Product Analysis of Kentucky Fried Chicken

KFC (Kentucky Fried Chicken) as one of the most popular and successful fast food restaurants, which was founded by Harland Sanders in North Corbin, Kentucky in 1930 and concentrate on fried chicken, after decades of development, KFC has become the world’s second largest fast food restaurant chain. In the first twenty years of fried chicken was invented, Harland Sanders opened a restaurant to sell the fried chicken. In 1952, Harland Sanders recognized that franchising is the best way to expand his fried chicken business, so the first KFC franchise opened in Utah in 1952, since then KFC entered a rapid development period. In 1964, KFC has more than 600 franchisee and Sanders sells his KFC to a group of investors. Until 1986, KFC was bought PepsiCo, which has become a very popular fast food restaurant. Now, information from KFC’s official website indicate that at the end of 2012, KFC operates more than 20,000 restaurants and serves more than 12 million customers everyday around the world.

4 p’s Analysis
Product

KFC’s main famous product is fried chicken, which made with the “Original Recipe”, also its can be the most important reason why KFC become so popular. In 1940, the KFC founder invented Original Recipe, after that pressure-fried piece of chicken made with the Original Recipe has become the featured product of KFC. Of cause after several decades development, now KFC has created different flavors fried chicken, also in order to provide best services to satisfy the need of customer KFC has expanded the product lines. Now KFC’s product lines can be divide into five main part: chicken, sandwiches, sides, classics and desserts. Fried chicken as the main popular product of KFC, there is one most significant competitive advantage is irreplaceable. As we know, the Original Recipe is the secrets in KFC, so nobody can imitate, that become a unique feature of KFC and make KFC’ fried chicken has strong irreplaceable.

Place

KFC is the world’s second largest fast food restaurant chain. The data from KFC’s official website demonstrated that at the end of 2012, KFC operates more than 20,000 restaurants, which located in 109 countries and territories around the world. Among this number, 5,200 restaurants in the United States and about 15,000 restaurants distribute in different countries and regions. Also this number are still growing, cause KFC never stop to developing the market. In KFC, restaurant location decision has become one part of core competitiveness, each restaurant opening must to got a permission from both headquarter and local company. Before a new restaurant opening, KFC has to gather data to analysis and evaluate the external environment of target area to ensure that highest success rate of location choosing.

Price

The price of KFC is between $5 to $10. For example, the price of 2 Pc. Chicken meal is about $5.59 and 10 Pc. Hot wings meal is about $7.49 both of them are include individual side and medium drink. Even for some family meal the price will be higher, but average to each person the price still under $10. For individual, $5 to $8 is enough to have a good meal. Also KFC has specials meal, such as 2 Pc. Boneless Combo, 1 individual side, 1 biscuit and 1 medium drink just for $4.99 is very cheaper. Compare with competitors the price of KFC maybe is little bit higher, but get what one pays for and excellent quality and reasonable price, customers can got different experience of food.

Promotion

KFC’s promotion can be divided into three main parts: the KFC founder Colonel Sanders, slogan and advertising. The first one is Colonel Sanders. As we know, the trademark of KFC is the portrait of Colonel Sanders, which amiable face is a best attraction especially for kids and will present a good company image to public. And Sanders become a significant component of KFC advertising after his death. The second is slogan. The KFC’s famous slogan is “It’s finger Lickin’ good”. A good slogan can make consumers easy to remember and expand the company’s reputation. The last one also can be the most important one is advertising. KFC use advertising to promotion since 1966, in this year the KFC’s advertising budget is about $4 million. Now, almost all the promote activities of KFC are start with advertising. Practice has proved that advertising is works.

Positive Influence on My Perception

There are five parts of positive influence on my perception. I will talk about the details as follow: First, KFC has 20,000 restaurants that distribute in 109 countries and territories that mean you can always find one when you need. Based on KFC’s best place choosing strategy, almost of the KFC restaurants have a good location. For example, shopping center, railway station, and business center. In China, normally I go to FKC for lunch, either go to shopping or waiting for train in railway station. Second, KFC use product localization strategy. In order to adapt local market and provide best services to customer, KFC use product localization strategy. Before entering a new market, its will do some research and gather data to analysis the local customer dietary habit, then develop new product and change new menu conforms to local taste and religious requirements. Such as KFC provide deep-fried dough sticks and soya-bean milk for breakfast in China market. Third, KFC fast food restaurant provide take-out service.

Such as you have lot works to do no time to cook or feel lazy do not want to cook at weekends, under this circumstances, you can either make a call or order online. The delicious food will deliver to your home or workplace, its very convenience. Fourth, KFC has lot of promotion activities. Such as advertising, which has become a magic weapon of KFC to attract customers. For example, sometime I confusing about what I got eat tonight cause I do not want cooking, at this time I saw the advertising of KFC 90% for sure I will order it. Also, the KFC’s promotion activities include price-off promotions or launch special meals. Fifth, it’s about KFC’s internal comprehensive advantages. Such as friendly company image, comfortable environment, good service, acceptable price, and high quality and safety of food. All of these come to together become the comprehensive competitiveness of KFC.

Negative Influence on My Perception

In this part, there are four parts of negative influence on my perception, two of them are the weaknesses within the KFC Company, and two are threaten from external environment. I will talk about the weaknesses within the company first. First, as I mentioned before, KFC has more than 20,000 restaurants around the world, so it can great to satisfied the customers and become an advantage of KFC. But on other side, that also can be a largest weakness. We should know that each of KFC restaurants is relatively independent cause most of them are franchisee. So the challenge is how the KFC headquarter to manage them to ensure that each of them will work very well. Cause they are stand together use one brand KFC, if one make a mistake will influence the whole company. Such as the tony red incident. Second is relative to the KFC’s product localization strategy. For example, I am a loyal customer of KFC in China, but after I came to the United States, I am surprised that KFC do not sell hamburger in the United Stated. That is the success of product localization strategy, but also KFC lost one customer in the United States. Two of the threaten from external environment:

First is the increasing of external competitive pressure. More and more competitors came into the fast food industry and the price of KFC’s product is little higher than competitors. Second is the change of eating habits. More and more people recognized that the important of a healthy diet in China. Fried chicken as the most famous product that too greasy and is unhealthy in people’s opinion. Now, I had decided to reduce the consumption of fried chicken. This will be a big threaten for KFC.

Recommendation

According to the analysis and evaluation about KFC’s weaknesses from internal and threaten from external, here is my recommendation, which include three parts, details as follow: First is management problem of the 20,000 restaurants. Actually, KFC’s success has proved that their standardized management process is very effectively. The biggest problem is material purchase. Although all material are unified procurement by KFC and all the suppliers are produced based on the standard of KFC, but still can not completely avoid the error occurred. So my recommendation of this problem is KFC develop their own farm. Use the advanced technology of America agricultural to integrate the industrial chain. Second is playing their own advantage to create new product to conform the change of the eating habits requirement. Third is according to the location situation, adjust menu setting more flexible. Such as in California, lot of Chinese immigrants live in here, so add some Chinese style food into the menu probably will get positive effect.

Reference

KFC price (2013, 4) Fast food menu price.com. Retrieved from http://www.fastfoodmenuprices.com/kfc-prices/ KFC Sudan red events (2010, 4) Shanghai International Studies University. Retrieved from http://pr.shisu.edu.cn/s/19/t/38/a/2972/info.jspy KFC (n.d.) Retrieved from

http://en.wikipedia.org/wiki/KFC#Sale_to_PepsiCo
KFC timeline (n.d.) Retrieved from
http://colonelsanders.com/history.asp
KFC official website (n.d.) Retrieved from
http://www.kfc.com/about/franchises.asp
Ten advantages of KFC (Jiang pub, 2007, 3) Retrieved from http://club.kdnet.net/dispbbs.asp?id=1553800&boardid=1