Marketing manufacturing source to the final end-user. §

Marketing mixis a term coined to describe all activities which go into marketing aproduct/service. These activities are categorised as the four P’s – Product, Price, Place and Promotion.

It typically revolves around having the right product, priced right, supported with some promotion to inform potential users about itself, and acombination of means to reach it to the end user’s place.§ ‘ Product’ refers to an item that satisfies the consumer’s needs or wants.§ ‘ Price’ relates to the amount a customer pays for a product/service. Priceis the sole marketing mix variable which influences the company’s salesrevenues/profits.§ ‘ Place’ in the marketing mix refers to the channel, or the route, throughwhich goods move from the manufacturing source to the final end-user.§  ‘ Promotion’refersto marketing communications undertaken to create awareness of a product/serviceto its target consumer. It includes various elements such as advertising, public-relations, direct marketing and sales promotion.

PRODUCTKFCis synonymous with fried chicken and started-off by challenging the historicalfast food market that once revolved around hamburgers. KFC’s original product offeringwas pressure fried chicken nuggets flavoured with a ‘ secret seasoning’ of 11 ingredients. In the 1990’s, KFC expandedits menu that included chicken preparations such as Extra Crispy Chicken, ChickenFillet Burgers, wraps, salads, potato fries, desserts and beverages. KFC has aportfolio of over 300 different menus as a part of its marketing mix productstrategy that caters to varying geographical demands. In India, KFC introducedHot & Crispy Chicken, Fiery Grilled chicken, Chicken Zinger Burger and RiceBowl.

In line with sentiments in Islamic countries, halal chicken is offered atKFC outlets. KFC has tied-up with McCormic Co. for providingsauces and seasonings, and with PepsiCo for providing beverages to itscustomers. Listed belowis a category wise breakup of KFC’s product offering: Streetwise Rizo Gravy, Chicken Snacker, Rizo Rice, Snack Box, Veg Snacker Veggie Veg Strip with Salsa, Veg Zinger, Veg Snacker Chicken Delight Hot and Crispy chicken, Fiery Grilled chicken Snacks Hit Wings, Popcorn Chicken, Boneless chicken strips Burger Chicken Zinger, Veg Zinger, Tower Zinger Desserts Brownie Sundae, Soft-whirl Krusher Iced Mochaccino & Kappucino, Frappe  PRICEKFC’smenu is currently priced reasonably and they have adopted innovative pricingstrategies to compete in various markets. KFC’s target segment is the younger generationin urban and semi-urban centres and those who belong to upper middle class /middle class families.

When KFC initially entered the market, they adopted the market-skimming strategy. Their products were priced high, and were targeted to cater to the upperclass families. This has been reduced gradually to now target lower income groupsas well.

KFC also offers differentialpricing. Their products are available as individual items as well as combooffering. The pricing of combos is less than the combined price of individual items. KFC’s products in India are priced in the band of Rs 25 – Rs 675. The marketing mix pricing strategy ofKFC is also driven by the pricing strategy of competitors such as McDonalds, andhence is kept comparable to its competitors.

PLACEKFC’sfounder identified the benefits of franchising and in 1952; the first KFC outletwas opened in Utah. Years ahead, in the 1960’s, international outlets wereopened in Mexico, Canada, UK, and Jamaica. Presently, KFC is present worldwide inabout 125 countries with over 20, 000 outlets, which shows a strong placestrategy within KFC’s marketing mix.

In 1987, KFC was the 1st WesternRestaurant to start business in China and continues to do good business there. KFC’saverage orders catered per day by an outlet are 250, off which most arefulfilled during peak hours. KFC’s locations are state-of-art and are selected postintense deliberation and evaluation. Numerous factors are considered such as theoverall business climate, proximity to target audience, investment cost, quality of labour and infrastructure. Within India, KFC initially opened its outlets in metros and Tier Icities, and now has gradually moved to Tier II cities. KFC has outlets in manymajor cities and has overtaken Pizza Hut within the ‘ Quick-service’restaurant segment. KFC currently has over 500 outlets in India. KFC has asingle channel of distribution as it sells its entire product directly to theconsumer and eliminates the need for any intermediaries.

KFC also provides provide free home delivery to offices andhomes. PROMOTIONKFCpromotes its products via mass media as well via social media websites such asTwitter, facebook, YouTube, etc. KFC uses digital media advertising with advertisements between TV shows/news bulletins and print media with informative advertisements in daily newspapers to promote itsproducts. Advertisement campaigns have typically focused on slogans such as ‘ Nobody Does Chicken Like KFC’, ‘ Finger Lickin Good’, and ‘ So Good’. KFC also makes use of hoardings to advertise itsproducts. A KFC commercial is typically noticed once every week by over 170million viewers.

KFC also offersadd-ons to their existing menu such as gift coupons, T-shirts, Kids meal, etc. In India, KFChas launched a 5-in-1 meal box with the help of “ Mumbai Dabbawallas”. KFC also promotes their products via various sportingevents and sponsors the Australian Cricket team.