The plan analyzed the micro and macro environment factors affecting the company aswell as the SWOT analysis of KFC Vietnam to see the company's strengths, weaknesses,opportunities, and t
Executive Summary
This report outlines the marketing plan for KFC, a leading fast-food chain in Vietnam, starting with the company's vision and mission statement It details the marketing and product strategies implemented to enhance product promotion and sales The analysis includes both micro and macro environmental factors influencing KFC, along with a SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats Finally, the report presents a comprehensive marketing mix strategy tailored for KFC Vietnam.
Our marketing strategy focuses on targeting the youthful demographic by segmenting the market effectively We aim to expand our reach and enhance our product offerings while building trust with potential customers through promotions in direct sales channels This comprehensive plan is designed to strengthen KFC Vietnam's connection with customers and solidify its brand presence in the Vietnamese market.
Analysis Marketing Situation
About KFC
Kentucky Fried Chicken (KFC), founded by Colonel Sanders in the early 1930s as a small franchise in the Southern USA, has grown into one of the most recognized fast food chains globally Colonel Sanders has become an iconic figure, symbolizing KFC's commitment to quality, service, and cleanliness (QSC), which are essential to its worldwide success KFC embodies the spirit of Food, Fun & Festivity, consistently leading the market by offering the ultimate chicken meals.
Chicken Loving Nation With a special recipe of 11 herbs and spices, KFC serves finger lickin' good food to all our customers!
In 1971, Heublein, Inc acquired KFC, leading to conflicts between Colonel Sanders, who served as a public relations ambassador, and management over quality control issues KFC, now part of Yum! Brands, Inc., has established a reputation for quality service and cleanliness, particularly in Pakistan By 1986, KFC had expanded to approximately 6,600 units across 55 countries, but PepsiCo spun off its restaurant businesses, including KFC, in 1997 for strategic reasons.
Vision: to be leading integrated food services in ASEAN region delivering consistent quality products and excellent customers focused.
Mission: to maximize profitability, improve shareholder value and deliver sustainable growth year after year.
Western food combined with Asian spices
- Cities: Hanoi, Ho Chi Minh city, etc.
- Gender: both male and female.
- Income: middle and high income.
- Taking care of customers health status.
- Willing to pay high quality products and services.
- Interested in: fast food, fried food, chicken products.
Marketing Situation
Promoting structure is essential for all businesses, and KFC exemplifies this by meeting societal demands with its fast food offerings and side dishes Their appealing menu attracts a diverse clientele, extending beyond Australia.
The strengths and weaknesses of an organization are internal factors, while opportunities and threats arise from external forces beyond its control This article will examine the micro and macro environmental marketing factors that influence an organization, with a particular focus on Kentucky Fried Chicken, which has faced both positive and negative scrutiny in the public eye.
Micro-environmental components significantly impact KFC by directly influencing aspects such as stakeholder reactions, customer satisfaction, employee grievances, and competition These issues are manageable for the organization and can be addressed internally without the need for external consultants.
KFC is a global organization that has a chain of drive-thru eateries everywhere on the world.
KFC has established 135 outlets mainly in Ho Chi Minh City and Hanoi, the two largest cities in Vietnam The company is experiencing rapid growth due to its strong relationships with customers and the trust it has built over the years Recognizing that employees are the organization's most valuable assets, KFC places a strong emphasis on their well-being and development.
A strong relationship with suppliers leads to positive feedback from customers When KFC treats its fast food suppliers well, they are likely to reciprocate with kindness This collaboration ensures that food contamination issues are avoided, allowing quality meals to reach the public through KFC.
The organization collaborates with various entities to enhance the promotion, sales, and distribution of its products and services For instance, KFC focuses on creating offerings that align with customer needs and preferences, ensuring quick service at their outlets As a result, KFC operates without the need for marketing representatives.
KFC boasts a vast customer base, emphasizing their commitment to customer satisfaction with the motto, "We are becoming just with our client." The restaurant provides a welcoming atmosphere for families and patrons, prioritizing comfort and fulfillment This dedication is reflected in their impressive achievement of serving 40 million customers at a single outlet.
Midnight bargains are there for the customers with 50 % markdown, which is being valued by the people
Business Market: Business markets purchase labor and products for additional handling or for use in their creation cycle In the event of KFC there is no such business market.
Resellers: KFC is managing in cheap food, thus they don't have any affiliates in that capacity
Government Customers: As such no govt client exist up until this point KFC isn't expecting any govt client accordingly.
International Customers: KFC is worldwide organization They have outlets, practically in each country So they have global clients everywhere on the world.
They are arranged into immediate and roundabout contenders
Direct Competitors: It incorporates, Mc Donald's, AFC, Metro, JFC
Indirect Competitors: It includes all other restaurants Like Salt & Pepper, Kabana, Village, Bundu Khan Etc.
Financial Public: KFC is an autonomous organization It has no drawn out bank credit. For momentary credit, it depends on Standard Chartered Bank.
Media Public: KFC burns through 8 % to 9 % of its income on commercials To have greater commercial, they are of the view to build their notice.
Government Public: Duties are constantly forced by the govt public KFC deals charge on every feast is 1.2 %.
Internal Publics: The representatives are incredibly repaid by KFC Representatives get standard rewards and different advantages which depend on their exhibitions.
Workers are resources and we reward them enormously, KFC says Unique identifications and pins are doled out to workers.
KFC prioritizes understanding the public's perception of its products, actively seeking customer feedback whenever launching a new item This approach helps the brand align its offerings with consumer preferences and expectations.
KFC, like other companies, operates within a broader macroenvironment that influences its opportunities and poses threats This macroenvironment encompasses significant factors that impact the overall business landscape To thrive and survive, businesses must adapt to these macroenvironmental forces, as they cannot alter them.
The current population of Vietnam is 98,125,881 as of May 27, 2021, according to the latest figures from the United Nations 37.7% of the population lives in urban (36,727,248 people in
2020) The median age of Vietnamese is 32.5 years old (Worldometer, 2021)
Economic growth, inflation, unemployment rate, bank interest rates, and other factors that directly effect customer purchasing power are all part of the economic environment.
Analyzing the economic environment will make it easier for firms to estimate their customers' purchasing power.
The Vietnamese economy has been impacted by the ongoing COVID-19 pandemic due to its close integration with the global economy, but it has demonstrated extraordinary resilience In
2020, GDP increased by 2.9 percent However, because of the successful management of COVID-19 infections, Vietnam's GDP is expected to rise 6.6% in 2021 Between 2002 and
2020, GDP per capita increased by 2.7 times With positive aspects of the economic environment, Vietnam is seen as a genuine growth market for US investors such as KFC (The World Bank, 2021)
The natural environment includes factors that affect the supply sources for enterprise activities, as well as marketing activities, such as climate, weather, natural resources, and the environment.
Here are just a few of the projects KFC has implemented to minimize our environmental impact:
Created a recycling program for glass, plastic, aluminum, cardboard, paper and more.
Switched lighting to energy-efficient CFL or LED bulbs in many areas.
Installed smart valves on all men’s urinals, saving thousands of gallons of water each month.
Created a program to purchase recycled-content paper products.
Science and technology are continuously advancing, enhancing convenience and ease in everyday life Companies that leverage these advancements can create innovative and valuable products for their customers.
KFC is committed to advancing research and integrating new technologies, utilizing state-of-the-art machines and boilers while conducting technical checks and maintenance every six months This approach has significantly reduced food preparation and delivery times Additionally, KFC Vietnam enhances customer convenience by offering online ordering options through mobile applications like Now and GrabFood.
The political environment significantly influences the business landscape through the enactment of various laws and policies, including Commercial Law, Civil Law, and Monetary Policy These regulations promote fair competition among businesses while safeguarding the rights and interests of consumers and society as a whole.
The Vietnamese government actively encourages foreign investment, creating a favorable environment for international companies like KFC to succeed in the fast-food industry To operate effectively, KFC must comply with the government’s food safety regulations, ensuring the highest standards in its offerings.
The cultural environment encompasses the values, beliefs, and standards that influence consumer purchasing behavior, playing a crucial role in shaping businesses' interactions with partners By understanding these cultural factors, companies can foster better relationships and facilitate smoother negotiations in economic contracts.
KFC offers a unique European-style fast food experience that contrasts sharply with traditional Vietnamese cuisine, which includes dishes like rice noodles, sticky rice, sweet soup, and phở The distinct flavors found in Vietnam also vary significantly across its three regions: North, Central, and South.
2.2 Current Marketing Mix (4Ps) a Product
The most important key in product strategy of KFC brings differentiate products from other competitors in the same production line and gain a competitive advantage in buyers' minds
SWOT analysis
Reputation: KFC is the 2nd largest chain store in the world (by revenue).
Distribution system: 18.875 stores in the world and 140 stores in Vietnam.
Production process arcording to the group’s strict international standard.
Many promotions by day and free delivery service.
Stores are located in the central location of the streets and malls. b Weakness
The price is still high compared to the income level.
Main ingredient is industrial chicken.
Unstable and inexperienced human resources. c Opportunities
KFC is the first fast food company in Vietnam, so they have many advantages in business and the fast food industry in Vietnam.
Vietnamese’s income increases over the year is an opportunities for KFC.
Changing Menu to target Health Conscious People.
Supporting policies from the government. d Threats
The rising in cost of resources denote serious threat to the brand
Competitors in fast food industry like Mc Donals or Lotteria have many innovative menus and have seen many ways to increase their customer base and market share
Marketing Plan
Objectives & Issues
Expand the scope of activities and market segments.
Build a leading image and trust.
Support Vietnamese farmers in the fight against the Covid-19 epidemic. b Issues
Fast food, particularly fried options like those offered by KFC, is often viewed as detrimental to health when consumed frequently Media coverage tends to highlight the negative consequences of fast food, contributing to growing consumer anxiety about obesity As a result, there is a noticeable shift in consumer preferences towards nutritious and healthy food choices, reflecting a desire for safer dietary options.
Vietnamese street food stands out as the preferred choice for locals, offering a delightful combination of taste, nutrition, and affordability While some may turn to fast food out of curiosity or necessity, the rich flavors and wholesome ingredients found in street food fulfill all the cravings of the Vietnamese people.
Marketing Strategy
Market strategies is very important Your marketing strategy consists of: The “what” has to be done Inform consumers of differentiation factors.
KFC effectively employs market segmentation to cater to the diverse needs of its customers, primarily targeting young individuals and young adults Initially, KFC offered a uniform menu globally, reflecting an undifferentiated targeting strategy However, inspired by McDonald's, the brand has recently tailored its menu to enhance market appeal Additionally, KFC has shifted its positioning strategy from a product-centric approach to a value-oriented one Strongly associated with its chicken offerings, KFC stands out in the minds of consumers, particularly among non-vegetarians While there are limited vegan options, KFC’s chicken wings and buckets remain favorites, driving non-vegetarian customers to choose KFC as their go-to dining option.
2.1 Segmentation, Target Market & Positioning a Segmentation
KFC employs a comprehensive market segmentation strategy that includes geographic, demographic, psychographic, and behavioral factors Initially, the company focused on a niche market with its Combo Deals, but it has since broadened its approach to target multiple consumer segments, expanding its overall target market.
KFC mainly focus on following market segments: Demographic Segmentation.
Demographic segmentation consists of dividing the market into groups based on variables such as: age, life cycle stage, income, social class. b Target Market
Marketing targeting involves evaluating the attractiveness of various market segments and selecting one or more to enter KFC specifically targets the younger demographic, as this group tends to prefer dining out and exhibits a vibrant lifestyle The brand also focuses on early singles, catering to the upscale market.
Positioning refers to the unique place a product occupies in the minds of consumers relative to competing products (Philip Kotler, 2008) KFC's significant success stems from its strategic positioning in the consumer's mind, achieved through a focused marketing approach By differentiating itself from competitors like McDonald's, Burger King, and Subway, KFC emphasizes high-quality products and a strong brand identity The company actively seeks customer feedback to understand their needs and preferences, allowing KFC to focus on fresh, pure food offerings that create a distinct image in the minds of its customers With a powerful brand name and leadership in the fried chicken market, KFC leverages these strengths to effectively position its products.
KFC's offerings are renowned for their delicious taste and widespread appeal, showcasing the brand's original elements that contributed to its success in Vietnam At the time, KFC also provided unmatched professional service, setting a new standard in the fast-food industry.
KFC's marketing strategy has played a crucial role in establishing the brand's strong presence globally, primarily through its unique and diverse product offerings tailored to each market Beyond its classic fried chicken and hamburgers, KFC innovates with items like chicken rice, mixed cabbage, soft bread, and shrimp burgers, particularly focusing on the Vietnamese market In Vietnam, KFC emphasizes chicken rice, a familiar dish that aligns with local preferences for quick and nutritious meals.
KFC adapts its products to meet the preferences of Vietnamese consumers by altering taste, size, and design Recently, the company has introduced dishes like chicken porridge, Flava Roast chicken, and Egg Tart, catering specifically to local tastes In addition to product innovation, KFC prioritizes quality assurance, especially during health crises like the avian flu outbreak, to build and maintain customer trust in its offerings.
KFC successfully adapts its menu to align with local customs and preferences, creating products that resonate with the community By doing so, the brand not only enhances customer satisfaction but also maximizes profitability through offerings that are relevant to current local events.
In early 2020, KFC Vietnam introduced the Dragon Fruit Burger, a creative initiative aimed at rescuing millions of tons of dragon fruit that were unable to be exported due to the Covid-19 pandemic This innovative product has garnered widespread acclaim from global media outlets for its positive impact and support of local farmers.
Immediately, America's leading Business Insider newspaper dedicated an article introducing the dish to international readers, which was quickly shared on foreign fan pages and groups.
KFC Vietnam recently announced on its fan page, which boasts over 55 million likes, that the Burger Thanh Long embodies a significant message supporting Vietnamese farmers by promoting dragon fruit consumption This unique burger features a bun made from fresh, red dragon fruit, paired with crispy chicken or flavorful shrimp, promising fans a one-of-a-kind culinary experience.
KFC's Marketing Mix strategy emphasizes a diverse menu and a variety of pricing options, providing customers with ample choices This approach was particularly evident during the brand's initial market entry, allowing consumers to select from a range of products at different price points.
In the early days of the Vietnamese market, when fast food was still a novelty, KFC adopted a competitive pricing strategy to gain traction, offering low prices to attract brand-aware customers and draw in potential diners This approach proved successful, as evidenced by KFC's turnaround in 2006, when, after nearly a decade of losses, the company finally began to achieve profitability and grow its customer base significantly.
In the competitive landscape of Vietnam's fast-food market, KFC has adopted a strategic pricing approach, setting prices slightly higher than its rivals to enhance its brand image and align with the perception that higher prices indicate superior quality To cater to diverse customer segments, KFC offers preferential pricing and special deals for VIP card members, while also providing value through Combo meals that allow customers to save when ordering This dynamic pricing strategy reflects KFC's keen understanding of market trends and consumer behavior, positioning the brand effectively amidst increasing competition.
In today's fast-paced urban lifestyle, individuals are increasingly busy, making fast food an appealing time-saving option This trend aligns with the preferences of young people who favor Western-style dining KFC has strategically expanded its presence across the country, focusing on major cities, urban centers, and densely populated areas such as supermarkets and industrial parks, where young consumers are abundant and easily accessible.
KFC primarily expands its distribution system through franchising, strategically placing stores in supermarkets, commercial centers, and densely populated residential areas In urban locations, KFC offers a convenient home delivery service for customers Each store maintains a consistent design that adheres to specific standards, featuring the brand's signature red and white colors, along with the company logo, ensuring a recognizable identity across its distribution network.
Action Programs
The campaign covers the market: Convey advertising on
Instagram, leaflet and at distribution agents x x x x x Research
Design and distribute posters to dealers, points of sale, and other public locations to inform customers on how to order product X This trade marketing strategy aims to enhance visibility and accessibility, ensuring that potential buyers receive clear and concise information about the ordering process.
Invite celebrities and KOLs for branding image and inspire fans x x x Digital
KFC's iconic slogan, "Finger Lickin' Good," effectively uses sound to enhance the taste experience The brand continually innovates by introducing new products and attractive sales promotions that include enticing gifts Additionally, KFC's corporate team actively engages in charitable activities, supporting underprivileged communities through various initiatives and public relations events.
LUXURIOUS GIFTS” x x x PR event Content
The HAPPY FRIED CHICKEN DAY, RECEIVE EXTREMELY LUXURIOUS GIFTS contest:
Rules: Take a picture of you or your group with KFC’s food and post it under the comment of our post in Facebook with hashtag #KFC, #NgayQuocTeGaRan
Reward: 2 Special Award for the most like and reactions individual and the most crowded team Prize: 1 year free KFC chicken (equivalent to Voucher worth VND 3,000,000 per prize).
Term: From June 8, 2021 to July 8, 2021
2.000.000.000 VND (for 6 months in contract with VTV)
(for 6 months in contract with FPT)
-10s for TVC in popular shows and golden hours
Advertising on 500.000.000 VND/year -100.000 likes on
- At least 3 million views for both TVC and banner per month
Advertising in big shopping malls
1.000.000.000 VND/year for showing TVC on big screen
300.000.000 VND/year for big banner in tall buildings
- 40s on big screen every day in week
- change banner when launch new campaign
(for TVCs and pictures) 3.000.000.000 VND
- Review product on private social network account
Charity, sponsorship and voluntary activities
New products (gifts, 300.000.000 VND etc.)
Preparation 11.006.000.000 VND Additional Cost (10%) 110.600.000VND
Budgets
Raw materials (chicken, etc.) 30.000 NVD
Kfc total revenue in 2019 = 1.457 billlion VND.
With our group marketing plan but due to the newly developed covid-19 pandemic in 2021 in Viet Nam, the growth of revenue is only increased by 3,5% compared to 2019.
Controls
Internal audits will ensure the effective execution and oversight of our initiatives, allowing for close monitoring of our goals and objectives This proactive approach will enable us to quickly address any issues and potential challenges that arise.
Maintaining open lines of communication among project stakeholders allows for constant, proactive updates, reducing time spent on superfluous chores
Maintaining regular meetings to track and re-evaluate all work completed, in progress, and what needs to be implemented soon.