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Jason DuBro

on 9 May 2015

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Transcript of KFC

Marketing Mix
Until 2014, the menu consisted items such as the following:
Fried chicken pieces
Grilled chicken
Chicken and vegetarian burgers
Localized meal options for different regions of China
2012-2014 scandal instigated necessity for a revamped menu including more premium, and localized dishes
The price of KFC's products is on par with most of its competitors
Typical meals range from ¥10-¥30
Good price for the assumed quality of the products
KFC has more fast food restaurants than anyone else in the market with over 4,000 stores with goals to increase even more
Featured in over 700 Chinese cities
Urban and rural areas, focus more on urban though
KFC also delivers, offering convenience to those that cannot access the stores, or want to save time
Extensive use of localization strategies
Promote various specials for holidays such as Chinese New Year
Constantly promote delivery, website, and app
When the scandal occurred, turned to using more and more Chinese celebrities
SWOT Analysis
Much more of China to reach out to
More mid, and lower-tier cities
Transition to healthier options
Largest restaurant, much power and control
Another scandal involving food is always a possibility
Increase in number of competitors, especially McDonald's
Fake KFC's
Maintain/Improve current positioning
Look in to Healthier options
Concentrate on quality control
Test fast casual restaurant
Market leader
Special recipe - 11 herbs and spices
2nd biggest fast food chain in the world
First mover advantage
Negative publicity and suspicion over ingredients used
Serves unhealthy food

STP Analysis
Emphasise on taste and 60 years of experience in cooking fried chicken.
Go Global, Act Local - Fast-food model to fit the Chinese market by positioning itself as a native company, not a foreign. Local flavours, all staff are locals
Strives to provide comfortable store environment, excellent service, and a distinctive culture for its customers
Urban and eastern coasts to inner provinces
Chinese families with young children, whose parents are better educated and exposed to western culture
Young urban professionals who work in foreign companies
Fast Food Industry in China
Modern Fast Food

Traditional Chinese Fast Food

Relatively new
1987 (KFC)

Dumpling stores, rice sets to take-away, noodle stores

Market Size
Revenue of $107.8 billion
Increase of 9.4% from the last year
Annual average growth rate 12.4% (last 5 years)
Competitive Analysis
Annual average growth rate 6.5% (Since 2011)
Growth rate predicted in 3 years 3.8%
Number of Outlets

4,000 outlets
2,000 outlets
Company Background
Original name: Kentucky Fried Chicken
Second largest fast food restaurant
14,197 outlets in over 130 countries (as of Q4, 2014)
Company Background
Owned by PepsiCo, Inc until 1997
Currently owned by Yum! Brands
Yum! Brands owns:
Pizza Hut
Taco Bell
Most KFC restaurants are franchises
The first franchise opened in 1952
In 2014:
4370 total stores
4115 franchises
206 company owned stores
49 licensed stores
22% market share
Expansion of KFC
One of the first fast food chains to expand internationally
In mid-1960s, expanded to Canada, Mexico, UK and Jamaica
In 1987, the first Western restaurant chain to open in China
KFC in China
First outlet in Beijing, in 1987
Joint venture with government, bank, and local company
By 1988, Beijing outlet has the highest sales volume of any KFC outlet
Expanded fast:
1994 – 28 outlets
1997 – 100 outlets
2014 – 4828 outlets (3732 company owned, 339 franchise)
Over 1300 new stores from 2013 to 2014

Profitable industry
Market Leader
Well adapted for the market
Continue crisis recovery
Look for new opportunities

84% of the
fast food
Presented By:
Jason DuBro- 40069009
Foo Jia Yi - 40069206
Chu Yu Kwan - 53387271
Gemma Malla - 40068941
Scott Horsburgh - 40068340

Full transcript