KFC MALAYSIA MARKETING PLAN 1.0 EXECUTIVE SUMMARY This project will perform the analysis of marketing plan of KFC. Besides McDonalds, Kentucky Fried Chicken (KFC) Malaysia is a major Quick Service Restaurant (QSR) operator in Malaysia. As this business got the very rave from customer, this business has been survived for over 20 years in Malaysia. This restaurant serves mainly chicken related items, but also offers side dishes to its customers. This type of foods with the strategic marketing for example through advertisements succeed to attract various groups of people especially children and teenagers to try and have one of menus in KFC. What are marketing strategies? Marketing strategies are the fundamental goal of increasing sales and achieving a sustainable competitive advantage. For preparation of this project, we looked up to their ads and web site. The purposes are to get know the history of KFC and do a personal observation in one of its branches and throughout the advertisement in social media and television as a source. Our project will analysis the marketing strategies that used by KFC in terms of price that offered by KFC, products, promotions and etc. By this analysis, we can see how every element of marketing strategies affected the business from the side of profit and satisfaction of customer. As we can see, KFC always improve their policies as effort to make sure KFC more appealing to the market in effective way. For example, KFC see that theme as a tagline can be factor that can make KFC brand more impactful to public people. To achieve that goal, KFC do use theme ‘fingers lickin’ good’ and ‘so good’ as tagline. This theme can give public imagination that product of KFC promised to customer about taste satisfaction until they cannot leave the leftovers by licking all over the fingers and s’o good’ stressing out the taste of the chicken they serve with goodness to friends and family, giving the value of goodness in KFC’s servings, giving consumer the greater value of their money.
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KFC MALAYSIA MARKETING PLAN 2.0 KFC COMPANY BACKGROUND Kentucky Fried Chicken (KFC) is one of biggest fast food restaurant in Malaysia and international. Kentucky Fried Chicken was founded by Harland Sanders in Corbin, Kentucky. The name ‘Kentucky’ was inspired by the name of city where it found. Harland Sanders who was born in small farm in Henryville, Indiana, America is someone who loved to cook and to invent a new recipe. His effort to make new recipe for cooking succeed when he tested to mix eleven herbs and spices with wheat flour. He developed a unique, quick method of spicing and pressure and opened the first franchise in 1952. The tasty chicken that made by Sander’s recipe was franchised to more than 600 outlets in United Kingdom and Canada and get expended in 1963. KFC continues grow in Asia. The first KFC restaurant in Malaysia was built on Jalan Tunku Abdul Rahman in 1973. KFC Malaysia get expended and now it has more than 500 restaurant whole country. KFC Malaysia continues its effort to serve finger lickin’ good, succulent pieces of chicken to customer. KFC prides itself as a fast-food restaurant that give customers great tasting chicken with a selection of home-styled side dishes and dessert to make wholesome, complete and satisfying meal. KFC puts customer satisfaction as a main goal. Malaysian has been enjoyed with KFC as great tasting chicken has become synonymous with KFC. There are many programs that introduced by KFC that can benefit to charity activities. To attract people, KFC introduced its ‘Tabung Penyayang’ KFC Collection Box in 1999. It can enable customers to contribute and be a part of this charitable effort. Today, KFC Malaysia getting advanced by introduced various types of menus, efficient services, suitable price and good promotion like dinner and lunch treats. This effort can make KFC legacy become bigger day by day.
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KFC MALAYSIA MARKETING PLAN 3.0 CURRENT SITUATION AND TRENDS IN KFC i.
Health conscious of people Fried products offered by KFC are not healthy. With the rapid socio-economic growth in Malaysia experiences over decade, modern living brings about heart disease, cancer and diabetes to various segments of the population. Realizing the seriousness of this problem, government policies supporting healthy living and preventive measures against illnesses are often introduced and reinforce. As more Malaysians are exposed to various health threats, the demand for health and enhancing foods are growing. The increased health concerns among Malaysian have made more health promoting food in the market. KFC has to face this challenge in terms to offer the various types of healthy foods.
ii.
The sensitivity of Malaysians about price Malaysians consumer is particularly sensitive to price. Based to research from Nielsen, four fifth saying that price is the most important consideration in their purchasing decision. In this case, the rising price on the product that produced by KFC will change customer’s buying behavior.
iii.
Cost Reduction The increasing price of raw materials cost of labors, subsidy reduction, and cost of logistic will increase the cost of production. To facing current economic situation, KFC has to reduce their cost to ensure they are competitiveness in fast food industries without decrease customer satisfaction. KFC must retaining it foods prices by managing cost actively and also via a transformation program within the group it is, being more efficient in how it spends its capital as furniture and reducing cost per outlet.
iv.
Customer complain Customer complain about quality of services in KFC outlet will expand the bad rumors of KFC and the image of KFC will affected by that rumors. KFC should take fast action to solve the problem and stop the rumors. So that, the image of KFC service will clean from any bad perspective from customers.
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KFC MALAYSIA MARKETING PLAN 4.0 PAST PERFORMANCE FOR KFC KFC Restaurants
Revenues in Billion (RM)
2003
1.38
2004
1.41
2005
1.46
2006
1.52
Table 1: Revenue of KFC Restaurants from Year 2003 to 2006.
It is crucial for KFC to review the past performance before doing the marketing plan. Based on the table above, there was a low growth of 0.03 billion of revenue generated between year 2003 and 2004. As in 2004, there was a breakout of Asian Bird Flu in Asia. This had triggered the alert of public to avoid eating poultry such as chicken and this had slight impacted the sales of KFC Restaurants. During the outbreak, shares in Malaysia's KFC Holdings (Malaysia) Bhd slipped 1.4 percent on the Kuala Lumpur (Kentucky Fried Fish? Asian Bird Flu Wings KFC 2004). In addition to that, there was a protest leaded by Animal Liberation Victoria from Australia against the KFC chickens sale in Kuala Lumpur. They were protesting that the “Meat is Toxic” and “Eating Meat is Hazardous to Life” which were referring to the Asian Avian Bird Flu Outbreak. This had slightly impact the brand name of KFC Restaurants (KFC Cruelty 2004). From 2004 to 2005, there was an increase of 0.05 Billion of revenues. This was mainly due to the new launched of combo meal called KFC X-Meal, which offers extra choice and variety. It consists of an OR Fillet Burger, one piece of chicken and a choice of either regular potato wedges or regular coleslaw or a regular whipped potato. This was the first time ever KFC customers could get both burger and chicken with a side dish as part of one individual meal combo. This meal had reduced the anxiety of customers especially teenagers and young adult who wanted to eat both burger and chicken at the same time yet paying affordable price. In addition of a great mean, KFC also advertised and held promotion for the launch of KFC X-meal through TV, radio, press and outdoor advertising, point-of-sale materials and ambience (KFC Launches new combo meal 2005). This is the reason that the revenues rose up 0.05bilion with a positive growth.
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KFC MALAYSIA MARKETING PLAN Interestingly, the revenue also increased by 0.06Billion from 2005 to 2006 with a positive growth. Another reason was due to new launched of product Cheesy BBQ Meltz which contributed at least 10% of the sales. This product was successfully launched to target teens and young adults as well.. With heavy advertisement and promotion costs of RM4 Million, the increased sale was showing a positive return of the effort (Tong 2006).
4.1 Awards and Achievement of KFC Besides looking to the problems, KFC also has to review the strength of their company by looking to the ‘Awards & Achievements’. Thus it can be fully utilize the assets of the organization in order to promote the brand. Award
Year
Awarding Body
Best New Product Development 2004
2004
Yum! Brands
Beat Year Ago Award
2005
Yum! Brands
Overall Marketing Excellence Award
2005
Yum! Brands
Tiger Award - Mr. S.K. Wong
2005
Yum! Brands
Brand Visibility Award
2005
Yum! Brands
Best Brand Image Award
2006
Yum! Brands
Best Overall Marketing Award
2006
Yum! Brands
Best New Product Award
2006
Yum! Brands
Product Excellence 2006
2006
Yum! Brands
Marketing Excellence 2006
2006
Yum! Brands
Source: KFC 2007 Table 2: Awards and Achievement of KFC
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KFC MALAYSIA MARKETING PLAN 5.0 ISSUES AND OPPORTUNITIES IN KFC After doing an analysis, KFC had identified several issues and opportunities happen in KFC. Proactive actions must be taken towards the problems meanwhile KFC must take advantage for the opportunities.
5.1 ISSUES I.
Government
The first issue of KFC is government, there is a proposal developed by the government recently to overcome the claims of fast food being unhealthy food for consumer. Basically the proposal is about banning all advertisement for fast food industries, includes KFC Malaysia. Once the government agreed the proposal, KFC Malaysia will have hard time in promoting their products. II.
Customer’s complaint
The second issue faced by KFC Malaysia is that customer complaint. From the situational analysis, KFC should notice that there were protests from customers saying that eating meat is dangerous and it contain toxic, during the avian flu outbreak few years ago. This eventually will bring poor images for customers which convinced by them, thus leading bad images for KFC Malaysia. III.
McDonald getting more growth rate
From the situational analysis, McDonald in Malaysia is actually growing in a faster pace as compared to KFC Malaysia. If this situation cannot be overcome soon, McDonald market shares will begin to grow and compete with KFC Malaysia. IV.
Corporate taxes decreased
There is a 25% decrease in the corporate taxes in the budget 2008 in Malaysia. Although this might help KFC Malaysia but also portrait threat of new competitors in fast food industry. Due to lowered taxes, new competitors can appear in the market relatively easier as compared to before.
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KFC MALAYSIA MARKETING PLAN 5.2 OPPORTUNITIES I.
Trend of Children Love Fried Chicken
There is increasing of popularity of eating fried food among the children. As the growing populations of teenagers and children in Malaysia, Singapore and Brunei, KFC has plentiful of opportunity to capture this young market. This is due to the fact that children and teenagers prefer foods that are fried which would taste better and delicious. Furthermore, their passions to drink soft drink also draw them to eat fast food besides the factor of speed of dining fast food. II.
Tapping the New Beef Market
As the past few years back then, there was an outbreak of Avian Flu that devastated majority of the poultry stocks. Few years present, there are still news of Avian Virus is lurking around countries like Malaysia, Thailand, Vietnam etc. Hence, KFC has opportunity to tap the beef market as some customers are worried to eat chicken due to the news they heard. Thus there is potential market for KFC to grow if it launches new menu with beef meat. This would able to recapture the customers who afraid of eating chicken in KFC. III.
Introduction of New Menu
There is an increase demand toward snack food in KFC. Snack food like Mexican foods are new and would be welcomed in the market of Malaysia, Brunei and Singapore. As Mexican foods are tropical foods that very superb and suit the tastes and appetites of tropical customers in Malaysia, Brunei and Singapore. This opportunity would be a great success as the launch of Cheesy BBQ Meltz had increased the sales of KFC of 10% in 2006. IV.
Place of Visit for Tourists
Malaysia has abundant of tourists from Middle East as the culture of Malaysia is quite similar to Middle East and the religion is Islam. With the increase of tourists visit Malaysia, KFC could expect an opportunity to capture the market of tourists as the foods offered by KFC are Halal Guaranteed which suit the appetite of Middle East tourist. On year 2007 is Cuti-cuti Malaysia which mean tourist year for Malaysia which could further escalate the amounts of tourist to visit Malaysia. Thus is important for KFC to decorate the outlets to attract more tourists to dine in or takeaway in KFC. Page 7 of 22
KFC MALAYSIA MARKETING PLAN 6.0 OBJECTIVE Become leading of fast food chain in Malaysia is the mission and main goals of KFC Malaysia. Competition from other player in the industry such as McDonalds, Pizza Hut, Marrybrown and other small competitor reduce KFC markets share in the industry. KFC must increase their competitiveness to become a leading fast food chain in Malaysia. Customer preferences and tastes should be considered by KFC. As more Malaysians are exposed to various health threats, the demands for health enhancing foods are growing. Fried products mostly offered by KFC are not good for healthy. The increased health concerns among Malaysians have made available more health-promoting products in the market. KFC must offered variety of food with healthy added value. Example, provide whole meal bread with beta glucan for cholesterol lowering or orange juice contains dietary fiber and vitamins. KFC should offered variety of foods which is good for healthy. KFC can reduce the cost of production without having a negative effect on customer service level. Production and supply chain management can help by connecting every unit in the supply chain, fostering collaboration among supply chain partner, and offering visibility into demand and supply side of the chain. Reduce cost of production will increase KFC profit as long the reduction not affect their customer service level. In a business world where customer acquisition costs are sky rocketing, small and medium business must focus on customer building a customer experience to increase customer satisfaction. KFC should be focuses their effort on creating loyal customer, that sticky not easily influenced by their competitors such as McDonalds. A customer feedback is the best way for KFC to find out how satisfied their customers are, find how to improve their food and service as a fast food provider, and identify customers’ advocates who really love their products. KFC should also increase their growth rate in Malaysia. Increasing number of outlets include rural area will attract new customers as well as retain current customer. If KFC has more outlet and branches, it will attract more customers. So it will increase numbers of customers and increase KFC profit. In rural areas, customer taste and preferences are different; KFC should revise their menu to cope with the rural market segmentation.
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KFC MALAYSIA MARKETING PLAN 7.0 MARKETING STRATEGY What is the marketing strategy for KFC? Marketing strategies is generally accepted as the use and specification oh the 4p’s describing the position of a product in the market place. The 4P’s are Product which is the goods and service, Price, the value and product, Promotion where it aware the people about the product and Place where the distribution of the product occurs. The marketing startegies of KFC contains all the 4P’s. It contains everything KFC do it to influence the people and demand for their products. 7.1 Products Strategies The current strategy for KFC Malaysia of the product strategy varies; they have used many strategies in order to perform well in the market. The first and then most important thing that a company need to have is the ‘P’, Product. A product is anything that can be offered to a market that might satisfy a want or a need. KFC’S product planning is classified as consumer product as it has no intermediate. It offer special goods and the stock turnover of KFC is very high. Below are some of their current strategies. i.
Value Their current value added of their product is collaboration with hotlink, that when customer receives a sms from hotlink, they can go redeem the product of discounted food from KFC Malaysia outlet. Another value added of their products is free gifts, drinks upgrade to bigger portion. Now, KFC emphasized about Muslim community in Malaysia which is offered ‘Halal Chicken’ to fulfill demand of customer.
ii.
Scope The scope of their current product is multi product, which each product will suit into their different target market. The benefit of this product is each segment of customer will get what suit them the most. For example they have Kids’ Meal for kids. In KFC generally there is no limit focus by the KFC. The target and focus is on each and every individual in a society.
iii.
Design As for the design strategy, their current method is customizing standardization. They are using scope of product that is multiple in customized designs, but they have standardized the procedure of producing, which is the design customization. Page 9 of 22
KFC MALAYSIA MARKETING PLAN iv.
New Product Development KFC Malaysia will come out with new product once in a while; some of their promotional products that were introduced were Twister and Waikiki Burger. Developing a new product and eliminate it after some times will help them to gain numerous market shares, as people will try the product before it vanish again. KFC adds new product in its present assortment based on their competitors, product’s adequate demand, the satisfaction of the key financial criteria and its compatibility with environment standard. KFC’S product line includes all chicken based products, burgers such as Colonel burger, Zinger burger and Alaskan fish burger, Combo’s such as chicken meal and family meal, desserts and beverages such as ice-cream and tarts and of course some side orders such as rice, soup, etc.
7.2 Pricing Strategies The second ‘P’ from 4P’s is the Price. Price is the any amount of money that customers have to pay while purchasing the products. More broadly, price is the sum of all the values that consumers exchange for benefits of having or using the products or services. v.
Pricing for existing products – maintain Pricing is an important marketing factor for KFC because it brings impacts to the firm’s profit. Getting the right price will bring sufficient profit for the firm. In terms of KFC’s existing products, they are maintaining their product pricing.
vi.
Segmented pricing for customers Customer KFC has come out with segmented pricing strategy for the customers of the SBU. Children’s can enjoy special discount while purchasing KFC’s products especially kid’s products. And children who are registered as members also have some special surprise presents. Membership cards (Chicky Club) for kids has been used for a long time.
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KFC MALAYSIA MARKETING PLAN Time Currently KFC offer different time pricing. For instance, KFC now has snacks time in the afternoon from Monday to Friday with a cheaper price. This actually encourage customers to have a tea time culture in Malaysia.
7.3 Distribution Strategies The third ‘P’ is the Place. Place refers to how the product gets to the consumer. i.
Indirect Channel Currently KFC has implemented indirect channel in distributing the fast foods. KFC has only one channel distribution. Its only distribute its product directly to the consumer and no need of middleman. It does distribution of consumers good directly to the consumer. KFC’s Corporate, QSR Brands Corporation is the franchisee which has Ayamas Breeder, Life sauce factory etc which act as suppliers for KFC Restaurants which are the retailers that sell fast foods. This is the flow of indirect channel distribution: Suppliers (QSR Brands)
ii.
Retailers (KFC Restaurants)
Customers
Selective Distribution KFC Restaurants are selective distribution as these restaurants are limited to a certain amounts in each region. This is to minimize the stiff competition between each other in a same region. KFC is affected the geographic distributions. They have few outlets in some region and their competitor is McDonalds. KFC Restaurants did well in the past 30 years for gaining market share with over 390 restaurants in Malaysia, Brunei and Singapore.
iii.
Vertical marketing system -contractual In order to improve the brand name of KFC in Malaysia, Singapore and Brunei, KFC restaurant should be having vertical marketing system whereby there is a contractual agreement with the concept of franchisee, Yum! Brand. The concept of CHAMPS is Cleanliness, Hospitality, Accuracy, Maintenance, Product Quality and Speed with
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KFC MALAYSIA MARKETING PLAN Delivery. These concepts are important to ensure the brand name of KFC is with quality assured. Thus it is recommended that KFC restaurants should impose the CHAMPS concept in every of its restaurants.
7.4 Promotion Strategies The last ‘P’ is Promotion. Promotion is the method to inform and educate the chosen target audience about the organization and its product. KFC promotion strategy is the logo itself. The logo features Colonel Harland Sanders that is one of the best logo in the world has created its name as a standard in the market. The logo of the smiling Colonel is probably one of the most recognized faces in the world and instantly brings the image of fried chicken to one’s mind. i.
Advertising Advertising is the most fundamental way KFC promote its products. KFC, by its advertisements derives the desire in their customer to come and enjoy their meal. Currently, KFC is advertising in television, newspaper and radio. For television, KFC advertise mainly of its new meal or promotion during the commercial break. Furthermore, the advertisement also broadcast in its own website: www.kfc.com.my. For instance, the latest ad showed 2 Malay couples promoting the new KFC meal, Combo Ria with satay sauce by using a hilarious and comedy chit-chat. For the newspaper, KFC advertises the new meals and promotion which sometime provide free voucher to get discount. For radio, KFC normally advertise by persuading and reminding customers to dine in KFC restaurants.
ii.
Sales Promotion KFC always utilize the sales promotion in order to promote its new meals. By providing free voucher cutting from newspaper to get discount for new foods is always practiced by KFC. Besides free voucher for discount, KFC also has free vouchers in newspaper for free gift redeem such as soft drink etc. Moreover, KFC also collaborate with Maxis Hotlink to give Maxis prepaid users who hold KFC promotional SMS could get special meal when dine in KFC.
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KFC MALAYSIA MARKETING PLAN iii.
Public Relation Sponsorship is another way to strengthen on organization image. KFC’s sponsor’s many NGO’s and other social welfare organization. KFC has on-going of sponsoring television program just for kids such as Chicky Hour on every Saturday morning at TV3 has been going strong for more than 5 years. KFCs’s Chicky Hour showed fantastic cartoon program which enabled KFC to successfully capture the market of children successfully. In addition to that, KFC also practiced numerous corporate social responsibilities such as having a KFC Charity Collection Box in every outlet which could get customers to contribute for charity of orphanages. Moreover, KFC also has 3 restaurants employing staffs which are speech and hearing-impaired to help they build up the confidence and self esteem in their life.
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KFC MALAYSIA MARKETING PLAN 8.0 ACTION PLAN FOR KFC There are a few action plans that KFC could concern with. The action plan for KFC consist of four areas; Market Strategies, Products Strategies, Pricing Strategies and Distribution Strategies. Below are the explanations for each criterion’s that we suggest.
8.1 Market Strategies Market Scope
KFC is recommended to continue the existing strategy which they are pursuing various market strategies, multi - market when they target children, family, youth and young adults and to benefit KFC customers in terms of budget revenue and market share. In addition, KFC may want to consider adding one more to the marketing mix in their business solely for the health conscious customers. Because society currently receive a high quality education and become smarter, they will demand a healthier life. This is an issue that KFC could take into account
8.2 Products Strategies i.
Product Repositioning
KFC need to reposition especially among their existing customer. This is because many people have argued that food products from KFC are unhealthy because the food usually served fried. KFC Malaysia must convince their customers that the product is healthy to consume, for example KFC had uses zero Tran’s fat oils. The company's revenue could regain strength when people change their perception of KFC Malaysia, particularly in regard of health conscious. As one of its stated goals is to increase the satisfaction of their customers, with a good understanding of the customer it can improve customer satisfaction.
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KFC MALAYSIA MARKETING PLAN ii.
Value added for KFC product For this action plan, KFC should further enhance this value added to contribute more toward their growth rate, as their recommended goal now is to regain the growth rate and market share. They can give voucher for customer when they purchase their products. Another ways of doing would be that they establish KFC cards, where customers can collect points every time they buy products from KFC Malaysia. This action plan will enable KFC to increase their customer loyalty.
8.3 Pricing Strategies Pricing for customers At the moment, KFC are very popular on focusing children welfare. Despite that, the other action plan that KFC could focus on is by offering older citizen in Malaysia with membership card. Since a new customer segment which is health conscious customer has been add in into new strategy of KFC, older customer age 40 and above will actually come to KFC and enjoy meal. Thus, KFC can offer a special price and discount for the registered old customers. From the membership forms they fill in, information regarding their personal details and their preferences can be obtained. Other than that, Currently KFC also offer 24 open hours in west Malaysia but the price is normal like usual. It is recommended that special discounted price can be offer in the midnight from 12am to 8am everyday to encourage more customers to come to KFC in the middle of the night.
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KFC MALAYSIA MARKETING PLAN 9.0 CONTROLS PLAN Proper controlling method need to be considered by KFC as assurance and security on the implementation of action plan to sustain in good result and performance. It is also to ensure that plan is carefully monitored, evaluated and controlled.
9.1 Research and Development (R&D) One of the methods to all action plan stated on the previous part by establish marketing research a development team. The tasks for this marketing research team is to assess the information which needs and provide management with relevant, accurate, reliable, valid and current information to help in identify the suitable market, product, service, price for that product and service, value for that product and services and distribution strategies. This is very useful to enhance all the action plan like the market scope by consider to adding one more marketing mix into their business just for health conscious customers. Since communities nowadays receive high education quality and become smarter, they will demand a healthier life. This is an issue which KFC can take into account regarding the new design of the product need to develop as the result from the R&D process.
9.2 Repositioning Revolution The other method to control the product repositioning action plan is by introduce new product innovation to deliver improvements, to make something better and to make it relevant. Repositioning simply as relevancy readjustments to meet the demand of the existing and potential customers. Repositioning is to increase product or brand relevancy doesn’t have to be an expensive overhaul (remember, it is all about improvements), but it should be strategic and fit within the existing architecture and structure of what the product or brand has established. KFC should establish a standard time such as each three months should the brand repositioning align with the feedback from the customer the survey conducted by R&D team. The repositioning should be implemented after a market survey that conducted in 3 months from January to March. The reason being to choose the first 3 months in the year is to give space for KFC to correctly reposition for the rest of the months. It can be evaluated by using market survey method to understand the satisfaction level of customers toward KFC repositioning strategy which is supervised by Marketing Manager.
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KFC MALAYSIA MARKETING PLAN 9.3 Develop Time Base for Value Proposition to Solve Problem The third control approach to get closer to their customers, KFC should focus on delivering experiences that matter, and ensuring they’re aligned and centred in putting their customers at the heart of the organisation. The first part which is offering coupon is to be implemented on March to May to create more attractions during non-school holidays. While the second part, KFC Cards, should be implemented from July onwards, making the management able to find out the feasibility of such method. Both the strategy can be evaluated through the feedbacks from customers (conduct by R&D team). This overall process should be supervised by the Marketing Manager. New KFC product should be introducing to public on May to July, and November to December as these periods are school holidays thus can attract more customers. The intermittent period between will enable the operation department to have time to design new product. This need to be supervised by both operation manager and marketing manager, by looking at the quality of the product offered, and the customers’ response. The product design for KFC is about customization of the products. The suggested time of implementing this is October until December 2008. The evaluation could be conducted through feedbacks from customers regarding their satisfaction toward the new product. To be supervise by both Marketing Manager and Operational manager again.
9.4 Profitable Price Drivers Next controlling approach to monitor the entire action plan by evaluates the core drivers of customer demand and their relationship to product pricing. It consists of technology, design, quality, current economic condition and issues, competition, costs or expenses, season and delivery services. These price drivers enable by deep customer analytics, it ensures that pricing becomes adaptive to the market and the ever changing value perceptions of your customers. All these drivers will be price determinant for the existing product the price will be maintained throughout the year only for certain period such Chinese New Year, Hari Gawai and Hari Raya season. KFC can imposed the mentioned pricing strategy for existing product to boost temporally sales. For new products proposed pricing strategy will be skimming pricing. The perfect period to impose the proposed strategy is May, June and July. This is because sales promotion are being impose as a promotion for those three months and it is a good idea for KFC to introduce new products to customers. Segmented pricing which is use
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KFC MALAYSIA MARKETING PLAN on the senior citizens (members only) is proposed to be the whole year. This special price that imposed is to act as privilege for them. But take note this strategy can only be use if KFC come out with healthy meal for them as they older citizens above 40 years old is not encourage to consume lots of fried food.
9.5 Supply Change Management Supply change management play major role over the last decade to success in the global economy. As a part of the supply chain, KFC should use current trend of channel of distribution which is fulfilled the demand of social media user. This as part of its value chain to a set of downstream independent intermediaries or representatives through Facebook, Twitter and Instagram. KFC should launch a specific account add that specially designed to cater for online order and speed delivery. KFC should implement this in 2 months’ time which is from September to October which is sufficient time to launch a success account add. Moreover the account add should launch prior to cater the increasing demand during school holidays on November and December. This should be supervised by Public Relation Manager. After the market research survey, KFC could extend its outlet scope to places that respondents would like to have. Furthermore, KFC could set the mobile restaurants to rural places to have trial on the market of rural places. Thus the period of extending the coverage is best to be April until August which is the period after the market research survey. This should be supervised by Distribution Manager. In conjunction with the market research that would be done during January until March regarding the repositioning strategy. KFC could probe respondents to give opinion regarding the satisfaction level toward the locations of KFC outlets. Hence, KFC could use the information to reduce the opportunity costs of setting up outlets. This should be supervised by Operation Manager.
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KFC MALAYSIA MARKETING PLAN 10.0 CONTIGENCY PLAN Contingency plans a plan where take over or being use in order to overcome the action plan that was not really effective. This contingency plan will be use after a detailed controls evaluation over the action plan had been taken care but the outcome was not really good. There are four contingency plans that seem suitable for KFC to focus on. i.
New Product Development New product development is also proposed to have new product like Dumpling and Satay. Both of the products are traditional dishes for Malaysia’s two main races, Chinese and Malay. In touching people’s heart, people will like KFC more than any other fast food restaurants. Market share thus will be further increased.
ii.
Product Design KFC Malaysia should use the customization strategy for their products. The morale behind this is that people will choose what ingredient they wanted for their products, they will do it themselves, and pay only when they proceed to the counter. Not only this, customer will be more satisfied if they can choose what they want to eat, and health conscious customer can have more choices in dining, because they are not restrained from eating things that they do not want.
iii.
Sales Promotion Child is the main player in KFC customer group. By focusing on this category, eventually it will attract the entire family member to come to the KFC outlet. So, KFC could organize event like drawing competition in restaurants. This could be done by giving a drawing paper to the children to draw and fill color after customers purchased meal, and the list of winners would be informed after the due date. This could attract more children to participate as children are tending to like drawing and filling color.
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KFC MALAYSIA MARKETING PLAN iv.
Public Relation KFC should endorse famous singer or celebrity to promote KFC meals through advertisement. It also could be done through the singing concert that would be sung by the famous singers. KFC could search opportunity by collaborating among the rising-famous singers in Malaysia and it would help boost the sales of KFC. This could be done by giving half price concert ticket when customers purchase particular meal in KFC restaurants. Furthermore, customers’ behaviors would tend to like discount and half price incentives and it would assure KFC could successfully capture the markets.
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KFC MALAYSIA MARKETING PLAN 11.0 CONCLUSION 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 our products and convince them to buy the products offered by us. However organisations in our era are extremely sensitive as they must be to demographic, political, technological and economic developments. Environmental changes most affect strategic perspective. KFC can has a stronger market share than McDonald if struggle in promotion activities, offered more variety of products and able to create brand loyalty. An effective marketing program brings together all of the elements of the marketing mix to achieve the organisation's marketing objectives by delivering to customers what they want and need. Thus, the most important things in marketing plan must represent a very modest cost relative to the magnitude of the results of successful marketing operations. The necessity for good planning increases as the difficulty of marketing increases. There are numerous indications that the present trend toward higher costs of doing business and greater competition in each marketing area will increase rather than diminish. The marketing executive in KFC who has the foresight to see where he wants to go, the ability to determine the best way to get there, and who takes the trouble to write it all down in a marketing plan, is very likely to achieve the success in the market place he is seeking. Thus, this marketing plan will help the marketing executive in implementing or executing for the sake of KFC development in the future. As we know a lot of threat surrounding us and if there is no proactive action taken it will lead to lower market share from time to time. This marketing plan is like a map to guide KFC achieves their goals as well as coordinates the effort of the staffs and ensures always being proactive. Other than that this plan will help KFC to stay focus, organized and on track throughout the year.
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KFC MALAYSIA MARKETING PLAN REFFERENCES
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