(a) Pricing Strategy:
Price is the any amount of money that customers have to pay while purchasing the product (Kotler, P & Armstrong, G., 2008). More broadly, price is the sum of all the values that consumers exchange for benefits of having or using the product or services. Pricing strategies of KFC are different in the different countries due to different exchange rate, inflation, and different tax policies in the different countries.
KFC uses the Every Day Low Price (EDLP) pricing strategy. This strategy emphasizes the continuity of retail prices at a level somewhere between the regular nonsale price and the deep-discount sale price of high/low retailers (Levy, M. & Weitz, B. A. 2011). KFC is said to use this strategy because KFC is promoting a new KFC Lunch treats for everyday value at only RM4.95 for a set KFC famous bowl and a carbonated drink.
(b) Techniques for stimulating sales
KFC uses price bundling to increases their profit. Price bundling is the practice of offering two or more different products or services for sale at one price (Levy, M. & Weitz, B. A. 2011). KFC’s offers a bundle of fried chicken, mash potato, salad and a cup of soft drink in a value meal at a discount compared with buying the items individually. For instance, Snack plate provides 2 pieces of chicken, 1 bun, and 1coleslaw and whipped Potato which cost RM 8.30. If these items are bought individually, it will cost approximately RM 10.95. This offers more to a price cautions customers, which is an example of second degree price discrimination
KFC uses odd pricing as a technique for stimulating their sales. Odd pricing refers to the practice of using a price that ends in an odd number, typically 9 (Levy, M. & Weitz, B. A. 2011). KFC uses mostly the number 5 as their last digit, which is also an odd number. For instance, according to the KFC price list, combo set for mini and variety are RM 34.85 and RM 33.75 respectively.