MKT00720 Implemented Marketing Strategy of KFC and Coca-Cola Assessment 1 Answer
ASSIGNMENT 1: CASE STUDY ANALYSIS
In this present era, marketing is one of the fundamental actions of an organisation that helps them in exchanging, transferring and moving goods from their organisation to the customers. Therefore, marketing strategy always influences customers in buying products from a particular organisation that secures growth and profitability of the organisation. This report is intended to shed lights on two different case studies that discuss the marketing strategies and processes of two various organisations. The first case study sheds lights on the strategic marketing plan of Coca-Cola and the second case study sheds lights on the impact of the sensory marketing on the customers for KFC organisation. Along with the discussion of the case study, this report also provides it focuses on the evidence-based research for justifying the success of the marketing strategy used by the selected two organisations from the case study. Furthermore, this report focuses on the implemented marketing strategy of both the organisations so that competitive advantage can be achieved with efficiencies.
Case study analysis of KFC:
KFC is one of the American fast-food chains that have the specialisation in the fried chicken. Currently, KFC has its presence in more than 136 numbers of countries. The products that are offered by KFC are the chicken sandwiches, French fries, soft drinks, fried chicken, crushers, breakfast and desserts. KFC offered these products with the help of their 22621 number of stores. In the present time, the estimated annual revenue of the organisation is $5.6 billion. According to Randhir et al. (2016), sensory marketing is one of the applications of marketing that offers a real-time opportunity to an organisation to improve the profitability of produces. Due to the busy lifestyle, customers are avoiding the preparation of food in their home. For these purposes, several customers are receiving meals from different restaurants. Therefore, for drawing the attention of this vast number of customers, it is essential for an organisation in attracting the attention of customers with the help of differentiated marketing strategy (Randhir et al. 2016). In that case, a sensory marketing strategy can be one of the practical solutions to attract customers. This case study sheds lights on the impact of the sensory marketing strategy behind the success of the KFC. Sensory marketing can be helpful for KFC in reaching to the senses of the customers and influence the behaviour of customers based on how KFC want to make them feel.
Case study analysis of Coca-Cola:
Coca Cola is one of the US-based carbonated soft drinks brands that was formed in the year of 1886. Coca Cola Company is best known for its flagship products Coca-Cola. Presently, Coca Cola Company has ranked as the third top brand in the world after Google Inc and Apple Inc. The organisation has developed its business in the world as a whole. The present revenue of the organisation is US$31.85 billion. The organisation offers its products to its customers with the help of their 62000 employees. The case study that has been written by Ahmed (2016) provides a clear overview of the Coca-Cola company's marketing planning. This case study describes a good overview of the strategic marketing plan of Coca-Cola in Pakistan (Ahmed, 2016). A strategic marketing plan is one of the processes of an organisation with the help of which organisation sets and implements a marketing plan and strategies in target markets. For discussing the strategic marketing plan, the case study has first facilitated environmental analysis and competition analysis, and after that, the case study provides a plan to achieve a competitive advantage.
Explanation of the marketing success for each of the organisation:
Evidence of KFC's marketing success:
KFC was applying the sensory marketing technique for a long time so that it can be helpful for them in forming an emotional relationship with the customers. In 2016, there was more than 20000 number of KFC restaurant in all over the world that was spread over 120 different countries. The average sales of the organisation were $1060 thousand (Statista, 2019). However, along with the development of an effective marketing strategy, the sales of the organisation have been increased. In the year of 2015, the sales per unit in every thousand dollars was 1000 that has become 1060 in the year 2016 (Statista, 2019). In the year 2017, the share of the organisation has been developed that has become 1200.
Figure 1: Sales of KFC in different years
(Source: Statista, 2019)
Evidence of Coca cola's marketing success:
Coca-Cola has invested 172 million dollars in Pakistan. They have also developed planning for other $248 million investments in the market of Pakistan. Due to the massive amount of investments and an effective marketing strategy, Coca-Cola has achieved a 30% market share in the market of Pakistan (Tribune, 2019). Coca-Cola has identified the greatest potential in the market of Pakistan. Therefore, Coca-Cola has invested a considerable amount of money in Pakistan so that they can add more values to their organisation. For increasing the market share in the market of Pakistan, Coca-Cola has developed an expansion plan.
Analysis and explanation for the achievement of the advantage to assess marketing strategies used by both the organisation:
For assessing the effectiveness of the marketing strategies applied by both the organisation, this section has applied the theory of marketing strategy, which is mentioned below:
A marketing strategy can be successful if it can be customer-centric. Customer-centric refers to the way to do business with the customers in a way that can generate positive customer experience (Palacios-Marques, Guijarro & Carrilero, 2016). Therefore, for developing a successful marketing strategy, it needs to be considered by identifying the need of customers (Chavez et al. 2016). From this point, it can be said that the marketing of the Coca-Cola and KFC would be successful if it maintains the customer-centricity. There are mainly six different components of the customer's centricity, which is needed to develop a customer-centric marketing strategy. For the development of the customer-centric marketing strategy, it is necessary for developing customer-focused leadership, understanding the actual customers need, designing better customer experiences, empowering the front line, developing metrics that matter to the organisation and gaining feedback from the customers so that continuous improvement can be achieved.
From the case study of KFC, it can be said that the management of KFC has identified that visualisation of products and the smell always creates perception and overview of a brand. For attracting customers towards KFC, they have developed a better visualisation in the packaging so that it can quickly draw the attention of the customers. For facilitating the olfactory marketing, KFC has developed a unique smell for their products so that it can attract several customers towards the organisation (Randhir et al. 2016). Along with that, KFC has developed a unique taste in their products as per the need of the customers so that they can draw the attention of the customers (Randhir et al. 2016). The analysis of the result has clearly described the fact that smell has created an excellent sensory relationship with the customers that have developed a sense among the customers that the products generated by KFC are fresh. This fact has created more attraction among customers about the brand.
From the case study of Coca-Cola, it is clear that Coca-Cola has conducted proper market research on Pakistan so that they can understand the exact need of the customers and offer products as per the customer's requirement. Coca-Cola has identified that Pakistani people like cricket very much; therefore, Coca-Cola has decided to sponsor several cricket matches so that they can draw the attention of the customers (Ahmed, 2016). From effective market research, Coca-Cola has identified that acceptability, availability and the affordability are the three factors that can draw the attention of the Pakistani people towards their brand. For this purposes, the organisation has developed an effective distribution channel so that they can make their product available to the customers belonging from every level (Ahmed, 2016). For drawing the customer's attention, Coca-Cola has decided to follow the penetration pricing strategy so that it can be helpful for Coca-Cola in penetrating into the market of Pakistan. For drawing the customer's attention, Coca-Cola has developed a better social media marketing strategy.
By analysing the overall marketing strategies and the processes that are applied by both the KFC and Coca-Cola, it can be clearly understood that a business can achieve more success if they can develop the right marketing strategy to draw the attention of the customers. For achieving more organisational success, an organisation must assess the marketing strategy after the implementation of the strategy so that the efficiencies of the marketing strategy can be identified and any kind of errors can be rectified. The report has shown the fact that KFC and Coca-Cola have applied the customer-centric marketing strategy in different ways so that they can increase their sales volume in different ways. Therefore, it can be concluded from the fact that for attracting a huge number of customers towards an organisation, it is always necessary for an organisation in identifying the need of customers and developing marketing strategy according to the needs.