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Kentucky Fried Chicken
Transcript of Kentucky Fried Chicken
Colonel Harland Sanders
The man himself.
1930- The Idea "Home Meal Replacement"
1935- The Governor of Kentucky granted Colonel Sanders, Colonel status.
chicken restaurant chain.
restaurants in the US.
In 2008 KFC was the
in U.S. Chicken Quick Serve.
42% market share
system restaurant company.
locations in over
on Forbes 500 list.
"Alone we're delicious... together we're Yum!"
In 2011, a new restaurant
Generates 50% of YUM's operating profits.
Quick Service Restaurant
Understand Western culture
Create partnerships with surrounding companies
foreign companies to have
joint ventures with local producers
Law was changed
of Chinese KFC are directly operated by Yum!
Discounted rent and long term lease agreements to drive traffic to areas
"Go Global, Act Local"
Same original recipe
Strategies: Segmentation targeting and positioning.
"Life is colorful" &
50 menu items
compared to 29 in US
Same original chicken recipe
Local ingredients- rapeseed oil
and their American fascination
Television and billboards
Adequate supply of chicken
Restaurants are larger- group eating
Larger portions to share
US in contrast are designed for take-out
Workers trained in customer service and people skills as well as hygiene and dress for workplace
please choose your side:
Rice Egg Tarts
Wolfberry Pumpkin Porridge
Spicy Diced Chicken
Chinese Dough Fritters
... and many more
It is estimated that on average, more than 185 million people see a KFC commercial at least once a week...
In China, KFC has a product advantage
KFC launches more cultural products
New local chains mimicking KFC are beginning to take market share
KFC China established a distribution arm in 1997 that China lacks. It ensures that the food is handles safely from farm to kitchen.
Rating system for suppliers
Monitors supply chain back to animal feeding companies.
Most advanced and integrated cold chain system in China
11 logistics centers and 6 satellite centers
Creates contingency plans to last bad winters
of raw materials come from
KFC is the
largest single contributor
to the 7 million metric tons of chicken consumed in 2008. Guo Huiyong analyst Orient Agribusiness Consultant, Bejing
Manages more than
30 chicken suppliers
Chinese chicken farmers have been accused of putting
too many antibiotics
into their chickens exposing humans to large amounts of toxins
has begun increasing the number of samples and has
cut ties with over 1000 farmers
Bird flu scare
has also been a threat to KFC China
Sales have dramatically dropped 29% in Q2 and 13%
KFC China ensures its customers that they are being
extra careful to avoid harmful product
KFC has been more successful in China than any other fast-food chain restaurants because they were able to identify and better adapt to the local culture sensitivity faced in China.
Entered Chinese market in 1987
First to bring franchising to China (1992)
4200 restaurants; 850 cities
Beginning of Fast Food Industry in China.