Business Foundations Marketing Strategies and Organizations

Question: Describe about the Business Foundations for Marketing Strategies and Organizations. Answer: Introduction The current report focuses on the marketing strategies used by the organizations to gain profits and serve the market. The report highlights how external and internal environment of the firm affect the business growth and failure. The marketing strategies such as launching a new product or acquiring a new market with the highly demanded products always bring in profits to the firm. It is observed that marketing excellence could drive breakthrough business outcome for both short-term and long-term period (Solomon 2014). Thus, the marketing excellence always requires effective strategic thinking and perfect execution. In order to understand how an organization implements the marketing strategies considering its internal environment and external barriers (Moorman and Day 2016), the report considers the fast food giant KFC as the case study. The purpose of the report is to understand how the internal and external factors influence the success and failure of the business. The implementati on of the SWOT analysis helps to understand the opportunities and threats that business might encounter. Background of the Company Harland Sanders founded KFC in 1930 and the firm has now become one of the leading fast food chains of restaurants. KFC is one of the fast food chain restaurants that have expanded in the global market in a very short span of time. Presently, KFC has 13700 franchises outlets in more than 100 countries. The organization gained the popularity due to its increasing variety of products. It is also observed that KFC has increased its market share with its market share around 18000 outlets in 120 countries. The product category of KFC includes Streetwise, Snacks, Veggie Selection, Burger, Chicken Delight, Signature side and many more. The major attributes of KFC success excellence are cleanliness, hospitality, accuracy, maintenance, product quality and speed delivery of service (KFC Australia 2016). SWOT Table Strengths v KFC is out of the top 4 developing segments in Australian fast food industry v Good stability as well as security with strong loyalty among KFC employees and franchises v The customers of KFC liked the KFC chicken irrespective of the fact that it was fried v Veg and Non-Veg offering- although KFC is popular for its finger licking chicken menu; however, in the recent time, KFC ventured out in Vegetarian category which helps them in developing their business as well as attract both Veg and Non-veg lover customers. Weakness v The manager of KFC were replaced by the managers of Pepsi Co v The organizational restructure leads to the layoff throughout KFC organization v Pepsi Co put an enormous amount of pressure on the manager of KFC v Poor business relationship is formed with KFC franchisees and Pepsi Co v Long distance between the headquarters as well as abroad franchise made it difficult for quality control v The potential customers of KFC started to demand healthier chicken items, greater items, effective service in the range of non-traditional location (Hu 2015) Opportunities v One of the largest consumer conduct products fast food organizations v Fewer families had no time prepare food at home v The earlier expansion of KFC in the abroad, enhanced brand name as well as managerial experience in global markets provided the firm with strong competitive advantages v Market expansion- Emerging economies and their trendy lifestyle result into more outing with friends and families. This helps to increase market share. Threats v Competition-Although, KFC strengthened its position in the Australian market, the firm is not the leader in the global fast food industry. Thus it has to deal with the competitors like McDonald and Burger King v Changing customer eating habits- People around the world have become more aware of the health due to government health initiative and NGO. While performing the SWOT analysis it has been understood that some elements are more powerful than the others, having a huge impact on the organization. All the elements have been arranged in the table according to their impact. SWOT analysis generally deals with the organizations strengths, weaknesses, opportunities and threats. Strengths: KFC is famous largely due to its trustworthiness, in spite of tough competition in the Australian fast food market. They are the subsidiary of Yum! Brands, a Fortune 500 company that is one the worlds biggest fast food restaurant companies (KFC: Finger Lickin Good 2016). A strong stability and security repute has helped KFC create a strong loyalty base for itself. A strong brand name and excellent expansion strategies have helped the company ensure its popularity all over. Their secret recipe have helped sustain the customer base, in spite of the product being fried (Gray 2016). They are known for their tasty assorted chicken-based menu, but keeping in mind customer diversity, they have branched out into the vegetarian category also. It has helped increase their business and optimized the resource usage. Weaknesses: A shift in the management has altered the organizational structure of KFC in Australia. The PepsiCo managers were putting a lot of pressure on the KFC staff, resulting in a poor business relationship (KFC Australia 2016). Moreover, the distance from the headquarters negatively influenced the quality control strategies of KFC Australia. In addition, degradation in quality made customers ask for better quality products and better service. Opportunities: KFC has the advantage of being one of the biggest fast food chains in the country. Fewer families have time nowadays to prepare food at home, making them visit restaurants more often. They follow an expanding strategy, gaining market share as they go from place to place. Their brand name ensures its sustainability in the market. Threats: In Australia, KFC faces huge competition from other fast food restaurants, making their job tougher. Other fast food giants like Burger King and McDonalds already enjoy a strong market there, and KFC has a big mountain to cross. Moreover, customer taste and choices alter with time. It makes the company think about constructing a new strategy to stay in the market. People have become more health conscious and look for healthier food alternatives (Mitchell 2016). Recommendations KFC decides the sections on geographic, demographic, psychographic, and behavioral groundwork. KFC originally serious about single phase via niche marketing with the presents of Combo deals (KFC Australia 2016), but now the company is specializing in different lessons and has improved the goal market. KFC offers globally and has quantity of retailers in various international locations. KFC sells its merchandise consistent with the geographic wants of the buyers, global and it is measureable. For example, in Australia, its geographic segmentation is huge and density wise ordinarily its presence is in city and sub metropolis areas there is no weather specificity. In KFC, traditionally there is no age limit focus by means of the KFC. The target and center of attention is on each character in a society. KFC finds its greatest demographic within the younger of any society. KFC center of attention on the sales bracket of customers. Its products are largely aimed on the good off with larger disposable gains to spend on high price fast meals. Although KFC do not segregate taste through sex they do are likely to spotlight the photo of fried chicken by way of proposing couples in all their international adverts. KFC segmented the market on the groundwork of style, fine, and cost. KFC has been depicted to be a symbol of man or woman style and accordingly; the company creates a snapshot to be the number one fried chicken in the minds of consumers. For KFC administration, the image their consumers elevate of their intellect is the predominant factor (Mitchell 2016). This is the reason for them the product fine, which is close to, standardizes the entire world besides little variations on account that of regional specifications the promotions are very imperative component. The people which are their consumer and the physical evidence, the atmosphere purchasers get within the KFC are the focal point that developed KFCs snapshot in the consumer intellect this is the reason th ey're invariably trying to deliver positive changes within the atmosphere so that whenever their patron enter the KFC, can believe the difference (Shah 2013). KFC will widen its product offering to consolidate new menu things in a couple of areas to test adequacy and reasonable profit in relations to socioeconomics. In the meantime, the development of its menu could be extremely significant and is focused in proceeding with its item on the solid nourishments the residential customers is distressing as an objective market. KFC may achieve the target of solid suppers by adding new extra questions identical to broiled chicken and barbecued chicken sandwiches and supper and steam chicken. KFC has embraced expense base evaluating method. Considering the area has a place with over the top and center deals staff, as a result, costs are determined to a greater part. KFC has received direct channels to make the item to be needed to objective shoppers. Both the picked sections buyers can get their favored articles from the provincial KFC eateries. KFC likewise gives free house delivery to its consumers from the eating-places. To involve an unmistaka ble, particular and entrancing area with respect to contending items KFC, takes a shot at objective buyer. With a reason to know about the client requests and improvements required, KFC takes input from the buyers. KFC poisons towards rivals with the aid of specializing in pure and contemporary food to create a designated and clear position in the psyches of KFC benefactors. Given that KFC has a solid organization name and are the pioneers in fricasseed chicken market, along these lines it takes the assistance of this constrain to part the items. KFC targets families and young shoppers because of this positioning the products to "three generation" from core and higher core sales segments. Their plan is to arrest the fast meals market. In fact, they need to offer their merchandise to anyone because they are expanding their branches in all over the arena. They need to boost their revenue through giving utmost pride and different higher amenities to men and women that they need. KFCs new product would be healthy and nutritious steamed chicken and grilled chicken. Due to quality and market preference change, KFCs loyal customers are demanding fresh and healthy food items. Abiding by that KFC has launched these healthy foods. This is due to expansion strategy KFC has started following, spreading out all over and gaining a better brand name. References and Bibliography Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014.Principles of marketing. Pearson Australia. 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