Introduction

The KFC (Kentucky fried chicken) company is an American company that deals with fast-food with its headquarter located in Louisville, Kentucky, specializing in fried chicken. The KFC industry is the second-largest restaurant and founded by Colonel Sander for about 70 years (Hussain, 2014). In the United States, the KFC has over 5,000 units, and two-third are wholly-owned and franchised. The KFC firm operates in joint ventures and has continued to hold places that will help gain market shares with increasingly competitive fast-food market. It has become worldwide with the provision of fried chicken and has expanded its menu in offering salads, desserts, sandwiches, soft drinks, wraps, and French fries. The KFC aims to expand the business, increase market shares, sales, and profits.

Strategies

The most effective marketing strategy that KFC may apply is demographic segmentation that serves the targeted market locally. This strategy targets both youth and young adult's wants and needs. Their fried chicken is a favorite dish to everyone and can locate their chain in a kiosk, colleges, stores, and parks to attract customers and creating awareness of their product. KFC has the strongest competition locally and internationally; therefore, using the internet marketing approach can help the market reach globally. The company can advertise its product through an ad on every social media platform and even develop an app where consumers can place their orders. Both domestic and global marketing differs because of uncertainty; laws and regulations to be followed are challenging.

Benefits of a diversification strategy

The diversification strategy benefits domestically and globally by creating new products and services in the market. This helps the company sell more products to established markets or existing consumers that provide a valid path to fast growth. However, the strategy helps both the global and domestic markets to access a high number of customers, but the cost of running the company will outstrip its potential revenue (Bowen, Baker, & Powell, 2015). The diversification strategy is essential to the long-term viability of the company.

Reference

Hussain, S. H. A. R. A. F. A. T. (2014). The impact of sensory branding (five senses) on consumer: A case study on KFC (Kentucky Fried Chicken).International Journal of Research in Business Management,2(5), 47-56.

Bowen, H. P., Baker, H. K., & Powell, G. E. (2015). Globalization and diversification strategy: A managerial perspective.Scandinavian Journal of Management,31(1), 25-39.

Question is

KFC is a well-known (and loved) brand in South Africa, but seems to loose out against Hungry Lion in Zambia.It is my observation that Hungry Lion offers their franchisorsa lower cost option (not the product sale itself per se), and therefore have more franchise stores than KFC.This is rather interesting as KFC is well known founded by Colonel Harland Sanders, an entrepreneur who began selling fried chicken from his roadside restaurant in Corbin, who first identified the potential of the restaurant franchising concept, and the first "Kentucky Fried Chicken" franchise opened in Utah in 1952.

Would you think it is time they revisited their Franchising strategy?