Even the decor and layout of KFC and East Dawnings provide a connection to the typical Chinese life; "layouts are designed to resemble Chinese homes" (Case 7-2). Yum! provides visitors with a unique experience which is not dominated by American "young and hip" (Case 7-2), but pays respect to the home country. "A plaque at the entrance of one KFC describes it as "an exchange channel between KFC fast-food culture and Chinese folk culture" (Mellor, W. January 26, 2011. PP. 1). These operational strategies place KFC as the superior brand for fast food dining; "KFC is certainly doing better than McDonald's at becoming more Chinese" (Mellor, W. January 26, 2011. PP. 1).
What Successful Companies have in Common
Without question the success of companies in China depends on adaptation to local Chinese ways of doing business and the intricacies of culture. While not to indicate that Chinese consumers do not want…...
mlaReferences
Case 7-2. KFC China Targeting Through Localization
Fontevecchia, Agustio. (April 18, 2012). Yum! Brands' Profit Jumps 73% in Q1 Despite
China Concerns. Forbes.com. PP. 1. Retrieved May 3, 2012 from http://www.forbes.com/sites/afontevecchia/2012/04/18/yum-brands-protif-jumps-73-in-q1-despite-china-concerns/
Mellor, William. (January 26, 2011). McDonald's No Match for KFC in China as Colonel
Petersburg, 20080. This is because drive-through restaurants must be located in highly circulated areas by vehicles. In addition to this, such restaurants require special spacing facilities. These restaurants must usually provide at least five stacking spaces at or behind the menu board.
These spaces must be clearly delineated from other vehicular use areas. In addition to this, drive-through restaurants must ensure pedestrian connections. The speaker boxes of drive-through restaurants must be carefully oriented towards areas where the noise level permitted is higher.
Marketing Strategy
The reasons for introducing the drive-through service in China rely on the significant expansion potential that the fast food industry in this market provides. KFC has identified certain characteristics of its customers that determined the company to sustain this idea. For example, the company's customers have revealed increasing mobility, which requires a drive-through service (QS, 2002). In addition to this, customers on the Chinese market have been reported…...
mlaReference list:
1. Haq, M. (2011). Customer Satisfaction of KFC. Retrieved March 12, 2011 from http://www.docstoc.com/docs/69414951/Customer-Satisfaction-Level-of-KFC.
2. French, P. & Crabbe, M. (2010). Fat China: How Expanding Waistlines are Changing a Nation. Retrieved March 12, 2011 from http://books.google.ro/books?id=GafXlU9SrPkC&pg=PA115&dq=kfc&hl=ro#v=onepage&q=kfc&f=false .
3. Annual Report (2009). McDonald's. Retrieved March 12, 2011.
4. Drive Thru Facility or Use with Drive-Thru Service (2008). Land Development Regulations. Retrieved March 12, 2011.
The final option is the joint venture. There are several benefits to entering the market with a JV. Among them is the local experience that KFC would gain. Their local partner would be able to help them maneuver through the social and political pitfalls that the company may run into. A JV is less risky as well because the risk is shared among the partners. ith each partner bringing different expertise to the table, there is less operational risk as well.
The drawback to a joint venture is that you must cede some control. This increases the risk of a lack of standardization. Additionally, with less controlling interest, the firm retains less of the profits, the remainder of which to the JV partner. However, a joint venture partner also helps the firm to gain access to the Chinese market. It encourages the Chinese government to remove barriers to operations and to…...
mlaWorks Cited:
Adler, Carlye. (2003). Colonel Sanders' March on China. Time Magazine. Retrieved May 12, 2009 from http://www.time.com/time/magazine/article/0,9171,543845,00.html
No author. (2007). McDonald's Challenges KFC's China Dominance. Associated Press. Retrieved May 12, 2009 from http://www.msnbc.msn.com/id/20726553/
No author. (2006). Beijing KFC Accused of Unfair Employment System. China Labour Bulletin. Retrieved May 12, 2009 from http://iso.china-labour.org.hk/en/node/38856
KFC's marketing strategies China. What successfully cater Chinese market? This include limited: Introduction (history KFC china they're upto today) Market Segmentation strategy ( target market ) Price strategies ( pricing strategy china) Promotion strategies Place strategy ( decide locate strategic reasons) Product strategies ( specific tailored products Chinese market) Conclusion (summary works ).
Some voice concerns, in the present, about the potential saturation of the fast-food market, driven both by the expansion of Western chains and local competitors, as well as by a decreasing purchasing power of local consumers. This paper will aim to address some of these concerns, including by examining the price, place, product and promotion strategies implemented by KFC in China and by looking at how these were customized to match the company's market segmentation strategy. Based on this analysis, the paper aims to draw conclusions and put forward recommendations towards future KFC actions in China.
Market segmentation…...
mlaDuane-Gladden, Sara. 2011. Language Barrier: Finger Lickin' Good. True to Words. On the Internet at Last retrieved on October 10, 2013http://truetowords.blogspot.ro/2011/09/language-barrier-finger-lickin-good.html .
Madden, Normandy. 2010. Chinese Consumers Protest KFC Promotion Fiasco. AdAge Global. On the Internet at Last retrieved on October 10, 2013http://adage.com/article/global-news/chinese-consumers-protest-kfc-coupon-fiasco/143292/ .
KFC Preps New Quality Assurance Ad Campaign in China. Advertising Age. On the Internet at / Last retrieved on October 10, 2013http://adage.com/article/news/kfc-preps-quality-assurance-ad-campaign-china/244661
Weston's previous position as a salesman for IBM in Japan and Ohkawara's familiarity with the Japanese culture enabled them to devise strategies that helped overturn KFC's performance in the country. Realizing that the fast-food business is more profitable when located in urban areas in order to entice higher customer volume; thus, KFC-J relocated to Tokyo, which has a higher volume of people, therefore increasing the chances of the store to attract potential customers. Apart from changes in the store location, KFC-J also decided to change its store size into half the recommended store size in the U.S. Despite the expensive cost of space rental and limited space in Tokyo, KFC-J thrived because it is accessible to people who are most likely to patronize fast food items. Knowing the Japanese appetite also helped Weston and Ohkawara introduce changes in the menu, thereby making the KFC menu more suitable to the customers'…...
Organisational Marketing Objectives
DEVELOPING OGANISATIONAL MAKETING OBJECTIVES
Developing Organizational Marketing Objectives
Kentucky Fried Chicken (KFC)
Executive / Management Summary
Strategic Direction
Mission and Vision
Kentucky Fried Chicken (KFC) is concerned with the production of fast foods, specializing in fried chicken. It is a worldwide restaurant with its headquarters in the United States of America. Current CEO is oger Eaton. The revenue for the company is $9.5 billion as at 2012. The parent to this organization is Yum Brands. The mission of KFC as at 2013 is to "sell food in a fast, friendly environment that appeal to pride conscious, health-minded consumers" (Ozersky, 2012). The vision of KFC is to be a global brand that specializes in selling food in a fast, friendly environment that appeals to all people who are conscious of their health.
Marketing Strategies and Strategic Direction
KFC targets city people who have more concern about quality food. The cities are good avenues with high populations…...
mlaReferences
Darden, B. (2002). Secret Recipe: Why KFC Is Still Cooking After 50 Years. Irving, Tex: Tapestry Press.
Ozersky, J. (2012). Colonel Sanders and the American Dream. Austin: University of Texas Press.
Stategic Management KFC Holdings (Malaysia) Behad.
PESTEL analysis
Foces
Oppotunity
Theats
Stength
Weakness
Stategic options
SAT TEST
A Case Study Stategic Management KFC Holdings (Malaysia) Behad
KFC Holdings (Malaysia) Behad is an investment holding company located in Malaysia, whose key vision is to be the leading integated food sevices goup in the ASEAN egion deliveing consistent quality poducts and excellent custome-focused sevice, its' mission is to maximize pofitability, impove shaeholdes value and delive sustainable gowth yea afte yea, the company's guiding pinciple ae adapted fom the Yum! Dynasty Model and is known as the KFCH Dynasty model.
KFCH is in Malaysia's eceation industy and in the estauant and fast food fanchises sub-industy, though its' netwok of subsidiaies it has channeled investments in thee majo segments namely estauants, integated poulty and ancillay. The integated poulty opeations include feed mills, contact boile faming and pocessing, poulty fams, beede fams and hatchey and futhe pocessing plants. The ancillay suppot system includes sauce manufactuing,…...
mlareferences, and Hypercompetitive Arenas: The Sustainability of Competitive Advantages with Implications for Firm Competitiveness, Competitiveness Review, Vol. 10 Issue 1, pp.56-82;
Walters D. 1994 The Impact of the Recession on Retailing Management Decisions and Performance, International Journal of Retail & Distribution Management, Vol. 22 Issue 4, pp.20-31;
Warnaby G. & Woodruffe H. 1995 Cost Effective Differentiation: an Application of Strategic Concepts to Retailing, International Review of Retail, Distribution & Consumer Research, Vol. 5 Issue 3, pp.253-270;
Wrigley N. 2000 Strategic market behavior in the internationalization of food retailing, ASEAN Journal of Marketing, Vol. 34 Issue 8, pp.891-920;
Yip G. 2004 Using Strategy in Change Your Business Model, Business Strategy Review, Summer, Vol. 15 Issue 12, pp. 17-24;
Organisational Marketing Objectives
DEVELOPING OGANISATIONAL MAKETING OBJECTIVES
Developing Organizational Marketing Objectives
Kentucky Fried Chicken (KFC)
Executive / Management Summary
Kentucky Fried Chicken (KFC) is a fast food venture specializing in serving its customers with the best products and services at all times. It is the aim of the venture to offer such products and services as part of the plan to have and dominate its market share. Through its mission and vision, the venture has managed to be one of the leading fast food ventures in the market. Coupled with a practical set of marketing strategies and a focused marketing direction, Kentucky Fried Chicken (KFC) has managed to take the market by force, and dominate with increasing growth. Currently, Kentucky Fried Chicken (KFC) is stable in the market with a solid foundation to progress to a more stable production process. Its objectives drive the marketing and production strategies. The marketing brand is situated within…...
mlaReferences
Darden, B. (2002). Secret Recipe: Why KFC Is Still Cooking After 50 Years. Irving, Tex: Tapestry Press.
Ozersky, J. (2012). Colonel Sanders and the American Dream. Austin: University of Texas Press.
Management of Multicultual Wokgoups by KFC Copoation
Headquateed in Lousville, Kentucky, KFC Copoation (heeinafte altenatively "KFC" o "the company") was founded moe than 70 yeas ago fo "Colonel" (an honoay title) Haland Sandes with the poceeds of a Social Secuity check. Since that time, the company has gown to include moe than 18,000 KFC estauants opeating in 155 counties aound the wold (About KFC, 2016). Not supisingly, the company is fequently confonted with the need to effectively manage multicultual wokgoups. To detemine optimal appoaches, this pape povides a eview of the elevant and timely liteatue concening these issues to develop salient ecommendations fo the top management of KFC concening effective appoaches to the management of multi-cultual wokgoups. A summay of the eseach and impotant findings concening the effective management of multicultual wokgoups ae povided in the conclusion.
Review and Analysis
The oganizational changes that have been needed in ecent yeas to emain…...
mlareferences in Turkey. International Journal of Marketing Studies, Vol. 7, No. 1, pp. 106-109.
Wolf, J & Macharzina, K (2009, January). "Multicultural Workgroups." Management International Review, Vo. 42, No. 1, pp. 3-6.
Where, their focus was on streamlining the construction and the permit approval process, by establishing good contacts with local individuals. This would allow KFC to quickly construct a number of different restaurants throughout China. As they would grow, from: just one store in 1987 to opening it 1000th store in 2005. This information is important, because it highlights how the underlying business strategy that KFC would use in China (rapid growth), helped the company to become a major fast food chain in this newly developing market. Where, the faster they would open restaurants, the greater their profits would increase.
The information from this source is useful, in establishing the basic strategy that KFC was using in China. Where, once they had found a business model that would work for this market. They would quickly begin opening a variety of restaurants around the country. As a result, this information can be…...
mlaBibliography
3,000 KFC Stores, 2010, Peoples Daily. Available from: [19 August 2010].
KFC China Stores Mobbed, 2010, Sydney Mourning Herald. Available from: [19 August 2010].
Kentucky Fried Chicken, 1997. Available from: [19 August 2010].
Kentucky Fried China, 2005, MSNBC. Available from: [19 August 2010].
Product/Services/Promotional Strategies Offered by XYZ Company, and My Own Web Page
Web Promotional Strategies
A Report on the Product/Services/Promotional Strategies of Kentucky Fried Chicken
Kentucky Fried Chicken is a well-known brand in fast food restaurant. Started with a single recipe of Colonel Sanders, the restaurant has developed networks worldwide, offering fast food services family target market and franchise opportunities for investors. The company has seriously developed the web site as a gateway for its customers and business partners. The main KFC web site provides complete information about its menu options and knowledge center about fast food and family events options, while also provide links to its franchise information center. It has the familiar colors, logo, and picture of the Colonel as the main presentation to visitors.
In the main business operation, KFC has a very large target market, in all demographic areas. The company addresses human's basic need of food, and combines it with…...
S. market anticipated to deliver between 5 and 7% margin growth over the next five years. Further, the Chinese marketplace is also one marked by lower labor costs and a lack of the stigma associated with working in fast food establishments that exists in the United States and other westernized nations.
Looking at Table 2: U.S. Operating Profit Source by Brand for 2004 according to SEC filings (2004) clearly Taco Bell contributes the majority of profits followed by Pizza Hut at 34%, then KFC at 15%. Long John Silver's and A & W. have been continually losing share and profits relative to larger competitors.
Table 2: U.S. Operating Profit Source by Brand
Taco Bell
Pizza Hut
KFC
Long John Silver's/A&W
Contrast U.S. profit source by brand with International profit sources, and the critical role of KFC in any expansion strategy becomes clear. Table 3, International Operating Profit Source by Brand for 2004, shows the dominance of KFC…...
Marketing eport for Ms. Janet Bradley
Keeping in view the increasing obesity rates in Australia and finding the spicy and high-calorie fast foods as the major reason for it, Ms. Janet Bradley has planned to establish a low-calorie fast food restaurant chain that will serve as an alternative to McDonald's, ed ooster, KFC, and other fast food chains. This paper presents a comprehensive analysis of the micro and macro environment for the new fast food chain in order to recommend strategies which can help it in becoming successful in the industry. The major micro environmental forces which will impact its business are consumer behaviour, suppliers and intermediaries, publics, and competitors. The buyer behaviour has been analysed using cultural, social, personal, and psychological dimensions -- all having a significant impact on the purchase decisions and preferences of the consumers towards fast food products. The restaurant chain will also take a big impact…...
mlaReferences
Birn, R. 2004. Effective Use of Market Research: How to Drive and Focus Better Business Decisions, 4th Edition. London: Kogan Page
Blythe, J., & Megicks, P. 2010. Marketing Planning: Strategy, Environment and Context, 3rd Edition. U.K: Prentice Hall
Ellwood, I. 2002. The essential brand book: over 100 techniques to increase brand value. 2nd Edition. London: Kogan Page
Hill, C.W., & Jones, G.R. 2012. Strategic Management Theory, 10th Edition. Mason, OH: South-Western, Cengage Learning
Aspects such as weight reduction, disease reduction, and overall peak performance will be emphasized (Jeffery, 2006). Sponsoring many of Australia's more popular sporting events with the products would also be very beneficial. Placement of these products will occur within all of the Yum! Brands locations. As mentioned above, two strengths of the company are its global positioning in regards to its brand, and its overall depth of franchises (McGinley, 2004). With more locations than any of its competitors in emerging markets, the company has a distinct competitive advantage relative to its peers in the industry. By effectively utilizing this franchise to unveil its healthier product segment, Yum! Brands can capitalize on its location density. The locations are also very useful in regards to cross selling many of the newer health option that customers may not be aware off. By placing the new products in all of its location simultaneously…...
mlaReferences:
1) Barrett, Patrick (January 22, 1997). "KFC." Marketing Magazine
2) Chapman, Michelle (28 February 2011). "Taco Bell to fight meat filling claims via TV ads." The Daily Breeze. Associated Press
3) Cyrek, Christopher (October 20, 2009). "Pizza Hut going after wings market." Dallas Business Journal (Dallas, Texas: American City Business Journals, Inc.).
4) Ghanawi, Nadine (December 31, 2012). The Internationalization of KFC. GRIN Verlag. p. 1. ISBN 978-3-656-34256-4
McDonalds
In the last 30 years, developing markets have shown the potential for fast food restaurants to realize increasing profit margins. This is because markets such as China provide them with the capacity to offer unique products and experiences to customers. However, specific concepts must be integrated with each other to effectively connect with them. In the case of McDonalds, they are facing considerable challenges and opportunities in China. (Allon, 2012) ("McDonalds and KFC")
A good example of this can be seen with observations from a report conducted by Zach's esearch which said, "The U.S. business accounts for 30% of the fast-food giant's overall revenues. The region has not been able to post positive comps since Oct 2013 mainly due to heightened competition and a few wrong decisions that have slowed service. Moreover, the headwinds in the international market have compounded the woes for the domestic market. Going forward, we remain wary…...
mlaReferences
McDonald's Earnings Beat. (2014). Zacks.com. Retrieved from: http://www.zacks.com/stock/news/151017/mcdonalds-earnings-beat-sales-miss-as-us-amp-china-falter
McDonalds and KFC. (n.d.)
Allon, I. (2012). Global Franchising Operations Management. Upper Saddle River, NJ: Pearson.
Cendrowski, S. (2004). Why McDonald's Supplier Failed in China. Fortune. Retrieved from: http://fortune.com/2014/09/02/why-mcdonalds-supplier-failed-in-china/
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