Abstract
This article presents an in-depth analysis of KFC marketing strategy. The article covers all key marketing mix elements, conducts competitive and STP analysis, and highlights key lessons learned from KFC’s marketing mix analysis. The article is useful for strategic management students, teachers, researchers, and anyone who wants to learn about fast food industry in general, and more specifically- KFC’s marketing strategies.
1. Introduction
In 2023, KFC topped the Decision Lab’s F&B list. In the same year, The Effie Index ranked KFC#2 most effective brand. Despite the intense competition, KFC is still a global fast-food icon, serving more than 12 million customers daily in 145 countries.
This article decodes the KFC’s success by analyzing its marketing strategies.
2. Company overview
| Company name | KFC |
| Year founded | 1930 |
| Industry | Fast food |
| Headquarters | Louisville, Kentucky, USA |
| CEO | Sabir Sami |
| Number of countries 2023 | 145 |
| Number of employees 2023 | +800,000 |
| Number of restaurants 2023 | 25,000 |
| Revenue 2022 | $6.8 billion |
| Market capitalization 2023 | $9.472 billion |
3. FAQs
i. What does KFC stand for?
Kentucky fried chicken
ii. Is KFC a global company?
Yes, it operates in 145 countries around the globe.
iii. What is KFC company policy for customers?
KFC’s global focus is on consistently delivering taste and quality to drive customer satisfaction in all outlets.
Now, let’s delve into KFC’s marketing strategy:
4. KFC Marketing Strategy
We apply 7-P marketing mix framework to analyze the KFC marketing strategy:
4.1. KFC product strategy
4.1.1. KFC product mix
KFC offers a wide-ranging product mix that ranges from fried chicken, chicken sandwiches, chicken tenders to beverages, desserts, salads, and side orders:
KFC product mix
4.1.2. KFC segmentation, targeting and positioning
Following table presents the KFC segmentation, targeting, and positioning strategy:
| KFC segmentation criteria | KFC target market | KFC positioning strategy |
| Demographic segmentation based on age Geographic segmentation based on location Psychographic segmentation based on consumers’ interests | Primary KFC target market is individuals and families seeking quick and satisfying meals. Value conscious customers that seek value and unique flavors. | Positioned as the ‘original recipe’ expert, emphasizing the secret blend of spices and herbs. The positioning is focused on indulgence, comfort, and nostalgia. |
4.1.3. KFC unique selling proposition
KFC unique selling points are:
4.1.4. Recent product failures
• In 2019, KFC failed to launch its baked items product line
• KFC Cheetos Sandwich failed due to its bad taste
• The double down dog failed due to its highly unhealthy nature (KFC SWOT< weakness <unhealthy menu)
• In 2022, KFC collaborated with beyond meat to launch plant-based options, but failed to make (KFC SWOT< weakness <failed attempt) its product suitable for vegan/vegetarian customers- The Daily Meal.
4.1.5. Key lessons
• KFC target market is individuals and families seeking quick, satisfying, and value-oriented meals
• Past product failures (like Cheetos Sandwich, plant based meat, and baked items) highlight the challenges in successfully introducing new items
4.2. KFC place (distribution) strategy
4.2.1. KFC distribution strategy
KFC distribution strategy involves a combination of franchised and company owned outlets, allowing a widespread global presence. The strategically located restaurants are usually near high traffic areas to ensure accessibility and convenience for customers.
4.2.2. KFC distribution channels
Physical restaurants
KFC primarily delivers products through official outlets, and offers various options like- drive-thru, takeout, and dine-in. Number of KFC locations have steadily grown from 2010 to 2022:
Source: Statista
Online ordering
Customers can directly place the orders through KFC’s official website and mobile app:
Delivery services
KFC has partnered with the third party food delivery services like DoorDash, Grub-hub, and Uber Eats for home delivery.
Retail partnerships
KFC has made its products available through partnerships with convenience and grocery stores, allowing customers to purchase the KFC products for preparation at home.
4.2.3. Key distribution initiatives
In 2023, KFC Moscow experimented with the ‘fast food of the future,’ employing robots for fully automated service delivery, setting new industry standards (KFC SWOT< opportunities <technology integration) in the fast food sector:
4.2.4. Key challenges
In 2018, more than 900 KFC outlets were closed down due to chicken shortage. However, the company learned lesson from the massive supply chain failure, and is now committed to automate its supply chain to minimize the disruptions.
4.2.5. Key lessons
• Supply chain automation and resilience are important to ensure consistent service delivery
• Embracing new technologies can enhance the efficiency of distribution methods.
4.3. KFC pricing strategy
4.3.1. KFC pricing strategies
KFC uses different pricing strategies according to product nature and situation. Here is the KFC pricing mix:
4.3.2. Value pricing
KFC uses value pricing strategy by offering value menus and budget friendly options to attract the price sensitive customers.
4.3.3. Dynamic pricing
KFC charges different prices in different geographic locations. The prices are also adjusted by considering factors like place, demand, time of the day, and delivery type (online or offline).
Here is the country wise price comparison of KFC:
| Countries | Price of KFC value bucket (minimum) |
| Sri Lanka | $3.67 (LKR 1,190) |
| Pakistan | $3.83 (PKR 1,099) |
| South Africa | $4.64 R89 |
| USA | $5 |
| UAE | $7.90 (AED 29) |
| Malaysia | $5.07 (RM 23.9) |
| Philippines | $5.26 (PHP 299) |
Source: Media Infoline
4.3.4. Premium pricing
KFC charges higher prices for some of its new products to reach the price insensitive customers. KFC Double Down sandwich is a good example of its premium priced products:
4.3.5. Promotional pricing
KFC extensively uses the promotional pricing tactics to drive its sales:
Here are some famous KFC promotional deals 2023:
4.3.6. Bundle pricing
Bundle pricing is another commonly used pricing tactic by KFC. Some 2023 bundle meal deals are:
Source: Hot Menu Price
4.3.7. Psychological pricing
KFC uses psychological pricing tactic to make its products look more affordable. However, it is a common pricing tactic that almost every fast food brand uses to boost the sales.
4.3.8. KFC pricing comparison
The pricing comparison suggests that KFC is relatively cheaper than McDonalds and Burger King:
Price based competitive analysis of KFC
Source: Seedly.sg
Click here to look at McDonalds and Burger King Price comparison
4.3.9. Key pricing challenges
KFC fans are in rage as brand increases its prices again thrice in a row in 2023. All KFC meal prices have increased by 50 cents. Despite the growing customer dissatisfaction, company officials are not commenting on the price hike- Yahoo News.
4.3.10. Key lessons
• Adopt flexible pricing strategies to cater various customer segments
• Address customers’ concerns while increasing the prices in response to inflation
4.4. KFC promotion strategy
4.4.1. KFC promotion mix
KFC promotion mix includes- TV advertising, print advertising, billboard advertising, social media marketing, and influencer marketing.
4.4.2. KFC advertisement strategy
KFC TV advertising strategy mainly features the attention grabbing and tempting visuals of their signature fried chicken. KFC is known for its catchy slogans. KFC also highlights limited time promotions and family deals to drive the sales.
KFC plays on multiple grounds. Its TV ads are humorous and emotional, and make a rational appeal as well. Take a glimpse of some of the KFC’s TV commercials:
4.4.3. Print advertising
KFC prints ads in popular magazines (like People and Food Network Magazine) and newspapers. The purpose remains to entice the readers with full page, visually appealing images:
4.4.4. Billboard advertising
KFC is skilled at strategically placing its billboard ads. Here is an example of how KFC placed its billboard ad right above McDonalds:
4.4.5. Social media marketing
KFC has strong presence over all leading social networking sites:
| Social networking sites | KFC Followers |
| 59 million | |
| TikTok | 4.8 million |
| 352K | |
| YouTube | 97.8K |
The active social media presence allows the KFC to directly interact with the customers, particularly Gen Z.
KFC is the 39th top brand for Gen Z
4.4.6. Online advertising
KFC posts engaging content over social media to showcase its signature products while leveraging humor and pop culture references.
Such ads drive the brand awareness and engagement. The user-generated content creates a sense of community, and drives brand loyalty.
4.4.7. Influencer marketing
KFC hires influencers from different industries (like entertainment, comedy and lifestyle etc.) for brand promotion. Some of its 2023 influencer collaborations are- Kenny Sebastian, Shivin Narang, and Ashika Bhatia.
In 2023, KFC got 120 million views, and 60 million impressions through influencer marketing campaigns.
Click here to compare McDonalds and Burger King Promotion strategies
4.4.8. KFC promotional budget
The marketing budget of KFC is 4% to 6% of total revenues. In 2022, KFC spent around $47 million on marketing efforts, which resulted into a visible increase in the restaurant app downloads.
4.4.9. Recent initiatives
In 2021, KFC launched a marketing campaign to save losing market share. The company launched a film depicting colonel driving to KFC in red vintage car.
The campaign increased KFC market share by 6.2%, and KFC increased the penetration by 6.3%, reversing the two-year downward trend.
4.4.10. Key challenges
• In 2019, KFC ad ‘what the cluck’ was banned for causing offense- Campaign live reported.
• KFC received 755 complaints for its misleading and offensive ad in 2017
4.4.11. Key lessons
• Brands can reverse the market share decline through effective marketing campaigns
• It is important to maintain the sensitivity and avoid offensive consent to save brand reputation
• Diverse promotional mix can widen the reach to market
4.5. KFC people strategy
KFC is using virtual reality to train its employees. This innovative use of technology reflects the brands’ commitment to offer the immersive training experience to its employees. The dedication to employee development enables the KFC to deliver high quality customer service.
4.6. KFC process strategy
KFC process strategy ensures the strict quality control, and emphasizes the efficient kitchen operations to consistently deliver the promised taste and quality across all KFC outlets. Following flowchart outlines the KFC’s overall service delivery process:
4.7. KFC physical evidence strategy
KFC physical evidence strategy creates a globally recognizable and consistent restaurant design with distinctive white and red color scheme. Iconic signage and Colonel Sanders’ imagery reinforce the brand identity.
5. Recommendations
• Continue experimenting with the new menu items by learning from the previous failures
• Invest on the supply chain automation to avoid disruptions like 2018 massive chicken shortage
• Integrate flexibility in pricing strategies considering the changing market conditions
• Address consumers’ concerns towards price increase through open and transparent communication
• Keep investing on digital marketing strategies to reach Gen Z
• Strategically collaborate with the social media influencers to expand the reach and impact.
• Avoid posting offensive and insensitive advertisements that hurt the consumers’ sentiments.
6. Conclusion
In competitive fast food industry, KFC marketing strategy– a unique combination of tradition and innovation- serves up as a recipe for enduring success.
Click here to read KFC SWOT analysis
7. References
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Endicott, A. (2022, November 23). Why Plant-Based Meat May Already Be Considered A Fast Food Failure. The Daily Meal
KFC locations worldwide 2022 | Statista. (2023, September 18). Statista.
MediaInfoline. (2023, August 4). KFC chicken bucket price: A global comparison. Media Infoline.
Gaurav. (2023, October 1). KFC Menu with Prices 2023 USA [UPDATED]. Menu Price.
Tan, C. (2020, October 20). Cheapest fast food restaurant breakfast meal comparison. Seedly.
Yahoo is part of the Yahoo family of brands. (n.d.-b).
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