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Marketing Notion And Market Segmentation In Practice

Introduction

In this paper it has been talked about that hoe an organization practices marketing concept, segmentation and positioning components of marketing for the promotion of its brand. Our selected company is KFC. KFC is the pioneer searching for creating distinctive and indulgent taste in fried rooster. Immediately of its businesses KFC has kept a keen concentrate on developing an interior and external marketing orientation. KFC has obtained their current competitive durability to establish its brand developing a history of excellence and luxury. KFC has turned into a global sensation and fried chicken lovers worldwide now recognize the initial KFC emblem as synonymous with ultimate excellent premium fried hen products. However to attain currently position KFC needed sincere marketing initiatives from its start to comprehend customers and their needs.

Marketing Concept

The philosophy of marketing management is that organizational goals and accomplishments is determined by knowing the needs and would like of target market segments and delivering the required satisfactions better than the rivals (P. Kottler. 2008)

KFC is following market strategy as it is focusing on the client and creating improvements in the menus according to the need and desires of the customer. They have added in its selections as seafood zinger, salad, Arabian grain etc in line with the demands of the customer.

The marketing concept emerged in the mid-1950s. Business shifted to a person centered where "sense and respond" school of thought concept arrived in Instead of a product-centered, "make-and-sell" viewpoint. Actually marketing is gardening rather than hunting. The job is never to find the appropriate customers for the merchandise, but the right products for the clients. The marketing theory holds that the main element to reaching organizational goals involves the business being more effective than competition in creating, providing, and connecting superior customer value to its chosen target market segments (Kotler and Keller, 2006).

Theodore Levitt of Harvard clarifies that marketing targets the needs of the buyer and provides is preoccupied with the idea of fulfilling the needs of the client through the merchandise and the complete cluster of things associated with creating, delivering and finally consuming it (Levitt, 960). Many analysts have discovered that organizations who've hold on the marketing theory, achieve superior performance. Companies focus on high level improvements to meet customers' needs and will tend to be more successful.

Criteria to investigate KFC MARKETING THEORY Implementation

The criteria for this purpose will be the level of which KFC does to meet up with the needs, would like and demands of the client and how effectively it is which consists of resources to attain the desired results. KFC is pursuing market strategy as it is focusing on the client and creating improvements in the selections based on the need and wishes of the client.

KFC believes in customer's satisfaction and regularly conducts market research to gather information. KFC has unveiled various methods and methods to receive the opinions from customers to meet their needs. One of the methods is online reviews about the service and products quality and preference. For this function a feedback questionnaire has been released in which experience of customers is used about KFC service, product preference and quality to know the satisfaction requirements. Predicated on this, new products are launched (kfc. com). Before the introduction of the new Product test marketing is also being done, for example KFC tested its product Two times Down before its introduction (tradingmarkets. com).

KFC Company works on a wide quality program to provide each and every time high quality food and fantastic service to customers. New Hot & Fresh programs are constantly designed to improve freshness and taste from the kitchen to the counter-top. To improve further connection with customers, improvement of food flavour, plated meal presentation and up to date facilities are being put in place. In each restaurant a thorough customer care program has been incorporated to monitor, evaluate, and enhance the client experience (Business Cable, 2001).

According to the Leader and Chief Strategy Official of KFC Company, "They are simply raising the product quality bar over the board and continuing to differentiate KFC from other junk food restaurants. " KFC customers are getting a better eating experience through nice tasting real food, freshness, diversity and quality"(Business Wire, 2001).

KFC Reaction to Customer Needs and Lifestyles

KFC has worked to fulfill customer needs by growing menu items that become accustomed to a portable, on-the-go modern culture and consumer's changing likes. Popular menu items like Spicy BBQ Wings, Popcorn Fowl, Extra Crispy Rooster, and Crispy Caesar Twister have all been launched to meet the need of customers. KFC also includes country smart local accepted selections such as fish zinger and Arabian rice based on the demand of the customers.

KFC introduces area dishes on a regular basis to ensure customer flavour and quality anticipations are found. KFC feels that consumers seek more food variety and flavor than what most burger chains provide every day, therefore according to the Leader of KFC they'll continue steadily to offer services that broaden KFC's charm to a wider audience.

Improved Dinning Experience

Customers always look for a dinning place with attractive atmosphere.

In addition to enhancing the grade of food and how it is served, the eating experience is enhanced by a good decor. The ground breaking design for both interior and outside of KFC restaurants appeal to customers. Due to this specific design restaurants obtain aesthetic package to improve drive-by appeal and differentiates KFC from other junk food restaurants.

Stress on Long Term Profitability

KFC stresses more on the long-term profitability rather than short term sales, since it s continuously working to fulfill the needs of customers by doing general market trends, making new ground breaking and tasty products by testing on the market. These activities expose that KFC insurance plan is to make long-term profits.

Segmentation

Segmentation is the recognition and profiling of different groups of potential buyers who are different in their needs and personal preferences. Companies' job is to identify the sections and then make a decision which one to target. By segmentation company can most probably better design, price, disclose and deliver the product or service to fulfill the prospective market. The company also can fine-tune the marketing program and activities to better reflect rivals' marketing (Kotler and Keller, 2006).

Segmenting market is to bring customer satisfaction more cost effectively than competition. Certain variables get excited about market segmentation; they may be age, distance and buy sizes etc. KFC's has different market segment as compared to street food store selling cooked rice. There is certainly difference in conditions of the needs of customers. KFC's customers give importance to completely clean, and comfort, like the middle class and high income groupings. These groups are able higher costs. They demand quality and taste, therefore KFC may charge higher price as compared to a cooked food store to this portion.

Criteria for Segmentation

For effective segmentation pursuing criteria is employed by the organization (Kotler and Keller, 2006):

1. Measurable: It is the level to which the size and purchasing electric power of resulting segments is measured

2. Large: It is to learn, whether chosen section is large enough to necessitate consideration and whether it's profitable or not.

3. Accessible: This criterion establishes that how consumers in the portion are reached by suitable marketing and sales communications?

4. Differentiable: This criterion is defined to know the way the segments are different from each other and exactly how they respond differently to various marketing combination elements and programs?

5. Actionable: This criterion demonstrates how a highly effective marketing program can be developed to get results from the preferred segment.

Market Segmentation by KFC

In the light of the above mentioned segmentation criterion, KFC selects the segments on geographic, demographic, psychographic, and behavioral basis. KFC at first focused on one segment through Niche market Marketing with the offers of Combo Bargains, but now the company is concentrating on other classes and has increased the target market.

Geographic Segmentation

It is section of the marketplace into different physical models, for example states, nations, regions, towns, countries, or area. KFC deals internationally and has volume of outlets in various countries. KFC offers its products according to the geographic needs of the customers, worldwide which is measureable. For example in Australia its geographic segmentation is extensive. It offers 590 outlet stores in Australia (numberof. net). Geographically KFC exists in so many towns such as it is present in Melbourne, Sydney, Brisbane, Perth, Richmond, and in other locations of Australia. Density wise mainly its presence is in urban and sub cities there is no weather specificity. KFC has reached this section as it exists in so many countries and in many locations of Australia.

Demographic Segmentation

Demographic segmentation pertains to dividing the marketplace into groups based on income, age, education, gender, family size, faith, occupation, competition and nationality. KFC divides the marketplace on demographic basis in the following manner:

Age 6-65

Gender Both Males and Females

Family Size 1-2, 3-4, 5+

Income $150 and above

Occupation Not Specific

Education: Not Specific

Religion: Not Specific

Generation: Not Specific

Nationality: Not Specific

Family lifecycle: Almost All

Segmentation predicated on ethnic groups plays important role, for example in Australia KFC has segmented its market on cultural group basis and have created Halal Food for the Muslim community. In Bankstown and local Punchbowl, that have very high Arabic-speaking Muslim populations KFC has offered Halal Foods accredited by the Islamic Council of New South Wales (Modern day Management Research, 2006). In this way KFC sales has increased by covering the Muslim population portion.

Under demographic segmentation, KFC focus on the income bracket of consumers. Its products are mainly targeted at the well off with higher disposable income to spend on premium fast foods. Although KFC do not segregate preference by gender they certainly tend to emphasize the image of deep-fried chicken by boasting couples in every their international adverts. KFC tend to web page link their products straight either sex in rewarding the inner desires. KFC in addition has segmented the children group by launching the Zinger Junior.

Psychographic Segmentation

Psychographic Segmentation methods to divide a market into various organizations predicated on lifestyle, personality, or sociable course characteristics. KFC has divided market on the basis of psychographic variables as follows:

Division by Community Class: Middle class, Upper school and

Lower class

Life Style: Luxury and Indulgence

Personality: Gregarious, Authoritarians and

Ambitious people

Perhaps the most important kind of segmentation bases is the psychographic segmentation. For being attracted to eating super quality and tasted deep-fried hen products, people need to be part of a particular lifestyle segment. They should be among those who enjoy the luxury and indulgence linked with the brand. KFC has been portrayed to be always a sign of individual taste and because of this; the brand creates an image to be the number one fried poultry in the imagination of consumers.

Behavioral Segmentation

Behavioral Segmentation is dividing market into groups predicated on the attitude, consumer knowledge, and use or reaction to a product. In this particular aspect KFC segmented the marketplace based on preference, quality, and price. Following are the different possible sections in this respect. KFC divides the marketplace based on behavioral variables as follows:

1. Taste conscious 2. Quality conscious

3. Class conscious 4. Mixture of price and quality

TWO different segments

Using the above mentioned segmentation means, KFC has narrowed down its business to cater to specifically two main target markets,

*well off, taste and quality seeking people who are usually brand mindful, innovators & trend followers

*Health conscious, adults who are thinking about junk food but prefer natural ingredients and zero fat substitutes.

With the identification of two focus on sections but profitable sections KFC is rehearsing a distinct segment market strategy. They are fairly successful in identifying and catering to the segment which is dependant on their development from USA to its global existence all around the globe. To recognize which segments are profitable to advertise not enough. Companies need to design a marketing combination to cater to each of these segments. Another section discusses KFC's current marketing mix for the mentioned sections.

MARKETING MIX used by KFC for Well of, flavor and quality seeking parents and Health conscious Young adults:

PRODUCT - All products are made with exotic materials to make the fine flavour. KFC provides variety of products because of this segment. The merchandise for this segment include high quality rich in calories such as Fried chicken, sandwiches, and Burgers with high price including big deals and size. For health conscious adults, KFC has presented Tran's fat free fried chicken and burgers with same traditional tastes (servinghistory. com). The products are low in caloric value such as Sensitive roast chicken Breast without skin, Hot and Spicy complete poultry Wings Etc (livestrong. com), therefore these suits to the health conscious segment.

Price

An important part of the marketing mixture is price which customers have to pay to get the KFC products. KFC have placed different charges for different products for both the segments. KFC has adopted cost base costing strategy. Because the segment belongs to high and middle class group, therefore prices are arranged on an increased side.

Place

Place is another marketing combination employed by KFC. It has developed restaurants in the posh and dominant places in all countries. KFC has adopted direct channels to make the product available to target consumers. Both the selected sections customers can get their desired items from the close by KFC restaurants. KFC also provides free home delivery to its customers from the restaurants.

Promotion

Promotion relates to the activities by the companies through which they communicate the products and influence concentrate on consumers to buy it. To catch the attention of both the segments, KFC sponsors various games and uses the slogan, MAXIMUM Satisfaction IN Minimum amount TIME. To entice the portion KFC is rolling out advertising slogan which is, "Nobody does indeed chicken like KFC".

Billboards, Newspapers Advertisements, Posters, Internet Banners, Tv set Ads, Transit Ads, and Leaflets are used to advertise the KFC products to help expand catch the attention of the stated segments.

The difference between the marketing mixes for both the segments is the fact Products are different for both the sections. For well of, preference and quality seekers Big offers and much more caloric products are available whereas for health conscious consumers zero fat products are prepared. Price structure is also different for both segments. Regarding promotion both section products are highlighted individually. For instance KFC projected its Trans excess fat free frying with zero calorie consumption in it areas (findarticles. com).

Positioning

Positioning is the place, something occupies in the minds of consumers' in accordance with competing products. (Philip Kotler, 2008)

The major success factor of KFC is the way it located itself in the heads of the buyer. It had taken a proper marketing attitude to do this placement. KFC makes differentiation with competition like MacDonald, Ruler Burger and Subway by using the finest products and expanding of reduced brand. Another section will look into how KFC position itself.

KFC uses its capabilities to put its Product. To take up a specific, distinctive and advisable place in accordance with rivalling products KFC, works on concentrate on consumer. In order to know the client demands and advancements required, KFC can take feedback from the clients. KFC poisons against rivals by focusing on natural and fresh food to create a particular and clear position in the imagination of KFC customers. Since KFC has a strong brand and will be the leaders in deep-fried chicken market, so that it takes the help of this power to position the products.

The KFC strategy is that it positions itself in local market segments as a pleasant, dazzling, air conditioned restaurants with everyday atmosphere. KFC goals family members and young consumers this means positioning the products to "three technology" from middle and higher middle income sections.

Against rivals KFC positions itself with high quality, hygienic and affordable fast food products within an assortment of complete foods. It differentiate itself by highlighting that the fowl is ready through unique secrets quality recipes in variety of traditions to match diverse flavor and eating events. It is also highlighted that foods are made more appetizing by supplementing with fresh, scrumptious side food and rich home style dessert.

KFC has differentiated its products on various grounds such as on the basis of Food, fun & Festivity, providing several alternatives of its special menu by means of chicken meals. In addition, it offers a variety of deals to identify its products from its opponents. Further from the products it provides, KFC differentiates itself on the basis of the experience it provides: the right place, the right chicken breast, and the right party! Consequently the emphasis on 'we do fowl right' KFC also differentiates its service by means of the eliminate, dine-in experience, and KFC on Wheels (scribd. com). In this manner KFC has positioned and differentiated itself from the rival like Macdonald, Ruler Burger, and Subway.

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