take some
Market share.
Bird -flu risk can be increase any time.

COMPETITIVE STRATEGIES
Porter’s Generic Framework
KFC is using differentiation strategy while McDonald focusing on the cost leadership
strategy as their competitive advantages in order to gain broad target. The above
mentioned shows that KFC are more concentrated on their special recipes , chicken and
sides order to gain market share by concerning healthy food. Nevertheless, McDonald
offers cheap price, fast service to attract more customer and to gain market share by
building up unique restaurant.

DEVELOPMENT STRATEGIES
Ansoff Products/Markets Framework
Ansoff’s matrix assesses KFC and McDonald’s marketing objectives and strategies which
related to their products and markets. Penetration and product development are more
concentrated to run their market. Besides, they are on the procedure of entering to
market development.
As a conclusion of this, it demonstrates that McDonald’s has had and continued to
create and develop new products satisfying the existing of new target expectations for
great taste and great value. Meanwhile, KFC keep improving its products and launching
new types of product for attract new target market. It is considered to support its
market penetration for the company

Marketing strategy
KFC’s objectives would be to:
To expand their business and equal to McDonalds
To achieve customer satisfaction
To increase on the profit margin each year by beating their standards of last year.
To have a larger market share as compare to their competitors.

Organizational
The strategy to enter into HALAL shall be through franchising as avoid the risk
committing resources into an unfamiliar market. To grant franchises to the only highly
motivated and talented entrepreneurs with integrity and business experience and train
them to become more active and aggressive owners for KFC. A revision of franchise
contracts would support to KFC to protect itself from expanding other KFC franchises in
the area of other existing nearby franchise of KFC to one another and the prevent
franchisees from conducting different standards. The traditional Colonel’s way of life
philosophy would be inflected back into KFC’s mission and goal statements to improve
relationships and to reduce management turnover and internal discontentment. In
addition, it is very necessary to have well trained marketing staff, with sufficient
knowledge of the evolution of halal market, halal laws and regulations.

Product
KFC will increase its product line to include new menu items in several locations to test
acceptability and possible sales in relations to demographics. While, the expansion of its
menu is very crucial and be focused in continuing its product on the “healthy foods”
they domestic customers is demanding as target market. KFC could reach the objective
of healthy foods by adding new additional items such as grilled chicken and grilled
chicken sandwiches and dinner and steam chicken.

Place
For achieving the goal this kind of industry, distribution channel for new product
introduction are the keys to success. Thus, KFC shall expand into more non-traditional
locations in those hospitals area, gas stations, convenience stores, malls, airports,
concert halls, amusement parks, and college campuses. They need to implement new
culturally specific procedures such as serving beer in German restaurants, more Asian
chicken dishes, familiar dress in Asian restaurants, and a pub-type atmosphere for
London restaurants with a leisurely atmosphere conducive to long conversations and
others depending on the Birmingham and Manchester.

Pricing
Price is a factor needed for customer decision to make on the first purchase. The price
should be considered as a reasonable and competitive with other local restaurants who
offer chicken menus. Therefore, the price of the initial launch must be reasonable in
terms of low price setting.
Promotion
Promotion of all the three divisional products combining advertisement and reducing
cost for individual advertisements. Offering special introductory bargain for newly
opened locations attract customer’s attraction. Celebrity promotions of KFC should be
continued. Promotion of beneficial societal programs by continuing its neighbourhood
grant programs and expanding opportunities for more neighbourhood youths as new
restaurants are built up as the outreach and advertisement of Pepsi Co’s traditional
values and “caring” attitude.
However, this strategy will show its result in long-term periods, thus, considering this
matter and
opportunities for expansion, I argue that KFC must first focus its resources to defend its
market position in the cities where KFC had already gained superior brand preference
such as in London, Birmingham and Manchester. Failure to defend its market because of
too much focusing in early entry strategy, will expose KFC to the risk that the existing
market will slip away, while the new markets are doubt-able successful.
The national market, though attractive, were also exposing some risks, including political
risks, economic risks, competitive risks, and behavioural risk; beside those external risks,
KFC were also exposed to the internal financial risk since there were some periods where
KFC lacked the financial cash flow needed for expansion.
KFC rules the world when it comes to serving the chicken considered as the world’s
largest fast-food chains, everyday more than 12 million customers are served at KFC.
The company owns and franchises more than 15,000 outlets in more than 109 countries
and territories across the world (About 5,200 locations are in the US and 760 in UK) The
restaurants offer the Colonel’s trademark fried chicken sandwiches, chicken (In both
original recipe and extra tasty crispy varieties) along with chicken sandwiches, chicken
pot pies, crispy chicken strips, popcorn, hot and spicy wings, and gravy, coleslaw, beans
and corn on the cob and cheese cake. Most of the locations can be found operating as
free-standing units and kiosks in high traffic area.
Manufacturers and businessmen are scrambling to satisfy the craving of Muslims, as the
global demand for HALAL-certified products increases day by day.
Furthermore, the rise of Halal market is considered by the Asian Leadership and Strategy
Institute as one of the latest trends and opportunities together with the:
Internet
Social networking and
Viral marketing
Demand for the Halal food is greater than the Muslim population, but can be a choice
for non-Muslim. Halal food products are perceived to be hygienic and healthy.
In marketing, Qualifying to the Halal standards KFC can now be considered as a strategy
to widen the target market.
Certification is key to Muslim food market, Without the Halal certification, KFC can only
target the usual consumers, while getting the certification it will target at least two
market segments,
The Muslim consumers and
The health-conscious people
According to UK Food Safety Authority, there are 6 million Halal meat consumers in UK
Marketing to Muslims”, sees the faith group as Britain’s largest untapped niche market,
and one that is certain to grow: it comprises 3% of the population, is Britain’s second
largest faith group and has the youngest age profile.
When advertising to Muslims, a more modest approach than that used for a non-Islamic
audience is preferable. Because UK Muslim communities are not homogenous, and have
a variety of ethnic, linguistic and cultural characteristics, interpretations and attitudes
differ, so variations in the portrayal of women in advertising can be expected.

KFC vs MacDonald and Subway:

Nearly 9,000 new jobs in a recession are not to be sniffed at, even if they do come with a
“finger lickin’ well” herb and spice coating.
Colonel Harland D Sanders, the late American founder of the original Kentucky Fried
Chicken business, can for once is excused his ever-optimistic grin on the signs that still
adorn his bearded image at group restaurants.
KFC is not alone, moreover. Fellow US fast food chain Subway is creating 7,000 new
positions at 600 new stores in the UK and Ireland.
McDonald’s is adding 1,000 jobs after seeing European sales surge 7.6pc during the last
quarter of 2008 and this week Domino’s Pizzas got in on the act, announcing 1,500 new
posts on the back of a 10pc boost in takeaway orders

Controls:
The KFC tasks of marketing research is to assess the information which needs and
provide management with,
Relevant
Accurate
Reliable
Valid
Current information
To help in market decision making process
Company need to conduct and use these market research to stay competitive and to
avoid high costs associated with making poor decisions based on unsound information.
Marketing research plays a significant part in the development of marketing plans
because it allows the organisation to become less isolated from the key trends and
changes, which covers their product. To continue to be successful, KFC must receive
information from the researcher that is clear and accurate .It also has to satisfy its pre-
determined goal for its research.
But why is KFC enjoying a hike in UK sales when other fast-food brands are experiencing
a dip? And how will KFC’s marketing keep sales buoyant and sustain the chain’s
expansion plans?
One reason is the shift in people’s dietary preferences as the media’s promotion of
health awareness has steered people away from fatty and red meat toward white meat.
Dominick Nasalise, market analyst at Data monitor, says: “People who are meat reducers
are on the rise. They are cutting back predominantly on red meat, and chicken is
generally seen as a healthy option. Whether KFC is better for you given what it is fried
in, is arguable.”
The fast-food industry has historically attracted criticism. While McDonald’s is widely
acknowledged to use processed meat, KFC sells ‘real’ cuts of chicken. But as a mass-
producer of food it is still not immune to negative publicity.
KFC is investing more than £100m in its plan, with a target of 1000 by 2012. This comes
as McDonald’s is to close down 175 restaurants in ten countries. In 2001 the US burger
giant had 1184 outlets in the UK (according to Mantel).
On the KFC website its founder and brand icon Colonel Sanders speaks from beyond the
grave, saying: “You, like my chicken so much that we’re growing faster than any of them
other big restaurant names – including them Burger Boys.” And it’s those ‘burger boys’
who had better watch out as KFC proceeds to carve a chunk out of the market.
But why is KFC enjoying a hike in UK sales when other fast-food brands are experiencing
a dip? And how will KFC’s marketing keep sales buoyant and sustain the chain’s
expansion plans?
One of the reason is this the shift in people’s dietary preferences as the media’s
promotion about health awareness has steered people away from fatty and red meat
toward white meat. Dominick Nasalise, market analyst at Data monitor, says: “People
who are meat reducers are on the rise. They are cutting back predominantly on red
meat, and chicken is generally seen as a healthy option. Whether KFC is better for you
given what it is fried in, is arguable.”
older employees rather than hiring people from external sources The recommendations
that I would offer KFC is to maintain its current low turnover rates and incorporate even
more practices in its culture which provide recognition to employees and make them
feel valued. As for selection and recruitment practices, age should not be a bias factor
and the principle of promotion from within should be adhered to. This is because for
companies like KFC, it is very important to promote a certain employee culture; hence, it
is better to promote
HALAL KFC s growth strategy is to be successful KFC will need to broaden its target
market and this is where marketing and the BBH appointments will come into their own.
KFC is not going to overthrow the burger giants yet, as McDonald’s and Burger King
have far greater market penetration. But as consumers continue to seek fast-food
alternatives to red meat, KFC’s ambitions couldn’t come at a more opportune time.