international mareting - kfc

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Outline: I. Introduction and overview of KFC Corporation II. Body 1. Environment factors effect to international strategies of KFC 1.1. National environment 1.1.1. Home country: America 1.1.2. Host countries 1.1.2.1. Vietnam 1.1.2.2. Australia 2. International environment factors 1.2.1. The political environment 1.2.2. The economic environment 1.2.3. The social cultural environment 1.2.4. The demographic environment 1.2.5. The technological environment 2. How does KFC segment the market 2.1. In America 2.2. In Vietnam 2.3. In Australia 3. Best activities that KFC used in Vietnam III. Conclusion

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Outline: I. Introduction and overview of KFC Corporation II. Body 1. Environment factors effect to international strategies of KFC 1.1. National environment 1.1.1. Home country: America 1.1.2. Host countries 1.1.2.1. Vietnam 1.1.2.2. Australia 2. International environment factors 1.2.1. The political environment 1.2.2. The economic environment 1.2.3. The social cultural environment 1.2.4. The demographic environment 1.2.5. The technological environment 2. How does KFC segment the market 2.1. In America 2.2. In Vietnam 2.3. In Australia 3. Best activities that KFC used in Vietnam

III. Conclusion

I. The introduction and overview of Kentucky Fried Chicken 1.1. Introduction International marketing (IM) or global marketing refers to marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm. It refers to the firm-level marketing practices across the border including market identification and targeting, entry mode selection, marketing mix, and strategic decisions to compete in international markets. A international company must have a good international marketing strategy. To be successful in home country environment and host country environment, international businesses need use several factors in the environment to gauge the direction in which they should steer. There are various environmental factors which can impact the businesses in an economy. These environmental factors can be categorized into external and internal environment of the businesses. The internal environment of the company includes the factors which are within the company and under the control of company like product Organizational culture, Leadership, and Manufacturing (quality). On the other hand, the external factors are not under the control of the company and include Social environment, political conditions, suppliers, competitors of the company, Government regulations and policies, accounting agencies like Accounting standard board, Resources in an economy and demographics of people. From that, we can see environmental factors have much effects to international marketing strategy of an international company. And here is the case of KFC - the world's most popular chicken restaurant chain. It is not only successful in American, but also in many other countries over the world. To do this, KFC always evaluates the environmental factors and often find ways to succeed through innovative technologies, clever marketing tactics and unique product and service offerings. So, what are those environmental factors? How does KFC segment the market? What is the best activity KFC used in Vietnam? Lets find the answer for these questions in the details below.

1.2. Overview of KFC KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky, in the United States. KFC has been a brand and operating segment, termed a concept of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc. KFC Corporation, based in Louisville, Kentucky, is the world's most popular chicken restaurant chain, specializing in Original Recipe, Extra Crispy, Kentucky Grilled Chicken and Original Recipe Strips with home-style sides, Honey BBQ Wings, and freshly made chicken sandwiches. While its primary focus is fried chicken, KFC also offers a line of grilled and roasted chicken products, side dishes and desserts. Outside the USA, KFC offers beef based products such as hamburgers or kebabs, poutine, pork based products such as ribs and other regional fare. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, though the idea of KFC's fried chicken actually goes back to 1930. Although Sanders died in 1980, he remains an important part of the company's branding and advertisements, and "Colonel Sanders" or "The Colonel" is a metonym for the company itself. The company adopted KFC, an abbreviated form of its name, in 1991. Newer and remodeled restaurants will adopt the new logo and name, while older stores will continue to use the 1980s signage. Additionally, Yum! continues to use the abbreviated name freely in its advertising. Every day, more than 12 million customers are served at KFC restaurants in 109 countries and territories around the world. KFC operates more than 5,200 restaurants in the United States and more than 15,000 units around the world. KFC is world famous for its Original Recipe fried chicken made with the same secret blend of 11 herbs and spices Colonel Harland Sanders perfected more than a half-century ago. Customers around the globe also enjoy more than 300 other products from Kentucky Grilled Chicken in the United States to a salmon sandwich in Japan. KFC is part of Yum! Brands, Inc., the world's largest restaurant company in terms of system restaurants, with more than 36,000 locations around the world. The company is ranked 239 on the Fortune 500 List, with revenues in excess of $11 billion in 2008

II. Body 1. Environment factors effect to international strategies of KFC 1.1. National environment 1.1.1. Home country: America 1.1.1.1. Economy and social environment American fast food The development of American Fast Food

The Modern fast food industry originated in the United State in the 1920s, and developed rapidly, became epidemic all over the world from 1950s. The emergence of the western-style fast food resulted from the rapid economic development in the United State and the great acceleration in the peace of life. In the 1950s, most married women stayed home to keep house and take care of their children. In the 1960s, many women returned to the work place. This meant that they had less time and energy for housework and preparation of meals, so they depended more on TV dinner and fast food restaurants. Single parents also have little time to spend in the kitchen. People living alone also depend on this type of food, since cooking for one is often more trouble than it is worth. People require food which is readily available, affordable, and nutritious and tasty. The most obvious characteristics of American fast food are speed and abundant supply of cooked food. Some fast food was slightly processed and can be quickly ripen while selling. At a primary stage, with the help of industrial management experience, American fast food chains adopted standardization in raw materials of their food, processing, pricing and service. Therefore, the major reason for the rapid development of western fast food has been the supply of safe and convenient fast food to people who are very busy and in a hurry. The characteristic of American Fast Food American fast food is well-known all over the world. To sum up, the characteristics of its success can be due to following the eight Fs. They are, respectively, Fast, Full, Fresh, Fried, Family, Fordism and Franchising. Among them, fast, full and fresh can be easily understood. They mean the speed, quantity and quality of the food supplied. Fried refers to the kind of food because

American people like fried food very much. Also, this food can be easily transported. Family and fantasy emphasize peoples feeling of having a meal in the fast-food restaurant. Fast food should meet the need of families. To the children, the food can not be too greasy, and the prices can not be too high for their parents. In order to make customers feel at home, the toilet in the restaurant should be clean and the dinning tables should be neat and tidy. Most of the fast-food restaurants do not supply wine. Fordism is the way of flow process which was employed by Ford U.S ai first. It included a refined division of labor, decreasing the cost, saving production time and using automated equipment instead of manual production. This method was widely used in the American fast food industry in the last century. The last F refers to franchising. In the beginning, by franchising those fast-food companies were able to see their products and expand the sales in the domestic market, to be exact, the American market. Some local people in different cities paid money to the parent company and would then be allowed to sell products and receive guidance in operating and managing the business from the parent company, and moreover, they can obtain the support the conduct drumbeating. This style of parent company operating together with some subsidiaries has some advantages, such as low cost, more likelihood of success while the risks are lower. The American fast-food industry spread from the eastern cities to the west, and then to more and more countries abroad. 1.1.1.2. Competitors KFC will be beaten, wont it? While the series of stunts drove buzz and the introduction of grilled chicken spied short-term sales, the moves also contributed to a lack of consistent brand positioning and a distraction from KFCs flagship product, both of which have hurt the chain and allowed competitors to creep in and carve out share. Although KFC remains the largest player in the growing segment of fast-food chicken, its share continues to drop. KFCs market share tumbled six full points since 2005 to 30% in 2009, while the category grew from $14,5 billion to $16,1 billion. Ever-growing threats? Brands such as Chick-fil-A. The much-smaller chain, at least by locations, has built a cult-like following with high-quality sandwiches, better-for-you options, excellent service and clean stores. It now commands 20% of the markt with just 1,500 locations.

Thats less than one-third of KFCs 5,200-store U.S presence. Moreover, chick-fil-A operates on a six-day week, as its restaurants are closed on Sundays. KFC doesnt just need to look out for not only direct competitors like Popeyes, Chick-fil-A but also hamburger chains selling chicken sandwiches and supermarket chains. 1.1.1.3. Customers Healthy food

KFC has used partially hydrogenated oil in its fried foods. This oil contains relatively high levels of trans fat, which increases the risk of heart disease. In the United States, the Center for Science in the Public Interest (CSPI) filed a court case against KFC with the aim of making it use other types of oils or make sure customers know about trans fat content immediately before they buy food. In October 2006, KFC said it would begin frying its chicken in trans fat-free oil (