Question

Question no.5 (8)

KFC is famous for its crispy fried chicken that has a very unique taste. Draw an activity map for KFC indicating its competitive advantage strategy, at least four key success factors and their two supporting activities.

Answer 1

The competitive advantage strategy of KFC is chian of restaurants and its distribution channels and the meaning of competitive advantage is that advantage of a company which keeps the company on top by facing all the competitions in the market. The two important competitive advantage of KFC :

Differentiation advantage in which the company offers the unique product to the customers with high price and other competitor can provide that type of product.

Cost advantage which covers the products which all the competitors is providing to the customers at the lower cost as compared to them.

Effective market segmentation and reaching the target market which includes the

Geographic segmentation where the company focuses on the different geographic areas of their customers especially in India KFC focuses on customer demand area wise.

Demographic segmentation in this segmentation the company divide the customers into different groups based on their age, gender, income, family size, occupation, religion, and Nationality. The KFC mostly focuses on youth of the economy because our youths always try something new.

Psychographic segmentation where they divide their customers into classes like upper-class and middle class. If the KFC is located in the higher class area then they price high for their products and provides the facilities accordingly to the status of the customer.

The KFC always target the upper and middle class customers and this focuses on the improving the company resources and structurally attractive to attract their targeted customers.

KFC always focuses on pure and fresh food to make themselves different from the competitors and make a good brand image in the market as KFC is already having a strong brand image and they are giving tough competition in fried chickens. The KFC for improving their products quality takes feedback from customers and work on it for better results.

The success factors of KFC are :

Its locations and its multiple number of chains in the market mostly in the posh areas so that they can offer it at higher price.

Its large variety of of menu options and some unique menu like fried chicken which helps in the success of the company.

The prices are based on the facility provided to the customers and KFC mostly focuses on middle and upper classes. It offers lower prices of the similar products provided by their competitors and higher price of the unique provided by them only.

The KFC provides the effective services to their customers like their attractive structure where Air conditioning and taken care of hygiene and everything is provided very neat and clean.

They provide very tasty foods and beverages as they are having selected spices and food materials which makes their products very healthy and tasty.

Last they always take care of their customers for that they takes feedback from their customers so that improvements can be made and best services can be provided. KFC will always be their in the mind of customers when ever they think of eating outside foods.