KFC

1 IMC 201 Miriam College Foundation Inc.KFC – Integrated Marketing Communication Plan

Integrated Marketing Communication Plan

Submitted byMaria Karen Zubiri


Table of Contents

EXECUTIVE SUMMARY..............................................................................................................................4

HISTORY......................................................................................................................................................5

SITUATION ANALYSIS................................................................................................................................7

I. HEADLINE.....................................................................................................................................7

II. COMPETETIVE LANDSCAPE......................................................................................................7

SWOT ANALYSIS........................................................................................................................................8

1. Strengths.......................................................................................................................................8

2. Weakness......................................................................................................................................8

3. Opportunities................................................................................................................................8

4. Threats..........................................................................................................................................9

STRATEGIC CAMPAIGN DECISIONS......................................................................................................10

OBJECTIVES..........................................................................................................................................10

I. Target Audience..............................................................................................................................10

I. Decision Maker Grid.......................................................................................................................11

II. MARKET NEEDS.............................................................................................................................12

III. MARKET TRENDS.......................................................................................................................12

IV. BRAND POSITIONING.................................................................................................................12

PRODUCT MIX...........................................................................................................................................14

I. Original Recipe Chicken.................................................................................................................14

II. Sandwiches and Toasted Lines.....................................................................................................14

MARKETING MIX.......................................................................................................................................16

I. PRODUCT........................................................................................................................................16

II. PRICING...........................................................................................................................................17

III. PROPOSITION.................................................................................................................................17

IV. PLACE.............................................................................................................................................17

COMPETETOR’S BACKGROUND............................................................................................................18

I. JOLLIBEE....................................................................................................................................18

II. MCDONALD.................................................................................................................................18


CURRENT MARKETING CAMPAIGN.......................................................................................................19

I. OBJECTIVES...............................................................................................................................20

II. STRATEGIES...............................................................................................................................20

III. Budget Allocation.......................................................................................................................21

PUBLIC RELATIONS.................................................................................................................................22

I. OVERVIEWS................................................................................................................................22

II. OBJECTIVES...............................................................................................................................22

III. STRATEGIES...............................................................................................................................22

DIGITAL MARKETING...............................................................................................................................23

I. OVERVIEW..................................................................................................................................23

II. DIRECT MARKETING OBJECTIVES..........................................................................................23

III. MARKETING TACTICS...............................................................................................................23

CURRENT MARKETING CAMPAIGN.......................................................................................................24

I. EMAIL TEMPLATE ADVERTIZING.............................................................................................25

II. SOCIAL MEDIA CAMPAIGN.......................................................................................................25

SALES PROMOTION.................................................................................................................................26

I. OVERVIEW..................................................................................................................................26

II. OBJECTIVE.................................................................................................................................26

III. STRATEGIES...............................................................................................................................26

IV. RECOMMENDATION..................................................................................................................26

CONCLUSION............................................................................................................................................27

BIBLIOGRAPHY.........................................................................................................................................28

EXECUTIVE SUMMARY


This is an Integrated Marketing Communication Plan for KFC Corporation a company under HEUBLEIN, INC. The plan will cover marketing communication strategies that are specific for Philippine market.

KFC is currently sharing its market to brands like McDonald’s and Jollibee for under Chicken Dishes category. Garnering 30% share in 2009.

Currently, the leading fast food chain industries (Mc Donald’s and Jollibee) are all investing in advertizing. This marketing communication plan aims to make KFC stand out from the competition by improving current advertising perspective to make it more appealing to the market in efficient and effective way.

To achieve this, a new tagline will be introduced and all other marketing effort under it such as merchandizing, online marketing and events. The coverage of the integrated marketing plan will evolve in the theme “so good” to further develop the appeal of the brand. To make the KFC brand more impactful, personifying the brand message to make it more appealing to target market (working adults) - which is associated with.

In serving the chosen market of the brand all the advertisement will emphasize the value of “relationship”- it’s either with family or with friends serving in a bucket is streetwise decision. This proposition will manifest to press releases and support materials created for KFC.

In strengthening the proposition of “relationship” through marketing channels and efforts will secure brand loyalty and brand switchers.

HISTORY

1890 – Hardland Sanders is born just outside Henryville, Indiana


1936 - Kentucky Governor Ruby Laffoon makes Harland Sanders an honorary Kentucky Colonel in recognition of his contributions to the state's cuisine.

1940 - Birthdates of the Original Recipe.

1952 - He Colonel begins actively franchising his chicken business by traveling from town to town and cooking batches of chicken for restaurant owners and employees.

The Colonel awards Pete Harman of Salt Lake City with the first KFC franchise. A handshake agreement stipulates a payment of a nickel to Sanders for each chicken sold.

1957 - Kentucky Fried Chicken first sold in buckets.

1964- Kentucky Fried Chicken has more than 600 franchised outlets in the United States, Canada and the first overseas outlet, in England.

Sanders sell his interest in the U.S. Company for $2 million to a group of investors headed by John Y. Brown Jr., future governor of Kentucky. The Colonel remains a public spokesman for the company.

1966 - The Kentucky Fried Chicken Corporation goes public.

1967 – KFC Philippines started its operation in 1967; it was managed by different franchisees

1994 – Manuel U Agustine obtained the sole franchise over the sale distribution of KFC products locally, under corporate KFC Quick Service restaurants

2008 - The Colonel has a new look! KFC updates one of the most recognized, respected and beloved brand icons with a new logo. The new logo depicts Colonel Sanders with his signature string tie, but for the first time, replaces his classic white, double-breasted suit with a red apron. The apron symbolizes the home-style culinary heritage of the brand and reminds customers that KFC is always in the


kitchen cooking delicious, high-quality, freshly prepared chicken by hand, just the way Colonel Sanders did 50 years ago.

SITUATION ANALYSIS

HEADLINE

2014 KFC China, sales crash 36% in April on bird flu scares. KFC is investing their marketing effort through online and

television advertisement. Taking media personalities such as


Doug Kramer of PBA and the partnership of Daniel Padilla and Kathleen Bernardo.

China suspends McDonald's and KFC's meat supplier.

COMPETETIVE LANDSCAPE

KFC was ranked #6 out of 50 fast food restaurant in United States with sales exceeding $4.3M and leading in chicken dish category having 55.2 % market share.

By 2000, KFC grew to 11,000 locations in 85 countries, under the brand new ownership Yum Brand previously known as Tricon Global Restaurant with 30,000 outlets.

When the market becomes saturated over fast food chain, diversifying in other country has been needed. And by 2002 Yum Brand acquires KFC along with other fast food chain with chicken category.

January 1, 2014, Yum Brand will combine yum brand Inc division, for KFC, Pizza hut and Taco bell excluding India and china, as strategic growth reform. Changes in leadership structure which enable the retirement and shuffle of leadership to global divisions.

Currently KFC has over 13,900 restaurants, with 4000 in USA and more than 9000 outside its domain and 100 in China and India.

KFC is still the Market Leader under chicken category in emerging market such as Indonesia, Vietnam, Malaysia and Thailand. And investing its portfolio in emerging market like Russia, Turkey and South Africa. As Russia Market is growing with the aim of 400 stores by


2014.

SWOT ANALYSIS

Strengths- KFC has been in the industry for 25 years, which enable it to

provide quality of products, services making it the Market Leader and trusted in chicken category.


- Integration to Online Medias, such as website, ecommerce options, twitter with 601K followers, facebook with 34M likes, YouTube, 8,051 subscribers and Instagram 100k followers, allowing it to provide online market to easily access the products and services.

- Diversifying its portfolio into un-top and emerging markets around the world and considering expanding to large areas such as China and India.

- Strengthening its partnership to personalities that would promote KFC Corporation’s products and services, in both online and television.

- Changes in leadership to further pave way to new ideas and innovation as strategic move.

Weakness- 25 years allow under dogs in fast food chain industries to pile up

and compete with KFC. Some compete in different category such as sandwiches.

- Integration to online media will make KFC accessible to online basher that could easily tarnish their reputation.

- Since KFC need to compete to local brands that is been there for years, The company also need to adjust base on the preference of the market to beat the local competition.

- Changes in structure means adjustments in the system, gaining trust of people in the organization and trust of stakeholders.

Opportunities- The emerging markets could help the growth of the brand.- The technology could provide speed to its workforce and reach to

its user.- Emerging personality online could help KFC promote its product

lower than T.V personalities.


- Globalization can bring different people to the organization and different ideas that could help KFC’s growth.

Threats- The emerging markets have culture to consider in their

expansion that could slow their growth.- Technology could be replicated or depreciated; it would also be

costly to invest into because it is fast changing.- Preferences of personality online could change from time to time

because of other influence.- Language barrier and culture barrier could be a seen as threat.

STRATEGIC CAMPAIGN DECISIONS

OBJECTIVES


- Improve online presence to brand awareness capturing online market

- Develop Marketing program that will engage consumers using different marketing communication tools by the end of 4th quarter.

I. Target Audience

Target Group Attribute Purchase RationalesWorking professionals

- 25-35 working professionals

- -rushing to go to work- A segment of family or

friends

- They could not cook for their family hence they takeout instead.

- They work more than allotted time hence they need heavy meals

Students - College students taking their lunch outside with friends

- Likes to hang- out with friends and preferred good ambiance

- Student study hard enough to grab fast meals.

- They enjoy company of friends hence more likely to purchase meals.

The primary target audience of Kentucky fried chicken would be the working class, between 25-35 years old where they need to dealt with fast pace day to day activities weather it’s for work or hang-out with friends. They need to buy food from fast food chain to catch up with work, to avoid skipping meals.

The working sector also needs to take out food because; they are already exhausted from day to day activities and taking out would allow them to just relax after work. They are either mom who would like to take home food for the family meal or friends who would buy to save for the next meal.


Demand for fast food meals is rampant in the cities where fast pace living is occurring and thus needs for takeout meals, to attend in other responsibilities. To tap the demand for online growth for global reach, the marketing communication plan will emphasize the benefit of online and offline marketing for KFC chains.

Working Professionals – They are the one who is working more than 40 hours per week and take OT for their job. They don’t have much time to eat breakfast in the morning because they rush to work and don’t have much time to cook dinner either hence prefers to takeout food.

Some of them take out some lunch outside the workplace for the ambiance reason and for new scenery out of the stressful set up of the working place.

Student- Student taking lunch would somehow prefer to take lunch in KFC because of the services.KFC servers its meal in a dine-in, fresh from the oven with side dishes that would satisfy customers craving.

I. Decision Maker Grid

These are the roles of decision makers when it comes to deciding what and how to order:

Initiator A person working in a demanding job such as, call centers, sales and marketing, They are the one that needs fast and easy access to meals and majority of them are professionals.

Influencer T.V personalities that advertise in billboards, bus advertisements, subway stations, radios and flyers.

Decider and PurchaserPerson who works is the decider as they are the one who prefer base on needs and wants in fast food chains.

Consumer They are the one who purchase the item either


for friends or family member.

II. MARKET NEEDS

KFC is needed by the market because of its serving that satisfies the taste buds of the customer. The serving of KFC chicken is fresh and juicy; with graving that suits the taste buds of its custom. The fully loaded with salad mush potato fries and coleslaw and other garnish dishes would definitely satisfy the customer who after long hours of work would just grab it for a meal.

Student on the other hands who after long hours of school would just like to go to KFC with friends or classmates. They would seek KFC because they would like to enjoy chatting or doing homework with friends while grabbing some bite of KFC chicken and enjoy servings and more bite from other dishes.

III. MARKET TRENDS

Professionals would just like to takeout food before and after work, because of the busy schedule now a days, people don’t get a lot of work done at home including cooking and preparing meals.KFC has everything that is needed for a meal, They could order bucket for take-home after work and still enjoy it with their whole family or with buddies.

Students are also a good target for this because they are the one who loves to enjoy meals with friends after work. They like to do assignments while enjoying with buddies. And the more they study the more they need to eat with the limited budget they have as an allows they need kfc meals.

IV. BRAND POSITIONING

“sogood” - is current brand position of KFC. It is stressing out the taste of the chicken they serve with goodness to friends and family, giving the value of goodness in KFC’s servings, giving consumer the greater value of their money.


The campaign will capitalize on being the top of the mind among other food chain brands persevered as the pioneer, tasted and trusted chicken chain in the industry.

The IMC campaign will focus in achieving brand attitude and purchase intention objectives. The campaign will stimulate recognition through proving visual package association with brand, through print advertisement, point of purchase advertising, likewise through social media campaigns, hastags, images and logos.

The IMC campaign will focus on achieving brand usage and brand loyalty that will persuade consumer to purchase KFC products, enjoy their services and eliminate competition and still be number one in the market.

PRODUCT MIX

Currently, KFC has 11 Product Lines offers namely

The chicken boxed meals bucket meals


Sandwiches and toasted Line bowl snack fixins salads Krushers Desert and Breakfast

All the product of KFC prices ranges and all service in chicken.

I. Original Recipe Chicken

A chicken dish makes KFC taste so good, it is the original signature recipe that makes customers comes back. The recipe is a world famous recipe that never changes regardless of the location of the store.

Other innovations such as the graving to suit the taste buds of the country they serving are invented, while complimenting the KFC chicken recipe.

KFC also take pride of serving freshly made chicken, where the chicken fresh from the pan are served to ensure fresh taste and juiciness.

II. Sandwiches and Toasted Lines

KFC is also known for serving sandwiches; these sandwiches are all made of chicken as a main filling such as Zinger made of hot and spicy chicken fillet, Chicken burger, Cali Maki Twister, Pizza Twister, Chicken Fillet, BBQ Chicken Burger.

III. Boxed Meal

KFC is also known for serving sandwiches; these sandwiches are all made of chicken as a main filling such as Zinger made of hot and spicy chicken fillet, Chicken burger, Cali Maki Twister, Pizza Twister, Chicken Fillet.BBQ Chicken Burger.

Products of KFC rate from 90 to 1200, and people can enjoy all the added value meals

that was included in it.


MARKETING MIX

The most recent campaign of KFC is an advocacy campaign “Pass the red cup” campaign which includes actors such as Christina Aguilera. The intention of the campaign is to end hunger in the world.

Yum started the campaign to challenge corporations to be concerned with hunger rate and by placing food on their table will help people.


KFC also use print out flyers, social media and website for their marketing effort.

I. PRODUCT

KFC offers different product propositions, which includes buckets meals with up sell side dishes such as follows:

Mashed Potato Cole Slaw Mac & Cheese Wedge Green Beans Biscuits Whole Kernel Corn Corn on the Cob

KFC serving are complete set of meals with drinks and side dishes, they have craving that suit the taste buds of the market, aside from wide variety of options they also serve bucket which the target market needs, when they decide to take out food for take home.

Further, KFC serving is fast and reliable.

Added value of the KFC, One of kfc’s best offering would be that they offer a center that allows people to contact them and delivery services.

II. PRICINGMajor product of KFC ranges from PHP 1200- PHP59 from different category, though the pricing of KFC are higher than other fast food chain, with the combination of products and services.


An extra offer that makes them more competitive would be the salad fries, potato and coleslaw, brownies, cheesecake and mousse.

III. PROPOSITIONThe proposition KFC offers would be the Nutritional value of its serving, the freshness, health cautiousness it offers to customers.

It also offers different products in its website that allows anyone to see how much nutrition they get from its meals.

As for services, it allows people to contact them through their centers, and delivery services.

IV. PLACEPlaces where KFC is available would be near schools and offices hence the passerby could easily locate the store for a take orders.

It is also available in different distribution channels such as Malls, since people goes to malls more often, after class for student and after work for working professionals.

The definition of the KFC from the rest of other distribution channel would be their nice friendly environment setting where they can relax and unwind with friends.

COMPETETOR’S BACKGROUND

JOLLIBEE

The original owner tony tan and his family opened a Ice cream parlor. In 1975. In 1978, he and his siblings engaged the services of a management Consultant Manuel Lumba, who shifted the business focus from ice cream to hotdogs after his studies showed a


much larger market waiting to be served.Lumba was Tan’s last business and management mentor.

Throughout its three decade history, Jollibee became a success enjoying rapid growth and already open different branches worldwide.

MCDONALD

The mcdonald Corporation is the world’s largest chain of fast food chain of restaurant serving million of customers worldwide with 35,000 outlets.The company began in 1940 started by rey kroc joined the company as a franchisee agent in 1955.

He subsequently purchased the chain from mc donald brothers and oversaw its world wide growth..

KFC is currently targeting same market and enjoying about 30% of the Marketshare. Though they offer the same product line the company differs by sticking in their original recipe which is chicken with graving.

Jolibee on the otherhand, are also competing with the same line of product by providing wide variety of choices like BBQ chicken and more.

CURRENT MARKETING CAMPAIGN


Unlike the mother company, KFC doesn’t have an ecommerce platform where people could purchase products of KFC.

However, an added value proposition would be that they place contact centers for people who would like to purchase products. These services give convenience to customers as they could easily be contacted likewise delivery services.

The disadvantage of this strategy would be the availability of the agents.

Since, there are more people are into online purchases, they might as well allow the customer to purchase the products through their own platform, this would give them advantage as they could purchase one click away.


Currently KFC is promoted in different media such as news paper, social platform and more.

KFC is currently running its promotional effort to different media such as TV advertisement, website and print advertisement like news paper, coupons and social media.

For TV advertisement they have “passtheredcup” where they take two personalities like Daniel Padilla and Kathryn Bernardo are two people that


could attract young generation to participate to a cause, likewise to make sure that their wholesome image could attract more participants.

OBJECTIVES

To capture the 26% of shifting market from television to online. Using social media for wider reach Utilize outdoor advertising to target potential customers and passerby.

STRATEGIES

Magazines for advertisements. Banner that integrates to flyers and brochures. Radio stations, Bus Wrap and Billboards.

Flyers – are marketing tactics that KFC will use. It will create presence to different strategic places, from places like malls to traffic area.

Magazine – is also effective way to market because of its capabilities to reach audience. Several magazines to target would be the following:

Social Media Strategy

Facebook – Paid advertisement Twitter – Paid advertisement Instagram – paid advertisement


Budget Allocation

The following are the breakdown of advertizing budget

Allocation Specification Price SupplierMagazine $2,535 $2,535x3

Flyers (10.98" x 8.5") 2000pcs$424.99


PUBLIC RELATIONS

OVERVIEWS

KFC public relations effort will focus on earning positive media coverage for their advertizing placement and its advocacy to support peace, through social media and offline marketing campaign.

OBJECTIVES

Increase awareness about current event in Gaza strip that will run for 12 months.

Positive campaign toward its advocacy of peace and generate participation from the target market by

Positive feedback about its current event.

STRATEGIES

Press Releases – sending press releases prior to the start of Marketing campaign, sending press releases to media such as , manila bulletin , Philippine star, search engines such as yahoo news and Google news and bloggers.

Radio Station – Every 7- 9 A.M. In the morning, shout-out from different radio station.


DIGITAL MARKETING

OVERVIEW

Digital Marketing is a portion of integrated marketing communications campaign for KFC that will involve Search Engine Optimization, Cross promotion, Social Media Marketing and email marketing.

DIRECT MARKETING OBJECTIVES

To ensure that the online market will receive KFC latest events, menu and news regarding their product and service offer on time.

Create reputation to target market through social medias Promoting the products and services through indirect target

competitor. To increase in sales by 25% by the end of 4th quarter.

MARKETING TACTICS

The company will utilize its market through subscription pages that will allow market to subscribe to KFC. It will also allow people who orders online to receive same email as the subscribers.


EMAIL TEMPLATE ADVERTIZING

To further create alliance to other network and channels, KFC would gather email addresses and shall do cross promotion to secondary competitors who render same market but serve different products. Such competitor would be Wendy’s, Max’s, Big Burger and More…

SOCIAL MEDIA CAMPAIGN

This social media campaign will allow people to create awareness about KFC. A banner would be up and running until the 4th quarter of the year. All the post is with regards to current, events from different social media websites such as facebook, twitter, instagram and site.

All the post in social media websites are about kfc events and updates. These involve all the bad and good campaigns with regards to the company. It would be consistently posted in all social media sites.


SALES PROMOTION

OVERVIEW

Sales promotion will allow gaining awareness about different program and events of KFC, such as print advertisement, events, buckets, gift certificate and referrals, campus tour and more.

OBJECTIVE

Create awareness and gain market share in through areas that is not reach by other marketing media.

STRATEGIES KFC will continue giving bucket meals to its customer.

They will allow, referral form would come from KFC online subscriptions. They will continue to improve their online distributions on a weekly if not bi weekly send out.

RECOMMENDATION

To further utilize the promotion media of KFC and reach wide range of audience. The passerby and the digital audience would be the target, persuading them to subscribe and participate in the twitting, liking infacebook, instagram campaign and more..


CONCLUSION

Final differentiation of the product from its competitor is very important it gives them the values of services and the campaign.

Integrating to online is the best move of KFC, allowing people to access their product and services to online user. This will give people to reach large audience, likewise to serve their target market more conveniently.

Improving the website from its current website to an ecommerce website that would allow market at home to order online would be a great benefit,for kfc because target market could contact them more.

Aside from, ecommerce like website they should also consider, subscription pages where people could subscribe to their latest events, promos and news.

Lastly, kfc would hound success through combination of offline and online campaign; they just need to maximize their resources to ensure that they could achieve their goals.

BIBLIOGRAPHY


Source: http://www.kfc.com.ph/history

Head Linehttp://business.inquirer.net/176082/chickensad-kfc-jollibee-fight-the-chicken-warhttp://business.inquirer.net/121561/kfc-china-sales-crash-36-in-april-on-bird-flu-fearshttp://www.mb.com.ph/nba-star-leads-kfc-shootout/http://www.juanmanilaexpress.com/san-miguel-beermen-doug-kramer-toronto-raptors-demar-derozan-kfc-fully-loaded-shootout/

SITUATION ANALYSIShttp://business.inquirer.net/121561/kfc-china-sales-crash-36-in-april-on-bird-flu-fearshttp://www.showbiznest.com/2013/01/daniel-padilla-for-kfc-streetwise.htmlhttp://www.hoo.ph/2013/04/08/nba-and-kfc-announce-multi-year-marketing-partnership-expansion/http://www.philstar.com/sports/512539/kfc-renews-support-pba-rp-cuphttp://www.exampleessays.com/viewpaper/89405.html http://en.wikipedia.org/wiki/KFChttp://www.yum.com/brands/kfc.asp

COMPETETORS & BACKGROUNDhttp://www.gmanetwork.com/news/story/348508/economy/companies/jollibee-reports-2013-net-income-up-25-p100b-sales-mark-breachedhttp://www.strategicmanagementinsight.com/swot-analyses/kfc-swot-analysis.htmlhttp://www.kfc.comhttp://popeyes.com/http://www.chick-fil-a.com/Company/Highlights-Fact-Sheetshttp://www.fastfoodmenuprices.com/kfc-prices/

Social Mediahttp://www.bhatkallys.com/user-articles/raising-children-islam-raise-children-responsible-muslim-adults/http://www.stitcher.com/stitcher-list/business-and-industry-podcasts-top-showshttp://www.neuron-webagency.com/shop/eng/email-templates-packages-for-marketing-and-newsletter/sale/SALES70_01

Media Objectiveshttp://www.socialmediatoday.com/content/blogconomy-blogging-stats-infographichttp://www.inquirer.com.ph/pdf/pdi_classified_rates.pdf

Online Advertisementhttp://digiday.com/publishers/what-online-ads-really-cost/

PUBLIC RELATIONShttp://www.jeffbullas.com/2012/07/24/72-fascinating-social-media-marketing-facts-and-statistics-for-2012/

Budget Allocationhttps://www.google.com.ph/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=ognl-jhkif33aM&tbnid=L1en3XfB-x0FVM:&ved=0CAMQjhw&url=http%3A%2F

http://www.jeffbullas.com/2012/07/24/72-fascinating-social-media-marketing-facts-and-statistics-for-2012/

http://www.jeffbullas.com/2012/07/24/72-fascinating-social-media-marketing-facts-and-statistics-for-2012/


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https://www.google.com.ph/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=MZMcMuTAhgNOYM&tbnid=esJIEIe-wv12kM:&ved=0CAQQjB0&url=http%3A%2F%2Fwww.practicalecommerce.com%2Farticles%2F3369-Ecommerce-Comes-to-Twitter&ei=8L_0U8LHD8qGjAKYiICgDg&psig=AFQjCNFPS50yTM1ZqEvnYx1T-3kEVOQjrg&ust=1408635217675279http://www.quirks.com/advertise/print/adrates.aspx

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KFC

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