KFC Myanmar

2022B0671 Thwin Ye Oo

Assignment brief
Foundation in Business Management
Student Name/ID Number: 2022B0671
Batch Batch-13
Title Introduction to Business Organization
Academic year: 2022
Unit Assessor: Daw Haling May win
Assignment Title: KFC Myanmar
Issue Date: 1.6.2022
Submission Date: 8.6.2022
Grade: 25/50 pass grade including all tasks, citations, and referencing.

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Learning Outcome1
KFC Profile
KFC is a fast-food restaurant, that was founded on March 30, 1930, by Colonel Harland
Sanders and Pete Herman. North Corbyn; Located in Kentucky. KFC (Kentucky Fried
Chicken) is a fast-food, which specializes in fried chicken. This is an American fast-food
restaurant in Louisville. In December 2019, after McDonald's, it was the second-largest
restaurant in the world with 22,621 locations in 150 countries. Affiliate of Store Yum.
Among brands is a restaurant business with Taco Bell, Pizza Hut, and Wing Street stores.

KFC Vision
Bringing KFC to Myanmar is an important step toward achieving Yoma Strategic's goals and
becoming a key in the Myanmar food and beverage industry.

Mission
The company aims to be part of Myanmar's growing consumer segment, which will grow from 2.5
million today to 19 million by 2030.

Objective
The objectives of KFC are not only to sell chicken to make money and make a profit but also
to increase the percentage of overall sales growth and profit growth more than competitors
companies such as McDonald’s, burger king, pizza hut, etc... Moreover, the next objective is
to get Product development and variety on the menu trying to get the new menu.

Market Description of KFC

Product Description of KFC

Franchising
“A franchise is a type of license that grants franchisee access to a franchisor's
proprietary business knowledge, processes, and trademarks, thus allowing the
franchisee to sell a product or service under the franchisor's business name. In
exchange for acquiring a franchise, the franchisee usually pays the franchisor an
initial start-up fee and annual licensing fees.” (Hayes 2021)

Advantages of Franchising

Disadvantages of Franchising

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Learning Outcome2
Marketing Mix
“A marketing mix includes multiple areas of focus as part of a comprehensive  marketing
plan. The term often refers to a common classification that began as the four ps: product,
price, placement, and promotion .” (Kenton 2020). There are 7 types of the marketing mix -
product, price, place, process, promotion, people, and physical evidence.
Product- The process of converting raw materials into finished products is called products.
Price-The menu of every KFC shop is offered at different types of prices for advanced,
medium, and normal people.
Place-For warehousing and services, it’s a place. A business can be better if it has a central
location and stores products.
Process- The process is the way in which a service is delivered to the end customer.
Promotion-Promotion signs advertising KFC products with special offers are used on
highways and city streets. As the Internet gets, KFC promotion ads On KFC's official
website It can also be found on social networking sites such as Facebook, Twitter,
Instagram, YouTube, and WhatsApp. It can also be seen in TV show commercials.
People- People can create an organization name. It can ruin companies’ reputation.
Therefore, people define the behavior of an organization. People are one of the service
components of the marketing mix.
Physical evidence –Physical evidence is also one of the factors that attract customers. The
company must have clean and tidy packaging to retain the customers.

Activities of KFC Myanmar

Pricing Strategies
Pricing is the value of products and profit is aimed at pricing to get. Pricing Strategy is one of
the seven marketing mixes. There are different strategies in pricing strategies. Among them,
there is two basic pricing strategy. They are penetration pricing and skimming pricing.
Moreover, psychological pricing and premium pricing are also pricing strategies.

Penetration pricing
“Penetration pricing is a marketing strategy used by businesses to attract customers
to a new product or service by offering a lower price during its initial offering.”
(Kenton 2020)
Penetration pricing is the sale of a product at a slightly lower price to penetrate the market.
This strategy is price sensitive and Effective in markets where prices are not always stable. If
a manufacturer wants to break into a product, it will enter the market first and it needs to start
selling the product at a low price. Once the product is successful in this market, they use the
strategy of penetrating the market by raising the price of the product.

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The next strategy considered

for the pricing of the K2 Elite
was price skimming. Price
Skimming is when companies
establish a high introductory
price point for their product,
met
with large amounts of
promotion (Lamb et al. 2016, p
248). Unlike penetration
pricing, price
skimming is intended to
maximise initial profits, rather
than growing their market
share
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(Bylund 2015).
The next strategy considered
for the pricing of the K2 Elite
was price skimming. Price
Skimming is when companies
establish a high introductory
price point for their product,
met
with large amounts of
promotion (Lamb et al. 2016, p
248). Unlike penetration
pricing, price
skimming is intended to
maximise initial profits, rather
than growing their market
share
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2022B0671 Thwin Ye Oo

(Bylund 2015).
The next strategy considered
for the pricing of the K2 Elite
was price skimming. Price
Skimming is when companies
establish a high introductory
price point for their product,
met
with large amounts of
promotion (Lamb et al. 2016, p
248). Unlike penetration
pricing, price
skimming is intended to
maximise initial profits, rather
than growing their market
share
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2022B0671 Thwin Ye Oo

(Bylund 2015).
The next strategy considered
for the pricing of the K2 Elite
was price skimming. Price
Skimming is when companies
establish a high introductory
price point for their product,
met
with large amounts of
promotion (Lamb et al. 2016, p
248). Unlike penetration
pricing, price
skimming is intended to
maximise initial profits, rather
than growing their market
share
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2022B0671 Thwin Ye Oo

(Bylund 2015).
The next strategy considered
for the pricing of the K2 Elite
was price skimming. Price
Skimming is when companies
establish a high introductory
price point for their product,
met
with large amounts of
promotion (Lamb et al. 2016, p
248). Unlike penetration
pricing, price
skimming is intended to
maximise initial profits, rather
than growing their market
share
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2022B0671 Thwin Ye Oo

(Bylund 2015).
The next strategy considered
for the pricing of the K2 Elite
was price skimming. Price
Skimming is when companies
establish a high introductory
price point for their product,
met
with large amounts of
promotion (Lamb et al. 2016, p
248). Unlike penetration
pricing, price
skimming is intended to
maximise initial profits, rather
than growing their market
share
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2022B0671 Thwin Ye Oo

(Bylund 2015).
Skimming pricing refers to the superficial market. Unlike penetration pricing, once it enters
the market with a higher price. Only advanced customers can use it. They only enter the
market with new products and they only sell at high prices. This strategy is used by many
market leaders.

Psychological pricing
Psychological pricing is based on the mindset of the customers. Usually, the price of an
item is expensive but there is a way to deceive customers into thinking it’s a cheap item.
Customers often ignore the last digit of a price. For Example, if psychological pricing
could not sell a Sony brand camera for 200,000 MMK at an electronic store and sell it
for just 199999 MMK, customers might be tempted to buy one.

Premium pricing
“Premium pricing is used for products or services that are clearly of a higher luxury
value than anything else on the market. Premium pricing is reserved for 5-star hotels,
first-class airline tickets, and other products that give the customer the perception of
being of the highest quality. While premium pricing isn’t useful for commodity
goods, it does make your product or service seem more desirable and more buzz-
worthy than the less expensive, similar products on the market.” (Prestholdt 2017)

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Learning Outcome3
Human Resource Management
“Human resources (HR) is the division of a business that is charged with finding,
screening, recruiting, and training job applicants, as well as administering employee-
benefit programs. HR plays a key role in helping companies deal with a fast-
changing business environment and a greater demand for quality employees in the
21st century.” (Kenton 2020)
The Function of Human Resource Management
The functions of human resource management are
1) Planning (Manpower Planning),
2) Controlling,
3) Directing report to general manager about organization company activities,
4) Utilization of workforce,
5) Select employees and interviews
6) Job analysis,
7) Recruitment,
8) Drawing job designs for each task and
9) making job rotation for employees etc...

Recruitment Human Resources in KFC

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REFERENCE

 Dr. Daw Nu Nu Lwin (no date) Chapter Seven

https://moodle.strategyfirst.edu.mm/pluginfile.php/46303/mod_resource/content/1/
Marketing%20%20Sales%20Management.pdf (Accessed 2 June 2022)
 Robb Prestholdt (2017) Pricing Strategy for Products https://fa-cpa.com/pricing-
strategy-for-new-products-4-methods/ (Accessed 3 June 2022)
 Adam Hayes(2021) Terms Beginning With ‘F’ https://www.investopedia.com/terms-
beginning-with-f-4769356 (Accessed 3 June 2022)
 Aye Chan(2015) KFC Arrives in Myanmar https://www.myanmarinsider.com/kfc-
arrives-in-myanmar/ (Accessed 3 June 2022)
 BBC (2014) KFC to open first Myanmar outlet in 2015
https://www.bbc.com/news/business-29592263 (Accessed 4 June 2022)
 Will Kenton(2020) Marketing Mix Definition
https://www.investopedia.com/terms/m/marketing-mix.asp (Accessed 4 June 2022)


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