KFC in China Marketing Strategy
KFC in China, one of the marketing strategy: the first Brand Strategy
KFC Corporation belonging to the world&#39;s largest restaurant group Yum
global food system group (the list of world top 500 enterprises), the group owns,
including the world famous Kentucky Fried Chicken, Pizza Hut, Taco Bell three
brands, currently has more than 30,000 chain restaurants.
Yum Chinese market is the world&#39;s fastest growing restaurant groups in the
global strategy and one of the most potential market. China is Yum Yum Group
Global Restaurant Group&#39;s International collaboration in the development
of China was founded, headquarters. Kentucky since 1987, in Beijing the front door
opened the first restaurant after it had been in Beijing, Shanghai, Hangzhou, Qingdao,
Nanjing, Guangzhou, Suzhou, Wuxi, Tianjin, Fuzhou, Shenyang, Xi&#39;an,
Chengdu, Wuhan, Shenzhen, Harbin and other places Co., Ltd. was established more
than 20. So far, 111 cities in China already has 440 stores. KFC in China, a total of
25,500 employees at work, restaurant employees have 100% localization, ranking
China&#39;s fast-food industry in the first place.
The reason why Kentucky is so successful, mainly depends on its marketing strategy
KFC and McDonald&#39;s, who is &quot;the first&quot;? In the KFC
China&#39;s first 400 restaurants - Henderson Center store the opening
ceremony, KFC has not only publicly declared that he was &quot;the
first&quot; for the first time with the rival McDonald&#39;s direct
Coincidentally. World-famous research company AC Nielsen in 30 cities in China, the
16,667 copies of the questionnaire survey: the &quot;most customer
patronage&quot; of international brands, Kentucky ranked first, more than
McDonald&#39;s. November 13, 2000, published by the China Chain Store
&amp; Franchise Association, the five &quot;best franchise brand in China
2000&quot;, the subsidiary of China Yum&#39;s KFC brand as the only
foreign investment is particularly recommended international selection. This is true.
Kentucky Fried Chicken entered the Chinese market and expand the strategic course,
always the &quot;Kentucky&quot; as the first brand of China&#39;s
catering industry to run.
The early 90s, KFC Su, president of Chinese companies came to China of Mr., and
employees described the vision of KFC. The Chinese KFC (KFC) brand Zuocheng
the first brand of Chinese restaurants, and even the world&#39;s most popular
restaurant brand. Company Mr. Su Jingshi in the development process at all levels of
management together with the continued promotion and elaboration of this goal. KFC
every new employee, to work well the first day of this goal. This makes Kentucky the
company all staff have a common blueprint, a common vision. Everyone knows the
future will be a Kentucky company looks like. Liu Jianming, general manager of KFC
Beijing, as the company said: success at different times in different proportions. Our
only goal is not more than rivals, but how to keep the consumer in mind brand.
&quot;KFC,&quot; the first brand strategy, the initiative can be summarized
as the following three aspects:
1, taking the big cities, accurate location.
Health care products market has tended to &quot;encircle the cities from rural
areas&quot;, while the catering is first captured cities, then spread to smaller
cities. KFC enter the Chinese market first focused radiation occupied most of the city.
September 1986, Kentucky Fried Chicken into the company began to consider the
most populous of the Chinese market, to explore the huge potential inherent in the
market. But many challenges to policy makers in Kentucky hesitation. This family is
the world&#39;s largest chicken restaurant, in front of the Chinese market is
completely unknown, KFC&#39;s pure Western style could be acceptable to
Chinese consumers? Development of the Chinese market, not only requires technical
resources, more importantly, valuable management resources needed. In addition,
China can not export a lot of hard currency profits, even moderate levels of export is
unlikely. The most critical is to enter the Chinese market must select a specific
investment location, which is then with great uncertainty: the first Jia Ying Dang
chosen where Kentucky Fried Chicken shop? This decision will have future earnings,
other regions in China to further open up and the management of resources put into
the determination of such a dramatic impact.
KFC through a comprehensive, in-depth market research to confirm enter the Chinese
market as a target market must be large cities: with 100% of the energy to attack
Beijing, then Shanghai and Hangzhou. Because of Beijing in China is high ground.
November 12, 1987 Kentucky busy Qianmen area in Beijing set up its first restaurant
in China, while Beijing KFC Co., Ltd. is the first time Beijing is home to fast-food
Chinese joint venture. The development of Beijing as a starting point for the
development of KFC in the country as a prairie fire.
Shanghai is China China contend, affect Hangzhou, Nanjing, Suzhou, Wuxi and the
entire Yangtze River Delta. Shanghai 1989 has opened its first KFC restaurant, KFC
chain stores in Shanghai has reached more than 60, and break the world record of
fast-food industry&#39;s turnover, so far, the single-store sales results more than
40 million home in the world. Guangzhou have Dilirenhuo advantage. After 90 years
of the 20th century, Kentucky has to undertake solid offensive Tianjin, Fuzhou,
Shenyang, Xi&#39;an, Chengdu, Wuhan, Shenzhen, Harbin and other cities.
In determining the &quot;capture of large cities&quot; strategy, site
selection strategy is very important. Location is the primary factor in hotel
management, food chain too. The correct location chain is not only a prerequisite for
its success is to achieve chain standardization, simplification, the prerequisite and
basis for specialization. Therefore, the KFC fast food shop on site is very important,
site selection decision-making is generally two examination and approval system,
through the two Boards, one local company, the other is the headquarters. The site is
almost 100 percent success rate, is one of Kentucky&#39;s core competitiveness.
KFC site by following these steps: First, the business district of the division and
selection. Business district of the division, mainly to attract consumers, energy
measurement. Select business district, that is, to determine the current focus on
business district in which shop, which main goal is. Selection criteria in the business
district on the one hand to consider the restaurant&#39;s own market positioning,
but also make a circle of stability and maturity. Market positioning of different
restaurants to attract customers are not the same, the choice of business district is
different. Second, the poly-off point of measurement and selection. Main contents are:
to determine the business district, the most important poly-off points where; site
selection must consider the flow of the main line will not be competitors stopped;
Poly-off point selection affect business district selection.
To plan a good business district, Kentucky Development, has invested enormous
effort. In Beijing, KFC Corporation, the Development Department staff perennial
traveled to Beijing every corner, on the annual construction and road changes
significantly, the locals are easy to get lost in the local well known. Often this occurs,
the Beijing KFC company received a customer call, the proposed KFC in the spot
where he set point, developers can one address-known local business environment,
suitable for shop. In Beijing, KFC has been divided into according to their own
investigation business district, more than 60 successful out of the restaurant.
2, positioning cooking chicken expert, standardized services.
KFC Chicken market advantage for its unique taste of food, location in the
&quot;world-renowned expert cooking chicken,&quot;
&quot;delicious cooking chicken, all in Kentucky,&quot; Kentucky Fried
Chicken and McDonald&#39;s positioning is also the biggest difference. Its 60
years of cooking experience cooking the chicken out of chicken products, plain
chicken, spicy chicken wings, spicy chicken burgers, boneless chicken breast strips,
etc., golden crispy outer layer, the inner tender and juicy, with its unique delicious
taste widely praised for the customer. KFC in a variety of advertising also continued
to strengthen its &quot;Cooking the chicken expert&quot; the selling point.
KFC belongs Yum Greater China said Mr. Su, president of KFC in China, one of the
reasons is that it successfully developed a taste for fast food varieties of Chinese
consumption, whether chicken wings and chicken hamburgers these is rich in
essential nutrients food, or mashed potatoes, green salad and fresh vegetable soup and
other delicious hibiscus nutrition, catering, are very suitable for the Chinese people
&quot;eat fine&quot; requirements. KFC to introduce more Chinese people
taste the food, but also set up a &quot;health food in China KFC
Committee&quot;, to employ more than a dozen national experts as a food
KFC to family members as the main target consumer. The focus is more receptive to
the promotion of foreign culture, fresh young things, all the food, the service
environment are targeted and designed. This is because young people prefer
Western-style fast food airy dining atmosphere, and hopes to influence other age
family members to visit. In addition, the Kentucky Children also spend a lot of energy
to customers, the shop specialized Piyou dining area children, as children celebrate
the birthday of the region, arranged to meet the children&#39;s favorite colorful
decorations, holiday toys as gifts, on the one hand want to encourage the children
from fast food snack habits, it also hopes to bring small children, to attract members
of the family to accept the warm service shop.
KFC to keep returning the consumer division, can be divided into severe, moderate,
mild three types. Heavy consumers is once a week, moderate consumers about a
month to once every six months once considered light users. After investigation,
KFC&#39;s heavy consumers accounted for almost 30% -40%. On the heavy
consumers, KFC&#39;s marketing strategy is to maintain their loyalty, do not let
them down. These heavy consumers know KFC is because they often visit. The waiter
even KFC are good friends with them. Their unique and simple way is to not let them
down. For example, quality, service attitude. For light users, the survey found that
many people do not visit a KFC store the biggest factor is the convenience. This can
only be achieved through continuous shop has.
KFC worldwide to promote the &quot;CHAMPS&quot; Champion
program that is standardized services, is KFC successful results, including the essence
of the Chinese market, including one. Which reads: C: Cleanliness remain beautiful
and clean restaurant; H: Hospitality to provide sincere and friendly hospitality; A:
Accuracy ensure the accuracy of supply; M: Maintenance of equipment to maintain
quality; P: Product Quality adhere to high quality and stable product: S: Speed
attention fast quick service.
Elegant environment. Clean and elegant dining environment is their key to success in
the important magic weapon. Entered the KFC restaurant, it will give people bright
colors, bright and clean, refreshing feeling, so that diners physical pleasure, feelings
of relaxation. Gee sanitation equally praised, was serialized KFC restaurant
equipment, and strict sterilization, cooking utensils are stainless steel, will never let
the customer worry about health issues. In the dining process, as long as there is a
dirty, waiters will soon sweep clean, and even the toilets clean, has been carried out
meticulously, how can one not be enjoyable?
Extraordinary quality. Fast-food quality to attract consumers first and foremost factor
is that the enterprises based on market basis. Fast-food quality mainly in terms of
materials is fine, flavor is unique and production is fine, and several other areas.
KFC&#39;s unique taste in the world would relish, its color, aroma and taste of
fast food makes love with Canada, many consumers, especially children, as long
as&#39;ve been a back has to go second, third back, this is because they The
quality really makes impeccable. For example, &quot;suck that flavor the
chicken.&quot; Liu Jianming, general manager of Beijing KFC said,
&quot;suck that flavor the chicken,&quot; because eating this chicken, the
juicy chicken fingers will be down to the dirty, food are due to their special taste and
mouth to lick off, so named. The goal of KFC is so hard to eat those memorable
Attentive service. Service is an extension of product quality, good service is not no
sales, that fast-food industry, especially prominent, Kentucky right service topics are
very seriously. Just entered the restaurant, there will be warm and courteous waiters
greeted and provide personalized service, so you really experience the feeling of when
a return to God.
In order to bring convenience for parents of young children, children with special
furniture and KFC KFC Kids. Customers do not need to look for spices, napkins and
other trivial matters bother, the only thing to do is to fully enjoy the delicious food
and excellent service to bring you fun. Good standard of service from high-quality
staff. KFC are very strict on hiring employees, and their regular training to the level
of service specification. Meanwhile, the effective incentive mechanism is that they
increase employee awareness of service and an important guarantee for the standard
In short, the &quot;Champion Scheme&quot; has a very highly detailed
operational details required KFC restaurants around the world everywhere every staff
strictly implement the unified standard of operation. This is not only a code of
conduct, but KFC corporate strategy is to Kentucky for decades in the fast-food
service management experience on the crystal.
3, franchise, benefit-sharing.
&quot;Franchise&quot; is a KFC representative first successful strategy of
brand strategy, with &quot;Chinese characteristics.&quot; Kentucky Fried
Chicken to &quot;franchise&quot; as an effective way to expand their
business in the world, has been more than 20 years, KFC started in Xi&#39;an in
1993, joined the business, now KFC has joined with nearly 20 restaurants. KFC in the
Chinese market, &quot;franchise&quot; and its condition, model, cost and
features as follows:
(1) The franchisor should have them. Nanjing KFC Co., administration manager, said
Ruan Ming, an important condition for the franchise, that franchisees must have a
business catering and service and tourist industry background and experience, that is,
the KFC franchise Bu Jin need to join those who have funds that condition, but also
the operators themselves have a certain quality.
(2) The franchise mode. KFC currently in the development of China franchise way
than to join those who pay the initial fee, after their own shop, but to join those who
finance the purchase of an ongoing operation and has been profitable in the chain.
China Yum Group Manager Xu true, said: &quot;KFC on the Franchise to have
some choices, that non-agricultural population between 150,000 to 40 million people,
per capita consumption of more than 600 small and medium cities, rather than
catering industry city. &quot;Meanwhile, Xu real added:&quot; KFC in
Shanghai, Beijing, Suzhou, Wuxi and Hangzhou in five cities are joint ventures, in
which the relationship between Chinese and foreign parties involved, so far not taken
into account. &quot;
(3) license fee. The new franchisee will be authorized to operate a KFC restaurant in
operation among, each restaurant entry cost eight million yuan or more (not including
real estate purchase). Access fee is a transfer fee and the purchase of a mature,
profitable investments required KFC restaurant.
(4) contract contract. Join the first franchise agreement for at least 10 years. Future
franchisee must be willing to join the business in Kentucky more than 10 years.
(5) training. The successful candidate will be asked to participate in an extensive
20-week training program, including the following: &quot;restaurant assistant
manager&quot;, &quot;restaurant assistant manager&quot;,
&quot;restaurant manager&quot;, &quot;how to manage franchisees
Restaurant&quot;, &quot;on the headquarters dedicated,
&quot;&quot; small business management course. &quot; In the
training process, the future operators will be joining their own expenses. A restaurant
management experience and industry operators can apply to join us remove some of
This new way of franchising is Kentucky known as the &quot;Chinese
characteristics&quot;, and its essence, that the strict rules of franchising behind
KFC headquarters and franchisees is a common interest. KFC&#39;s success
depends on the success of each franchisee. This initial fee charged for the domestic
number of investors do not manage, no training, compared with the main chain, KFC
strong brand awareness is another guarantee of its success.