17818440 KFC Marketing Strategies

8/14/2019 17818440 KFC Marketing Strategies

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Welcome to KFC


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Angeles Flores

Rene Guillarme

Yvette Minjares

Jarvis Mullahan

Armando RoblesDenise Simon


3/22

KFC Facts

KFC is based in Louisville, Kentucky, and is the worlds most

popular chicken restaurant chain.

Founded by Colonel Harland Sanders in 1952.

More than 11,000 outlets

85 countries and territories around the world.

8 million customers each day.

Yum! Brands is run byDavid Novak,

Chairman & CEO

KFC Division is run by Cheryl Bachelder,President and Chief Concept Officer


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From $105 to 7.2 Billion in 50 years

1952, Col. Sanders started franchising his recipe door to door financed by his $105.00 SS Check

1964, Col Sanders had more than 600 franchised outlets in the US and Canada.

1964, Sold his interest in his company for$2 million to a group of investors.

1966, KFC went public

1969, Listed on the NYSE

1971, KFC was acquired by Heublein Inc. for$285 million.

1982, Heublein & KFC Inc. was acquired by RJ Reynolds

1986, RJ Reynolds & KFC, was acquired by PepsiCo, Inc. $840 million.

1997, PepsiCo, Inc. spined-off of its qsrs into independent Tricon Global Restaurants.

2002, Tricon changed it's corporation name toYum! Brands, Inc. .

NOW:

Yum Brands, Inc. is the world's largest restaurant company in terms of system units withnearly 32,500 in more than 100 countries and territories.

Yum! Brands, Inc., is a Fortune 300 company

Yum! Brands, Inc. global system sales totaled more than $22 billion in the year 2001.

Current Market Cap value on the NYSE is 7.2 Billion


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Yum! Financial Data & Trends

In Past 5 Years:Debt Ratio has dropped 25%Net Income after Taxes has increased 31%Profit Margin has increased 41%


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Yum! Brands, Inc. International Presence & Competition

*In Thousands

The International Portfolio of 5 leading

U.S. Brands give Yum! a distinctiveadvantage over the single-brandcompetitors.


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KFC Domestic & International


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Internal Analysis Functional Areas

Finance/AccountingSince 2001, Yum Brands Inc. has outperformed the market

Computer Information Systems

Newly established Computer information system

Marketing

Positioning among competitors is favorable

unconventional methods of distribution

multibranding

Management

Objectives and goals are measurable and achievable

Team empowerment

Productions/Operations

Constant improvement on quality of chicken

Producer and operators are strategically located


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Internal Factors SW

Strengths Multibranding Strategy

Name recognition and

Reputation

Employee Loyalty

Global Expansion

Targeting Non-TraditionalOutlets

Weaknesses Conflicting Corporate

Cultures

No defined target market

Time it takes to market newproducts


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External Factors OT

Opportunities International Appeal to

American products

Economies of Scaleand Scope

The downturn of theUS economy

Threats PETA

Consumer health foodtrend

Saturated fast food

industry


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Space Matrix

CompetitiveAdvantage

Industry Strength

Environmental

Stability

Financial Strength

Aggressive position

FS

IS

ES

CA


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BCG Matrix

Asia Europe

USA

Americas

?


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Additional Matrices

4.0

THE EFE

TOTAL

WIEGHTED 3.0

SCORES

2.0

1.0

1.03.0 2.0

THE IFE TOTAL WIEGHTD SCORES

Weak

1.0 to 1.99

Average

2.0 to 2.99

Strong

3.0 to 4.0

Asia 20% US 67%

Americas 7%

Europe 6%

IE Matrix

Grand Strategy Matrix Quadrant I


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Alternatives

KFC Hospice Dinners Delivering acaring outreach to the terminally ill(SO)

KFC Cafeterias Offering dishescompetitors do not(SO)

KFC Grocery Products The Cornel isalways home (SO)


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Alternatives Not ChosenOur recommendations to KFC

KFC CafeteriaMarket Development

Concentric Diversification

Similar to Furrs or Lubys

Fast food with traditionalrestaurant environment

Reaching out to a newmarket

KFC GroceriesProduct Development

Market Penetration


Similar to Taco Bellgroceries

Advantage of Name

Recognition Frozen Meals

Chicken Breading Mix


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KFC Hospice dinnersDelivering outreach to terminally ill

Hospice delivers meals to the terminally illnationwide.

These meals are delivered directly to the

patient in their own home. Why?

Political & Social Image

Advances KFCs name recognition and reputation Secret Recipe

Expands employee loyalty


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Strategic Management

Market Development

KFC will introduce their present and new products and

services into new geographic/demographic areas.

Product Development

Bring back rotisserie chicken


Add more to KFC product & service variety to the

patients


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Implementations

Market Research Determine areas demand to determine boundaries

Expand menu Healthier choices

Meals will be sold at cost Determine effects on budget


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Long-term company objective

KFC is a publicly traded company with responsibilities to allshareholders

By becoming a more socially responsible corporation we hope toattract a new type of investor while retaining our current

stockholders.

Ben & Jerries & Starbucks have benefited financially by promotingtheir socially responsible corporation

KFC hopes to achieve this by becoming synonymous withhospice.

Thank you for your attention


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The End


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Yum! Brands, Inc.http://www.yum.comKFChttp://www.kfc.comThailand

http://www.kfc.co.th/Japanhttp://www.kfc.co.jp/Crueltyhttp://www.kfccruelty.com/The Wall Street Journal

http://www.wsj.com
http://www.yum.com/http://www.kfc.com/http://www.kfc.co.th/http://www.kfc.co.jp/http://www.kfccruelty.com/http://www.wsj.com/http://www.wsj.com/http://www.kfccruelty.com/http://www.kfc.co.jp/http://www.kfc.co.th/http://www.kfc.com/http://www.yum.com/

Documents

17818440 KFC Marketing Strategies