KFC usually applies market skimming strategy, KFC enters a new market using market skimming, the products are usually priced high and target the upper and middle class people of the economy (wiki.answers.com). Up selling is a common feature in KFC pricing strategy. If we notice at the KFC menus, it separately mentions that customers can order an additional product with their same meal deal by paying an additional small amount, e.g. 2 pieces of original recipe chicken and one bread roll for an additional $9.90 in an ultimate meal deal or one can even upgrade combo deal drink to a Krushers for an additional $2. It proves that KFC practices up selling in New Zealand (www.kfc.co.nz). .
(www.Kfc.co.nz) .
Cost-Based pricing – KFC price their products keeping different points in view. Being the only global fast food chain focusing primarily on chicken products, KFC has a cost based pricing approach towards its chicken products'. KFC prices its products taking into consideration the taxes levied by the government and the excise duties along with the unavoidable costs that the company has to bear like variable and the fixed cost. KFC has been maintaining its own cost-based pricing towards chicken based products because a large amount is spent on buying high quality chicken from reputed suppliers. In New Zealand KFC buys its chicken comes fromInghams and Tegel (kfc.co.nz, 2014). Competitive pricing– KFC faces stiff competition from Pizza Hut, McDonalds, Burger Fuel, Burger King, Domino's Pizza, Burger King etc. in New Zealand. Thus to sustain the competition KFC provides most of its products at a competitive price, the $5 value meal is a great example of competition based pricing. .
For the customers the huge product range caters to satisfy the needs of all class of people, ranging from$5 for a meal to $34.90 for Family Feast the menu and the product pricing satisfies the customers to the core (www.
