KFC MALAYSIA MARKETING

KFC MALAYSIA MARKETING PLAN
1.0 EXECUTIVE SUMMARY

This project will perform the analysis of marketing plan of KFC.
Besides McDonalds, Kentucky Fried Chicken (KFC) Malaysia is a major Quick
Service Restaurant (QSR) operator in Malaysia. As this business got the very rave from
customer, this business has been survived for over 20 years in Malaysia. This restaurant
serves mainly chicken related items, but also offers side dishes to its customers. This type of
foods with the strategic marketing for example through advertisements succeed to attract
various groups of people especially children and teenagers to try and have one of menus in
KFC.
What are marketing strategies? Marketing strategies are the fundamental goal of
increasing sales and achieving a sustainable competitive advantage. For preparation of this
project, we looked up to their ads and web site. The purposes are to get know the history of
KFC and do a personal observation in one of its branches and throughout the advertisement
in social media and television as a source. Our project will analysis the marketing strategies
that used by KFC in terms of price that offered by KFC, products, promotions and etc.
By this analysis, we can see how every element of marketing strategies affected the
business from the side of profit and satisfaction of customer. As we can see, KFC always
improve their policies as effort to make sure KFC more appealing to the market in effective
way. For example, KFC see that theme as a tagline can be factor that can make KFC brand
more impactful to public people. To achieve that goal, KFC do use theme fingers lickin
good and so good as tagline. This theme can give public imagination that product of KFC
promised to customer about taste satisfaction until they cannot leave the leftovers by licking
all over the fingers and so good stressing out the taste of the chicken they serve with
goodness to friends and family, giving the value of goodness in KFCs servings, giving
consumer the greater value of their money.
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2.0 KFC COMPANY BACKGROUND
Kentucky Fried Chicken (KFC) is one of biggest fast food restaurant in Malaysia and
international. Kentucky Fried Chicken was founded by Harland Sanders in Corbin, Kentucky.
The name Kentucky was inspired by the name of city where it found. Harland Sanders who
was born in small farm in Henryville, Indiana, America is someone who loved to cook and to
invent a new recipe. His effort to make new recipe for cooking succeed when he tested to
mix eleven herbs and spices with wheat flour. He developed a unique, quick method of
spicing and pressure and opened the first franchise in 1952.
The tasty chicken that made by Sanders recipe was franchised to more than 600
outlets in United Kingdom and Canada and get expended in 1963. KFC continues grow in
Asia. The first KFC restaurant in Malaysia was built on Jalan Tunku Abdul Rahman in 1973.
KFC Malaysia get expended and now it has more than 500 restaurant whole country.
KFC Malaysia continues its effort to serve finger lickin good, succulent pieces of
chicken to customer. KFC prides itself as a fast-food restaurant that give customers great
tasting chicken with a selection of home-styled side dishes and dessert to make wholesome,
complete and satisfying meal. KFC puts customer satisfaction as a main goal. Malaysian has
been enjoyed with KFC as great tasting chicken has become synonymous with KFC.
There are many programs that introduced by KFC that can benefit to charity
activities. To attract people, KFC introduced its Tabung Penyayang KFC Collection Box in
1999. It can enable customers to contribute and be a part of this charitable effort. Today,
KFC Malaysia getting advanced by introduced various types of menus, efficient services,
suitable price and good promotion like dinner and lunch treats. This effort can make KFC
legacy become bigger day by day.
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3.0 CURRENT SITUATION AND TRENDS IN KFC
i.
Health conscious of people

Fried products offered by KFC are not healthy. With the rapid socio-economic growth in
Malaysia experiences over decade, modern living brings about heart disease, cancer
and diabetes to various segments of the population. Realizing the seriousness of this
problem, government policies supporting healthy living and preventive measures against
illnesses are often introduced and reinforce. As more Malaysians are exposed to various
health threats, the demand for health and enhancing foods are growing. The increased
health concerns among Malaysian have made more health promoting food in the market.
KFC has to face this challenge in terms to offer the various types of healthy foods.
ii.
The sensitivity of Malaysians about price

Malaysians consumer is particularly sensitive to price. Based to research from Nielsen,
four fifth saying that price is the most important consideration in their purchasing
decision. In this case, the rising price on the product that produced by KFC will change
customers buying behavior.
iii.
Cost Reduction
The increasing price of raw materials cost of labors, subsidy reduction, and cost of
logistic will increase the cost of production. To facing current economic situation, KFC
has to reduce their cost to ensure they are competitiveness in fast food industries without
decrease customer satisfaction. KFC must retaining it foods prices by managing cost
actively and also via a transformation program within the group it is, being more efficient
in how it spends its capital as furniture and reducing cost per outlet.
iv.
Customer complain
Customer complain about quality of services in KFC outlet will expand the bad rumors of
KFC and the image of KFC will affected by that rumors. KFC should take fast action to
solve the problem and stop the rumors. So that, the image of KFC service will clean from
any bad perspective from customers.
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4.0 PAST PERFORMANCE FOR KFC
KFC Restaurants
Revenues in Billion (RM)
2003
1.38
2004
1.41
2005
1.46
2006
1.52
Table 1: Revenue of KFC Restaurants from Year 2003 to 2006.
It is crucial for KFC to review the past performance before doing the marketing plan.
Based on the table above, there was a low growth of 0.03 billion of revenue generated
between year 2003 and 2004. As in 2004, there was a breakout of Asian Bird Flu in Asia.
This had triggered the alert of public to avoid eating poultry such as chicken and this had
slight impacted the sales of KFC Restaurants. During the outbreak, shares in Malaysia's
KFC Holdings (Malaysia) Bhd slipped 1.4 percent on the Kuala Lumpur (Kentucky Fried
Fish? Asian Bird Flu Wings KFC 2004). In addition to that, there was a protest leaded by
Animal Liberation Victoria from Australia against the KFC chickens sale in Kuala Lumpur.
They were protesting that the Meat is Toxic and Eating Meat is Hazardous to Life which
were referring to the Asian Avian Bird Flu Outbreak. This had slightly impact the brand name
of KFC Restaurants (KFC Cruelty 2004).
From 2004 to 2005, there was an increase of 0.05 Billion of revenues. This was
mainly due to the new launched of combo meal called KFC X-Meal, which offers extra
choice and variety. It consists of an OR Fillet Burger, one piece of chicken and a choice of
either regular potato wedges or regular coleslaw or a regular whipped potato. This was the
first time ever KFC customers could get both burger and chicken with a side dish as part of
one individual meal combo. This meal had reduced the anxiety of customers especially
teenagers and young adult who wanted to eat both burger and chicken at the same time yet
paying affordable price. In addition of a great mean, KFC also advertised and held promotion
for the launch of KFC X-meal through TV, radio, press and outdoor advertising, point-of-sale
materials and ambience (KFC Launches new combo meal 2005). This is the reason that the
revenues rose up 0.05bilion with a positive growth.
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Interestingly, the revenue also increased by 0.06Billion from 2005 to 2006 with a
positive growth. Another reason was due to new launched of product Cheesy BBQ Meltz
which contributed at least 10% of the sales. This product was successfully launched to target
teens and young adults as well.. With heavy advertisement and promotion costs of RM4
Million, the increased sale was showing a positive return of the effort (Tong 2006).
4.1 Awards and Achievement of KFC

Besides looking to the problems, KFC also has to review the strength of their company by
looking to the Awards & Achievements. Thus it can be fully utilize the assets of the
organization in order to promote the brand.
Award
Year
Awarding Body
Best New Product Development 2004
2004
Yum! Brands
Beat Year Ago Award
2005
Yum! Brands
Overall Marketing Excellence Award
2005
Yum! Brands
Tiger Award - Mr. S.K. Wong
2005
Yum! Brands
Brand Visibility Award
2005
Yum! Brands
Best Brand Image Award
2006
Yum! Brands
Best Overall Marketing Award
2006
Yum! Brands
Best New Product Award
2006
Yum! Brands
Product Excellence 2006
2006
Yum! Brands
Marketing Excellence 2006
2006
Yum! Brands
Source: KFC 2007

Table 2: Awards and Achievement of KFC
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5.0 ISSUES AND OPPORTUNITIES IN KFC
After doing an analysis, KFC had identified several issues and opportunities happen in KFC.
Proactive actions must be taken towards the problems meanwhile KFC must take advantage
for the opportunities.
5.1 ISSUES
I.
Government
The first issue of KFC is government, there is a proposal developed by the government
recently to overcome the claims of fast food being unhealthy food for consumer.
Basically the proposal is about banning all advertisement for fast food industries,
includes KFC Malaysia. Once the government agreed the proposal, KFC Malaysia will
have hard time in promoting their products.
II.
Customers complaint
The second issue faced by KFC Malaysia is that customer complaint. From the
situational analysis, KFC should notice that there were protests from customers saying
that eating meat is dangerous and it contain toxic, during the avian flu outbreak few
years ago. This eventually will bring poor images for customers which convinced by
them, thus leading bad images for KFC Malaysia.
III.
McDonald getting more growth rate
From the situational analysis, McDonald in Malaysia is actually growing in a faster pace
as compared to KFC Malaysia. If this situation cannot be overcome soon, McDonald
market shares will begin to grow and compete with KFC Malaysia.
IV.
Corporate taxes decreased
There is a 25% decrease in the corporate taxes in the budget 2008 in Malaysia. Although
this might help KFC Malaysia but also portrait threat of new competitors in fast food
industry. Due to lowered taxes, new competitors can appear in the market relatively
easier as compared to before.
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5.2 OPPORTUNITIES
I.
Trend of Children Love Fried Chicken
There is increasing of popularity of eating fried food among the children. As the growing
populations of teenagers and children in Malaysia, Singapore and Brunei, KFC has
plentiful of opportunity to capture this young market. This is due to the fact that children
and teenagers prefer foods that are fried which would taste better and delicious.
Furthermore, their passions to drink soft drink also draw them to eat fast food besides
the factor of speed of dining fast food.
II.
Tapping the New Beef Market
As the past few years back then, there was an outbreak of Avian Flu that devastated
majority of the poultry stocks. Few years present, there are still news of Avian Virus is
lurking around countries like Malaysia, Thailand, Vietnam etc. Hence, KFC has
opportunity to tap the beef market as some customers are worried to eat chicken due to
the news they heard. Thus there is potential market for KFC to grow if it launches new
menu with beef meat. This would able to recapture the customers who afraid of eating
chicken in KFC.
III.
Introduction of New Menu
There is an increase demand toward snack food in KFC. Snack food like Mexican foods
are new and would be welcomed in the market of Malaysia, Brunei and Singapore. As
Mexican foods are tropical foods that very superb and suit the tastes and appetites of
tropical customers in Malaysia, Brunei and Singapore. This opportunity would be a great
success as the launch of Cheesy BBQ Meltz had increased the sales of KFC of 10% in
2006.
IV.
Place of Visit for Tourists
Malaysia has abundant of tourists from Middle East as the culture of Malaysia is quite
similar to Middle East and the religion is Islam. With the increase of tourists visit
Malaysia, KFC could expect an opportunity to capture the market of tourists as the foods
offered by KFC are Halal Guaranteed which suit the appetite of Middle East tourist. On
year 2007 is Cuti-cuti Malaysia which mean tourist year for Malaysia which could further
escalate the amounts of tourist to visit Malaysia. Thus is important for KFC to decorate
the outlets to attract more tourists to dine in or takeaway in KFC.
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6.0 OBJECTIVE
Become leading of fast food chain in Malaysia is the mission and main goals of KFC
Malaysia. Competition from other player in the industry such as McDonalds, Pizza Hut,
Marrybrown and other small competitor reduce KFC markets share in the industry. KFC
must increase their competitiveness to become a leading fast food chain in Malaysia.
Customer preferences and tastes should be considered by KFC.
As more Malaysians are exposed to various health threats, the demands for health
enhancing foods are growing. Fried products mostly offered by KFC are not good for
healthy. The increased health concerns among Malaysians have made available more
health-promoting products in the market. KFC must offered variety of food with healthy
added value. Example, provide whole meal bread with beta glucan for cholesterol lowering
or orange juice contains dietary fiber and vitamins. KFC should offered variety of foods
which is good for healthy.
KFC can reduce the cost of production without having a negative effect on customer
service level. Production and supply chain management can help by connecting every unit in
the supply chain, fostering collaboration among supply chain partner, and offering visibility
into demand and supply side of the chain. Reduce cost of production will increase KFC profit
as long the reduction not affect their customer service level.
In a business world where customer acquisition costs are sky rocketing, small and
medium business must focus on customer building a customer experience to increase
customer satisfaction. KFC should be focuses their effort on creating loyal customer, that
sticky not easily influenced by their competitors such as McDonalds. A customer feedback
is the best way for KFC to find out how satisfied their customers are, find how to improve
their food and service as a fast food provider, and identify customers advocates who really
love their products.
KFC should also increase their growth rate in Malaysia. Increasing number of outlets
include rural area will attract new customers as well as retain current customer. If KFC has
more outlet and branches, it will attract more customers. So it will increase numbers of
customers and increase KFC profit. In rural areas, customer taste and preferences are
different; KFC should revise their menu to cope with the rural market segmentation.
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7.0 MARKETING STRATEGY
What is the marketing strategy for KFC? Marketing strategies is generally accepted
as the use and specification oh the 4ps describing the position of a product in the market
place. The 4Ps are Product which is the goods and service, Price, the value and
product, Promotion where it aware the people about the product and Place where the
distribution of the product occurs. The marketing startegies of KFC contains all the 4Ps. It
contains everything KFC do it to influence the people and demand for their products.
7.1 Products Strategies
The current strategy for KFC Malaysia of the product strategy varies; they have used
many strategies in order to perform well in the market. The first and then most important
thing that a company need to have is the P, Product. A product is anything that can be
offered to a market that might satisfy a want or a need. KFCS product planning is classified
as consumer product as it has no intermediate. It offer special goods and the stock turnover
of KFC is very high. Below are some of their current strategies.
i.
Value
Their current value added of their product is collaboration with hotlink, that when
customer receives a sms from hotlink, they can go redeem the product of discounted
food from KFC Malaysia outlet. Another value added of their products is free gifts,
drinks upgrade to bigger portion. Now, KFC emphasized about Muslim community in
Malaysia which is offered Halal Chicken to fulfill demand of customer.
ii.
Scope
The scope of their current product is multi product, which each product will suit into
their different target market. The benefit of this product is each segment of customer
will get what suit them the most. For example they have Kids Meal for kids. In KFC
generally there is no limit focus by the KFC. The target and focus is on each and
every individual in a society.
iii.
Design
As for the design strategy, their current method is customizing standardization. They
are using scope of product that is multiple in customized designs, but they have
standardized the procedure of producing, which is the design customization.
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iv.
New Product Development

KFC Malaysia will come out with new product once in a while; some of their
promotional products that were introduced were Twister and Waikiki Burger.
Developing a new product and eliminate it after some times will help them to gain
numerous market shares, as people will try the product before it vanish again. KFC
adds new product in its present assortment based on their competitors, products
adequate demand, the satisfaction of the key financial criteria and its compatibility
with environment standard. KFCS product line includes all chicken based products,
burgers such as Colonel burger, Zinger burger and Alaskan fish burger, Combos
such as chicken meal and family meal, desserts and beverages such as ice-cream
and tarts and of course some side orders such as rice, soup, etc.
7.2 Pricing Strategies

The second P from 4Ps is the Price. Price is the any amount of money that
customers have to pay while purchasing the products. More broadly, price is the sum of all
the values that consumers exchange for benefits of having or using the products or services.
v.
Pricing for existing products maintain

Pricing is an important marketing factor for KFC because it brings impacts to the
firms profit. Getting the right price will bring sufficient profit for the firm. In terms of
KFCs existing products, they are maintaining their product pricing.
vi.
Segmented pricing for customers

Customer
KFC has come out with segmented pricing strategy for the customers of the SBU.
Childrens can enjoy special discount while purchasing KFCs products especially
kids products. And children who are registered as members also have some special
surprise presents. Membership cards (Chicky Club) for kids has been used for a long
time.
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Time
Currently KFC offer different time pricing. For instance, KFC now has snacks time in
the afternoon from Monday to Friday with a cheaper price. This actually encourage
customers to have a tea time culture in Malaysia.
7.3 Distribution Strategies

The third P is the Place. Place refers to how the product gets to the consumer.
i.
Indirect Channel
Currently KFC has implemented indirect channel in distributing the fast foods. KFC
has only one channel distribution. Its only distribute its product directly to the
consumer and no need of middleman. It does distribution of consumers good directly
to the consumer. KFCs Corporate, QSR Brands Corporation is the franchisee which
has Ayamas Breeder, Life sauce factory etc which act as suppliers for KFC
Restaurants which are the retailers that sell fast foods. This is the flow of indirect
channel distribution:
Suppliers (QSR Brands)
ii.
Retailers (KFC Restaurants)
Customers
Selective Distribution
KFC Restaurants are selective distribution as these restaurants are limited to a
certain amounts in each region. This is to minimize the stiff competition between
each other in a same region. KFC is affected the geographic distributions. They have
few outlets in some region and their competitor is McDonalds. KFC Restaurants did
well in the past 30 years for gaining market share with over 390 restaurants in
Malaysia, Brunei and Singapore.
iii.
Vertical marketing system -contractual

In order to improve the brand name of KFC in Malaysia, Singapore and Brunei, KFC
restaurant should be having vertical marketing system whereby there is a contractual
agreement with the concept of franchisee, Yum! Brand. The concept of CHAMPS is
Cleanliness, Hospitality, Accuracy, Maintenance, Product Quality and Speed with
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Delivery. These concepts are important to ensure the brand name of KFC is with
quality assured. Thus it is recommended that KFC restaurants should impose the
CHAMPS concept in every of its restaurants.
7.4 Promotion Strategies

The last P is Promotion. Promotion is the method to inform and educate the
chosen target audience about the organization and its product. KFC promotion strategy is
the logo itself. The logo features Colonel Harland Sanders that is one of the best logo in the
world has created its name as a standard in the market. The logo of the smiling Colonel is
probably one of the most recognized faces in the world and instantly brings the image of
fried chicken to ones mind.
i.
Advertising
Advertising is the most fundamental way KFC promote its products. KFC, by its
advertisements derives the desire in their customer to come and enjoy their meal.
Currently, KFC is advertising in television, newspaper and radio. For television, KFC
advertise mainly of its new meal or promotion during the commercial break.
Furthermore, the advertisement also broadcast in its own website: www.kfc.com.my.
For instance, the latest ad showed 2 Malay couples promoting the new KFC meal,
Combo Ria with satay sauce by using a hilarious and comedy chit-chat. For the
newspaper, KFC advertises the new meals and promotion which sometime provide
free voucher to get discount. For radio, KFC normally advertise by persuading and
reminding customers to dine in KFC restaurants.
ii.
Sales Promotion
KFC always utilize the sales promotion in order to promote its new meals. By
providing free voucher cutting from newspaper to get discount for new foods is
always practiced by KFC. Besides free voucher for discount, KFC also has free
vouchers in newspaper for free gift redeem such as soft drink etc. Moreover, KFC
also collaborate with Maxis Hotlink to give Maxis prepaid users who hold KFC
promotional SMS could get special meal when dine in KFC.
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iii.
Public Relation
Sponsorship is another way to strengthen on organization image. KFCs sponsors
many NGOs and other social welfare organization. KFC has on-going of sponsoring
television program just for kids such as Chicky Hour on every Saturday morning at
TV3 has been going strong for more than 5 years. KFCss Chicky Hour showed
fantastic cartoon program which enabled KFC to successfully capture the market of
children successfully. In addition to that, KFC also practiced numerous corporate
social responsibilities such as having a KFC Charity Collection Box in every outlet
which could get customers to contribute for charity of orphanages. Moreover, KFC
also has 3 restaurants employing staffs which are speech and hearing-impaired to
help they build up the confidence and self esteem in their life.
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8.0 ACTION PLAN FOR KFC
There are a few action plans that KFC could concern with. The action plan for KFC consist of
four areas; Market Strategies, Products Strategies, Pricing Strategies and Distribution
Strategies. Below are the explanations for each criterions that we suggest.
8.1 Market Strategies

Market Scope
KFC is recommended to continue the existing strategy which they are pursuing
various market strategies, multi - market when they target children, family, youth
and young adults and to benefit KFC customers in terms of budget revenue and
market share. In addition, KFC may want to consider adding one more to the
marketing mix in their business solely for the health conscious customers.
Because society currently receive a high quality education and become smarter,
they will demand a healthier life. This is an issue that KFC could take into
account
8.2 Products Strategies

i.
Product Repositioning
KFC need to reposition especially among their existing customer. This is because
many people have argued that food products from KFC are unhealthy because
the food usually served fried. KFC Malaysia must convince their customers that
the product is healthy to consume, for example KFC had uses zero Trans fat oils.
The company's revenue could regain strength when people change their
perception of KFC Malaysia, particularly in regard of health conscious. As one of
its stated goals is to increase the satisfaction of their customers, with a good
understanding of the customer it can improve customer satisfaction.
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ii.
Value added for KFC product

For this action plan, KFC should further enhance this value added to contribute more
toward their growth rate, as their recommended goal now is to regain the growth rate
and market share. They can give voucher for customer when they purchase their
products. Another ways of doing would be that they establish KFC cards, where
customers can collect points every time they buy products from KFC Malaysia. This
action plan will enable KFC to increase their customer loyalty.
8.3 Pricing Strategies

Pricing for customers
At the moment, KFC are very popular on focusing children welfare. Despite that, the
other action plan that KFC could focus on is by offering older citizen in Malaysia with
membership card. Since a new customer segment which is health conscious
customer has been add in into new strategy of KFC, older customer age 40 and
above will actually come to KFC and enjoy meal. Thus, KFC can offer a special price
and discount for the registered old customers. From the membership forms they fill
in, information regarding their personal details and their preferences can be obtained.
Other than that, Currently KFC also offer 24 open hours in west Malaysia but the
price is normal like usual. It is recommended that special discounted price can be
offer in the midnight from 12am to 8am everyday to encourage more customers to
come to KFC in the middle of the night.
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9.0 CONTROLS PLAN
Proper controlling method need to be considered by KFC as assurance and security
on the implementation of action plan to sustain in good result and performance. It is also to
ensure that plan is carefully monitored, evaluated and controlled.
9.1 Research and Development (R&D)

One of the methods to all action plan stated on the previous part by establish
marketing research a development team. The tasks for this marketing research team is to
assess the information which needs and provide management with relevant, accurate,
reliable, valid and current information to help in identify the suitable market, product, service,
price for that product and service, value for that product and services and distribution
strategies. This is very useful to enhance all the action plan like the market scope by
consider to adding one more marketing mix into their business just for health conscious
customers. Since communities nowadays receive high education quality and become
smarter, they will demand a healthier life. This is an issue which KFC can take into account
regarding the new design of the product need to develop as the result from the R&D
process.
9.2 Repositioning Revolution

The other method to control the product repositioning action plan is by introduce new
product innovation to deliver improvements, to make something better and to make it
relevant. Repositioning simply as relevancy readjustments to meet the demand of the
existing and potential customers. Repositioning is to increase product or brand relevancy
doesnt have to be an expensive overhaul (remember, it is all about improvements), but it
should be strategic and fit within the existing architecture and structure of what the product
or brand has established. KFC should establish a standard time such as each three months
should the brand repositioning align with the feedback from the customer the survey
conducted by R&D team. The repositioning should be implemented after a market survey
that conducted in 3 months from January to March. The reason being to choose the first 3
months in the year is to give space for KFC to correctly reposition for the rest of the months.
It can be evaluated by using market survey method to understand the satisfaction level of
customers toward KFC repositioning strategy which is supervised by Marketing Manager.
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9.3 Develop Time Base for Value Proposition to Solve Problem
The third control approach to get closer to their customers, KFC should focus on
delivering experiences that matter, and ensuring theyre aligned and centred in putting their
customers at the heart of the organisation. The first part which is offering coupon is to be
implemented on March to May to create more attractions during non-school holidays. While
the second part, KFC Cards, should be implemented from July onwards, making the
management able to find out the feasibility of such method. Both the strategy can be
evaluated through the feedbacks from customers (conduct by R&D team).
This overall process should be supervised by the Marketing Manager. New KFC
product should be introducing to public on May to July, and November to December as these
periods are school holidays thus can attract more customers. The intermittent period
between will enable the operation department to have time to design new product. This need
to be supervised by both operation manager and marketing manager, by looking at the
quality of the product offered, and the customers response. The product design for KFC is
about customization of the products. The suggested time of implementing this is October
until December 2008. The evaluation could be conducted through feedbacks from customers
regarding their satisfaction toward the new product. To be supervise by both Marketing
Manager and Operational manager again.
9.4 Profitable Price Drivers

Next controlling approach to monitor the entire action plan by evaluates the core
drivers of customer demand and their relationship to product pricing. It consists of
technology, design, quality, current economic condition and issues, competition, costs or
expenses, season and delivery services. These price drivers enable by deep customer
analytics, it ensures that pricing becomes adaptive to the market and the ever changing
value perceptions of your customers.
All these drivers will be price determinant for the existing product the price will be
maintained throughout the year only for certain period such Chinese New Year, Hari Gawai
and Hari Raya season. KFC can imposed the mentioned pricing strategy for existing product
to boost temporally sales. For new products proposed pricing strategy will be skimming
pricing. The perfect period to impose the proposed strategy is May, June and July. This is
because sales promotion are being impose as a promotion for those three months and it is a
good idea for KFC to introduce new products to customers. Segmented pricing which is use
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on the senior citizens (members only) is proposed to be the whole year. This special price
that imposed is to act as privilege for them. But take note this strategy can only be use if
KFC come out with healthy meal for them as they older citizens above 40 years old is not
encourage to consume lots of fried food.
9.5 Supply Change Management

Supply change management play major role over the last decade to success in the
global economy. As a part of the supply chain, KFC should use current trend of channel of
distribution which is fulfilled the demand of social media user. This as part of its value chain
to a set of downstream independent intermediaries or representatives through Facebook,
Twitter and Instagram. KFC should launch a specific account add that specially designed to
cater for online order and speed delivery. KFC should implement this in 2 months time
which is from September to October which is sufficient time to launch a success account
add.
Moreover the account add should launch prior to cater the increasing demand during
school holidays on November and December. This should be supervised by Public Relation
Manager. After the market research survey, KFC could extend its outlet scope to places that
respondents would like to have. Furthermore, KFC could set the mobile restaurants to rural
places to have trial on the market of rural places. Thus the period of extending the coverage
is best to be April until August which is the period after the market research survey. This
should be supervised by Distribution Manager. In conjunction with the market research that
would be done during January until March regarding the repositioning strategy. KFC could
probe respondents to give opinion regarding the satisfaction level toward the locations of
KFC outlets. Hence, KFC could use the information to reduce the opportunity costs of setting
up outlets. This should be supervised by Operation Manager.
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10.0 CONTIGENCY PLAN
Contingency plans a plan where take over or being use in order to overcome the
action plan that was not really effective. This contingency plan will be use after a detailed
controls evaluation over the action plan had been taken care but the outcome was not really
good. There are four contingency plans that seem suitable for KFC to focus on.
i.
New Product Development

New product development is also proposed to have new product like Dumpling and
Satay. Both of the products are traditional dishes for Malaysias two main races,
Chinese and Malay. In touching peoples heart, people will like KFC more than any
other fast food restaurants. Market share thus will be further increased.
ii.
Product Design
KFC Malaysia should use the customization strategy for their products. The morale
behind this is that people will choose what ingredient they wanted for their products,
they will do it themselves, and pay only when they proceed to the counter. Not only
this, customer will be more satisfied if they can choose what they want to eat, and
health conscious customer can have more choices in dining, because they are not
restrained from eating things that they do not want.
iii.
Sales Promotion
Child is the main player in KFC customer group. By focusing on this category,
eventually it will attract the entire family member to come to the KFC outlet. So, KFC
could organize event like drawing competition in restaurants. This could be done by
giving a drawing paper to the children to draw and fill color after customers
purchased meal, and the list of winners would be informed after the due date. This
could attract more children to participate as children are tending to like drawing and
filling color.
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iv.
Public Relation
KFC should endorse famous singer or celebrity to promote KFC meals through
advertisement. It also could be done through the singing concert that would be sung
by the famous singers. KFC could search opportunity by collaborating among the
rising-famous singers in Malaysia and it would help boost the sales of KFC. This
could be done by giving half price concert ticket when customers purchase particular
meal in KFC restaurants. Furthermore, customers behaviors would tend to like
discount and half price incentives and it would assure KFC could successfully
capture the markets.
Page 20 of 22

11.0 CONCLUSION
A marketing plan describes necessary actions in achieving specific marketing
objectives within a time limit, these actions intend to carry out to interest potential customers
and clients identifying our products and convince them to buy the products offered by us.
However organisations in our era are extremely sensitive as they must be to demographic,
political, technological and economic developments. Environmental changes most affect
strategic perspective. KFC can has a stronger market share than McDonald if struggle in
promotion activities, offered more variety of products and able to create brand loyalty.
An effective marketing program brings together all of the elements of the marketing
mix to achieve the organisation's marketing objectives by delivering to customers what they
want and need. Thus, the most important things in marketing plan must represent a very
modest cost relative to the magnitude of the results of successful marketing operations.
The necessity for good planning increases as the difficulty of marketing increases.
There are numerous indications that the present trend toward higher costs of doing business
and greater competition in each marketing area will increase rather than diminish. The
marketing executive in KFC who has the foresight to see where he wants to go, the ability to
determine the best way to get there, and who takes the trouble to write it all down in a
marketing plan, is very likely to achieve the success in the market place he is seeking.
Thus, this marketing plan will help the marketing executive in implementing or
executing for the sake of KFC development in the future. As we know a lot of threat
surrounding us and if there is no proactive action taken it will lead to lower market share
from time to time. This marketing plan is like a map to guide KFC achieves their goals as
well as coordinates the effort of the staffs and ensures always being proactive. Other than
that this plan will help KFC to stay focus, organized and on track throughout the year.
Page 21 of 22

REFFERENCES
Bridge, D. (2015). Food For Thought: Rethinking KFC Menu Board. Retrieved from DBA Design
Effectiveness Awards: http://www.effectivedesign.org.uk/sites/default/files/0159_001.pdf
Holding, K. (2015, April 4). DEPUTY FINANCE MINISTER CONGRATULATES KFC ON GST COMPLIANCE.
Retrieved from KFC Malaysia: http://www.kfc.com.my/news/congratulates-kfc-gstcompliance/
JOS, M. S., MARA, L. V., & JUAN, M. R. (2007). CONTROL PROBLEMS IN DISTRIBUTION CHANNELS:
EMPIRICAL EVIDENCE OF MANAGEMENT CONTROL SYSTEMS CONTRIBUTIONS. Retrieved
from Spanish Accounting Review: http://www.rc-sar.es/verPdf.php?articleId=156
mention, N. (2015, 7 28). Writing a marketing plan. Retrieved from Cameron School of Business:
http://www.csb.uncw.edu/people/mallalieul/marketing%20plan.pdf
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Uday, M., & Charles, C. (2001). Quality Management at Kentucky Fried Chicken. Retrieved 7 23,
2015, from http://www.sba.pdx.edu/faculty/melliep/339/QualityMgmtKFC.pdf:
http://www.sba.pdx.edu/faculty/melliep/339/QualityMgmtKFC.pdf
Ying, W.-y. (2003). Marketing in China: an analysis of the rapid growth of the multinational.
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KFC MALAYSIA MARKETING PLAN

1.0 EXECUTIVE SUMMARY