KFC International marketing objectives and strategy for China
The acquisition of the PepsiCo is one of the main strengths of the company. Aside from this the string image of the brand and reputation in the international market is also a strengthening factor for the business. The main product provided by the company is chicken, which is now a healthy alternative to beef and other meets, making it a positive strength for the company.
The weakness that are present for the company pertain top the establishment, and expansion of retail outlets, the availability of good quality supply of chicken from local vendors and supplies as well as the conflicts between the managers and the local employees in the region. There is also a complaint that in international markets the native staff is usually alienated form decision making in the company. Aside from this the management of human resources in China is a difficult task (KFC human resources).
The going population china presents an opportunity for KFC in terms of the increasing market for its products. Aside from this the growth in the economy also brings about prosperity and financial freedom in terms of increase in purchase power parity of the people. This again increases the target market for the company. The
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The threats that are present to the company take the form of uncertainty in the region of China. The opportunities identified above pertain to different cities in varying degrees. Aside form this the complex legal system in China also poses a potential threat for the business. Moreover the competition is also being raised form other fast food chains and franchises in China. The corporate strategy for the KFC in China would be focused on maximizing the penetration by offering high quality products to the consumer.
The scoring point of the strategy would be to be continuously providing the customers with what they need and require in such a manner which provides for long term growth and profitability of the business whereby increasing the return of the investment for the shareholders of the corporation The marketing Strategy for KFC China would focus on deriving a customized menu which caters to both the signature dishes as well as those preferred and demanded by the consumes in the local market.
Here again the main goal i the end it to achieve profitability and the achievement of the specific marketing objectives and goals. The specific objective of the marketing strategy for KFC China will pertain to: Increasing the profitability of the operations in China Creating a specific positive image in the minds of the consumers, i. e. establishing a strong brand name. However this is already present so it needs to be reinforced upon. Establishing associations of the brand of KFC with the customers and reward the long term customers of the company in order to retain the loyal customers and attract new customers
A socially and environmentally responsible image for the company has to be develop which supports the rehabilitation and protects the natural environment while contributing to the increased standards of living for the communities where its is operating. Establishing the image of the company as an entity which respects the culture of the target market and is not operating in order to pose a threat to it. KFC marketing mix (7Ps)-Place, Price, Promotion, Product, people, process, physical evidence. The marketing mix for the company in China is as follows:
Place: The placement of the product will be at all high end streets and locals of the market as well as in these areas which are highly frequented by people for recreational, transport, study or even residential purposes. Price: The product will be charged a premium price due to its unique quality and standard of service offered in keeping with the strategy of the company’s international operations. Promotion: The promotion for the company will be conducted through sales material used in the stores as point of sale promotion.
Aside from this a strong advertising campaign and new product launches will need to be conducted. Emphasis will also be put on BTL brand activation based promotion. Product: The product would pertain to the product its elf, which is the food, the ambiance of the retail outlet, the service provided and the additional service of home delivery and takeaway. People: The people and staff will need to be specifically trained and motivated to be customer oriented. Process: The process for the marketing would take the form of brand marketing