breakfast campaign is available the following controls will be established

Breakfast campaign is available the following

This preview shows page 19 - 21 out of 26 pages.

breakfast campaign is available, the following controls will be established: Customer surveys – Customers will be given a survey number to call with every fifth receipt during KFC’s breakfast period. For filling out the survey, the customer will receive a free breakfast entrée. This survey will be used to ask a few simple questions, for example, “Would you recommend this restaurant to a friend or colleague for breakfast? What was your overall satisfaction (rated 1-5, 5 being highly satisfied and 1 being not at all satisfied)? Were you served in a timely manner? Was your order accurate? Was the food exceptional?” Breakfast daypart sales – Sales will be measured during the breakfast daypart to ensure that revenue is covering the extra operating expenses and the marketing budget. A third party firm will be contracted to analyze sales and extract data determining which customer groups are buying breakfast at KFC. Gross margin – In addition to sales, gross margin on the breakfast offering will be measured to determine whether the margin target is being met. Marketing budget – Marketing expenses will be closely watched and analyzed to ensure that the launch meets project milestones and stays on budget. Group #3 Page 19 of 26
Image of page 19
Market share – Since market share typically lags real time data, Market share will be assessed at the end of the first full year breakfast is served. This measurement will indicate whether KFC is acquiring market share in the breakfast daypart and from whom. Unit sales – A sales mix analysis will be utilized through software tied to the point of sale registers. This information will indicate which products are selling well and which are not. Return on sales – This measure provides a high level view of how much money is being made per sale. Metrics for these controls will be as follows: Customer surveys – The goal is that at least 70 percent of customers will reply in the affirmative to all survey questions. Breakfast daypart sales – The goal will be to at least break even, with sales covering all expenses, after the first six months. Sales for breakfast should build at a rate of 8% or higher per month from month one. Gross margin – The goal will be 12% gross margin. Marketing budget – The goal is on time and within budget. Market share – The goal will be to acquire 1% of the quick service breakfast market within the first year of sales. Unit sales – The plan is to cut products that do not make up more than 10% of sales and enhance products that make up more than 20% of sales. Return on sales – The goal will be 10%. 9. CONTINGENCY PLANS KFC will constantly evaluate changing market trends within the quick service industry. The company will be prepared with marketing contingency plans to address any symptoms of failure. If any of these unexpected business scenarios happens at any time, KFC will execute plan B, outlined under alternative strategies section.
Image of page 20
Image of page 21

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture