Marketing Culture - Changes That Kentucky Fried Chicken Is Facing in UK Market - Case Study Example

Running Header: Marketing culture       Culture changes that KFC is facing In UK market Student’s name: Institution: Instructor: Course:                            Introduction        Kentucky fried chicken (KFC) is a fast food industry that has been experiencing fast growth and expansion in the UK fast food market. This company according to Andrew, (2009, p.3) mainly sells fried chicken, salads, sandwiches and wraps. In UK, KFC has been influenced by cultural phenomenon as a result of modern civilization forcing it to use unique business strategies in order to survive in the market. Unlike in the past when fast food were considered for the Americans due to economic recession the English people are gradually accepting them thou with cultural restrictions (Everett, 2009, p.4). The customers targeted by fast food industry are, mainly English people who want services offered at low cost, with the right nutrient content and in high speed (Campbell, 2008, p.3). KFC has been using these customers interest as in its marketing strategies. However, price competition, slow population growth and market saturation are some of the challenges it has been experiencing in the UK market. When it entered UK market KFC primary sold fried chicken. However due to culture difference the company has been forced to include other foods in its menu. Some of the UK culture that KFC had to change its marketing strategies to fit includes dieting standards of various religions such as changing its food to meet Halal standards despite the Muslims being only one of the minor communities in the region. KFC had to change its dieting standards as a way of improving its relationship with people of different faiths. Other cultural factors that KFC is faced with are associated with dieting and nutrition awareness. The people in UK are keen on their diets. KFC has been forced to change and prove to the people that the food they prepare do not pose any health risks. Impact of UK Culture on KFC marketing strategies        In UK market, KFC has been forced to abandon some of the American cultures in order to be a representation promoting UK culture. This can be viewed on its dining room designs, menu choices and even marketing strategies. Due to its unique marketing strategies KFC has managed to woo clients from Muslim and non Muslim cultures (Keller, 2003, p.5). KFC is faced with culture challenges of meeting the diet standards of all its customers who have different faiths. While in US KFC was not keen of meeting these standards in order to capture a bigger market in UK KFC has been forced to address these needs. According to Everett, (2009, p.1) annual reports, KFC has in 2009 experienced 9.7% profit increase. In the UK market according to research KFC business has been booming and has managed to address most of the managing cultural differences by adjusting its business model (Hoecklin, 1998, p.7). In the last five years due to high returns hundreds of new branches have been opened in Britain high streets (Kevin & Aimee, 2008). The company offers fast food at reasonable prices. It has taken advantage of the recession hitting UK market to provide an alternative that is cheap (Baker, 1995, p.6). KFC has been experiencing profit increase in the past fifteen years (Campbell, 2008, p.3). In 2008 the profit increased by 5% while in 2007 it experienced a 9% profit increase (Porter, 2007, p.4). In the past 15 years due to its well developed marketing strategies that ensures it addresses the needs arising due to UK market culture the company has only experienced one year of reduced profits (James, 2010). Other than creating new unskilled jobs to its workers its unique marketing strategy has been associated with creation of over 55 managerial jobs in 2009 (Jeniffer, 2009, p.5). Its continuous increase in the past years has boosted the customer’s confidence of its services (KFC, 2007, p.2).        According to KFC (2009, p. 6), the company has been experiencing a raise in profits due to its marketing strategies that are aimed at addressing the client’s needs. Some of the UK culture demands that KFC has had to adjust its business model to ensure they are met are diet needs (Campbell, 2009, p.3). A new culture is emerging in UK market where the people are careful of the diet they take. To meet this new culture demands KFC started investing in research to determine the right daily nutrient intake and determining the nutritional content of its foods (CCN, 2003). This can be considered as one of the reasons why it has been experiencing tremendous growth and profit. In some of its fast foods such as fillet burgers the management ensures the food does not exceed 440 calories. Most people in UK are keen on the amount of calories they ingest in daily basis. Fast foods are considered to contribute to poor health due to the high number of calories they provide to the body.        KFC has been able to enjoy raise profits due to its unique innovation tactics in the UK market. Its innovation skills have enabled the industry address Muslim culture needs which most fast food industry in the market had been ignorant of. The industry has invested in selling halal foods in its restaurants. By addressing the needs of Muslim culture this industry has been able to experience tremendous growth (Aaker & Alexander, 1993, p. 13). KFC realized that not many food companies in UK were selling Halal food due to huge demand it realized the need of meeting the needs of these people. Current there are KFC food stores in less than 7 mile radius of most of the non halal stores. To meet the demands of Muslim culture in the UK market the industry has been killing its meat products using halal food society set procedures which includes blessing the animal by saying a prayer before killing.        Most of the fast food industries in UK use the American marketing campaigns for its products. KFC management has been using different strategies in order to identify with the UK market culture. The industry has been marketing products that are familiar in the UK culture. It has included some of the food products considered to reflect English culture in its menu (Schreiner, 2008, p.01). Some of these products include old fish and chips. Most of the fast food industries being influenced by the American market in their food preparation procedures and this have contributed to increased popularity of KFC food services in UK market. KFC has on the other hand been employing un-American food preparation methods to ensure it meets the demands of its English clients. KFC has been able to redefine its business model to tally with that of UK culture. Through its determination to meet customer’s demands it has changed from its American business model to a model that can embrace UK culture business model. However the industry has also been introducing its fast food American culture to the UK market thus ensuring its competitors do not use this strategy to dominate the UK market (Schreiner, 2008, p.02).        Its efforts to ensure the products they provide meet health standards according to UK market culture can also be associated with the increased raise in profits. For instance KFC stopped salting its fries some years back as a health precaution. It has also been able to ensure its foods meet the balanced diets expectations as per the UK culture by providing information about its calories and other nutrients content. One of the strategies it has adopted in the UK market to ensure its products meet the UK diet cultured demands is the use of non-hydrogenated oil in its fried foods. Hydrogenated oil is believed to contain high trans fact levels which are known to increase hearty disease risks (Schoefflel, 2010, p.2). It’s the culture of the English people to take precaution measures against health diseases. Most of the food products of KFC are produced using trans fat free oil since 2006 and this is one of the marketing strategies that has enabled the industry increase customers demands. According to Gobe (2001, p.11), most customers in UK trust KFC foods because they consider them healthy.        In order to maintain its current situation in UK markets its management is involved in intense research to determine some of the new strategies they can use to address cultural needs not yet addressed. The management has been monitoring its competitors such as the McDonald restaurants in order to obtain some ideas on how to continue enjoying raised profits in the market. The company has also used technological advancement to keep in touch with its clients in UK. Most of its openings have face book campaign groups which are used by its customers to market its brands in UK. Some of the KFC branches such as Trowbrigde and Scarborough have over 1500 face book members who are actively involved in marketing its products (Assael, 1998, p.14). Promoting family feast one of the popular UK culture has also been used as a marketing strategy contributing to the raise in profits (Everbett, 2009, p.1). Conclusion        Sorting market dominance by addressing cultural needs of its potential customers is one of the main challenges that KFC is facing. KFC has used various marketing strategies to address the demands of its clients in UK market. In UK most food stores are being faced with cultural change which is moving towards convenience. Customer’s wants are now changing towards a combination of money and quality. The customers expect that the companies they shop from to be able to meet all its needs. Most of the marketing strategies used ensure they address or meet UK market culture. Meeting these demands has forced KFC to change some of its marketing strategies in order to address its client’s cultural needs. Through these unique marketing strategies, KFC has managed to experience tremendous growth and increase in profits in the past 15 years (Herbig, 1998, p. 21). Despite the economic recession affecting most businesses in UK, KFC innovative marketing strategies that are mainly aimed at addressing its market culture can be attributed to its fast growth and penetration in the UK market. Through its innovative marketing strategies KFC has been able to address some of the cultural needs by changing some of its food preparation procedures to meet specific cultural diet standards such as the Halal diet standards which are demanded for by the Muslim culture. The company is benefits for ensuring any cultural changes they are faced with they address it in a manner to ensure it maintains and increases its market share.     Bibliography Aaker D & Alexander L.B. 1993. ‘Brand Equity & Advertising’ Advertising’s role in building strong brands. Lawrence Erlbaum Associates, London, pp.10-13. Assael H. 1998 Consumer Behaviour and Marketing Action, 6th edition, International Thomson Publishing, p.14. Andrew, Cave. Feb. 20 2009. Recession finger lickin' good for KFC's UK chief Martin Shuker. Telegraph media group. Retrieved from http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/4733058/Recession-finger-lickin-good-for-KFCs-UK-chief-Martin-Shuker.html Baker, M. 1995. ‘Marketing: Theory & Practice’ 3rd Edition. Macmillan Business, London. (Baker) Campbell, J. C. How KFC has taken off in the UK fast food market. Helium media. Retrieved fromn http://www.helium.com/items/867052-how-kfc-has-taken-off-in-the-uk-fast-food-market CNN (2003). "Pamela Anderson takes on KFC". CNN. http://www.cnn.com/2003/BUSINESS/10/17/anderson.kfc/index.html. Retrieved October 28, 2007 Everett Filedgate. 2009. KFC UKI Green shoots. KFC media. Retrieved from http://www.accessibleretail.co.uk/Portals/0/Events/2009/Conference/Presentations/AR%20Conference%20KFC%20%28Clean%29.pdf Herbig P.A.1998. Handbook of Cross-Cultural Marketing, International Business Press, p.21 Hoecklin, L. 1998. Managing Cultural Differences, Addison Wesley, ISBN 0-201-42770-2  Gobe, M. 2001 Emotional Branding, Allworth Press, p.11 Jennifer Fermino 2009. "Fryin' on a Wing and a Prayer". New York Post. Retrieved from http://www.nypost.com/p/news/regional/fryin_on_wing_prayer_Hy386ava5MATTLOODrb8UJ. Keller, K.L. (2003) ‘Strategic Brand Management: Building, Measuring and Managing Brand Equity’, 2nd Ed, Prentice hall, New Jersey. Kevin Beimers & Aimee Lingman. "Doing Chicken Right Since 1932". roadtrip.beimers.com. Retrieved from http://roadtrip.beimers.com/day99.html. KFC (2007). "History". KFC.. Retrieved from http://www.kfc.com/about/history.asp. Kotler, P. & Keller, K.L. (2006) ‘Marketing Management’, 12th Ed, Prentice hall, New Jersey.  Porter, John. 10 May 2007. "KFC lets Yorkshire pub keep its family feast". The Publican. Retrieved from http://www.thepublican.com/story.asp?storyCode=55352..  Schloeffel, James. 2010. "KFC ad a storm in a fried chicken bucket". The Age. Retrieved from http://www.smh.com.au/opinion/society-and-culture/kfc-ad-a-storm-in-a-fried-chicken-bucket-20100111-m21e.html. Schreiner, Bruce, 2008. "KFC shoring up security for secret recipe". Yahoo! News. Associated Press  Retrieved from http://abcnews.go.com/Business/wireStory?id=5758482.    Read More

 

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