Comparing the competitive advantages between Mc Donald and

Comparing the competitive advantages between Mc. Donald and KFC, for young consumers in Hsinchu area. Professor: Dr. Trappey Students: 陳嘉麟 9562503 蔡林龍 9562502 吳晉瑋 952028

Introduction

Literature review In Taiwan, Mc. Donald grew up fast and successfully with flexible marketing strategies and QSC&V (Guang-Shiash Hu, 2000), Although Mc. Donald adopted the marketing strategy of cutting prices, the consumers will not increase their consuming amount. (Wei-Hua Chen, Chia-Chun Tsai, 2003) Only the improvement of utility and enjoyment will raise up consuming amount (Yi-Wen Wang & Ming-Tsung Lee, 2005). Define the problem and market research questions. Comparing the competitive advantages between Mc. Donald and KFC. The target population is the young consumers (under 30) in Hsinchu City.

Methodology

Research Framework: Hypotheses Survey Statistical Analysis Research Finding Conclusions suggestions

We will use the approach of setting up a questionnaire concerning customers’ preference. and collect results from young consumers in Hsinchu area, to compare the advantages between Macdonald and KFC when customers choose western fast food chains. The Hypothesis were shown below Hypothesis 1 To compare with KFC，”Environment” is a competitive advantage of Mc. Donald Hypothesis 2 To compare with KFC，” Food selection” is a competitive advantage of Mc. Donald Hypothesis 3 To compare with KFC，”Price” is a competitive advantage of Mc. Donald Hypothesis 4 To compare with KFC，”Brand image” is a competitive advantage of Mc. Donald Hypothesis 5 To compare with KFC，”Service” is a competitive advantage of Mc. Donald Hypothesis 6 To compare with KFC，”Taste of Food” is a competitive advantage of Macdonald

Data Collection Plan: What: to compare with the advantages of Macdonald and KFC in young consumers in Hsin-Chu Where: Macdonald and FKC in kung-Fu Rd. Who: Young Consumers (under 30 years old) When: 23 May How: Adopting questionnaires How many: 70 valid questionnaires

Results and Finding

Beliefs of Young Consumers: When young consumers selected a fast food restaurant, they care about the service and taste of food most.

Hypothesis 1 : To compare with KFC，”Environment” is a competitive advantage of Mc. Donald Hypothesis: Ha: μM>μKFC Two-sample T for Mac. vs KFC N Mean St. Dev SE Mean Mac. 70 33. 50 8. 05 0. 96 KFC 70 33. 46 6. 20 0. 74 Difference = mu (Mac. ) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = 0. 04 P-Value = 0. 486 DF = 13 P-value>0. 05, Do not Reject H 0, Environment is not a competitive advantage of Mc. Donald

Hypothesis 2 : To compare with KFC，”Food selection” is a competitive advantage of Mc. Donald Hypothesis: Ha: μM>μKFC Two-sample T for Mac vs KFC N Mean St. Dev SE Mean Mac 70 33. 74 7. 08 0. 85 KFC 70 33. 74 5. 59 0. 67 Difference = mu (Mac) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = -0. 00 P-Value = 0. 500 DF = 138 P-value>0. 05, Do not Reject H 0, Food selection is not a competitive advantage of Mc. Donald

Hypothesis 3 : To compare with KFC，”Price” is a competitive advantage of Mc. Donald Hypothesis: Ha: μM>μKFC Two-sample T for Mac vs KFC N Mean St. Dev SE Mean Mac 70 34. 0 11. 3 1. 4 KFC 70 30. 87 8. 81 1. 1 Difference = mu (Mac) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = 1. 81 P-Value = 0. 037 DF = 130 P-value<0. 05, Do not Reject H 0, Price is a competitive advantage of Mc. Donald

Hypothesis 4: To compare with KFC，”Brand image” is a competitive advantage of Mc. Donald Hypothesis: Ha: μM>μKFC Two-sample T for Mac vs KFC N Mean St. Dev SE Mean Mac 70 34. 40 9. 76 1. 2 KFC 70 32. 16 8. 61 1. 0 Difference = mu (Mac) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = 1. 44 P-Value = 0. 076 DF = 138 P-value>0. 05, Do not Reject H 0, Brand image is not a competitive advantage of Mc. Donald

Hypothesis 5: To compare with KFC，”Service” is a competitive advantage of Mc. Donald Hypothesis: Ha: μM>μKFC Two-sample T for Mac vs KFC N Mean St. Dev Mac 70 38. 21 8. 82 KFC 70 35. 96 8. 51 SE Mean 1. 1 1. 0 Difference = mu (Mac) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = 1. 54 P-Value = 0. 063 DF = 138 P-value>0. 05, Do not Reject H 0, Service is not a competitive advantage of Mc. Donald

Hypothesis 6: To compare with KFC，”Taste of Food” is a competitive advantage of Macdonald Hypothesis: Ha: μM>μKFC Two-sample T for Mac vs KFC N Mean St. Dev SE Mean Mac 70 37. 66 8. 01 0. 96 KFC 70 36. 70 7. 36 0. 88 Difference = mu (Mac) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = 0. 74 P-Value = 0. 231 DF = 138 P-value>0. 05, Do not Reject H 0, Food is not a competitive advantage of Mc. Donald

Summary Table of Test: Factors Blief Mean (Belief times Rating) STDDV (Belief times Rating) Mc. Donald KFC Tvalue Pvalue Environme nt 5. 04 33. 50 33. 46 8. 05 6. 2 0. 04 0. 486 Food Selection 5. 03 33. 74 33. 76 7. 08 5. 59 0 0. 5 Price 4. 99 34. 00 30. 87 11. 3 8. 81 1. 81* 0. 037* Brand Image 4. 81 34. 40 32. 16 9. 76 8. 91 1. 44 0. 076 Service 5. 26 38. 21 35. 96 8. 82 8. 51 1. 54 0. 063 Taste of Food 5. 27 37. 66 36. 79 8. 01 7. 36 0. 74 0. 231

Conclusions & Suggestions

Conclusions: (1) When young consumers selected a fast food restaurant, they care about the (2) service and taste of food most. In order to increase the market share of young (3) consumers, restaurants have to put most effort on the service and taste of food. (2) Young consumers consider that the Mc. Donald provided a more reasonable price than KFC. To Mc. Donald, it’s a advantage to KFC and should be maintained. On the other hand, KFC should make a detail research about the reason why young consumers have such recognition about the price of two restaurants. (3) We found that every factor, the all standard deviation of Mc. Donald were greater than KFC. It possibly means that young consumers give the more diverse rating on Mc. Donald. (4) We got the marginal p-value on service and taste of food and that could be the latent competitive advantages of Mc. Donald.

Suggestions: This is just an explorative research. Seventy questionnaires maybe not sufficient to get the precise results. Enlarge the number of the respondents is the first suggestion in future research. Moreover, most our respondents are senior high school students, we may lack the opinions of college students and others who are under 30 years old. Why young consumers think the price of Mc. Donald are more reasonable, a detail research is needed.

Thanks for your Attention Professor: Dr. Trappey Students: 陳嘉麟 9562503 蔡林龍 9562502 吳晉瑋 952028