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KFC’s Multinational
Differences
Between China&
The United States
By: Joe Hornfield &ShannynHyland
Company Background
 KFC was originally founded in Louisville, Kentucky
and is now available in over 105 different
countries. China being one of their most
successful.
 KFC entered China in 1987 and was the first
“quick-service” restaurant.
 KFC in China is currently the largest fast food
chain which dominates the market in
comparison to competitors such as McDonalds.
 In the United States, KFC is known for their famous
southern style chicken recipe. As they expanded
and entered new markets, KFC has evolved and
now offers a wide variety of non traditional items
which is key to their success.
Target Markets
United States
 Families consisting of 3 to 5
individuals
 Gender: Both Males and
Females
 Age: 6-65, large range due
to their family-meals
(buckets)
 Convenience: Affordable
family size meals that are
easy and quick.
 KFC’s large target market is
due to their unique family
oriented menu as well as
their individual items.
China
 Similar to the United States.
 KFC targets families, young
adults, and children.
 Busy, young professionals.
 Highly populated cities
Market Strategies
in China
 Create a localized menu.
 Enter into large, highly populated cities such as
Beijing, Hong Kong and Shanghai.
 Branch out into smaller cities as brand
preference increases.
 KFC’s success in China is due to their unique
product modifications. Where other fast food
chains kept their original recipes, KFC adapted to
fit the cultures of their consumers.
Market Strategies
in the U.S.
 KFC has kept their original chicken recipe in the
United States due to its popular demand.
 As health concerns increased, KFC has made
slight modifications to their menu by offering
alternatives such as grilled chicken.
 They primarily target moderate income level
households and incorporate promotional
offerings such as family-meals that are fast and
affordable.
Product Comparison
Menu Differences
United States
China
 The U.S. menu still consists of
 China has an large menu
the original chicken recipe
consisting of the original
with side dishes including
recipe chicken as well as
macaroni and cheese, mash
seafood, beef items, fresh
potatoes and gravy, corn and
vegetables, soups, desserts,
biscuits.
and other items that appeal to
the Chinese consumers’ taste.
 KFC also serves grilled chicken
for the health conscious
 Some of their popular dishes
consumers.
include a spicy tofu chicken
rice and a chicken wrap
 Promotional items such as
covered in a duck-sauce.
chicken-wings and chicken
sandwiches are offered
throughout the year.
United States Menu Items
Chinese Menu Items
Marketing Mix
 Product: U.S.- Southern style, Kentucky fried chicken,
“comfort foods” such as mashed potatoes and green
beans.
China- Traditional Chinese cuisine including beef, seafood,
rice bowls, seafood, breakfast items, soups and many
other options.
 Price: U.S.- Average price for a meal is $8
China- Average price for a meal is 18 Yuan. ( about $2.95
U.S.)
 Place: U.S.- located in almost every city and suburb.
China- Mainly located in large, highly populated cities.
 Promotion: U.S.- Coupons available via KFC website
China- Coupons available via KFC website, home delivery is
also offered
Cultural & Legal
Considerations
 American families,on average are much larger
than Chinese families, so the traditional KFC
family bucket is not relevant for many Chinese
families.
 KFC is more prevalent in larger Chinese cities so
the home delivery is ideal for people who do not
have cars, or do not want to sit in traffic etc.
Many American families have their own cars, and
are more willing to pick their meal up.
 Seafood is an essential to many Chinese diets,
while many Americans do not eat seafood
regularly.
Commercial Differences
 http://www.youtube.com/watch?v=ec8R8BkgaX
o
 http://www.youtube.com/watch?v=3sa2SkQIc34