Kfc International Marketing

Introduction

KFC ( Kentucky Fried Chicken ) is one of the largest fried chicken fast-food chain business in the world operating more than 18,000 restaurants in 120 countries. Its main products are fried chicken pieces, hamburgers, sandwiches, desserts and soft drinks(KFC 2013). KFC’s competitive advantage lies in the fried chicken pieces with 11 herbs and spices menu that is often referred to as the “original recipe”. KFC supply beef and pork based products with the exception of North America and Indian markets. KFC’s soft drinks are supplied by Pepsi-Cola with whom they have a strategic alliance(Leo 1999).KFC’s competitors are among others Burger King, Starbucks and McDonald’s. To deal with competitors KFC has introduced free home and office delivery service which has proved very popular, which is different from the other competitors who generally charge a nominal price for their services. KFC also extended their opening times at major public locations such as railway stations(Alia 2012). Rely on good service and KFC insist its own advantage,” we do chicken right”. KCF at the head of the food industry. In the following marketing report will talk about the entry strategy, marketing mix and standardization/ adaptation for KFC.

KFC Entry Strategies

As Root(1998) said an international company intent to enter a foreign market have to used different entry strategic and chosen strategic by arranging company’s product, competitive advantage ,technology and market demand. KFC traditional entry strategies is franchising ,but in China KFC early days started off with Partnering and Joint Ventures because they could not enter China by any other way due to hard lined Statutory Regulations that prevailed at the time(Martinsons&Tseng1995). We are talking about the beginning of the years 1980 all the way through to the start of 1990's. During this period, most businesses were fully or partly state owned. The difficulty arose in choosing the right partner for the joint ventures which were often plagued with problems of disputes and disaccords. The main one being the struggle to maintain a common view point in relation to long term growth and expansion strategy(Paul & Peter 1993).Joint Venturing models had their advantages: they helped KFC understand the country's regulatory framework and helped create a network of contacts which would later prove beneficial to KFC when they decided to go it alone.KFC's original partners included among others a state owned bank and a food distributor and retailer in Beijing and the New Asia Group in Shanghai(Cai 2006).

In the USA, KFC use franchising which is believed to be more profitable. The same model is used in India. However, franchising can go wrong when the economic climate is unstable because the financial risks associated with it.In India, where the economy and political

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