KFC HOLDINGS (MALAYSIA) BHD

ASYURA BINTI AMINORDIN (2012482362)MOHAMAD ARIFF BIN SOBRI (2013634296)NOR HAYATI MOHAMED (2013789623)

KFC HOLDINGS (MALAYSIA) BHDFranchise brand owner: Yum Brands IncFounded by Harland SanderKFC come to Malaysia in 1973Largest Fast Food chain in Malaysia, it has 555 outlets.Joint ventures : chicken farm, fresh chicken retail, bakery and chili sauce manufacturing.The first KFC restaurant in Malaysia was established in 1 St January in 1973 on Jalan Tunku Abdul Rahman. Nowadays, there are approximately more than 500 KFC's outlets have been established in MalaysiaKentucky Fried Chicken Holding(KFCH), the franchisee of the KFC chain of restaurants in Malaysia, Singapore, Brunei, Cambodia and India.

Company BackgroundVisionTo be the leading integrated food services group in the Asia Pacific region based on consistent quality products and exceptional customer-focused service.MissionTo maximize profitability, improve shareholder value and deliver sustainable growth year after year.ObjectiveExpand the menu and change the sides to healthier choices for the customer. They want to continue to expand their business and get more consumers to purchase their food.

Vision, Mission, ObjectiveProducts StrategiesCollaboration with Hotlink, that's When a customer receives an SMS from Hotlink, Sonny cans go redeem the product of discounted food from KFC Malaysia outletFree gifts, drinks upgrade to bigger portionSome of their promotional products that's were introduced were Twister and Waikiki Burger

Marketing strategies

Pricing Strategies Pricing for existing products (maintain)They are maintaining pricing. Segmented their product pricing for customersCustomerMembership cards (Chicky Club) for kidsChildren can enjoy special discount -kids products. Children who are registered as members also have some special surprise offer different KFC presentsTimeKFC now has time snacks in the afternoon from Monday to Friday with a cheaper priceEncourage customers to have a tea time culture in Malaysia

Communication StrategiesAdvertisingFor television, KFC advertise mainly of its new meal or promotion during the commercial breakThe latest KFC has came out with new advertisement which their using international football player who is Christiano Ronaldo as their ambassador. For radio, KFC normally advertise by persuading and reminding customers to dine in KFC restaurants.

Sales PromotionProviding free voucher cutting from newspaper to get discount for new foodsFree vouchers in newspaper for free gift redeem such as soft drinkCollaborate with Maxis Hotlink to give Maxis prepaid users who hold KFC promotional SMS could get special meal when dine in KFC.

Public RelationSponsoring television program just for kids such as Chicky Hour on every Saturday morning at TV3Having a KFC Charity Collection Box in every outlet which could get customers to contribute for charity of orphanages

Revised Vision And Mission

VisionTo be the leading integrated health and hygiene services group in the Asia Pasific region based on consistent product and exceptional customer focused service.

MissionTo maximize profitability, increase shareholder value through sustaining continuous improvement (KAIZEN) year by year.

Opportunity Increasing demand for healthier foodIntroduce non-chicken products such as frozen vegetables which have longer shelf life since people are reducing the intake of both red meat and fried chicken for health reasons. Home meal deliveryKFC should introduce the delivery services to cater this segments who enjoy the services of the firms rival to increase the company revenue Introducing new products to its only chicken rangeKFC could introduce new meals to its menu and offer pork, beef or only vegetarian meals, which would target wider consumer group and would result in more costumers.KFCH to extent the KFC chain restaurants to Middle East countries and introduce the menu with local tasteKFC should leverage and replicate their success to unexplored markets in both Africa and Asia. They can also acquire smaller competitors like merry brown to increase their market share.Menu diversification Add more products to the menu to offer customers variety of choice and increase the target market for example the old people.Increase number of outlets offering drive-thru service and delivery service SWOT AnalysisExternal ThreatsSaturated fast food markets in the developed economiesTrend towards healthy eatingLocal fast food restaurant chainsCurrency fluctuationsCompetitors are turning to new menu offered, open new outlets and locationIncrease number of customers aware of the importance of healthy foodsThe increasing numbers of health conscious people who tend to avoid fast food products are threat to the firms customer base and revenue in future.Lawsuits against KFC No.Success FactorWeightKFCMcDonaldRating 1-4ScoreRating 1-4Score1Market Share0.2040.8030.602Product Quality0.1530.4540.603Customer Loyalty0.1730.5120.344Customer Services0.2520.5041.005Price Competitive0.1330.3920.266Advertisement0.1030.3030.30TOTAL1.002.953.10 Competitive Profile MatrixInternal StrengthSecond best global brand in fast food industry in terms of value ($ 6 billion). KFC is known by many and is a trustworthy brand in many countries mainly due to its early franchising and international expansion.Original 11 herbs and spices recipe. KFC original chicken recipe is a trade secret and a source of comparative advantage against firms competitors.Strong position in emerging Malaysia. More than 500 KFC Restaurants nationwide. KFC position in Malaysia is one of its main strengths as Malaysias fast food market is growing steadily.Maximize revenue to Malaysian StakeholderKFC return is 94% (Kentucky Fried Chicken Holdings) and only 6% is paid to the franchise owner (YUM Brands Inc). (Anas, 2013)Kentucky Fried Chicken Holding, the franchisee of the KFC chain of restaurants in Malaysia, Singapore, Brunei, Cambodia and IndiaKFC is the market leader in the world Among companies featuring chicken as their primary product offering. KFC has positioned itself clearly among other fast food chains bearing its famous slogan and trademark chicken products.cont..Internal WeaknessesNegative publicity. criticism from PETA over the conditions chickens have been raised. Furthermore, it received bad publicity for selling chicken wing with kidney. Unhealthy food menu. KFC menu is largely formed of high calorie, salt and fat meals and drinks. Such menu offering prompts protests by organizations that fight obesity and hence, decreases KFC popularity. High employee turnoverEmployment in KFC is a low paid and low skilled job. It results in low performance and high employee turnover, which increases training costs and add to overall costs of KFC.Some outlets not emphasize on maintain hygienic restaurants and foodsLack of efficiency in serving meal to customerHigh Price Only chicken related products.cont..Internal Factor Evaluation

cont..Key Internal FactorsWeightRateWeighted ScoreStrengthsSecond best global brand in fast food industry 0.0930.27KFC original chicken recipe is a trade secret 0.1030.3KFC position with more than 500 outlets in Malaysia0.0940.36KFCH is the franchisee of the KFC chain of restaurants in Southeast Asia0.0930.27Maximize revenue to Malaysian Stakeholder0.1040.04Local and world leading company for chicken product0.0820.16WeaknessesNegative publicity. 0.0420.08Unhealthy food menu0.0630.18High employee turnover0.0630.18Some outlet not maintain hygienic restaurants and foods0.0920.18Lack of efficiency in serving meal to customer0.0830.24High Price 0.0630.18Only chicken related products0.0640.24Total1.002.68External Factor Evaluation

cont..Key internal factorsWeightRate 1-4Weighted scoreOpportunitiesIncreasing demand for healthier food0.1440.56Home meal delivery0.1030.30Introducing new products to its only chicken range0.1030.30Extend the KFC chain restaurants to Middle East countries and introduce the menu with local taste0.1030.30Be environment and society responsible0.1030.30Increase number of outlets offering drive-thru service and delivery service 0.1030.30ThreatsSaturated fast food markets in the developed economies0.0530.15Trend towards healthy eating0.0540.20Local fast food restaurant chains0.0740.28Currency fluctuations0.0430.12Competitors are turning to new menu offered, open new outlets and location0.0420.08Number of customers aware of the importance of healthy foods0.0440.16Lawsuits against KFC0.0530.15Total1.002.90http://www.slideshare.net/FarhanAkhtar1/kfc-matrixes-analysishttp://www.ijhssnet.com/journals/Vol_3_No_1_January_2013/23.pdfWebsite kfcJohor corpReferences