The method of gathering, analyzing and interpreting information about a market.
This informs a KFC’s decisions by helping it understand the changing aspects of the market. This involves finding out more about customers, competitors and overall marketing environment.
Primary and Secondary research
The two types of research include Primary and secondary research.
• Primary research
The gathering and organization of original data through direct contact with potential or existing customers for KFC. Also known as field research.
Internal primary research data sources include;
i. The sales figures for the KFC’s own products which have enabled KFC to know which goods are more popular and those that aren’t popular. This has led to improvements being made and this has contributed to continued production and development.
ii. Customer data stored on a central database; this research has ensured that KFC stays closer to its customers and can inquire for any improvements from the customers.
It was discovered in an investigation about brand value and casual dining product and it was shown that KFC has a larger percentage.
External primary research methods used by KFC include;
i. Use of questionnaires and surveys- KFC mostly uses this to find out how they can further improve their goods and services and what else they can add and doing this they then meet customer satisfaction which in turn leads to increased revenue which can be used for development.
A survey was done by KFC to figure out where their pricing stood with their fast food competitors. It was found that compared to its competitors KFC was a bit over priced but would suit groups since they serve a large quantity.
This questionnaire helps KFC determine the possible changes so as to improve its products.
KFC also had another survey to show if people were aware of their new healthy products stating that KFC chicken is healthier than grilled chicken.
ii. Interviews and focus groups- interviews are used to acquire direct information about KFC’s goods and services from customers. These interviews can be done either selectively or randomly. This information is used because it is based from the experience from the people who have used KFC’s goods and services.
Focus groups are a more professional research method used by KFC wherein experienced and people come together and discuss about a specific product and how to improve it.
This often involves interviews with focus groups or customers.
This research is used to discover how customers observe an organization or brand, know how changes in price, or other variables, might affect consumer spending choices.
Qualitative research is also used to investigate customer preferences, interests, aspirations and other variables.
For example, in India KFC used qualitive research and found out that Indians enjoy spicy foods for example; the 6pcs Hot and crispy and zinger chicken thus this research has helped KFC to ensure its growth in India.
• Secondary research
This is using data information that has been collected before, either from within KFC or an external organization. This form of research is also known as desk research.
The sources include;
i. Reports from sales and regional representatives which is internal- these are used to compare with the current research made to see if they have improved or declined from past sale reports this contributes to the development in that they know what products aren’t selling and this can also be used to form a budget.
This deals with numbers and figures that can be analyzed mathematically for example market value and sale figures.
The graph above shows sales per unit made by KFC from 2006 to 2016. The graph is used by KFC to tell whether their product sales are increasing or decreasing. This was used in 2017 predict their budget.
ii. Trade journals and websites which is external- these prove to be cost effective since not much is spent acquiring the information and this cut costs for KFC. This helps by reducing the scope of primary research which can be cheap.
iii. Census data and public records which is external – these are used by KFC to determine whether to increase production, open up new out lets or reduce on production.
Market research is effective because it contributes to accurate targeting and segmentation for a specified product for example in India market research was carried out and it was discovered that Indians prefer spicy foods. This led KFC to introduce the Zinger meal (zinger burger or chicken) which are spicy, this led to KFC becoming more famous in Indian since their preferably spicy foods were introduced hence attracting more customers.
KFC is a major fast food restaurant in Malaysia. It mainly serves chicken related foods.
Demographically, KFC Malaysia’s market segment is based on age. KFC provides to, generally, people who are roughly in the age group of 4 to 40 years old. Old people would not choose to go to any fast food outlets, including KFC, as their health is at stake.
Geographically, KFC Malaysia’s market segment is largely based on density. There are around 340 KFC outlets in Malaysia, and most of them are situated in suburban and city areas. This makes easier for people to access their chicken
Psychographically, KFC Malaysia’s market is mainly segmented based on the lifestyle its regular customers, basically those who have work almost all the time. This kind of customers would want quick-serving food, and KFC provides just that.
Market planning of KFC is the process of studying one or more potentially interesting marketplaces in order to determine how KFC can optimally compete in those markets. The market planning process naturally results in a marketing strategy that can be used to enhance sales for the KFC.
Political- these factors are usually beyond the control of KFC. Political factors influence KFC in many types of ways which can make advantages and opportunities for KFC.
KFC uses this as a guide service for example the government policies such as price policy which KFC has managed to properly abide by even though it is a global business. KFC maintain their price policy by looking at the income distribution of the people living in a particular area or country.
The political stability of the countries in which KFC is based are stable thus making the marketing strategies more effective since people find it easier to freely move around when the country or area is like peace for example in Uganda there are no riots or large scale political struggles thus enabling KFC to grow swiftly.
Taxes also influence marketing strategies wherein if the taxes are high then the strategies will have to very cost effective thus affects the marketing plan in that less marketing will be carried out.
Economical- KFC being global is affected by the economies of countries which it has outlets in for example if there is inflation in Uganda. This inflation in Uganda leads to less people buying KFC and this is because KFC is an inferior good will be greatly affected by inflation since people can do without.
In case of a recession then the marketing strategies will be reduced since less people will be able to afford KFC.
KFC being famous for its chicken world wide indicates that its demand it high hence there is high demand for KFC and this is indicated through its increasing outlets world wide.
Social– KFC’s product doesn’t go against many religions or cultural beliefs since they do chicken which is loved worldwide. Thus, making they strategies less restricted.
KFC recently started all social classes (upper class, middle class, and lower class) so as to maximize profit. KFC also started accepting religions for example they started providing Halal food which indicates that they adopted Muslim religion.
Technological– the increasing levels of technology have led to more market strategies being created for example use of websites to advertise its meals. KFC also requires technology to do research and development and even during advertising. KFC has even gone through the lengths of partnering with MTN a telecom company for marketing where on MTN pulse they give discounts off the meals and advertise new prices and products.
Legal factors— the marketing techniques being used need to abide by the law in the different countries and areas in which KFC has outlets. Consumer law ensures that KFC doesn’t provide its customers with poor quality products. Sales of good act 1979 ensures that KFC provides as marketed so KFC will have to advertise and plan the marketing within the means they can provide.
Environmental factors- marketing strategies used by KFC need to be environmental friendly and not affect the environment negatively. For example, using bi degradable paper bags, buckets and flyers. This ensures that they are not pressured by pressure groups that are aimed to protecting the environment for example Earth First.
Strength– KFC has dominated the chicken market and its brand awareness is very high.
The quality of KFC’s chicken is very good thus attracting more customers.
Weakness– KFC barely has a weakness. It only has competitors.
It is Food and drug administration approved.
Its brand awareness is strong.
Threat— KFC has a number of competitors for example mc Donald’s which is a threat that reduces its demand.
· These objectives are specific thus making KFC focus on a specific objective thus making it easily done within 3 years.
· Smart objectives are measurable thus making them easy to handle and manage thus making able to be done in 3 years.
· Smart objectives are achievable thus making it possible to work on them without suffering losses
· Smart objectives are realistic which makes them achievable within 3 years since they are within the capabilities of KFC.
· Smart objectives are time realistic wherein the are to fit in a time frame which the objects can be completed. For example, an objective can be completed with these 3years such as setting up of a new out let
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