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KFC Strategies Marketing Project Report

IntroductionKFC Strategies Marketing Project Report

KFC is a fast food restaurant that specializes in chicken. The company was founded in the year 1930 by Harland Sanders with the first unit in Salt Lake City. Today, the company owns around 19500 units and operates in more than 115 countries. In this paper, I will discuss how KFC restaurant has used market segmentation to penetrate various markets in different parts of the world to create value for its products. The company has segmented its market by particular characteristics such as geographical location, psychometric factors, demographic factors, and behavioral factors among others. KFC has a distinctive taste of chicken and is keen on developing its markets in different countries around the world. KFC has maintained to be competitive in the market because it has been able to establish a whole brand in its various market segments (Anderson, Narus & Van, 2006). The company took sincere efforts to understand the needs of its customers in the market. Today, the company provides the best-fried chicken to its customers in various market segments.

Critical Analysis of Segmentation

The primary objective of any marketing strategy is to understand the market and satisfy the needs of customers in a better way that competitors would find difficult to imitate (Anderson, Narus& Van, 2006). Business organizations understand that two customers are never the same and different strategies must be utilized to ensure that their expectations are met at the right time by providing the right quality of products at the right place. A business organization can only achieve this by implementing effective business marketing strategies (Cravens & Piercy, 2006). Identification of the right market segments is the initial step that a firm can use to create value for its products. Therefore, market segmentation is the process where a market is divided into different distinct groups where consumers exhibit the same characteristics. The individuals who have similar traits or tastes are classified in a particular market segment. Market segmentation is used by firms to determine the requirements of the potential customers in a given market segment. In this case, the business will determine the suitable products for particular market segment. Today most consumers are well educated and better informed. As such their demands keep on changing. Therefore, it is necessary for producers and other business organizations to pay attention to issues on market segmentation. For firms to succeed in a highly competitive market, they should chose on the best segmentation approach which will add value to the products. Most firms always implement two types of segmentation namely post hoc and priori segmentation. The segmentation approaches are usually implemented depending on the product positioning of the firm. A priori market segmentation is implemented without conducting thorough market research to identify the market segments that are most appropriate. It is based on the already existing techniques of market segmentation. On the other hand, post hoc segmentation is based on extensive research where the firm has to determine the most appropriate market for its products. The firm must obtain evidence from the customers concerning their needs and wants. The customers’ evidences are then used as a background for market segmentation. Firms should always perform a comprehensive analysis to determine the best segmentation approach which would add value to the organization. The major variables which should be considered in market segmentation includes the benefits of the product, the brand preference, brand loyalty, brand usage pattern, the purchase pattern of the product, the lifestyle and status of the consumers, and the opinion and attitude of the customers about the effects of the brand on the environment. Market segmentation is an important issue for every business organization. The firms should take into account the different preferences of consumers. The consumer preferences are what form the segmentation variables which every firm should consider. Therefore, during segmentation the firm identifies the possible clusters of the consumers depending on their preferences. The consumers are then grouped according to their needs, requirements, and demands among other characteristics.

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