1. Microenvironment To this day, this fast food restaurant chain has expanded its presence to more than 172 restaurants in 39 provinces of Vietnam, providing jobs for more than 4,000 people and making a significant contribution to the industry. Vietnamese fast food as well as the formation of a new consumer habit and culinary culture in areas where KFC is present. KFC is growing rapidly, by having their strong relationship with their customers and the trust which they have developed in the past years, employees are the main assets of the company, and so they are very much concerned. The company has very organized check and balance system, which is used for the evaluation of the employee and the individual outlet as well
1.1. The Company
KFC Vietnam is owned by Yum!, one of the largest restaurant groups in the world. The global fried chicken market is expected to expand with a cumulative annual growth rate of 5.47% until 2025. This is definitely a good sign for a global fried chicken brand. It may also explain why other fried chicken brands, like Popeyes, are expanding internationally • Finance
KFC is the company with the most growth in the three leading fast food markets in Vietnam. In the past 3 years, the American fried chicken brand maintained a profit of more than 100 billion VND. Meanwhile, despite significant improvements, Lotteria and Jollibee are still losing money. •Operations - KFC has a very clear mission statement "recognition is key", they want to have loyal customers who, after enjoying KFC just once, will come back later to enjoy their food. - Brand value: “Becoming a leader in the field of serving Western-style fast food through friendly service, good food high quality food and fresh, airy space" With the goal of becoming a leader in the field of Western-style fast food, KFC has continuously strived to build an organization with outstanding dedication, always bringing quality in products and services, committed to always innovate to meet the constant needs of customers. 1.2. Suppliers KFC's main ingredients include chicken, soft drinks and potatoes. Because KFC has very large and frequent orders, there is always a large number of suppliers willing to agree to KFC's terms and supply this brand with raw products according to their requirements. KFC operates independently. KFC chooses its own ingredients, prepares its own chicken dishes and then directly serves customers. KFC acts as both a manufacturer and a supplier.
1.3. Marketing Intermediaries
- KFC in Vietnam uses resellers such as restaurants and stores of the
KFC chain across the country to deliver products quickly to final customers. This helps them reach a large number of customers and creates convenience for consumers who want to enjoy KFC products at many different locations. -KFC needs support from physical distribution firms to ensure that their ingredients and products are delivered to their restaurants and stores promptly. effectively and on time. Currently, online ordering apps are popular, so people have diverse choices with many food delivery companies such as GrabFood, Be, Shopee Food,...
- KFC can interact with marketing services agencies to design various
advertising campaigns, events, and marketing strategies, creating brand awareness and attraction. client. Thanks to that, KFC easily covers everywhere and all ages because of its widespread popularity, through promoting products on television advertisements or online advertisements such as on Facebook, Instagram or Twitter ,... When walking on the street, we can accidentally come across KFC advertisements on LED billboards, or on posters at bus stops.
-Financial Intermediaries: KFC has many vouchers for their members,
and people can download the KFC app to accumulate points. 1.4. Competitors They are classified into direct and indirect competitors. Direct Competitors: KFC currently has many big competitors, it includes such as Mcdonald’s, Jollibee, Loteria,Popeyes… In addition to international brands, KFC also has to compete with Indirect competitors such as local fast food restaurants and local fried chicken restaurants.
Competition in the fast food industry in Vietnam is quite fierce. KFC must continuously improve their products and services to maintain and expand the market in this competitive landscape.
1.5. Publics • Financial publics KFC is an independent company. It has not any long-term bank loan. • Media publics KFC spends 8 % to 9 % of its revenue on advertisements. To have more advertisement, they are of the view to increase their advertisement. • Government publics Taxes are always imposed by the government. public. KFC sales tax on each meal is 1.2%. • Citizen-action publics
Citizens, consumer organizations, environmental groups, minority groups
and others can challenge certain KFC decisions. The public relation department will go and communicate with those groups • Local publics
General Publics KFC wants to know the attitude of the public about its products. So, it always gets feedback from the customers whenever its going to launch a new product and receives it with respect. Internal Publics Employees get regular bonuses and other benefits which are based on their performances. Employees are assets and we reward them greatly, KFC says. Special badges and pins are assigned to employees.
1.6. Customers The targeted customers of KFC are of all ages. Some of the clients are familiar with the employees, many customer also comes on the same day to eat 4-5 times in KFC.
KFC is more pleasant for children. Many restaurants in developed and
developing markets set up playgrounds or play areas for children. This gives parents a great opportunity to get their children into a healthy environment where they play and eat.
For young people, KFC has a strict policy of opening its stores in good areas of the city. Young couples who want to spend some time in a good environment always like this restaurant, to enjoy the feeling of sitting peacefully with healthy food.
Adults who don't like noisy places also like to choose KFC. They can have great fried chicken dishes like hot wings, roast chicken, chicken pieces and a large pitcher of fresh drinks.
Customer attraction, access and retention become the full responsibility
of the service provider. KFC has a website called "talk to KFC'." It is a survey site satisfactory to the customer which helps a lot in getting to know the clients. In VietNam, home deliveries will maximize the customer base, so that self-service measures will work well for them. Also, it creates enough time to serve everyone. 2. Macroenvironment
The macro environment in SWOT analysis is the external environment that is made up of large societal forces that can affect the performance of KFC.
These factors can have both positive and negative impacts on a business.
● Economic conditions
Countless fast food companies were unable to make a profit because of the harmful dietary ingredients. Fried chicken from KFC's menu is loaded with calorie-dense, harmful fats. In order to encourage a healthy attitude to the food chain, additional vegetarian alternatives were to be added.
● Demographic trends Age: Generally there is no age limit which is particularly focused by KFC. They normally target & focus on each and every age of the society, but moreover in our view they target customers who are mainly youngsters as compared to the middle & old age.
Gender: They often concentrate on both men and women in this society. The size of the household is a key demographic indicator for KFC. Typically, they target an entire family as opposed to a single person. Family food packages were helpful in this situation.
Population: Population is important to KFC as well. They can now implement the approach because of the population, which is also growing along with the economy.
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● Technological advances
In order to adjust to the shifting interests and trends of the consumer base, the organization has implemented a number of technical innovations.
Example: The company has adopted numerous technological changes to meet the changing preferences and trends of the customers. It has introduced the option to click and carry the food order which helps in saving time in queues.
● Political and legal changes
These factors associated the corporation with its unhealthy and high-calorie diet. The restaurant named itself with the abbreviated form to drop the idea of fried chicken without undergoing huge internal changes. It is because there was a slow increase in the individuals who were health conscious and emphasized nutrition. These fitness freaks stood against various fast food and restaurant chains.
● Social and cultural shifts
The corporation struggled with various social issues. Payment to be made as a
minimum wage is one of the issues that have become a problem for the brand. This is because the brand does not provide any benefit or perk and only pays minimum wage.
Various environmental front groups accuse KFC of ecological degradation. They
claim the rain forests face extinction based on the amount of wrapping material used to cover their products.
