RANCAP, ROWIE ANNE B.

BSBA MM 2-3N

ENVIRONMENTAL MARKETING. Prof. Estelita Estrella Medina

Midterm

Micro and Macro Environment of KFC

KFC or Kentucky Fried Chicken is one of the most successful fast food restaurant franchises in
the world. From a backroom in a fuel station in the middle of nowhere, now millions of people
enjoys their product around the globe. KFC was incorporated by Colonel Harland Sanders in
Corbin, Kentucky back in 1955. In 1940’s, Colony Sanders had managed to perfect the secret
recipe of their best seller product which is fried chicken, it is called the secret of the 11 herbs
and spices. Then KFC has named as the largest fast-food Chicken operator, developer, and
franchiser in the world. KFC did not get at the top position of the industry without using
marketing strategies and conducting research to create strategic plans to address the
continuously changing demand of the consumer. They need to know what are the things that
may affect their organization, also they need to conform to the modernization and make used
of the new technologies to develop their operations and product.

Given that corporation and organization can control the internal factors that can affect the
operation of the business, thus they can reengineer, reinvent or adjust the things that may
cause a problem to the flow of business, but still there are factors that they cannot control
instead they can only make plans to avoid the possible negative effects of these factors to the
business, and it is called the external marketing environment. There are two elements within
external marketing environment; micro and macro environment. These environmental factors
are beyond the control of marketers but they still influence the decisions made when creating
marketing plan. Kentucky Fried chicken fulfils the society needs through merchandizing fast
foods and side dishes. In an industrial setting SWOT analysis is very vital and must be conducted
by every company. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
Strengths and weaknesses are internal to your company—things that you have some control
over and can change. Examples include who is on your team, your patents and intellectual
property, and your location. Opportunities and threats are external—things that are going on
outside your company, in the larger market. You can take advantage of opportunities and
protect against threats, but you can’t change them. Examples include competitors, prices of
raw materials, and customer shopping trends. This paper will only focus on discussing the micro
environment and macro environment factors that affect or influence the decision making of the
Kentucky Fried Chicken or KFC organization.

All these are integral to their capacity to profit by a solid corporate picture as specified by a
cautious evaluation on showcasing methods. Micro environmental factors represent issues
appropriate to the organization. They straightforwardly sway on KFC from an individual point of
view. It may very well be their partner, consumer, customer representatives, or competitors.
These are issues that can undoubtedly be taken care of by the organization without assistance
from advisors. Macro environmental factors then again, make as a major challenges to the
organization since they are greater issues outside inside ability to control. They are the
demographic, economical, political, natural, technological and social issues. Therefore, they
most likely influence the organization over the long period of time. Aggregating efforts in
dealing with the two powers guarantees an organization's capacity to keep an advantageous
client base. To address these problems, managers create plans for different situations that may
arise and analyze if the long term solutions can solve these concerns or are they able to avoid
the negative impact of these factors to the company.

Macro Environmental Factors of KFC

Political Factors

Fast food chains are considered unhealthy foods. One of the major political factors that can
influence fast food chain industry is it’s associated and been branded as a unhealthy food due
to the high- calories of food they offer to their consumer. This also one of the reasons they
change the company’s name from Kentucky Fried Chicken to abbreviation only for the intention
of removing the “fried chicken” from it’s identity without reorganizing and changing a lot of
factors internally. Unfortunately it was criticize by various nutritionist and campaigners as it
deceiving people. Also there is an increased of health conscious people and campaigners which
resulting in increased in the number of people who is against the fast food chains and
restaurants for the reason that it serves and promotes obesity and an unhealthy lifestyle.
Government also protects the industry by administrating government policies, limiting
competitors by the competition regulation, tax policies, labor policies, trade restrictions,
copyright policies, funding grants and many more that can impact the organization positively.

The political factors influence can also be seen now in this time of pandemic. Under the
consumer protection laws and other regulations regarding this pandemic many companies and
fast food restaurants are forced to recreate their process flow and create strategic method in
marketing and sales managing without violating the laws. In re-opening of dine-in services in
fast-food chains and restaurants, the Department if Trade and Industry (DTI) issued new
guidelines considering the minimum health protocols. According to the Philippine news agency,
there is a minimum of customers that can be accommodated inside the fast food restaurant
and there are health rules that must be one. In result, the sales of fast-food restaurant are
being affected.

Economic Factors

Some fast food chains failed to generate income. Once more, one of the vital purposes for this
is their relationship with an unhealthy diet. KFC has a menu for the most part containing fried
chicken which has a fatty substance and unfortunate fats. They have as of late broadened their
menu to incorporate more vegetarian and create various vegetable choices. Despite the fact
that this is a much needed development to advance a more sound way to deal with cheap food,
there is still a ton of work to be done to conquer its standing of being undeniably not healthy.

Franchising inside and outside Australia is a tremendous task requiring great skills and financial
strength. KFC may confront breakdown if they fail to detail a legitimate monetary plan to help
them in future crisis. Furthermore, KFC will require sufficient cash for advertising and settling up
an emergency control unit to stray from emergency circumstances. Without such an
arrangement then they will probably fall casualty of various conditions. In the Philippines, the
rate of labor cost is considered low among the other Asian countries and the rate of rent of
commercial buildings are the same that’s why a lot of foreign investors venture in the country.
Though the unemployment rate in the Philippines is still high, the fast food chain industry is still
growing and can help lessen the number of unemployed citizen.

Social Factors

KFC, alongside other well known fast food brands battle with numerous social issues and
concerns. Paying workers a lowest pay permitted by law is one of the top issues that partner a
negative implication to the brand. Disregarding being a worldwide brand with a presence in
more than 140 nations, workers in many outlets are paid the lowest pay permitted by law with
no other benefits. KFC is additionally under steady fire for utilizing profitable and interesting
promotions to draw kids and masses to their restaurants while smoothly concealing the
conspicuous health problems and dangers that emerge because of the utilization of inexpensive
food. The company was also accused by the environmental groups of ecological degradation.
The say that the rain forest face extinction cause by the amount of wrapping material KFC used
to cover their products since it is their main resources and thus KFC Is on the verge of getting
sue by the environmentalist. KFC and other well known fast food chains gain a negative
response in the public as they endorse animal cruelty.The chicken in their factories is stacked
with chemicals to hold more fat and muscle. Furthermore, ranches abuse animals by pressing
them in unhygienic conditions. KFC’s paper supplier is linked in many cases with deforestation,
destruction of wildlife, and endangering the environment. The restaurant needs to adopt more
environmentally friendly practices to reduce waste and consumption.

Technological Factors

KFC has received numerous new advances and changes to stay aware of the changing trends
and taste of the consumers. Most outlets today have a click and carry choice, where you can
arrange your food before arriving at the chain restaurant in this manner causing you to save
time in waiting and falling lines. Furthermore, self-request booths, voice computerized
machines, and online websites where you can order and placed delivery are a portion of the
progressions they have embraced to build benefits and deals. KFC has additionally expanded its
digital promotion through the means of social media management. KFC has received numerous
new advances and changes to stay aware of the changing trends and taste of the consumers.
Most outlets today have a click and carry choice, where you can arrange your food before
arriving at the chain restaurant in this manner causing you to save time in waiting and falling
lines. Furthermore, self-request booths, voice computerized machines, and online websites
where you can order and placed delivery are a portion of the progressions they have embraced
to build benefits and deals. KFC has additionally expanded its digital promotion through the
means of social media management.

KFC are receiving the most current innovation for laborers. They accept that by improving the
environment for personnel, client care and service may improve as well. It's a fairly typical
move thinking about how well verse the young generations in terms of technology and gadgets
are. They're bound to acknowledge and see new types of innovation in the work environment,
for example, voice-activated tests for their trainees.

Micro Environmental Factors of KFC

Competitors

Competitors give the genuine live to marketing process, since organizations should assess its
contribution to rival different organizations that proposal to clients comparable items. Clients
can pick the item or administration, which coordinates their necessities or needs. Accordingly,
organizations should be consistently aware of the highlights that different organizations offer to
its clients. Inexpensive food market such as fast food industry is highly competitive, KFC faces a
wide number of competitors. KFC's primary rivals are Fast food chains like McDonald's and
Domino's, which are now grounded all through the world. McDonalds' specifically is a direct
competitor, as they have as of now effectively presented their Salads in addition to line, which
straightforwardly targets 'solid food' cognizant world we live in. Yet, there are various different
competitors that is additionally focusing on 'chicken' types items. KFC contend its rivals through
showcasing methodology. They offered various bundles at various occasions like Ramadan
offer, 12 PM offer and so on. KFC contend their rivals by offering great types of assistance They
should recruited the hard offering people to showcase their item on the lookout and persuade
their workers for associations and representatives progress admirably and they contend there
contenders KFC has quality items and through these quality items they contend their rivals
Current Sales Analysis and Market Share. The Market Share of KFC has an exceptionally long
history and has the most perceive capable brand in chicken with more than 50 percent of
market shares. It gets hard for the organizations like Sub way, Mc Donald's, Chicken planet, or
the individuals who might need to enter in the market of drive-through joints.

This competitors makes it very hard for KFC to keep up or even expand their client base. In any
case, with the presentation of another and sound item range, KFC can separate itself from most
contenders and will acquire an upper hand. Competitors offer practically same food quality. To
guarantee achievement, KFC should build up a methodology to acquire the upper hand.
Basically, they ought to boost on magnificent client care, increment food assortments, keep up
great relations with the media and work on a prominent corporate picture.

Customers

Customers, this factor depends on various sort of business sectors, like business, customers, re-
seller, international, and government. Those business sectors are significant in the advertising
place since they don't just sell items and administrations, yet additionally get it. They can be
purchasers and venders in various levels. For example, an organization can offer its item or
administration to another organization, who likewise sell items; or an organization can offer its
items to an individual, or the other way around. Truth be told, all advertisers around the word
can be likewise possible purchasers.

KFC's client market comprises exclusively of the buyer market. KFC's items are purchased by
people (guys, females, singles, and families). Hence, the item range KFC offer should interest
whatever number individuals inside this customer market as could reasonably be expected, to
guarantee that the most extreme measure of items can be sold. Customer address KFC's picture
and they can be constrained by it. Client fascination, access and maintenance become the full
duty of the specialist organization. For KFC in Australia, home conveyances will expand the
client base. On the other hand, self-administration estimates will function admirably for them.
This is so on the grounds that clients like picking what they need to eat in their favored parts.
Furthermore, it makes sufficient opportunity to serve everybody. KFC should execute a client
relations work area through which their grievances can be reviewed effectively. The brand
perception is like the image or identify of the company that did not came from the business
itself, because brand perception is something that the customer creates, that is why it is
important to leave a good impression to customers by giving them satisfactory service and
product. They will determine the success of the business not just in name but also in sales.

Company

The company, this depends on an inside interaction in an organization. The advertising division
should discuss habitually with different offices, like deals, buying, managerial, bookkeeping, and
money so the organization finds the best approach to construct great connection with its
costumers situated in client esteem made by understanding clients' requirements. KFC has six
levels on its organizational structure. The upper most is the administration board which has the
president and the provincial chiefs including the chief financial officer (CFO). This level is trailed
by the head supervisors, right hand senior supervisors, Unit directors, colleagues lastly the
specialists. From the overview, obviously KFC had a top down guidelines and direction
framework where the branch supervisor's office would transfer data to the unit administrator's
office. The guidelines would then be imparted to the laborers. Correspondence between the
chiefs is done through KFC entrance email lastly printed out as a notice by the unit supervisor
who imparts to all the laborers either by giving them a duplicate each or sticking it in the
organization notice board at the KFC branch. If a specialist has an issue, at that point the unit
director's office ought to be conveyed to straightforwardly. Criticism to the association is to be
done through the laborer's associations through groups. They can send direct messages to the
senior supervisor through the KFC entry email which is obvious and is continually being
observed by the provincial chiefs at the administration board level.

Employees

Workers structure a basic piece of the firm. For KFC to prevail in a serious market, it ought to
understand that worker taking care of methods reflect through help conveyance. Thusly, the
representatives should get compensations eventually. They should earn enough to pay the rent
out of the wages. They should have the option to bear the cost of necessities. This is to
guarantee that mental variables don't make them treat clients unreasonably.

Suppliers

Those are organizations that give the assets expected to the creation or formation of products
or administrations that clients need. The connection between the organization and the
providers should be extremely close since, supposing that the organization can not tally with
the assets that providers offer, the organization can lose cash all the while. A decent connection
with providers implies a quality criticism from the purchasers. At the point when the providers
of different quick food sources get great treatment from KFC they in all probability will respond
with generosity. Providers guarantee that no food contamination cases happen and that quality
dinners arrive at the general population through KFC. Like what happen in KFC in America, their
supplier had some problems and so they ran out of chicken resources, forcing them to close
some of their outlets.

Public

Organizations should be opened to the general population as a rule. This rubric of publics
depends on various sections: monetary, media, government, resident activity, neighborhood,
general demeanor from society, and inner, which organizations should have a decent
relationship so its business streams in the commercial center. Thinking all the more profoundly,
these sorts of publics depend on a broad sort of open and government organizations, like
banks, radio broadcast, articles, neighborhoods, sound issue government offices. The media
represents an imperative piece of a showcasing system. KFC should take unique concern when
media issues emerge. They should utilize media for positive exposure and dodge contact with
the media during outrages. Up until now, for KFC in Australia the media has been of enormous
assistance particularly for publicizing. The inward notices, official statements and meetings
additionally go about as the best gathering for exposure and formation of mindfulness. The
mission – 'Ain't No Small Fry' – dispatched on Twitter with KFC paying to advance analysis of its
old chips to existing KFC fans, and the individuals who had attempted and reprimanded its
chips. This was sponsored up in conventional media, where KFC paid to intensify the
maltreatment in open air and public press. This was then circled back to advertisements about
the new chips.

While there was a danger to this methodology, it paid off. Abruptly KFC's new chips were top of
the news plan and the most perused story on the BBC. Also, on a careful spending plan of just
£230,000. The underlying Twitter crusade had 3 million impressions, while the general mission
had a portion of voice in the speedy serving eatery classification of 25% and 13.9 million
impressions across online media.