Franchise brand owner: Yum Brands Inc Founded by Harland Sander KFC come to Malaysia in 1973 Largest Fast Food chain in Malaysia, it has 555 outlets. Joint ventures : chicken farm, fresh chicken retail, bakery and chili sauce manufacturing. The first KFC restaurant in Malaysia was established in 1 St January in 1973 on Jalan Tunku Abdul Rahman. Nowadays, there are approximately more than 500 KFC's outlets have been established in Malaysia Kentucky Fried Chicken Holding(KFCH), the franchisee of the KFC chain of restaurants in Malaysia, Singapore, Brunei, Cambodia and India.
Vision To be the leading integrated food services group in the Asia Pacific region based on consistent quality products and exceptional customer-focused service. Mission To maximize profitability, improve shareholder value and deliver sustainable growth year after year. Objective Expand the menu and change the sides to healthier choices for the customer. They want to continue to expand their business and get more consumers to purchase their food.
Products Strategies Collaboration with Hotlink, that's When a customer receives an SMS from Hotlink, Sonny cans go redeem the product of discounted food from KFC Malaysia outlet Free gifts, drinks upgrade to bigger portion Some of their promotional products that's were introduced were Twister and Waikiki Burger
Pricing Strategies Pricing for existing products (maintain) They are maintaining pricing. Segmented their product pricing for customers Customer Membership cards (Chicky Club) for kids Children can enjoy special discount -kids products. Children who are registered as members also have some special surprise offer different KFC presents Time KFC now has time snacks in the afternoon from Monday to Friday with a cheaper price Encourage customers to have a tea time culture in Malaysia
Communication Strategies Advertising For television, KFC advertise mainly of its new meal or promotion during the commercial break The latest KFC has came out with new advertisement which their using international football player who is Christiano Ronaldo as their ambassador. For radio, KFC normally advertise by persuading and reminding customers to dine in KFC restaurants.
Sales Promotion Providing free voucher cutting from newspaper to get discount for new foods Free vouchers in newspaper for free gift redeem such as soft drink Collaborate with Maxis Hotlink to give Maxis prepaid users who hold KFC promotional SMS could get special meal when dine in KFC.
Public Relation Sponsoring television program just for kids such as Chicky Hour on every Saturday morning at TV3 Having a KFC Charity Collection Box in every outlet which could get customers to contribute for charity of orphanages Revised Vision And Mission
Vision To be the leading integrated health and hygiene services group in the Asia Pasific region based on consistent product and exceptional customer focused service.
Mission To maximize profitability, increase shareholder value through sustaining continuous improvement (KAIZEN) year by year.
Opportunity Increasing demand for healthier food Introduce non-chicken products such as frozen vegetables which have longer shelf life since people are reducing the intake of both red meat and fried chicken for health reasons. Home meal delivery KFC should introduce the delivery services to cater this segments who enjoy the services of the firms rival to increase the company revenue Introducing new products to its only chicken range KFC could introduce new meals to its menu and offer pork, beef or only vegetarian meals, which would target wider consumer group and would result in more costumers. KFCH to extent the KFC chain restaurants to Middle East countries and introduce the menu with local taste KFC should leverage and replicate their success to unexplored markets in both Africa and Asia. They can also acquire smaller competitors like merry brown to increase their market share. Menu diversification Add more products to the menu to offer customers variety of choice and increase the target market for example the old people. Increase number of outlets offering drive-thru service and delivery service External Threats Saturated fast food markets in the developed economies Trend towards healthy eating Local fast food restaurant chains Currency fluctuations Competitors are turning to new menu offered, open new outlets and location Increase number of customers aware of the importance of healthy foods The increasing numbers of health conscious people who tend to avoid fast food products are threat to the firms customer base and revenue in future. Lawsuits against KFC
No. Success Factor Weight KFC McDonald Rating 1-4 Score Rating 1-4 Score 1 Market Share 0.20 4 0.80 3 0.60 2 Product Quality 0.15 3 0.45 4 0.60 3 Customer Loyalty 0.17 3 0.51 2 0.34 4 Customer Services 0.25 2 0.50 4 1.00 5 Price Competitive 0.13 3 0.39 2 0.26 6 Advertisement 0.10 3 0.30 3 0.30 TOTAL 1.00 2.95 3.10 Internal Strength Second best global brand in fast food industry in terms of value ($ 6 billion). KFC is known by many and is a trustworthy brand in many countries mainly due to its early franchising and international expansion. Original 11 herbs and spices recipe. KFC original chicken recipe is a trade secret and a source of comparative advantage against firms competitors. Strong position in emerging Malaysia. More than 500 KFC Restaurants nationwide. KFC position in Malaysia is one of its main strengths as Malaysias fast food market is growing steadily. Maximize revenue to Malaysian Stakeholder KFC return is 94% (Kentucky Fried Chicken Holdings) and only 6% is paid to the franchise owner (YUM Brands Inc). (Anas, 2013) Kentucky Fried Chicken Holding, the franchisee of the KFC chain of restaurants in Malaysia, Singapore, Brunei, Cambodia and India KFC is the market leader in the world Among companies featuring chicken as their primary product offering. KFC has positioned itself clearly among other fast food chains bearing its famous slogan and trademark chicken products. Internal Weaknesses Negative publicity. criticism from PETA over the conditions chickens have been raised. Furthermore, it received bad publicity for selling chicken wing with kidney. Unhealthy food menu. KFC menu is largely formed of high calorie, salt and fat meals and drinks. Such menu offering prompts protests by organizations that fight obesity and hence, decreases KFC popularity. High employee turnover Employment in KFC is a low paid and low skilled job. It results in low performance and high employee turnover, which increases training costs and add to overall costs of KFC. Some outlets not emphasize on maintain hygienic restaurants and foods Lack of efficiency in serving meal to customer High Price Only chicken related products. Internal Factor Evaluation
Key Internal Factors Weigh t Rate Weighted Score Strengths Second best global brand in fast food industry 0.09 3 0.27 KFC original chicken recipe is a trade secret 0.10 3 0.3 KFC position with more than 500 outlets in Malaysia 0.09 4 0.36 KFCH is the franchisee of the KFC chain of restaurants in Southeast Asia 0.09 3 0.27 Maximize revenue to Malaysian Stakeholder 0.10 4 0.04 Local and world leading company for chicken product 0.08 2 0.16 Weaknesses Negative publicity. 0.04 2 0.08 Unhealthy food menu 0.06 3 0.18 High employee turnover 0.06 3 0.18 Some outlet not maintain hygienic restaurants and foods 0.09 2 0.18 Lack of efficiency in serving meal to customer 0.08 3 0.24 High Price 0.06 3 0.18 Only chicken related products 0.06 4 0.24 Total 1.00 2.68 External Factor Evaluation
Key internal factors Weigh t Rate 1-4 Weighted score Opportunities Increasing demand for healthier food 0.14 4 0.56 Home meal delivery 0.10 3 0.30 Introducing new products to its only chicken range 0.10 3 0.30 Extend the KFC chain restaurants to Middle East countries and introduce the menu with local taste 0.10 3 0.30 Be environment and society responsible 0.10 3 0.30 Increase number of outlets offering drive- thru service and delivery service 0.10 3 0.30 Threats Saturated fast food markets in the developed economies 0.05 3 0.15 Trend towards healthy eating 0.05 4 0.20 Local fast food restaurant chains 0.07 4 0.28 Currency fluctuations 0.04 3 0.12 Competitors are turning to new menu offered, open new outlets and location 0.04 2 0.08 Number of customers aware of the importance of healthy foods 0.04 4 0.16 Lawsuits against KFC 0.05 3 0.15 Total 1.00 2.90 http://www.slideshare.net/FarhanAkhtar1/kfc- matrixes-analysis http://www.ijhssnet.com/journals/Vol_3_No_1_Januar y_2013/23.pdf Website kfc Johor corp