Kfc strategic brand managemnt

Topics: Brand, Brand management, Branding Pages: 7 (2690 words) Published: April 16, 2014
1.1BUSINESS INDUSTRY OVERVIEW
The fast food industry in Malaysia is saturated with players such as McDonalds, KFC, Wendy’s, Chili’s, Nandos and the like. The industry is relatively large in terms of the participating brands in fast food business. Fast food business is categorised according to the food served as well as their facilities and locations. There are restaurants selling specifically burgers, pizzas or only chicken, Mexican cuisine and many others. According the location, some restaurants are drive-ins whereas others provide in house catering as well as off premises catering.The market of the fast food business is stratified, but all in all inclusive of all groups of the society. As observed in many restaurants, they provide meals even for children, hence allowing all ages to enjoy their meals from the restaurants. Fast food business enjoys a high level of prominence in Malaysia as the trend of home cooking is currently on the fade, and the intertwinement of a busy life, promotes the fast foods as the reliable and available sources of food during breakfast, lunch and dinners. Moreover, the eating habits of Malaysians give a good breeding ground for the fast food industry to flourish as people are fond of food and eateries have become places where business deals are concluded as well as assignments completed, for instance Starbucks. As per this year, it is projected that the sales of this industry will jump up according with the increase of tourism as it is the proclaimed year of tourism; this will eventually see, the increment in revenues collected by the fast food restaurants as the tourists will add up to the current population in Malaysia. 1.2COMPANY OVERVIEW

This study focuses on the brand of KFC or otherwise as known as Kentucky Fried Chicken. This is an international brand that hosts a large number of franchisees all over the world. KFC started in USA, and slowly infiltrated the rest of the world with its premier tasting chicken. In Malaysia, this brand started its operations in 1973; it has sustained a healthy growth over the years with many outlets being opened all around. With the introduction of ‘Meals on Wheels’, customers are able to be delivered food upon orders made through the internet or by the phone. The fast food business is very competitive as there is a stiff competition in securing market. The plenty number of fast food makes the competition even higher and harder, moreover, it is not easy for newer businesses to penetrate especially if such a business does not do so with innovation. KFC has enjoyed recognition and surely it is a major brand. However with all the fame, KFC struggles with loyalty from customers. Customer loyalty is the tendency of customers having a strong purchase relationship with the business. Loyal customers are those who maintain purchases with the particular brand regardless of any changes. Customer loyalty can be expresses in two ways; either as a behaviour or the number of times that a customer comes back to purchase from the same brand. The increase of competition may be attributed as one of the causes that lead the decrease of loyalty. This is because the market is flooded with any options which a customer may be able to choose from. Moreover, innovative strategies and more value added service to purchases tend to decrease loyalty. The perception of service value is an important factor that builds or destroys loyalty. It has been an area where many brands have been concentrating on in order to keep in phase with the on-going competition. KFC has attempted to revise its menu and incorporate new stuff that will make its brand more adorable to customers. Initially, KFC has been centred on its 11 spiced recipe of chicken. The core product I KFC is its fried chicken; over time, the brand has added burgers, pokkits, rice and potatoes to its menu so as to improve the menu by diversifying what they offer. 1.3BRAND

A brand is termed as an identification of a particular...

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