Assignment I

Instructor: Andy Zdan-Michajlowicz Course: Marketing Management Students: Aurel Brahimi

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1.

Executive Summary

KFC Corporation is the most admired chicken restaurant chain worldwide; they serve many different tastes of fried chickens, with the best ingredients and its secret recipe of 11 blend herbs. KFC is famous for its dishes like Extra Crispy, Kentucky Grilled Chicken, the Honey BBQ Wings and its freshly sandwiches. More than 12 million

customers are served daily at KFCs restaurants in 109 countries globally, and with its operations of more than 5200 restaurants in USA and 1500 outside of it. KFC was funded in Louisville, Kentucky, in the United States by Colonel Harland Sanders in 1952, though the idea of KFC goes back to 1930. When the funder died in 1980 his reputation and outstanding work is still an important part of the companys branding. In 1964 the KFC was bought by John Y Brown and Jerry Messy for $2 million and from that time KFC becomes a corporation. After a few years its 1't share were bought from the Colonel, and in 1986 PepsiCo purchased the company and the logo was changed after the purchased occurred. A year after the KFC 1000 restaurant was opened in Japan and in 1994 the 9000 restaurant was opened in China. The KFC is part of the Tricon restaux group which is a well known globally too. The purpose of this marketing plan is to be able to open a branch in Albania by giving to the KFC all the data required in order for them to have a clear vision of how and where they are going to launch the new
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restaurant branch.

2.

Mission statement

To ensure that each guest and staff is treated with respect and dignity they deserve, with our professional, friendly and well-mannered service, and to make them feel recognized and happy in our new restaurant in Albania.

3.

The SLEPT Analysis

Despite of the transitional years that Albania had in 1990, when the communist regime

felt, Albania have had its remarkable social, legal/ political, economical and technological growth. Throughout the last twenty years Albania have had huge effects on the social and economical factors, where 15% of its population is between the ages of 0 to 9 years old. Comparing Albania with many other European countries with its young population that are keen on going out and enjoying a fresh and delicious dish food with the specialty that the KFC offers to its customers, which once again gives a great opportunity for the KFC to be in Albania. The organizations macro environment forces are composed of a broad variety of forces that do have the impact on the organizations main goals, mission, vision and its strategies too.

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Even though the macro environment forces are external forces, they do have impact on the organizations performance. Macro environmental forces are composed of:

Political Factors Albanian has an open economy nowadays, comparing it with many years ago where that the country were in a total economic isolation. Changes have been made and now Albanias political factors are influencing in having as many multinational companies as possible, as Albania is a candidate of European Union.

Legislations

The legal policies are complicated and it has a direct influence on the company. The Companys political concerns are always made in some agreement with all the laws and related legal political policies of that country that the company have established its self. In order for KFC in avoiding all the risks, appropriate legal laws have to be taken into consideration. In order for the company to have a positive correlation with the community and the public they must comply with the legal law requirements, which are directly linked with corporate political contributions. In addition the company must have an annual report with all the corporate social

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responsibility events that the company has to take in consideration, in order to have its clients on their sides.

Economic Factors According to (INSAT), from 2000 that the GDP of Albania was 4.02 billion, reached 6.08 billion in 2004 that represented an annual average increase of 6%, whereas the first quarter of 2006 it was an annual increase of 30%. On the other hand according to the Institute of International and European Affairs (IIEA) the unemployment rate decreased from 16.8% to 14.2 represented an average decrease of 3.1%, meaning that the social and economical forces in Albania made a huge progress. By looking at the progress of the economical factors the social class can afford and be ready to welcome a new branch of the KFC in Albania. Albania is classified as a Middle Developing Income Country. The economical factors are separated into various sub points; Business Cycle The economy fluctuates due to some economical activities or the productions during a period of time, and this is called the business cycle of a company. The company is usually measured by the growth rate it could either have an expansion or a boom. Moreover the purchasing of the raw materials in different periods of time has a direct

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impact on the company itself. Albania is experiencing an economical growth, as a result it boost the availability of the employment, profit and the productivity of opening a KFC branch.

Social-Cultural Factors

The social-cultural factors for an organization is essential, it includes the culture of the country, their lifestyles, and the level of education and their demographic forces, are all important to kind of show ones cultural and social status for a society. All of these factors are important for a company to operate, to foresee how their future objectives and plans should be, by adopting by the fluctuations in the country.

Population "Population" has a huge impact on every organization, if it can be broken down into age, nationality, job skills, education, race etc. All of these components can be utilized to inform the targeted audience, whom will be the costumers of the products that is on the market, at the time the company is about to launch the product. In our case, by having all the information needed, about a certain region in advance is

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another key factor for an organization. By knowing the fluctuation of the population, the company is able to forecast the future, by supplying the products according to the changes due to their target customer groups, and the dishes each of the targeted group prefer. Albania is one of the countries in Europe with 15% youth, and that increases with the consumptions of the products that KFC in Albania is going to have.

Education Level Education is another key factor that improves the productivity of the company, even though sometimes it is misunderstand from the companys point of view. Populations with higher education have a higher income rate, and this is directly linked with the probability of being a potential buyer. Another vital point by having higher education is that the more educated the more skilled and more qualified the workers are going to be when working for the company. Moreover by having educated people, the company has no need to train them, and actually, recently Albania has increased the education level dramatically. Taking in consideration all of the factors above Albania fulfills them as the number of educated and skilled people is increasing dramatically, moreover the number of the private universities that are opened in the country is around 54.

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4. Micro-environment
The Micro environment factors are the
Employees

internal forces that the company uses in order reach their objectives. They are all connected with each other, and they influence in decision making process, and they have a direct impact on the companys strategy. These forces are customers, employees, media competitors, and the distribution channels.
Distribution Competitors Customers

Media

Customers Companies survive on the basis of meeting the customers needs wants and satisfaction, and try to fulfill their needs and trying to provide benefits for their customers in order to attract them, by their loyalty and high quality, in order to have them for a long period of time. The KFC always raises enormous costumers interest, by evaluating the customers response, and by making the brand and its products affordable for them. These are some of the main reasons they have achieved the loyalty for so many years; thats why the company is without doubt one of the most the leading company worldwide.

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 Employees Having recruited the right staff and keeping them motivated is the essential for an organization, and in the case of KFC, they spend a lot of money on training their employees and make them feel a part of the company too. The credibility that the company gives to their employees by making them happy, healthy, treating them fairly, and let their voice heard and by letting them work on an open working environment, makes them work feel a part of the company and they are more efficient.

Media Media do play double role for the company, it can be either helpful or harmful. KFC is the sponsor of many media activities, which is a positive side from the media point of view. A few years back all the information in Albania was done through promotion and TV advertising, until lately where the internet plays a major role as well.

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 Competitors KFC have been in the market for long, so does the McDonalds and the Subway too but looking at the

KFC - Serve chicken

McDonalds - Mostly serve beef burgers. - Serve many types of ice creams. - Expensive price.

only. - Does not have many ice cream choices. - Cheap price.

Albanian market, there are not any of them. In our case KFC wont have many

competitors where it comes to spicy dishes. The Albanians

consume a great deal of spicy food. The only competitor that is at the moment in Albania is the Kolonat, but still they do not offer the same food, they do offer the same food as mentioned in the table above under McDonalds. KFC with its secret 11 herbs and its especial dishes is going to have a success in the Albanian market. According to KFC: No bodys cooking like KFC today and we are the chicken experts, there is no competitor for spicy chicken which is made by KFC

Distribution Channels KFC has been in the market for a long time, due to their experience the company has built strong relationship with its distribution channels. For the new coming companies it will be a hard time, to form the same allies as they have done through the years. The distributing channels are an important factor that does have the influence the sale through the

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customers satisfaction that they provide during the distribution. In Albania the distribution channels have high technology as the numbers of competitors are high too. Therefore the distribution should always be informed with the latest technology, and providing a faster and safer delivery to the customers.

5. Type of market
The market type in Albania for the KFC is a differentiated oligopolistic market, with its independent suppliers which in our case are not many in numbers and not necessary acting in conspiracy together.

6.

Market dynamics Porters 5 forces

Bargaining Power of suppliers: The bargaining power of suppliers is also described as a contribution in the market.

Suppliers of raw materials, components, labor, and services such as expertise to the firm can be a source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high prices for unique resources. So it is very important that

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the firm have a good relationship with its suppliers in order to get the raw materials and the other components as cheaper as possible with the highest quality.

Bargaining Power of customer: The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes. As the customers are value maximisers the new branch that KFC is going to open take into consideration the customers AIDAS theory in order to get the biggest market share.

Threat of new entrants: The new entrants are a major threat that gives the consumers broader alternatives to switch to other companies. In the coming future other competitors like McDonalds, Subway and some other domestic companies should be taken into consideration, from KFC.

Threat of substitute: The existence of products outside of the area of the common product like qebaptore, pizzas, sandwiches and other domestic products that can be a threat to KFC. Due to the technological advantages the quality or the costs effectiveness can be a threat to substitute products, at the same time KFC can afford to keep up with the high technological factors.

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7. Key stakeholder by interest / power matrix.

The key stakeholders can be many in this case as and the new KFC managers must be sure to identify and list all potential stakeholders of the company. In order to be successful for KFC they must work together, as the business is new in the country. Among the ones that should be taken into consideration must be; the shareholders, the local communities, the labor unions suppliers, the Government and the employees as well. They all play an important role with their interests, involvement, importance, influence and the impact that they can do to achieve the organizations goals.

Market Penetration KFC is famous for its dishes like Extra Crispy, Kentucky Grilled Chicken, the Honey BBQ Wings and its freshly sandwiches with these existing products to will keep the existing customers. This means increasing the revenue as well, by promoting the products, repositioning the brand, and so on. However, the products are the same and KFC do not seek any new customers. Market Development With the existing product will try to enter in new markets. This means that the product remains the same, but it is marketed to a new audience. Exporting the product, or marketing it in a new region, is examples of market development.

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 Diversification When KFC represents completely new products to new customers, and tries to come up with new dishes taking into consideration the Albanian food culture, will be another advantage for KFC.

Strengths & weaknesses of major competitors The main competitors that are in Albania right now are Kolonat and some other domestic small restaurants. The only strengthens that is in favour of Kolonat is the fact that it has existed for a few years and have a strategic place, which is essential in business in the 4-Ps. The weaknesses on the other hand are many, comparing Kolonat with KFC. Kolonat is an Albanian brand that is hardly known domestically, and comparing the brands together, KFC is far ahead. KFC have been built the brand for many years ago and have a strong brand with its prestige reputation and loyalty with their competitors.

Factors affecting purchases Taking into consideration the Albanian food, the KFCs dishes are very likely to be liked, as we like spicy food, and do use many different kinds of herbs. The target audience for the spicy dishes are the old generation, but the others do enjoy it too. In addition the KFC have many big portions for families, and this fits into the Albanian culture as we are very close to each other.

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8. Objectives
The new branch and its delicious dishes have to be launched in Tirana, Vlore, Shkoder, Durres, and Gjirokaster, because these cities have the largest population, with a culture of dining often outside.

9. Conclusion
KFC Corporation is the most admired chicken restaurant chain worldwide; they serve many different tastes of fried chickens, with the best ingredients and its secret recipe of 11 blend herbs. KFC is famous for its dishes like Extra Crispy, Kentucky Grilled Chicken, the Honey BBQ Wings and its freshly sandwiches. More than 12 million customers are served daily at KFCs restaurants in 109 countries globally, and with its operations of more than 5200 restaurants in USA and 1500 outside of it. Looking at all the macro and micro environment, that have a direct influence on launching the new KFC restaurant in Albania, I come to a conclusion that Albania is the next place out of 109 that KFC operates. In other words KFC with its specialties, unique and secret recipe and its delicious food will be successful.

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References: http://www.iiea.com/home www.instat.gov.al/ Dervishi,Zyhdi;2007 ; Sociologji kulture 1;Shtepia Bot.Jeruzalem;Tirane

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