KFCs Multinational Differences Between China The United States

KFC’s Multinational Differences Between China& The United States By: Joe Hornfield &Shannyn. Hyland

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 “quickservice” restaurant. ¡KFC in China is currently the largest fast food chain which dominates the market in comparison to competitors such as Mc. Donalds. ¡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 ¡The U. S. menu still consists of the original chicken recipe with side dishes including macaroni and cheese, mash potatoes and gravy, corn and biscuits. ¡KFC also serves grilled chicken for the health conscious consumers. ¡Promotional items such as chicken-wings and chicken sandwiches are offered throughout the year. China ¡China has an large menu consisting of the original recipe chicken as well as seafood, beef items, fresh vegetables, soups, desserts, and other items that appeal to the Chinese consumers’ taste. ¡Some of their popular dishes include a spicy tofu chicken rice and a chicken wrap covered in a duck-sauce.

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=ec 8 R 8 Bkga. Xo ¡http: //www. youtube. com/watch? v=3 sa 2 Sk. QIc 34