MICRO-CREDENITIAL IN PRINCIPLE OF MERKETING
BMK10103
ASSINGMENT 1
MARKETING ENVIRONMENT ANALYSIS
(GROUP MEMBER'S PHOTO)
Prepared by : Dharvind Naidu
Prepared for :
DR. Khalil Abd Hafiz & Mdm. Salasiah Bahrin
1.0 INTRODUCTION
The man responsible for the creation of Kentucky Fried Chicken, often
known as KFC, was Colonel Harland Sanders. The Kentucky Fried Chicken
(KFC) chain is the most successful chicken restaurant business in the
world. It has around one thousand outlets in over seventy different
countries. Kentucky Fried Chicken (KFC) was one of the first fast food
businesses to expand its operations across the world. The Kentucky Fried
Chicken (KFC) recipe mixes that are used across the remainder of the
United States contain eleven different herbs and spices. Fried chicken has
made KFC famous all over the world.
because it is cooked in a pressure cooker together with a mixture that
includes wheat flour, salt, black pepper, and monosodium glutamate. The
fried chicken is then served.
Around the beginning of the 1970s, the recipe that is now associated with
Colonel Harland Sanders was created in Malaysia. In 1973, on Jalan Tunku
Abdul Rahman, the very first Kentucky Fried Chicken restaurant to operate
in Malaysia welcomed customers through its doors. KFC now has more
than 700 locations in Malaysia, with the 700th restaurant being opened in
Seremban. This growth is a direct result of the high demand from the
country's native people. Up to this time, KFC Malaysia has never failed to
provide its customers with delicious and high-quality cuisine. In addition
to its predominantly chicken-based menu items, KFC offers its customers
a selection of several side dishes. The KFC chicken is unrivalled because it
retains its one-of-a-kind flavour while imparting a beautiful and alluring
aroma thanks to the herbal and spice-rich mixture that is used in its
preparation. KFC is happy to be a fast food company that offers
customers a broad selection of options that can serve as substitutes for
chicken that has been prepared at home. The macroenvironment and the
microenvironment will both be discussed in this research as they relate to
the marketing environment, which consists of two parts.
2.0 BACKGROUND OF THE COMPANY
Kentucky Fried Chicken (KFC) is a fast-food restaurant brand located in
Louisville, Kentucky, that specialises in fried chicken. With 18,875 outlets in
118 countries and territories as of December 2013, it is the world's second
largest restaurant chain (by sales) behind McDonald's. Harland Sanders, an
entrepreneur who began selling fried chicken from his roadside eatery in
Corbin, Kentucky, launched KFC. Sanders saw the possibilities of restaurant
franchising and created the first "Kentucky Fried Chicken" franchise in Utah
in 1952. KFC popularised chicken in the fast-food business, expanding the
market by challenging the hamburger's existing supremacy. By identifying
himself as "Colonel Sanders." Harland rose to prominence in American
cultural history, and his picture is still regularly featured in KFC
advertisements. However, the business's quick growth overwhelmed the
elderly Sanders, and he sold the company in 1964 to a group of investors
led by John Y. Brown, Jr. and Jack C. Massey.
That particular formula had made its way to Malaysia by the early 1970s.
Today, KFC Malaysia continues to deliver delicious, finger-lickin' excellent
chicken. Its exquisite scent drew the attention of the majority of Malaysians,
and it quickly became famous among them. KFC takes pride in being a fastfood restaurant that offers customers wonderful taste chicken along with a
variety of home-styled side dishes and dessert. The first KFC restaurant
opened in Jalan Tunku Abdul Rahman in 1973. Until now, that is. KFC
Malaysia has around 500 franchises throughout Malaysia and is continually
growing. Great taste chicken has been associated with KFC, and Malaysians
have enjoyed it ever since. KFC Malaysia has now established its own
distinct Malaysian identity.
3.0 MICRO ENVIRONMENT
i) Microenvironment
The microenvironment of a firm refers to the forces that are local to the
business and have an effect on its capacity to provide service to its clients. The
firm, its suppliers, marketing intermediaries, consumers, and rivals make up the
six forces that make up the microenvironment. The public is the seventh factor.
1) Company
Ownership of KFC in Malaysia rests with QSR Brands (M) Holdings Bhd (QSR Brands). Datuk
Seri Mohamed Azahari bin Mohamed Kamil serves as the Managing Director of QSR Brands
(M) Holdings. QSR Brands (M) Holdings Bhd, the firm responsible for running KFC
restaurants in Malaysia, Singapore, Brunei, and Cambodia, had a successful 2018 thanks to
strong results in its primary restaurant market and help from its integrated poultry business
and other connected enterprises. Since opening the first KFC in the country in 1973, QSR
Brands has substantially developed its restaurant chain in Malaysia, which now numbers
713 locations.
KFC's growth strategy includes opening new restaurants in Malaysia, Brunei, Singapore, and
Cambodia over the course of four years. Access for consumers will be further optimised
through the use of digital marketing that is the result of several partnerships. In 2018,
'chicken-on-the-bone' was KFC's best-selling menu item in Malaysia, and sales were up
74.6% year over year.
2) Suppliers
KFC Malaysia always sources its chicken and other raw food products from local vendors. KFC's
integrated vertical business structure allows the company to employ high-quality "Halal
ingredients" and maintain control over its supply chain and costs by sourcing excellent chickens
from a safe, trustworthy, and stable source. The procurement KFC chicken supply products are
supplied from the primary processing activity of its poultry processing plant, which slaughters the
chicken according to "Halal requirement" and is monitored by The Department of Islamic
Development Malaysia (JAKIM) and processes it according to the necessary specifications. KFC
strictly controls the process from importing feeding grains and breeding activities to hatching
processes, supplying day-old chicks to contract farmers, and poultry processing to ensure that
only the highest freshness and hygiene chicken supplies are purchased. While Pepsi supplies all
carbonated beverages to all KFC locations, Malex Paper items Sdn Bhd supplies all packaging
items such as Paper Cups, Paper Boxes, and Fast Food Takeaway Boxes.
3) Customers
All ages are included in KFC's target market. Everyone in the restaurant is eating chicken
and other items. Numerous patrons of KFC are devoted. Some of the customers are
acquainted with the staff. The same client visits KFC 4-5 times on the same day, returning
even more often. KFC has an excessive number of menu options. Deals that draw clients
are incredibly alluring. The website "talk to KFC!" belongs to KFC. The consumer finds the
survey site to be satisfactory. It is really beneficial in getting to know the clients? The
most noticeable group at KFC Malaysia is families. because KFC offers a range of bucket
chicken options.
4) Competitors
Almost every company in the fast food market competes with KFC. Some of the competitors
are listed below.
KFC-like items from MC Donald, like burgers, chicken nuggets, and French fries, are also
available.
Burger King: offers a variety of hamburgers.
Starbucks: competes with KFC by providing a variety of beverages Breakfast at KFC is a
banger twister, which is served with coffee or tea.
4.0 MACRO ENVIRONMENT
ii) Macroenvironment
The bigger socioeconomic influences that have an impact on the entire environment are considered
the macroenvironment. The macroenvironment is influenced by six forces: natural, technological,
political, socioeconomic, and demographic.
1) Demographic
KFC does not have an age limit in Malaysia since its food offerings appeal to people of all ages. KFC
Malaysia focuses on each and every person in a community.
KFC's gender goal will include both guys and females. Young folks are the most numerous
demographic groupings in KFC Malaysia. However, KFC caters to all socioeconomic classes in society,
as its goods are reasonably priced for those ranging from upper to middle class, as well as students
from any society. Aside from that, KFC Malaysia does not target only Muslims, but all races in
Malaysia.
2) Social
KFC made social relationships with other organisations or businesses all across the world. KFC
Malaysia also sponsored several activities, and by doing so, they aided the community. They
occasionally donate the contribution to the underprivileged. The community will be aware of
KFC as a result of this social contact.
3) Political
KFC Malaysia delivers fast food. They create a political framework that will guide them to their goals,
or they refer to them as a guide service. This political structure has the authority to alter their
business plan and develop their organisation.
For example, the action is overseen by a restaurant staff.
4) Economical
KFC Malaysia offers a more reasonable and lower pricing. They have a food
package, and if you buy it, you can receive a discount or something that would
help you buy back there. We evaluate the economic advantage that is enhancing
Kentucky Fried Chicken's foreign market strategy in this economic analysis. They
may expand because of the inexpensive pricing and the good service. Aside from
that, KFC's link with fried chicken is part of the problem, which they have
attempted to avoid by shortening the brand. The health-conscious audience is
uninterested in calorie-dense items. And, because the majority of the KFC menu
comprises some type of fried chicken, those customers have few options.
5.0 HOW COMPANIES REACT TO
MICRO ENVIRONMENT & MACRO ENVIRONMENT &
CONCLUSION
In order to overcome challenges and make the most of opportunities, businesses adapt to their
micro and macro environments in unique ways., it's clear that the marketing atmosphere is crucial
for every business. Both the small and large scale environments play a role.
Considering only their immediate surroundings, it's clear that KFC Malaysia has the best plan for
expanding their business. When it came to sourcing their chicken and other basic materials, KFC
Malaysia worked with local vendors. KFC uses "Halal" chicken and other high-quality ingredients,
as required by the Halal food standard. KFC's adherence to Islamic law is overseen by Malaysia's
Department of Islamic Development (JAKIM), and the company takes great care to select hygienic
partners that produce high-quality goods under stringent quality controls. In addition, KFC
Malavsia acts as a go-between for KFC USA in the Malaysian market. KFC aimed to attract
customers of all ages. KFC is in an industry where it competes with the likes of McDonald's, Burger
King, and Starbucks, to name a few. The public sphere, and notably the public spheres of the
media and government, played crucial roles in shaping the local environment.
From a macroenvironmental standpoint, their consumer has no age restriction and focuses on
every individual in a community. Aside from that, KFC established social ties with various
organisations all around the world. Furthermore, KFC creates a political framework that will help
them to achieve their goals, which they refer to as a guide service. Aside from that, KFC Malaysia
advertises their goods through modernization technology. In terms of cost, they provide their
customers inexpensive and reduced prices. Finally, KFC Malaysia opened its first eco-friendly
restaurant in Malaysia for environmental reasons.
KFC, in my opinion, needs to adapt to changes in the marketing environment since customers are
becoming more demanding and follow trends and technology'. KFC must meet shifting customer
demand in order to adapt appropriately to the changing environment.