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In current scenario competition is on its highest level. Companies are trying to attract
customers and other stakeholders with their new and innovative ideas. Changing social and
technological trends are vastly affecting marketing campaign of organizations. Most of the
organizations are taking advantages by these changes by introducing their innovative ideas
into real life practises. Effective marketing campaign has become an essential element for
business growth. In order to attract potential customers companies are putting their efforts
and huge money. Current marketing world has become such place where thousands of
innovative ideas come into practises every day. The competition level is so high that an
organization can not suffer in marketplace without help of a strong strategic marketing.
In order to take competitive advantage it has become must for the organizations to make
strong plan for their each resources so that the optimum utilization of resources can be
taken. Marketing is defined in Oxford as the action of promoting and selling services or
products that also include research of the market and advertising (Piercy, 2009). In common
words the purpose of marketing is to cut down the sales cycle of the organization. All the
organization is current scenario known the importance of marketing but very few of them
understand that what actually required for a successful strategic marketing campaign.
Strategic marketing is the process of identifying the sustainable competitive advantages of
the organization and assign resources to develop them (Baker, 2000).
This trend of strategic marketing can be found in every industry. This present study is going
to discuss the strategic marketing campaign of KFC that is a world known fast-food
restaurant chain. This report will analyse the role of strategic marketing for KFC and will
provide a range of marketing strategies that can provide competitive advantage this
organization. The aim of this study is to provide comprehensive understanding strategic
marketing plan to develop competitive advantage in the market place. This report will be
divided into four different parts where each of them will provide in-depth study of the topic.
The very first part will provide the understanding of principles of strategic marketing. The
next will include the understanding of strategic marketing analysis. Third will analyse the
strategic marketing decisions and choice and the last will indicate that how a range of
marketing strategies can provide competitive advantage in market place.
About KFC: Headquartered in Kentucky US, this is the largest chicken restaurant chain in
world providing their delicious fried chicken in more than 115 countries. It was founded in
1930 by Harland Sanders (About KFC, 2013). CFC has been the target of an ongoing
campaign by PATA an animal rights organization. Along with this in present scenario a
serious issue has become major concern for KFC and that is their junk food which is
responsible for unhealthy lifestyle of people.
1. UNDERSTAND THE PRINCIPLES OF STRATEGIC MARKETING
1.1 Assess the role of strategic marketing in KFC
As discussed above that marketing has become an essential part for organization success
and every company need to focus on their marketing campaign for finding the competitive
advantage. Marketing strategy helps in creating a brand image in mind of the customers as
well as attracts them for using the products and services. In relation to KFC strategic
marketing played a comprehensive role in their business success. The marketing strategy
of KFC identifies the strengths of their products. In current world a big part of populations
knows about KFC and their chicken products either they are vegetarian or non-vegetarian,
due to marketing campaign. The marketing strategy helped KFC promoting their products
(Toney, 2000). By the help of a comprehensive strategic marketing plan KFC came know
the demand of customers and provide verity of products for accordingly. For example
through their marketing campaign company came to know that a big part population is
vegetarian and do not eat chicken. Based on that marketing campaign, KFC included
vegetation food products in their menu. So ultimately strategic marketing played the key role
in developing the business assignment strategy.
The strategic marketing identifies the available marketing media options for the KFC and
provides the best option that can effectively achieve the marketing objectives. By the help of
strategic marketing KFC can easily communicate their innovative ideas and offers with their
potential customers and other stakeholders. Strategic marketing includes the long term
marketing objectives of the organization that help in employing the effective plan for each of
the objective, for example promotion, pricing and place (Jagersma, 2006). Ultimately the
strategic marketing plays the key role in taking the effective use of resource and generating
revenue.
1.2 Analyse the relationship between corporate strategy and marketing strategy
Corporate strategy includes the direction and scope of the corporation along with the way of
operating different business operations together to achieve organizational goals. The
ultimate goal of corporate strategy is to define long term objective of the organization so that
effective plans can be formulated. Corporate strategies define the key objectives of the
organization and on the basis of those objectives marketing strategies are formulated. In
other words corporate strategy defines the track for marketing strategy. Every strategy is
formulated in order to achieve some particular goal and so as marketing strategy (David
and Damien, 2007). The top management of the organization defines the long term and
ultimate business objectives either that can be profit making or customer satisfaction and on
basis of those objective marketing strategies are formulated.
A number of changes occurred at the corporate level of KFC one of them was changing the
name from Kentucky Fried Chicken to KFC. The reason behind doing so was to give a
different image rather than being seen as a fried chicken restaurant. In making this major
change the marketing strategy played a major role. Different advertising and promotional
campaign helped in making this big change. The objectives of the organization determine
their strategies. Corporate level strategies define the long term objectives of the
organization and that determines the marketing strategies (Jackson, 2008). So ultimately,
corporate strategy is a broader term that includes marketing strategy in it. Marketing
strategy plays a key role in strategic planning by making the link between the business and
the environment. Strategic marketing includes the study and analysis of external
environment that provides the base for strategic planning.
1.3 Analyse how marketing strategy is developed
Developing an effective marketing strategy includes five step processes. By using this step
KFC as well as other organizations can easily develop an effective marketing strategy that
can support their business objectives and boost their revenue.
Defining the unique selling proposition of the company
The very first step includes the identification of companys unique selling proposition. The
next step includes the identification of target market. It indicates the market place where
organization can find their potential customers. It also includes the analysis of market and
SWOT analysis that defines the strengths and weaknesses of the organization as well as
possible threats and weaknesses of the market (Porter, 2001). On the basis of this analysis
marketing plan is drafted. It includes the marketing objectives and issues that determine the
track of the succession of plan. This is the most important step of marketing strategy
development because the effectiveness of objectives determines the entire process of
marketing so while making the marketing plan well defined objectives should be there. After
drafting the plan the next step is implementation of strategy. It includes the adoption of
drafted plan into real life practises. All marketing activities should be performed according to
plan by focusing on objectives. The last step is control and monitoring where managers
need to control the activities according to pre determined measures and remove the errors.
The effective control keep the focus of activities on ultimate goals determines the
succession of strategy.
2. UNDERSTAND HOW TO CARRY OUT STRATEGIC MARKETING
ANALYSIS
2.1 Evaluate approaches to internal environmental analysis
The analysis of internal environment helps in defying the strengths and weaknesses of the
organization. The internal analysis vastly focuses on organizations vision, mission, strategic
objectives and strategies to achieve that objective. It also includes the analysis of various
resources such as financial resources, human resources, different assets and technological
advancement (Richard and Colin, 2005). All these resources majorly contribute in achieving
organizational objectives. But on the other hand lack of any of them becomes the weakness
for the organization. One of the major approaches of internal analysis is SWOT. It indicates
the strengths, weaknesses, opportunities and threats.
Value chain analysis: other than SWOT analysis value chain analysis is an effective tool
for examining the internal environment. It defines the various activities of the business in
order to deliver products to the market. It includes the analysis of two types of activities, one
is primary activities that include inbound logistics, operations, outbound logistics, Marketing
and sales and services (Arit and James, 2011). Secondary activities include infrastructure,
human resource management, procurement and technology.
Figure 1 Value chain analysis
KFC is the market leader in chicken restaurant due to their strong primary activities. Their
primary activities strongly contribute in providing the KFC food items in different parts of the
world. Company is having sound relations with their all key suppliers that facilitate timely
delivery of raw materials for the products (Casciaro and Lobo, 2008). Huge force employees
with latest technology effectively manage operations and products are delivered at right
time and at right place. Company has attacking marketing strategies that attract the
customers towards the resultant.
2.2 Evaluate approaches to external environmental analysis
External approaches are used to identify key external factors that cannot be controlled by
the company management. Most of the external factors affect the entire industry rather than
an individual firm. The best approach for external analysis is PESTEL.
Should we diversify into other line of business or concentrate the activities within industry
boundaries?
The corporate level executives have three general directional orientations for chose a
directional strategy; these orientations are called grand strategy:
Corporate activities are expanded by growth strategies.
Allocating Resource: KFC is a multinational and there are many SBUs help in operating
their operations worldwide. In such circumstances decisions regarding resources allocation
are taken by the corporate level.
3.2 Assess how these decisions influence marketing at business unit and functional level
Corporate level strategies are formulated by the top management of the organization.
These strategies indicate the ultimate goals of the business and other business activities
are planned according to those objectives. The major objectives are defined by the
corporate level strategies and all other level strategies play a supportive role in achieving
those objectives (Findlay and Sparks, 2002).
As like corporate level strategies business level strategies also focus on the overall
performance of the organization. But it only focuses on one rather than range of business
units. Business units are individual enterprises their strategies are particularly concerned
with:
Manage the unit activities in order to ensure their support in achieving corporate level
objectives.
Cooperate with other business units for achieving the strategic synergy
In order to conform the needs of the market monitor the business industry environment.
Functional areas of the organization such as product development, marketing and sales,
human resource, production, research and development all are concerned to the functional
level strategies. The contribution to individual business unit strategies is holed by the each
function so as in corporate level strategy too. The functional level strategies are concerned
with:
Developing the specialists in each functional area to perform the activities efficiently.
Ensure the link between activities and ultimate goals of the organization.
Activities of the business can be divided into different business units and functional unit but
the ultimate goal of all activities remains common for all and that is determined by the
corporate level. So any change in corporate level strategy directly affects the business and
functional level activities.
3.3 Analyse approaches to competitive positioning of organisations
In order to get competitive advantage thorough positioning the best approach for KFC is
porters five force model. This is the one of the most effective tool for completive positing
given by Michal Porter. This model indicates the competiveness of market by analyzing five
key factors such as bargaining power of customers, bargaining power of suppliers, rivalry
among existing competitors, threat of new entries and threat of substitute products.
Bargaining Power of buyers: the bargaining power of buyer is low in food industry
especially for KFC due its brand image and quality of products. But on the other hand the
number of competitors is higher so there is lack of customer loyalty.
Bargaining power of Suppliers: The bargaining power of suppliers is higher in this
industry as there are number of competitors offering the same product and requires the
same raw material (Beer and Eisenstat, 2000). In such circumstances organization has no
choice other than accepting the demanded prices of suppliers. But again sound and old
relationship with supplier vastly solves the problem of suppliers loyalty.
Threat of new entry: the threat of new entry is higher. Several small companies coming
into market place with their innovative concepts and one successful concept of any of them
can vastly affect the market position of KFC. The requirement of fund and other resources is
lower than other industries so the chances of new entries are higher (Roy, 2009).
Thereat of substitute products: KFC is well known for their fries chicken but the
increasing healthy eating habits are forcing people towards vegetarian food. So ultimately
the place of chicken is being taken by vegetarian food items. So the threat of substitute
products is higher.
Rivalry among existing competitors: the high degree of completion can be seen in food
industry. Major fighters such as McDonalds, Burger king and KFC are trying their best to
attract customers with their innovative inventions in food products. Organizations are
changing their segmentation for attracting customers KFC vegetation food items are the
best example for this (Ferrel and Hartline, 2008)