Product_Strategic

Products Strategies The current strategy for KFC Malaysia of the product strategy varies; they have used many strategies in order to perform well in the market. Below are some of their current strategies. Value Their current value added of their product is collaboration with hotlink, that when customer receives a sms from hotlink, they can go redeem the product of discounted food from KFC Malaysia outlet. Another value added of their products is free gifts, drinks upgrade to bigger portion. Scope Multi product is scope of KFC malaysia’s product. They are do some research and make sure each product will fit into their different target market. And the benefit is it will satisfy customer needs. For example they have Kids’ Meal for kids Elimination Twister and Waikiki Burget were promotional product which it existed for a short period time when KFC had a promaotion. KFC eliminated this two product because they tried to pack and go for the product. Design As for the design strategy, their current method is customizing standardization. They are using scope of product that is multiple in customized designs, but they have standardized the procedure of producing, which is the design customization. New Product Development KFC not only has Zinger Burger and Coronel Burger, KFC Malaysia will come out with new product also, that is Alaskan Fish Burger which is first fish burger for KFC in Malaysia. Beside that, they also have KFC Snack Box which have variety snack inside a small box, that mean customers can have their snack easily. Pricing Strategies Pricing for existing products – maintain Pricing is very important for KFC because it will effect to the firm’s profit. If price is reasonable, it will bring sufficient profit for the firm. In terms of KFC’s existing products, they are maintaining their product pricing. Segmented pricing for customers Customer KFC has come out with segmented pricing strategy for the customers. Customer’s children can register membership card(Chicky Club) as a member, their children can enjoy special discount while they buy KFC’s product such as kids product. Besides that, children as a member also have some special surprise present. Time Recently KFC has different time pricing for customer such as KFC now has snacks time in the after noon from Monday to Friday with a cheaper price. This actually encourage customers to have a tea time culture in Malaysia. Distribution Strategies Indirect Channel Currently KFC has implemented indirect channel in distributing the fast foods. KFC’s Corporate, QSR Brands Corporation is the franchisee which has Ayamas Breeder, Life sauce factory etc which act as suppliers for KFC Restaurants which are the retailers that sell fast foods. This is the flow of indirect channel distribution: Suppliers (QSR Brands)  Retailers (KFC Restaurants)  Customers Speculation The fast foods sold in KFC Restaurants are based on speculation strategy. As KFC restaurants ordered the supplies like meat stock, vegetables, breads etc based on anticipated sales for each week. Thus KFC Restaurants could prevent wastage of supplies due to improper calculation. Selective Distribution KFC Restaurants are selective distribution as these restaurants are limited to a certain amounts in each region. This is to minimize the stiff competition between each other in a same region. KFC Restaurants did well in the past 30 years for gaining market share with over 390 restaurants in Malaysia, Brunei and Singapore. Vertical marketing system -contractual In order to improve the brand name of KFC in Malaysia, Singapore and Brunei, KFC restaurant should be having vertical marketing system whereby there is a contractual agreement with the concept of franchisee, Yum! Brand. The concept of CHAMPS is Cleanliness, Hospitality, Accuracy, Maintenance, Product Quality and Speed with Delivery. These concepts are important to ensure the brand name of KFC is with quality assured. Thus it is recommended that KFC restaurants should impose the CHAMPS concept in every of its restaurants. Communication Strategies Advertising Currently, KFC is advertising in television, newspaper and radio. For television, KFC advertise mainly of its new meal or promotion during the commercial break. Furthermore, the advertisement also broadcast in its own website: www.kfc.com.my. For instance, the latest ad showed 2 Malay couples promoting the new KFC meal, Combo Ria with satay sauce by using a hilarious and comedy chit-chat. For the newspaper, KFC advertises the new meals and promotion which sometime provide free voucher to get discount. For radio, KFC normally advertise by persuading and reminding customers to dine in KFC restaurants. Sales Promotion KFC always utilize the sales promotion in order to promote its new meals. By providing free voucher cutting from newspaper to get discount for new foods is always practiced by KFC. Besides free voucher for discount, KFC also has free vouchers in newspaper for free gift redeem such as soft drink etc. Moreover, KFC also collaborate with Maxis Hotlink to give Maxis prepaid users who hold KFC promotional SMS could get special meal when dine in KFC. Public Relation KFC has on-going of sponsoring television program just for kids such as Chicky Hour on every Saturday morning at TV3 has been going strong for more than 5 years. KFCs’s Chicky Hour showed fantastic cartoon program which enabled KFC to successfully capture the market of children successfully. In addition to that, KFC also practiced numerous corporate social responsibilities such as having a KFC Charity Collection Box in every outlet which could get customers to contribute for charity of orphanages. Moreover, KFC also has 3 restaurants employing staffs which are speech and hearing-impaired to help them build up the confidence and self esteem in their life.