A Case Study of Kfc's Cross-Cultural Marketing in China
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A Case Study of KFC’s Cross-cultural Marketing in China
Summary: In 2007, KFC had opened 2000 outlet stores in china, leaving rival MacDonald’s far behind, achieving high praise from Chinese consumers and defeating challengers again and again. From the perspective of cross-culture, this paper tries to analyze the marketing strategy of the American fast food chain stores in china and give multinational food and beverage companies suggestions.
Key words: KFC, fast food, cross-cultural marketing
1. KFC's success stories and their status in China
In 1987, KFC entered the ancient capital of Beijing, China, which has a long food culture and the world's largest population. KFC opened the first restaurant in at Qianmen of the downtown…show more content… As the media has a great impact on the public, crisis public relations to a large extent focus on the media. In the Sudan Red event, KFC held press conferences several times, even the low profile Sam Su, president of China Yum Group, specially went to Beijing to have lunch in KFC restaurant. Taking measure like this in a country where it is characterized by power distance was just to assure the consumers, which played a significant role in restoring consumers confidence.
b. Finding the source to make consumers learn the truth
In this incident, KFC on one hand reviewed its own supply chain management, on the other hand assisted relevant department to trace the source, and finally succeeded in finding the Sudan Red source. Despite still being questioned to "pass the buck," KFC made the truth public, consumer sentiment quieted a lot. In such a country where a masculine tendency is apparent, people are prone to get to know the fact. Knowing it was not KFC's own problems, people put more spearhead to KFC’s suppliers rather than KFC.
c. Admitting its own mistakes, using the authority to testify itself
KFC issued a circular to announce the investigation of Sudan Red