TABLE OF CONTENT

CONTENT PAGE
Acknowledgement 1
Introduction 2-5
Content
1. Market Segmentation 6–9
2. Market Targeting 10
3. Market Positioning 11 - 13
Recommendation & Conclusion 14
Appendix 15 - 20
References 21
Acknowledgement

Firstly, I would like to thank to our lecture’s Cik Illyana binti Mohd Idrus, lecturer of
H4035 – Hospitality Strategic Marketing. These assignments make me to research
about the Food Service Organization (FSO) that was chosen by me and my friend.
The research included the market segmentation, market targeting, and market
positioning of the organization. The type of FSO I choose is the fast food service. The
named of FSO is Kentucky Fried Chicken as well know as KFC .To do this assignment I
find and surf through the internet to finish this assignment. From this assignment, I learn
many things about FSO such as strategic marketing and service that provided by that
FSO. Besides that, we can know the standardized or level of the marketing that
delivered by KFC and many more.
Before this, I don’t know how and what types of the marketing strategies have been
applied on FSO and other. So, this assignment I gain knowledge of type marketing
delivered and many such things. Lastly, thank again to the lectures that give some tips
and information to me to finish this assignment.
Introduction

About KFC

KFC began with Colonel Harland Sanders. He discovered his penchant for cooking
when he was only 9 years old. Through the years he grew up to become a personage
the world knows as Colonel Sanders, founder of KFC.

He reached celebrity status in 1952, when he decided to franchise his famous

Kentucky Fried Chicken recipe blends of 11 herbs and spices to the rest of America. By
the early 70's, that special recipe reached Malaysia.

Today, KFC Malaysia continues to serve finger lickin' good, succulent pieces of
chicken. The flavorful blends of 11 herbs and spices give KFC's delicious aroma. With
the chicken's natural juices sealed-in, leaving a special mouth watering taste that cannot
be replaced. KFC prides itself as a fast-food restaurant that give customers great tasting
chicken with a selection of home-styled side dishes and desserts to make a wholesome,
complete and satisfying meal.
 It’s Finger Lickin’ Good;

Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has come a long
way, with over 10,000 outlets in the world; KFC has maintained its title, for the last 60
years, of being “The Chicken Experts”.

Kentucky Fried Chicken has become KFC. Does anybody know why? We thought
the real reason was because of the "FRIED" food issue. It's not. The reason why they
call it KFC is because they can not use the word chicken anymore. Why? KFC does not
use real chickens. They actually use genetically manipulated organisms.

These so called "chickens" are kept alive by tubes inserted into their bodies to pump
blood and nutrients throughout their structure. They have no beaks, no feathers, and no
feet.

Their bone structure is dramatically shrunk to get more meat out of them. This is great
for KFC because they do not have to pay so much for their production costs. There is
no more plucking of the feathers or the removal of the beaks and feet. And the most
importance is the products have the quality assurance and halal certificate.
 KFC in Malaysia

The first KFC restaurant was opened in 1973 on Jalan Tunku Abdul Rahman.
Today there are more than 390 KFC Restaurants nationwide and still counting. Great
tasting chicken has become synonymous with KFC; and has been enjoyed by
Malaysians ever since. In fact, KFC Malaysia has developed a distinctive Malaysian
personality of its own.

Especially for Malaysians

We are an establishment that is run by Malaysians and managed by Malaysians;
we took it upon ourselves to create a selection of food that would make Malaysia proud
on the international scene. Kentucky Nuggets, for example, was conceived in Malaysia
and then found its way to KFC worldwide. Today, Kentucky Nuggets is one of KFC's
successes.

"Meals on Wheels" was also developed in Malaysia. It was created for the
purpose of bringing great tasting chicken to places where a KFC Restaurant might not
be available. So, any offices or companies can hold functions at any place and anytime!

All our achievements add to our Malaysian identity. But it has only been possible
because you invited us to share your lives.

Just for Kids

Then we wanted something really special for our younger customers because
they are integral part of our lives. So, the KFC Kids' Chicky Club was developed
exclusively for kids. Even 'Chicky', KFC's mascot, takes an active interest in all the KFC
Kids' Chicky Club activities.

We wanted to give every child something they can look forward to as a treat
every weekend or on any special occasion. We sincerely hope that their childhood will
be filled with wonderful memories.
Something for Malaysians
At KFC, we recognize that improving the quality of life and economic vitality of
the communities in which we conduct business is in the best interest of our company,
our patrons, our employees and our industry.

And to show our appreciation for Malaysian support for making us a market
leader; all of us here at KFC Malaysia wanted to give something back to the community.
So, Projek Penyayang KFC was developed to provide food to 80 homes every quarter.
Projek Penyayang KFC was founded in 1995 in an effort to enable thousands of
orphans and underprivileged children to enjoy KFC meals. Over 6,500 children are
treated to a finger lickin' good food every year. This year marks the 10th Anniversary of
Projek Penyayang.

This in turn, was followed by Tabung Penyayang KFC, a charitable fund, whose
sole purpose was to help orphanages in Malaysia. Tabung Penyayang was founded in
1997, to help children and the needy through various CSR programme. Tabung
Penyayang KFC is a unique fund as it represents a percentage of revenue generated
from the sale of KFC's Kids' Fun Meals.

In August 1999, KFC introduced its 'Tabung Penyayang' KFC Collection Box as
an extension to the Tabung Penyayang KFC Programme. Collection boxes are placed
at all KFC restaurants enabling customers to contribute and be apart of this charitable
effort.

Currently, we are still conducting other programmes for Malaysian charities. And
we will continue to extend a corporate helping hand whenever and wherever we can.
Hospitality Strategic Marketing

Marketing Segmentation

Market segmentation is the subdividing of a market into distinct subsets of

customers, where any subset may conceivably be selected as a target market to be
reached with a distinct marketing mix. Market segmentation is based on the recognition
of the diverse needs of potential buyers. Different customer attitudes may be grouped
into segments. The important elements of market segmentation are as follows:
• Each segment consists of people with common needs and preferences, who may
react to market stimuli in much the same way.
• Each segment can become a target market with a unique marketing mix.
The bases for segmentation are as follows:
 Geographic

 Demographic

 Psychographic

 Behavioral

A key factor in competitive success is focusing on little differences that give a

marketing edge and are important to customers. Market segmentation matches
consumer differences with potential or actual buying behaviour. It may prove more
profitable to develop smaller market segments into a target segment.

KFC Segmentation

Previously they were focusing on single segment that was through Niche
Marketing by offering “Combo Deals”. Now they are focusing more on other classes as
well. They are dealing in masses by introducing value deals; most recently introduced
“Zinger Junior”.
Benefit Colonel’s value combo meals introduced previously
were expensive and so there were less sales but through
their recent offers, they have increased the sales by offering
low prices.

Purpose Inflation highly affects the purchasing power of the

customers. And here the purchasing power of many
customers is low. To cover this major segment, they have
introduced affordable meals, so that it is in reach of the
masses.
Want Specification The people here need a friendly and family restaurant,
which must be affordable for them.

Geographic

KFC has outlets internationally and sells products according to geographic needs of the
customer.

Region Johor, Melaka, Negeri Sembilan, Selangor, Wilayah

Persekutuan Kuala Lumpur, Perak, Pulau Pinang, Perlis,
Kedah, Kelantan, Terengganu, Sabah, Sarawak, Wilayah
Persekutuan Labuan, Wilayah Persekutuan Putrajaya.

Density Urban, Suburban, Rural and many more.

Demographic

Age Generally there is no age limit which is focus by the KFC.

They target & focus on each and every age of the society.
But for somehow in our opinion they target heavily on the
youngster as compared to the middle & old age.

Gender Generally focus on the both Males & Females of the society
& similarly target them.

Family life cycle It focuses on the whole family.

Social Class Upper class, upper middle and lower middle classes are
focused.

Family size Family size is 1-2, 3-4, 5+ (more).

Psychographic

Dividing a market into different groups based on social class, lifestyle, or personality
characteristics is called psychographic segmentation.

KFC divides market on the basis of psychographic variables like:

Social class Social class- Upper and Middle class.

Personality Personality is ambitious and authoritarian.

Behavioral
Buyers or customer are divided into groups based on their knowledge, attitude, and use
or response to a product.

Benefits Sought Customers get benefits from the KFC Product. Example
quality of the product is high class, varieties of the menu can
customer choose based on what they like and many more.

User Status Generally, the market can be segment to regular users of the
KFC product. Because of the KFC is well known by Malaysia
customer.

Usage Rate Market can be segment into heavy- user groups. The
observation is people are preferred to choose KFC then other
fast food because of many outlets is open all over the place
at Malaysia.

Loyalty Status Have loyal consumer based on difference age, religion, social
class, and many more.

Buyer Readiness KFC have difference stage of readiness to buy a product.

Stage Likes aware, informed, want and intend to buy.

Marketing Targeting
 Choosing an appropriate market for a given product. Marketers of a given
product need to evaluate the different market segments and decide which and how
many to serve. To do this effectively, they must examine three general factors: segment
attractiveness (i.e., the impact of competitors); segment size and growth; company
objectives and resources.

Market targeting differs from target marketing in that a product is already

established and decisions must be made as to which market is most appropriate for it.
In target marketing, a company finds a market it wants to serve and then develops a
product appropriate for that market.

KFC Targeting

“The process of evaluating each market segment’s attractiveness and selecting two and
more segments”

KFC basically targets customers like

• Young children: Young children often like to visit Burger King because they get
attracted to the complimentary toys which Burger King provides on certain
meals. So young children with their parents visit Burger King.
• Students: Students from colleges and schools want to satisfy their immediate
needs of eating so they prefer to go to Burger King. Also they prefer fast food
more than heavy food, so they prefer Burger King.
• Families: Families like to eat-out many times without wasting a lot of time and as
well as lot of money, so they prefer to go to Burger King.
• Old people: Old people like to have light food so they like to visit Burger King.
• Businessmen and Working People: Businessmen who do not like to waste a
lot of time and just want to satisfy their basic needs of eating and drinking.
• Also customers who are in a hurry come to burger king just to satisfy their basic
needs of eating and drinking. They mostly prefer drive-thru or take-away.

Marketing Positioning
  “Positioning refers to placing a brand in that part of the market where it will
have a favorable reception compared to competing brands”

Subash Jain

 “A product’s position is the place the position occupies in consumers’

minds relative to competing products.”

Philip Kotler

Specific Product Attributes

KFC Product is Unique

KFC uses its attributes to position it’s Product (Fried Chicken).

• For a product to occupy a clear, distinctive and desirable place relative to,
“Competing products in the minds of target consumer.”

• In KFC feedback is taken from the customer in order to know the customer
demands and then improvements are made in products. KFC focuses on pure
and fresh food in order to create a distinct and clear position in the minds of
customers KFC has a strong brand name and they are leading the market in fried
chicken.

Selecting Market Segments

Bifurcated Marketing

KFC is opened the other same brand restaurant all over the country in Malaysia.

- Provide the same product than main KFC restaurant.

 - The flavor of the product still the same as other KFC.

- The service delivered is also same than other.

Differentiated Marketing

KFC make differentiated marketing through their product.

 Their product is classified as consumer product as it has no intermediates.

 KFC offers specialty goods.
 The stock turn over of KFC is high.
 Price and quality of the product is always compared.
 Offer variety of product includes
• Goods (Burgers, Chicky Meals etc)
• Services (cleanliness, quick service, parties, and meetings).
Concentrated Marketing

KFC is specialties about the fried chicken.

KFC Service Differentiation

Service Style in KFC

KFC is a fast-food outlet. So the type of service provided to the customers over
there is “Single-Point service”. Single-point service means service to the customers
from a single point. The customers stand in a queue till their chance comes. When their
chance comes they order what they want on the service counters, they pay and then
they collect their food. The food is consumed on the on the premises or taken away.

Here basically the service is at a counter where customers receive a complete meal or
dish in exchange of cash or ticket. Here the menu is of limited range, the service is fast
and with take away facility.

Other Service Provided

• Drive-Thru: It was introduced in KFC. It is a form of take-away where the

customer drives vehicle past order, payment and collection points.
 • Take-Away: It is a type of service where the customer orders and is served from
a single point, at counter, hatch or snack stand, customer consumes off the
premises.

KFC Personnel Differentiation

KFC management is take care the quality of service provided to the customer by:

 Give the staff practical at other KFC brand.

 Give the class or motivate about service provided.
The service KFC provide is natural and friendlier to customer with the beautiful smile
and word.

KFC Location Differentiation

The KFC mostly placed at urban. Suburban, rural, and many more.

How Many KFC Differences

Confused positioning

Leaving buyers with a confused image of a company.

Mostly as we known the KFC brand is more to fried chicken or chicken product but now
day KFC introduce the new product like Hot and Spicy Shrimp that totally difference
than their original product.

Recommendation and Conclusion

Recommendation
 1. Even though KFC has defined the target market but still they need to redefine.

2. KFC has to improve their Research and Development.

3. KFC to look need of the customers like health conscious.

4. They only focus higher income level people.

5. Lack of specific open space like McDonald

6. Unlike McDonalds they don’t blend with the local cultural when it comes to int’l
marketing.

Conclusion

KFC is a very strong chain of fast food restaurants with more than 10,000
restaurants all over the world. Being in “Maturity Stage” it has high opportunities of
introducing its new products and deals. In Future it will be expanding its chain by
introducing more outlets in Malaysia as well as in other countries.

And then, focus of their marketing strategy should be according to the different
countries. Because they provide Markets which have high growth rate on the other
hand. KFC had difficult times with their previous name, but they came up well in the
end, which gives an indication that it is in the market to stay.

Appendix
 Father of Kentucky Fried Chicken (KFC)

Colonel Harland Sanders

The older KFC logo The newest KFC logo

Colonel’s Menu (Product)

 Colonel’s Latest

Individual and Family Combo Meal

Snacks and Burgers

Bucket Meals
Family Feast X- Meal

Chicky meal
Jom Jimat Everyday Side Order
 Breakfast

Dessert Salad
References

1. KFC Official Site

www.KFCMalaysia.com.my

www.KFC.com

2. Scribd.com
3. Respond from loyal KFC customers.