Marketing Report on KFC Fast-food in South Africa

Fast foods are the types of food that can be prepared and served in a short period of time. In most fast food restaurants, people walk right to the counter or drive through a window where they dont have to wait for so long. Most people tend to prefer fast foods as they taste so good and dont cost a lot of money. These foods are however made with cheap ingredients such as refined grains, added sugar and fats and high fat meat which are not so healthy for consumption. Consumers of fast foods mostly focus on taste, value, and quality. These fast food restaurants have a consistent simple look, relaxing feel and also offers music to the consumers. This environment ensures the consumers enjoy a recognizable and familiar experience.

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In South Africa the local fast-food industry generates more than R300 billion every year. This is as a result of an increased number of people buying fast-foods. Kentucky Fried Chicken (KFC) is by far the most prolific brand in the country with 771 branches spread across the country.Serving tastyfried chicken and fries, KFC has become so acceptable to the people of South Africa. KFC owes its success to a number of factors which include the increasing black middle class.This has played a very crucial role in the development of this fast food brand as this group has quite a good income and this reflects to better food intakes. Being very busy at work, most of these people have very little time to prepare a well-cooked traditional meal and therefore turning to fast foods.Moreover, there has also been an increased culture of meat consumption among the people forcing them to spend even the little disposable money they have to buy readymade meat i.e. fried chicken. According to a survey research conducted by Insight Survey, the increase in the number of women in the labour force reflects to double income homes and thus more disposable funds. All these have greatly contributed to the overall success of KFC fast food brand. KFC takes advantage of the rising levels of disposable incomes among the people and therefore making huge sales.This has also resulted to the brand increasing their branches in smaller towns and also rural areas.

KFC is however currently facing a number of challenges with studies saying that its products have health implications (Terblanche , 2010). An analysis of the challenges being faced by Kentucky Fried Chicken can be done using the Porters Five Forces model: the first challenge being competitive rivalry.With brands such as Steers, McDonalds, Nandos and Pizza inn providing similar menus, KFC faces a great threat from them. All these fast-food brands are always on the move to ensure they are the best in the market.Consumers tend to switch to these other brands which offer little cost.The bargaining power of the brand is also a major challenge to KFC. This affects how much power it has and the level of control of the prices.Another challenge KFC is facing is the bargaining power of the consumers. Consumers of fast foods affect the pricing and value of the foods as they can easily switch to other pocket friendly brands.This brand also faces the threat of new entrants whenever they venture into new areas as large amount of capital is required for branding, creating product demand and advertising. Additionally, KFC is also facing the challenge of substitute products as other forms of fast food have gained popularity among the South African people. Such substitute foods include pizza, ice-cream and yogurt which are sold by similar fast food restaurants.

The above challenges can however be analyzed using PETLE ANALYSIS as it gives an advanced warnings and also reveals the right direction of change the business should take.A combination of political, economic, socio-Cultural, technological, legal and environmental factors affects KFC as a fast-food brand and all its operations. Political factors have propagated the bargaining power of suppliers, whereby laws regarding the sale of fast-foods affect the profits of KFC. Economically, the current high cost of living has resulted to people shifting to more affordable foods. This in turn affects the sales of fast-food franchises such as KFC. There has been a change in peoples perception of fast-foods, claiming that they are unhealthy and are a result of most non-communicable diseases such as heart problems. This culture of seeking healthy living has tremendously affected sales of fast-foods especially KFC.Technology wise, most competitors of KFC have access to modern technologies which help them in branding and advertising their products to a wide range of consumers. KFC also faces environmental-related challenge as the dry climatic conditions in Sub-Saharan Africa will most definitely affect livestock productivity.

With all these challenges facing Kentucky Fried Chicken(KFC), a well-planned strategy will be helpful,to ensure that the brand remains relevant in the fast-food market. Competition from other brands can be curbed by employing an enthusiastic and customer-friendly staff and also rebranding the packaging to a more appealing one (Roberts , 2009). Enhanced marketing will also be a boost to better sales at KFC. Marketing tactics such as in-store marketing, in-store brochures, wall posters, party catering and also merchandising items will also improve sales of KFC products. This strategic plan will improve the entire brand even in future.

References

Roberts-Lombard ,M .(2009).Customer retention strategies implemented by fast food outlets in the Gauteng Western Cape and Kwazulu-Natal province of South Africa- Focus on something fishy, Nandos and Steers. African Journal of Marketing management.

Terblanche, N.S.,& Boshoff , C.(2010).Quality , value , satisfaction and loyalty amongst race groups : A study of customers in the South African fast food industry. South African journal of business management.