INTERNATIONAL MARKETING :-
Defn- 1. International Marketing is multinational process of
planning & executing the conception, pricing, promotion, and
distribution of ideas, goods & services to create exchange that
satisfy individual & organisational objectives 2. Marketing
carried on across national boundaries 3. Performance of business
activities that directs the flow of goods & services to
consumers /users in more than one nation 4. Exchanges across
national boundaries for satisfaction of human needs & wants
Q: Why Study International Marketing? There is a trend toward a
global economy.
No longer enough to look only at domestic market Markets across
the world being sought after by
more competitors Global linkages become important
Features :1. Economies of scale through volume transactions 2.
Dominated by MNCs from Developed / Industrialized countries
Worldwide contacts Economic & efficient operations Global
approach 3. Trade barriers Tariff barriers Forex regulations 4.
Sensitive to changes 5. Need for research
6. Importance of Advanced Technology
Superior quality goods at competitive prices Promote exports,
capture world markets Competition between developed &
developing countries Facilities, incentives for export promotion
Competitive techniques Regular research
7. Fierce competition
8. Support of Special institutionsComplicated procedures
Requirement of professional experts Fund support from financial
institutions
Marketing MixThe marketing mix is generally accepted as the use
and specification of the 'four Ps' describing the strategic
position of a product in the marketplace. Product Price Place
Promotion
Anything that can be offered to a market to a market to satisfy
a want or need. A bundle of utilities or satisfaction
Kentucky Fried Chicken Four Ps of Marketing
mix.
Introduction KFC Corporation, or KFC, founded 1930 and also
known as
Kentucky Fried Chicken, is a chain of fast food restaurants
based in Louisville, Kentucky USA by Colonel Harland Sanders. KFC
is a brand and operating segment, called a "concept" of Yum! Brands
since 1997 when that company was spun off from PepsiCo. KFC
primarily sells chicken in form of pieces, wraps, salads and
sandwiches. While its primary focus is fried chicken, KFC also
offers a line of roasted chicken products, side dishes and
desserts.
ProductKFC's specialty is fried chicken served in various forms.
KFC's primary product is pressure-fried pieces of chicken made with
the original recipe. The other chicken offering, extra crispy, is
made using a garlic marinade and double dipping the chicken in
flour before deep frying in a standard industrial kitchen type
machine.
Segmentation Geographic segmentation : Segmenting on the basis
of different geographical units,
e.g. nation, states, region, cities etc. KFC has outlets
internationally and sells its products according to geographic
needs of the customer. In India KFC focuses how geographically its
customers demand different products. The division of market into
rural & urban areas. In north India Chicken is the main selling
product, while in the south the Veg. items sell more than the
chicken.
Segmentation Demographic Segmentation
In demographic segmentation, the market is divided into groups
based on an age, gender, family size, income, occupation, religion,
race and nationality. KFC divides the market on demographic basis
in this way: Income is above Rs 80000 per annum i.e. middle class
& above. Age - for all. Not Gender specific i.e. it caters to
both KFC targets families by providing Family Meals at cheaper
rates.
o o o o
Segmentation
Psychographic segmentation
Dividing a market into different groups based on lifestyle,
personality traits or values is called psychographic segmentation.
KFC divides market on the basis of psychographic variables like
values ,culture etc. e.g. in India even non-veg consumers avoid
beef so KFC changed its menu to adapt to consumer preference &
beef was struck off the menu.
TARGET MARKET The process of evaluating each market segments
attractiveness and selecting two or more segments
As the outlets of KFC are in posh area and prices are
too high (overhead expenses-rent, air-conditioning, employees),
so KFC targets upper and middle classes i.e. the restaurant going
class. Target market depends upon size and growth rate of
population, actionable, substantial, Company resources and
structural attractiveness(market growth) of market segment.
Market Positioning
KFC uses its attributes to Position its Product(Fried
Chicken)
Positioning of a product is to occupy a
clear, distinctive place in the minds of the target market. KFC
focuses on pure and fresh food in
order to create a distinct and clear position in the minds of
customers KFC has a strong brand name and they are leading the
market in fried chicken.
KFC Menu
Price Price is the any amount of money that customers have
to pay while purchasing the product. More broadly, price is the
sum of all the values that consumers exchange for benefits of
having or using the product or services
Price
Demographic factors Age: Generally there is no age limit focus
by the KFC.
The target and focus is on each and every individual in a
society. KFC finds its largest demographic in the young of any
society. Gender: Both male and females are focused by KFC, gender
does not play any role here. Household Size: This plays a vital
role in the demographic factor of the KFC. Generally they target
whole families rather than single persons. This being the reason
for their Family Meals which are basically bundled items served at
a nominally cheaper rate.
Price
Economic Factors Income: Income is an important
key factor for KFC. This factor decides which class is to be
targeted. In the early rise of KFC they focused on the upper class
but slowly are introducing economy meals that attract the lower to
middle classes.
Price
Competition We can compare the price of their products
with McDonald, Dominoes and Pizza Hut. If the competitor
provides the same product at a lower price then the organization
usually lowers the price of its product too. In the case of KFC,
Fried Chicken is its main selling point and controls a monopoly
over the Indian fast food market (only with fried chicken). It
prices its burgers, French fries and soft beverages with relation
to its competitors.
Price
Behavior segmentationtaste consciousquality conscious
combination of product and quality
Price
Pricing Strategy Market skimming: KFC globally enters the
market
using market skimming. Their products are priced high and target
the middle to upper class people. Gradually they trickle down the
prices focusing on the middle to lower class people to penetrate
both sides of the market.
Price
PRICING METHOD Cost Based In the cost based method we include
the
variable and fixed cost. KFC price their product keeping
different points in view. They adopt the cost base price strategy.
Pricing of the product includes the govt. tax and excise duty and
then comes the final stage of determine the price of their product.
The products are bit high priced according the market segment and
it is also comparable to the standard of their product.
Indirect selling, also known as the local or domestic channel,
is employed when a manufacturer in the United Kingdom,for example,
markets its product through another British firm that acts as the
manufacturers sales intermediary (or middleman). As such, the sales
intermediary is just another local or domestic channel for the
manufacturer because there are no dealings abroad with a foreign
firm. By exporting through an independent local middleman, the
manufacturer has no need to set up an international department .The
middleman, acting as the manufacturers external export
organization, usually assumes responsibility for moving the product
overseas.
Direct selling is employed when a manufacturer develops an
overseas channel. This channel requires that the manufacturer deal
directly with a foreign party without going through an intermediary
in the home country . The manufacturer must set up the overseas
channel to take care of the business activities between the
countries. Being responsible for shipping the product to foreign
markets itself, the manufacturer exports through its own internal
export department or organization. One advantage gained in using
the direct-selling channel is active market exploitation, since the
manufacturer is more directly committed to its foreign markets.
Another advantage is greater control. The channel improves
communication because approval does not have to be given to a
middleman before a transaction is completed. Therefore, the channel
allows the companys policy to be followed more uniformly.
PlaceIn the case of the KFC the placement of the product is not
important but the placement of the restaurant is important. TARGET
AREAS Free home Delivery strategy They provide free
home delivery to offices & homes (selected countries).
Accessibility Resulting in several outlets to cater to the needs of
people in & around the city. Hectic lifestyle Due to the hectic
lifestyle of office goings individuals the fast food concept saves
time of preparing food and gives the customer a full meal quickly.
Economically convenient The pricing appeals to the many classes of
a society.
Place
TARGET MARKET1.
Location Income of the people of urban areas is normally high
and they
can afford to purchase such products, which are slightly higher
in price as compared to prevailing prices of local food in the
market
Normally people of rural areas dont take fast food.
On the other hand people of urban areas take fast food Quality
conscious people in urban areas are more conscious about the
quality of food than rural areas. Urban areas are more populated
therefore they help with
attracting higher revenues.
Place
Target Market2. Placement of outlets
Due to KFC placing itself close to schools, colleges, cinemas
and markets which are mostly populated by the young and those who
are in a hurry, KFC enjoys a large number of footfalls
everyday.
Place
Given the competitive nature of fast food joints, KFC
STRATEGY
uses the Push Strategy to help them create:
Awareness Be different
Place
CHANNELS KFC believes in first level channels in the order
given
below: Manufacturers Retailers
Consumers
Pool of ads Media availability
Means of promotion Advertising Sales promotion Publicity
Personal selling
telemarketing motivation expatriate personnel
Promotion
Promotion is the method used to inform and educate the chosen
target audience about the organization and its products. Using all
the resources of promotion: Advertising Sales Promotion Public
Relations Events and Experiences Coupons, Discounts and Bundled
packages An organization finds most of its meanings and survival
through promotion. At KFC, Promotion is the main tool to bring all
chicken lovers attention towards its delicious one-of-a-kind
product, the Fried Chicken.
Promotion
AdvertisingThe logo of the smiling Colonel is probably one of
the most recognized faces in the world and instantly brings the
image of fried chicken to ones mind.
KFC and its new company jingle, finger lcikin good is a
frequent
announcement on televisions, billboards, flyers and radio. The
concept of showing a normal customer deeply involved in devouring
his piece of chicken usually turns on the drool factory in
everybodys mouth and makes them rush to the nearest KFC. In India
where chicken lovers are plenty abound these ads featuring normal
people connect instantly and create a rush at their outlets. Using
the following methods KFC spreads its message of finger licking
good chicken.
Promotion
Advertising Using Reminder advertisements KFC stimulates repeat
purchases of its
products. The company anthem finger linkin good is just a wake
up call to the consumer to remind them how good they felt the last
time they ate KFC chicken. Sponsorship is another tool to
strengthen an organizations image. KFC is currently the sponsor of
the Australian Cricket Team and the colonel logo can be seen on
their uniforms throughout the matches.
Promotion
Sales Promotion KFC uses the following tools to further enhance
its
sales. Premiums Exhibits Coupons Entertainment
Promotion
Sales Promotion All KFC outlets offer its customers with various
forms of incentives to buy its Chicken. Using coupons that one can
acquire after spending a particular amount over a period of fixed
time, customers can enjoy the benefits of free meals or free
add-ons. Additionally they provide meal vouchers and exciting
offers in their print ads, which the customer must cut and bring
along.
Sales promotion For the sales promotion KFC introduced their
goods like watches , keychain, etc to the customers.
