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SEMESTER SPRING 2012Principles of Marketing (MGT301)

Bc060400090Assignment No. 2

Questions # 1:

After analyzing the findings of the research conducted, you need to identify thekey factor which compelled KFCs higher management to launch Big FillerBurger?Solution

CONSUMER APPEAL:Fast-food outlets have become popular with consumers forseveral reasons. One is that through economies of scale in purchasing andproducing food, these companies can deliver food to consumers at a very lowcost. In addition, its predictability can be reassuring to a hungry person in ahurry or far from home.

World over, American and American-style fast food outlets have been popular fortheir quality, customer service and novelty. Many consumers nonetheless seethem as symbols of the wealth, progress and well-ordered openness of Westernsociety and therefore become trendy attractions in many cities around theworld, particularly among younger people with more varied tastes

Interpretation: How often people visit KFC to analyze this question I asked 300customers to give their opinion to find out the spread over the 5 options.People 36 % on weekly basis to the KFC to eat out Big Filler Burger and BucketMeal or Zinger meal while 25% people come fortnightly basis which is good signfor the KFC to shown that there service quality is better and enforce people to

come KFC regularly.

8. Reason to eat out at the KFCs higher management to launch Big FillerBurger

(a) An occasion to celebrate(b) I work in this area hence decide to come here(c) Wanted a break from home food

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(d) For snack (brunch)(e) For lunch(f) Wanted an enjoyable outing with family(g) Wanted to get together with friends(h) I was in this area & hence decided to eat here

Alone Friends Family Colleagues

An occasion to celebrate 2I work in this area and hence decide

to come here

2 6 3

Wanted a break from home food 1 4

For snack (Brunch) 2 4 3

For lunch 3 8 3 4

Wanted an enjoyable outing with

family

6

Wanted to get together with friends 1 40 2 1

I was in this area and hence decided

to eat here

3 2

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REASONS FOR EATING OUT WITH RESPECT OF NATUREOF THE

GROUP OF THERESPONDENTS OF KFC

1

3

40

8

4

6

2

6

34

4

1

3

2

2

2

2

3

1

3

0 5 10 15 20 25 30 35 40 45

I was in this area &

hence decided to eat

here

Wanted to get

together with friends

Wanted an enjoyable

outing with family

For lunch

For Snack(Brunch)

Wanted a break from

home food

I work in this area &

hence decided to

come here

An occation tocelebrate

ALONE FRIENDS FAMILY COLLEGUES

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Questions # 2:How competitors of KFC help in making an idea of Big Filler? Was it market

intelligence or market research which helped KFC to take this decision?

Solution:-

Market IntelligenceMarket intelligence is the upward or downward movement of a market, during aperiod of time. The market size is more difficult to estimate if one is startingwith something completely new. In this case, you will have to derive the figuresfrom the number of potential customers, or customer segments.

Competitor analysis in marketing and strategic management is an assessment ofthe strengths and weaknesses of current and potential competitors. This analysisprovides both an offensive and defensive strategic context to identify

opportunities and threats. Profiling coalesces all of the relevant sources ofcompetitor analysis into one framework in the support of efficient and effectivestrategy formulation, implementation, monitoring and adjustment.[1]

Competitor analysis is an essential component of corporate strategy. It is arguedthat most firms do not conduct this type of analysis systematically enough.Instead, many enterprises operate on what is called informal impressions,conjectures, and intuition gained through the tidbits of information aboutcompetitors every manager continually receives. As a result, traditionalenvironmental scanning places many firms at risk of dangerous competitiveblindspots due to a lack of robust competitor analysis.

The strategic rationale of competitor profiling is powerfully simple. Superiorknowledge of rivals offers a legitimate source of competitive advantage. The rawmaterial of competitive advantage consists of offering superior customer value inthe firms chosen market. The definitive characteristic of customer value is theadjective, superior. Customer value is defined relative to rival offerings makingcompetitor knowledge an intrinsic component of corporate strategy. Profilingfacilitates this strategic objective in three important ways. First, profiling canreveal strategic weaknesses in rivals that the firm may exploit. Second, theproactive stance of competitor profiling will allow the firm to anticipate thestrategic response of their rivals to the firms planned strategies, the strategies

of other competing firms, and changes in the environment. Third, this proactiveknowledge will give the firms strategic agility. Offensive strategy can beimplemented more quickly in order to exploit opportunities and capitalize onstrengths. Similarly, defensive strategy can be employed more deftly in order tocounter the threat of rival firms from exploiting the firms own weaknesses.

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Clearly, those firms practicing systematic and advanced competitor profilinghave a significant advantage. As such, a comprehensive profiling capability israpidly becoming a core competence required for successful competition. An

appropriate analogy is to consider this advantage as akin to having a good idea ofthe next move that your opponent in a chess match will make. By staying onemove ahead, checkmate is one step closer. Indeed, as in chess, a good offense isthe best defense in the game of business as well.

A common technique is to create detailed profiles on each of your majorcompetitors. These profiles give an in-depth description of the competitor'sbackground, finances, products, markets, facilities, personnel, and strategies.This involves: