KFC -History, Brand Value, and Brand Strategy
The brand name that is always successful at watering our mouth with the expectation of the delicious crunch is “KFC”. KFC means ‘Kentucky Fried Chicken’ and was begun by a maturing business visionary by the name Harland Sanders.
It is presently an auxiliary of Yum! Brands. While the primary establishment actually began in 1952 in Utah, today KFC brags of about 18,000 outlets in 125 nations. In 2012 it had an income in abundance of $15 billion.
KFC Brand History
The achievement of KFC is the narrative of one man’s fantasy about cooking that has slung into making his organization probably the greatest establishment in the entire world. This story begins with Harland Sanders who was conceived in the modest community of Henryville, Indiana in the year 1890. He left his home at 12 years old to secure some position to help his neediness-stricken family after his dad died and he was accountable for the family.
The main expertise he had was the cooking his mom had shown him from the age of seven. He took a stab at numerous random temp jobs yet couldn’t remain at wherever for long.
Meanwhile he used to cook dishes his mom had shown him and served them in his storage facility which he had changed over into a little diner. Before long, his steak and nation ham plans were a success with the voyagers who might normally make a trip to eat at his place.
The Rise of KFC
Next Sanders purchased a bigger spot close by to oblige the regularly expanding clients. He expanded the number of dishes and incorporated the incredible fried chicken formula without precedent for 1936. Continuously 1937 he again extended the lodging which presently suited up to 150 individuals simultaneously.
Before long he probed his fried chicken recipe formula and had the option to consummate it with the First Formula of 11 herbs in 1940. Before long he sold his eatery and proceeded to sell his mystery Fried Chicken formula across America. He went to numerous restaurateurs before his formula was acknowledged.
His formula was first diversified to Pete Harman in South Salt Lake, Utah in 1952. To showcase the formula the eatery thought of the name ‘Kentucky Fried Chicken’. Also, consequently, the amazing brand of KFC was established.
KFC Brand Value
In 2018, there were in excess of 23,000 Kentucky Fried Chicken restaurant chains in activity around the world, spread out more than 125countries. The organization’s most significant outside market is China where KFC works with about 5,200 eateries.
Kentucky Fried Chicken’s parent organization Yum! Brands don’t report income figures for its individual brands yet just companywide incomes, which was $ 5.70 billion in 2018. As per reports published by TQSR Magazine, KFC had systemwide deals of about $ 4.5 billion in the USA alone. Milward Darker credits the Kentucky Fried Chicken brand estimation of more than $ 16 billion. In the examination, McDonald’s image esteem was at in excess of $ 128 billion.
It has been estimated that a workforce of around 25,000 people works under KFC. The estimated revenue earned by KFC as per 2019 reports were a massive $ 2.7 billion.
KFC Brand Strategy
The Market Segments:
KFC has segmented the geography according to the market hold and food choices. They have curated the food menus according to the food preferences in the regions to boost up sales. This strategy by KFC has been a success and they were able to come up with variations in their flagship products by adding regional taste flavors. This strategy has been adopted by other food chains as well.
The major market segments are as follows:
America, Europe, Asia, Middle East, Africa, Rest of the world
The Target Market:
KFC has segmented the market into various categories. One such segmentation is by food choices -vegetation and non-vegetarian. Another is by age groups – young and adult. The brand’s sole motto was to be perceived as a family restaurant. So, the brand decided to cater the entire market and it contributed to its popularity in the long run.
The following factors are crucial for the target markets of the brand:
Market size.
Market scope of growth.
Culture of the region.
Demand of the market based on the region.
Brand goals and reach.
Competitive Advantage:
The KFC chicken recipe is the brand’s greatest competitive advantage. It has been kept a secret and the unbelievable taste coming out from the brand’s products due to that recipe is the greatest weapon for KFC in the modern-day market. This is the reason KFC is being able to penetrate into global markets and has been successful ever since.
KFC has realized that there are vegans and vegetarians across the global markets and they need to be taken under the umbrella as well. In order to achieve this, KFC has launched vegetarian menu which included vegetarian items to cater that part of the market.
They have proven themselves to be capable of reconfiguring their menus over time and according the taste buds of their customers. This adaptability can be stated as one of the factors which led to their competitive advantage.
Pricing:
KFC has come up with various pricing schemes. They have individual pricing as well as combo pricing. Individual pricing is for people who wants to single selective items and not bundled items.
Whereas combo offers come with low prices and discounts and include various products bundled together. This pricing strategy has been implemented by other food brands and food chains later in their business models and achieved success like KFC.
Conclusion
KFC is undoubtedly one of the largest food chains in the world and continues to be successful across the countries globally.
The customers are highly delighted with their products and pricing structure and this factor has helped KFC penetrate the food chain industry globally. The future is prosperous for the food chain giant and holds enormous potential in revolutionizing the restaurant chain business.
