KFC made a plan to launch a chain of their restaurants, they made a marketing plan while analysising opportunities and risks of the market and understanding Muslim society. For example in the Middle East Number of internal and external and marketing analysis was carried out looking into marketing mix how they have launched their restaurant with some extra local recipes one of them is, Arabian Rice. The way in which KFC made a markerting plan and implemented it will be analysed in this report.
How they make a marketing plan and implement it will be analysed in this report. 2. Introduction:
KFC is the based in USA it is the world’s most popular fried chicken restaurant chain. KFC serves 12 million customers every day in the 109 countries in the world. Its revenue in 2008 was $11 billion and the company is ranked 239 in fortune list of companies (KFC.com, 2010). KFC is adaptating the local culture in the different countries. This report will show its marketing plan of different Muslim countries like Saudi Arabia with respect to culture. And marketing mix of 7, Ps and how they introduced a product ‘Arabian Rice’ in the countries. KFC is owned by the company YUM Inc. Which is USA based company and it has number of franchises and subsidiaries of KFC which works in different countries by adapting the local culture and in the Middle East they are marketing in the same way. 3. Mission:
In this marketing planning report of KFC, KFC has launched its restaurants in Saudi Arabia and how they would adapt the local culture; one product which is quite different than other countries is Arabian Rice, which is spicy rice with fried chicken. 4. Standardisation Vs Adaptation
Either Standardization or Adaptation can create a competitive advantage for a multinational company competing in different cultural markets. Standardization is defined as the strategy of following a single criterion for a certain product, and on the other hand, adaptation is the measures of altering and changing those criterions (Graham, 2007). Saudi Arabia Culture.
5. Hofstede analysis:
Source: Geert – Hofstede
According to hosted analysis of Saudi Arabia culture against USA is very interesting as USA has high individuality where as Saudi Arabia is less, it means Arabic people think more collectively according to this KFC has launched a number of family meals in their outlets.
6. Pest analysis:
The-saudi(2010) said that PEST analysis which are political , economic , social and technical analysis are useful to know the external forces of any corporation during marketing planning it can be used with SWOT analysis (strength, weakness, opportunities and threats) to know the external forces including competitors that can affect corporation. National and international economy directly affects MNCs as if the foreign exchange rate changes, interest rate of host country inflation rate all affects a company growth and profitability and financial position in the supply chain as well economic factors along with political factors are need to be noticed whilst doing marketing planning as host government can apply taxations and entry barriers in terms of excise duty (Hollensen, 2006: 47). Paliwoda (1994:367) said that Saudi Arabia has high volume market with low value raw material and has little infrastructure and one more thing very important they have found new wealth they can buy technology or expertise from outside country and get technical services whenever they want in terms of education and industries. Table 1.
Saudi Arabia Economic indicators.
GDP (Purchasing Power Parity)$585.8 billion (2009 est.) $584.7 billion (2008 est.) $560 billion (2007 est.)| GDP - real growth rate: 0.2% (2009 est.) 4.4% (2008 est.) 3.3% (2007 est.)| GDP - per capita (PPP): $20,400 (2009 est.) $20,800 (2008 est.) $20,300 (2007 est.) | GDP - composition by sector: Agriculture: 3.2% industry:...