Integrated Marketing Communication for KFC Company - Case Study Example

Integrated Marketing Communication for KFC Company Executive Summary This plan provides a detailed description of the marketing communication strategies that will be used to improve the domestic sales of KFC Company’s chicken products, especially Kentucky fried chicken in Melbourne. This program is aimed at banking on the current good market position to reinvent new communication strategies which are reinforced to ensure increased sales. The company looks forward to achieving these marketing communication goals through TV advertisement, internet marketing on most visited sites, promotions, etc. Such integrated marketing strategies are designed to help meet the company’s marketing communication objectives. The key steps in the implementation of this program have been well illustrated. Background about KFC Company KFC is a company that begun as a chicken restaurant that has been serving customers for almost 70 years. It was begun by one individual, a cook known as Colonel Harland Sanders. It is situated in Louisville, Kentucky. The company has grown immensely to a point where many outlets have emerged in more than 105 countries worldwide. Innovation and creativity has been the pillar for this company’s growth over time. The company has a strong market base in United States with over 5000 outlets. The company operates what is regarded as one of the most successful franchises specializing in fast-foods. Some of the most common products of the company include chicken sandwiches, chicken pot pies, crispy chicken strips, mashed potatoes and gravy, and potato wedges. Marketing Objectives To increase the sales of the product by at least 15% within one year in Melbourne. Based on the fact that this is one of the main products that the company relies upon to boost its revenue, the company aims at increasing the sales volume from this product. The estimation has been based on the research undertaken. The research findings indicated that there are a lot of opportunities that have not been utilized in relation to this product. To increase the market share of the product in the region by 25% at the end of the second year. The company has put strategies in place to ensure that the product attains market dominance within some years to come. The first step towards achieving that is to gain a 25% increase in market share after two years. The company will use promotions and advertisement to ensure that adequate demand is stimulated to increase sales revenue to projected levels which will then impact on the market share. To enhance the brand of the company. At the end of the campaign, the company aims at ensuring that its name is indeed a household name in Melbourne. The various ads and promotions that will be applied will be focused upon reminding the consumers that KFC Company is still the best in fast foods. The company is using this campaign to reaffirm its market position. Communication Objectives To ensure 25% consumer awareness in Melbourne during the first year. In marketing, consumer awareness precedes purchase. The campaign must be able to carry out an effective campaign to ensure that the information about the product is well communicated to consumers and potential consumers. To increase the number of those interested in this product by 35%. Through the social media account, the company advertises its products to millions of people around the globe. Therefore, this campaign is aimed at ensuring that those who access the company’s fun page increase considerably within the first year. Nevertheless, it may be a bit difficult to assess the change in Melbourne region basing on the Facebook feedbacks. To increase the target market’s visit to restaurants belonging to KFC Companyin Melbourne to 20%. This represents the visits made by customers to the company’s outlets with an interest of knowing more about the products. Increase in such interest amongst the consumers is an indication that they are interested in the products of the company. SWOT ANALYSIS Strengths The company has one of the strongest international brands in fast foods The company has many original herbs and recipes The company is a market leader especially with regards to chicken products The company is much grounded in China which many companies have not succeeded in penetrating The company is a franchise consisting of the best companies i.e. Taco Bell and Pizza Hut Strong research and development Weaknesses The company has struggled a lot in fighting negative image There is a lot of health-related risks associated with the products on the company’s menu The company is also struggling to deal with the issue of high employee turnover Experience of conflicts with suppliers Opportunities Widening of product base over time New opportunities for personalized delivery of products to consumers The shifting trends towards fast-foods Threats A lot of criticism based on the belief that fast foods are responsible for diet related complications like diabetes The company has faced a series of litigations that keeps on tainting its name Competition is becoming stiffer with time Effect of extreme fluctuations in foreign exchange Product History Chicken: Kentucky fried chicken The chicken product is indeed the oldest in the history of the company. The company has diversified the chicken products as a way of ensuring competitiveness in the current market. The chicken products include original recipe, original recipe boneless, extra crispy, Kentucky grilled chicken, hot wings, original recipe bites and extra crispy. From this list, the most famous chicken product is Kentucky fried chicken. The product has a strong market as compared to other products in the company’s portfolio. The sumptuous meal is prepared from fresh chicken and is seasoned with unique herbs and spices. This is what has made it almost impossible to be replicated by other players in the industry. The product enjoys a wide market acceptance index and this has been utilized by the company to firm its sales revenue. Current Problems Indeed there are quite a number of issues that have to be dealt with in relation to the chicken products. The performance of the product on the market seems not to have attained optimal levels. The product has a lot of potential that seemingly is not being utilized. This is the reason this campaign has been designed to ensure that the product’s performance on the market is maximized. The re-launch campaign is based on the fact that Kentucky fried chicken is expected to maintain its flagship on the market. More chicken products have continued to be invented in order to reinforce the company’s market stand. Therefore, this campaign is meant to market the newly enhanced products and effectively sell them to local consumers as well as international. Current Messaging Over time, the company’s products have been selling well while being marketed on quality positioning strategy. The company’s products are known to be of superior quality as compared to those of most competitors. The company has been using different platforms to communicate this message to the public for quite some time. This has included advertisements and other promotional activities. At the same time, the company has been participating in many social responsibility activities. This has been one of the strategies used to effectively build the brand. This seems to have been successful over time. Nevertheless, the aim of this campaign is to attain higher levels of product performance especially through special marketing techniques of the main product of the company. Target Audience Identifying the Target Audience The target consumers of this product have been identified on the basis of the research undertaken. This Integrated Marketing Communication targets the consumers in Melbourne. The research findings have been used to provide the information that was significant in evaluating the consumer profiles. These profiles are categories in terms of demographic data, attitudes, media usage, activities, etc. Through such data, the target audience can be easily selected. This is important as it provides the platform over which the specific communication strategies can be designed. Market Segmentation A lot of marketing research has been done to assess the performance of various brands in respect with their marketing strategies. Most of such strategies have been undertaken by hotel and restaurant associations and related organization. Through such, the company’s market performance data has been gathered. To start with, it is good to appreciate the current eating trends around the globe. The economic growth has caused many people to work extra-hard in order to be able to live sustainable lives. Due to this, many do not have time for themselves. They therefore have preference for fast food as it saves them much time. Therefore, the first segment that chicken is targeted is the working class. Nevertheless, a more detailed segmentation discussion is provided below: Geographic Segmentation The current number of outlets owned by KFC Co is approaching 25000 worldwide. The company has managed to meet the demand from various markets because of the information the company acquires in relation to consumer preferences in the region. Therefore, the specifications about the market determine what the company offers. For instance, in countries where the urban regions are heavily populated, that is where restaurant outlets are located. In geographical segmentation, the nature of the menu is highly reliant on the cultural practices of the people in the region. Demographic Segmentation The consumption of chicken does not lean so much on a unique age bracket. Nevertheless, the consumption is mainly for people below the age of 60 years. When it comes to the level of income, this seems to have a huge influence on the consumption of chicken. High-income earners are more likely to eat chicken as opposed to low-income earners. In terms of sex, women seem to consume chicken as much as men do. Nevertheless, women are relatively higher in their consumption than men. Psychographic Segmentation This is a segmentation base where the trend in relation to the prevailing lifestyle of consumers is used. This kind of segmentation majorly categorizes consumers in different social classes. The products offered by KFC, and chicken in particular, is mainly for the wealthy in the society. Therefore, the product targets the medium and high-income earners. Selecting Target Market Having analysed the features of the key market segments, the marketer must choose the appropriate segment/s in relation to the marketing objectives. This is to ensure that the communication strategies are designed in a manner that will stimulate the highest demand (Egan, 2007). Putting into consideration the information regarding the various consumer segments, this IMC targets mainly the working class consumers in Melbourne. This is imply that somehow the product is designed to meet the needs of the working class and other consumers as well. Market Positioning Market position is a term used to refer to the strategy used by the marketer to effectively position a product in the mind of the consumer that will encourage purchase of the product. After selecting the target segments, market positioning strategy must be identified in connection with the characteristics of the segments. When the survey was being carried out, most of the consumers said they preferred chicken products because of its unique and spectacular taste. Like many businesses, KFC has been founded on the pillar of quality. This is in line with the needs of its main target consumers. The quality aspect is identical from the menu, the nature of delivery, the market communication tools being used, etc. In building its brand, the company has been in a position to portray an image of quality in its operation. The environment from which the business is carried out is such evidence. Moreover, the people who serve the customers also matter so much to KFC. This is because the company is concerned about the perception that is build up in the minds of the consumers over time. Creative Strategies and Execution Key Preposition This company is committed to satisfying the needs of our customers with regards to consumption of Kentucky fried chicken. Kentucky fried chicken represent products that have been designed to exceed the expectations of the consumers. This flavour is simply unbeatable in the market. Once again, this product has proven that quality is an imperative to this company. The taste of the product is not only unique, but outstanding as well. While many players have tried to replicate our products, none can meet our product’s quality. This media campaign is therefore aimed at ensuring that consumers in Melbourne have had a taste of Kentucky fried chicken. It is one way of strengthening the brand of the company in the region. The Tone of the Brand Over the many years the company has been functioning, the consumers have associated its products with quality. On this, the company has demonstrated absolute commitment. This is what has been the company’s market positioning strategy. For over the years, KFC indeed has become a household name. Through customer satisfaction feedbacks, the company has managed to maintain its good image. The objective of the company is to strengthen its image and the name. In that line, this campaign becomes very critical in relation to maintaining the brand name of the company. Key Considerations The campaign to be launched must put into consideration the current trends especially relating to technology. This is one way of ensuring that the company does not lag behind in embracing technology. Embracing new technological trends makes it easy to catch up with all segments of consumers (Rossiter & Bellman, 2005). For instance, using social media to reach to millions of audience all over the world is very critical. This is influenced by the current increase in the use of social media. Both Facebook and Twitter attracts a large number of followers and therefore this campaign must be designed in a way that allows the best exploitation of such inventions. Therefore, social media is one of the tools to be used to communicate the various promotional activities. Apart from the social media, there are also many other communication tools that can be used to communicate promotional activities in Melbourne. Communication Tools Promotions Promotion is very crucial in facilitating this awareness campaign. Most of the target consumers are very responsive to promotional activities. Promotions have diverse effects on the saleability of the products. Through promotions, some other forms of marketing are likely to emerge. For instance, beneficiaries of promotions are more likely to communicate with other family members and friends by word of mouth over the same promotion and products (Pelmesmacker, Bergh & Geuens, 2010). One of the promotional activities that will be adopted is discounts for the most loyal customers. The company will have to set the purchase levels and the discount rates attracted. For instance, special days like public holidays or weekends will be used to launch special promotions to different consumer segments. The TV This is one of the most watched media source in Australia. The TV commercials will be used to increase the level of awareness about the products as well as the company (Pelmesmacker, Bergh & Geuens, 2010). The adverts will also communicate contact details where potential customers can use to access the website and communicate with the company. Some of the TV channels that the company is likely to use include TBS, FOX, ESPN, ABC, etc. The adverts are likely to feature on one of the most common TV programs. This will appeal to most of the Australian audience becomes a large proportion of them watch TV. The Internet This is one channel that cannot be ignored in the 21st century business environment. The users of internet have grown immensely over the last few years and therefore using such media will appeal to many people (Smith & Taylor, 2001). The first point is the company’s websites. All the individuals accessing the website have a chance of viewing these adverts. The same can also be replicated in other websites. The power position ads are effective in communicating such information from websites. Internet use is one of the most effective means of communicating with potential consumers. There are so many options that the company can use to advertise this product. For instance, the most common is Facebook and Twitter. The users of the two social media sites happen to be the largest in number. Businesses have revolutionized the manner in which they undertake their marketing communications (Egan, 2007). This is the platform that the company can interactively know and respond to the needs of the consumers. Other options include YouTube, Google, Yahoo, Gmail, etc. Media Plan Media Schedule In designing a media campaign strategy, it is important to understand the significance of the interaction between the advert and the target audience (Pickton & Broderick, 2004). The plan must be designed in a way that makes it a bit easy to be viewed or heard by the target audience. A successful integrated marketing communication conveys the required information to the target audience as planned. Failure for the company to attain this objective denotes a great loss to the marketing campaign of the business entity. Therefore, the selection of the various media campaign strategies has been done with the understanding of the possible interactive platforms between the message and the target audience (Fill, 2011). Having discussed the various communication vehicles, the most interactive platform happens to be the internet. The options allied to the internet use are very interactive because individuals are using the internet on a daily basis. The Facebook account is the one with the highest subscribers. The company must have a special Facebook fan page where customers can express their views on the page. Therefore, the internet related platforms are to be used throughout the year. The platforms like magazines takes place a regular interval. This can be after every two months. This is because not many people read magazines as compared to the other kinds of communication vehicles. On the other hand, the use of TV must be executed on a regular basis. The programs that have been identified to air such adverts are aired on weekly basis and therefore such adverts will run on weekly basis as well. Lastly, promotions are executed at specific times during special events. The Budget The several media options that have been selected require sufficient funds to be executed. In this regard, the highest budget allocation is to promotions. Promotion is very costly because of its nature. Giving out of gifts and related activities requires a lot of funds. Therefore, promotion will take 45% of the budget. The next option is the TV. This is also very costly and it will be allocated 25% of the budget. The remaining options will be allocated in equal proportions. Conclusion This marketing campaign is very important for successful re-launching of the product in question. The designing of this creative brief is based on the information available in relation to the given product. The projections that have been made have been mainly determined by the market research carried out in relation to the general preferences of the Australian consumers. Therefore, the setting of communication tools to meet the marketing objectives set is actually dependent on the information gathered in relation to the preferences by the consumers. Above all, it is to the interest of the company to remain relevant in this technological era. This is achievable by appealing to consumers via avenues that are in tandem with the current technological trends. References Egan, J. (2007). Marketing Communications. London: Cengage Learning EMEA. Fill, C. (2009). Marketing Communications: Interactivity, Communities and Content. New York: Financial Times. Fill, C. (2011). Essentials of Marketing Communications. New York: Financial Times. Fill, G. (2008). CIM Course book 08/09 Marketing Communications. Oxford: Butterworth-Heinemann Title. Pelmesmacker, P., Bergh V. & Geuens, M. (2010). Marketing Communications: A Europeans Perspective. New York: Financial Times. Pickton, D & Broderick, A. (2004). Integrated Marketing Communications. New York: Financial Times. Rossiter, J.R. and Bellman S. (2005). Marketing Communication. New York: Prentice Hall. Smith, P. & Taylor J. (2001). Marketing Communications: An Integrated Approach. London: Kogan Page Ltd. Smith, PR & Zook, Z (2011). Marketing Communications: Integrating Offline and Online with Social Media. London: Kogan Page. Read More