Effect Of The Menu Strategy Of KFC In China

Fast food has turned into a genuine fundamental of our everyday life and made a religion of establishments that reaches out to the millions of Americans across the country. The Fast Food industry in a few eyes has been one of the sharpest developments this world has seen. It has been driven by our stomachs and our wallets for 40 to 50 years it's as yet developing to this date. The man who make-believe it can be known as the best representative, this nation has ever observed. The Fast Food Industry is big to the point that it has influenced our wellbeing, changed our way of life, and misshaped our territory as far back as the very first moment.

1. “Hundreds of millions of people buy fast food every day without giving it much thought, unaware of the subtle and not so subtle ramifications of their purchases. They rarely consider where this food came from, how it was made, what it is doing to the community around them. They just grab their tray off the counter, find a table, take a seat, unwrap the paper, and dig in” (Schlosser 10).

Fast food is very popular amongst today’s society. Fast Food Nation has reasons for the explosion in popularity of fast food restaurants in the mid-1900’s. It also explains negative effects on American Culture in today’s society. The fast-food industry has multiplied across America and changed the food industry. Eric Schlosser describes in Fast Food Nation the way people think about what they eat and what people think of the fast food industry, and also its impact on society.

In his book Fast Food Nation: The Dark Side of the All- American Meal, Eric Schlosser, an investigative journalist, argues that “the fast food industry has helped to transform not only the American diet, but also our landscape, economy, workforce, and popular culture” (3). He supports this claim by first describing the history of the fast food industry, then explaining the current condition of the chemistry and the labor in the industry. Schlosser’s purpose is to inform the consumer and describe the state of the fast food industry in order to call to attention the impacts of the industry on the lives of Americans and on America as a country. He establishes an optimistic tone in the beginning but then develops a gloomy tone for consumers to

"Fast food is popular because it 's convenient, it 's cheap, and it tastes good. But the real cost of eating fast food never appears on the menu," was said by Eric Schlosser. Several people in America have become dependent on fast foods. How many of the people who eat this food actually know what is really in the food or how it was made? Others don 't think about it, because within ordering, three minutes later a customer can pull up to the window, pay, and get food. It is quick and cheap. The United States has become dependent on fast foods because they are everywhere, but the consequences of these facilities have brought health issues and closing of community restaurants.

From a study completed by Chicago-based Research International USA completed a study called “Fast Food Nation 2008. The panel consisted of 1,000 respondents of ages 16-65 who provided their inputs with an online survey which was conducted between March 13 through 2008. Which was based on results on fast food restaurants like McDonald’s, Burger King, and Wendy’s are gaining popularity even through the economic hardship and recession. Marketing strategy has become more of influence on kids and young American’s. As population grows and the demand increases of fast food restaurants are expanding their stores to capturing more consumers. Fast food chains are also willing to change their menus to continue to gain and retain repeating customers.

The first KFC was opened in Tiananmen Square, China 1987; it struggled as western food was unknown to the east. This was still a very conservative nation, not prepared for the “Fast Food” takeover. The restaurant did pretty well, but grew slowly. The Harvard business review, stated that “in 1992 the Chinese government granted foreign companies greater access to markets, KFC China’s managers gradually developed the blueprint that would transform the chain.” (Yums' China, 2017) Although they have done well for themselves they struggled, as growth was steady but slow and their customer base was shrinking. “In November 2016 Yum China Holdings, Inc. became a licensee of Yum brands in Mainland China; they have exclusive rights to KFC.” (Yums' China, 2017) Yum controls approximately 7,300 restaurants and more than 400,000 employees in more than 1, 100 cities. YUMS generated over $8bln in sales in 2015.

We live in a world that is in a continuous process of transformation, considering that progress manages to control all the aspects of individual's life. Being part of a society which is always changing makes it essential for people have to adapt to all these aspects. One of the biggest problems for the American society is that it has no time to eat, since it is always on the run. Fast food came as the greatest solution for this problem. Since the process of modernization of the American society is accelerated day by day, the fast food industry has gained its place on the market. Even if individuals are well aware of the problems they can and will encounter if they eat fast food, they are forced by the circumstances to fall back on it.

KFCOne of the major competitors for McDonald in the burger segment is KFC. It first came to India in 1995, where it was one of the first multinational food chains to have entered India. It proved not to be a very good time to have come to India where people were still not able to come to terms with multinationals coming to India, and it was targeted by many and remained a not so known food outlet, while the ones which came later became more popular. KFC India had to shut shop in the late 1990s after it faced heavy protests not only from anti-multinational groups but also animal rights' protector, PETA.

The fast food industry has been growing dramatically during the last few years. For this reason, we should try to find out what are the several factors why fast food consumption keeps growing among young people and adults. Therefore, as we have seen, the popularity of fast food is spreading rapidly among many people due to the following three main reasons: good taste, convenient time, and price. Personally, working for a fast food restaurant for a brief moment in my life, I can attest to this. Marketing also plays a big part to more people eating fast food. It’s in our culture in America to expect fast food companies to market and strategize their ways to make us, the consumers, to buy more food and consume more food so they can make more profit. Especially now with commercials and social media. The fast food industry has thrived in the modern era. It’s thriving so much, the industry is growing faster than the U.S economy, at

All aspects of fast food have been criticized significantly, especially since the health food trend craze came around. An argument by culinary Luddites that is often thrown around is that our ancestors never had the access to these options and lived a much happier natural lifestyle. Rachel Laudan brought these points to the forefront to be critiqued in her writing “In Praise of Fast Food”. Rachel Laudan brings the argument that individuals have always participated in the consumption of convenience based foods, the goal in growing and producing food has always been to alter produce to make it more convenient as well as better tasting. Fast food is not as new of an invention as many believe it to be. Modern mainstream media outlets have pushed the belief that processing food has been the worst thing for the well being of the human body. Rachel Laudan makes some very solid points in the fast food debate that should be noted.

In introduction stage KFC-J entered the market using market-skimming strategy as indicated in the U.S standard manual. Their products were high price and targeted only upper class. Gradually in 1972 after heavy losses in Osaka and start-up challenges, as a market strategy, Weston and his team adjusted prices to compete with typical Japanese take-out products. They also adjusted their prices to suit the middle class in order to penetrate the market.

Customers is an important justification of a company’s success. Considering the interest of customers and portraying a good image to its customers, it had come out with different variety of meals. For example, the KFC offers kid’s meal which gives children free

KFC Does two types of planning, Strategic Planning and Operational Planning. Strategic Planning is done to increase its market worth value of the market share and Operational Planning includes launching of new product to change or innovate its product line for the customers. Planning objectives of KFC are to expand the organization on all over the UAE, to create and build superior quality for the customers, to follow marketing mix strategies and to generate superior financial return for KFC and KFC’s employees. Menu planning is done by researching. Supply chain management planning includes the full process related to the supply of raw materials which include chicken, spices and packing material and to increase operation, the objectives of supply chain management planning is to increase the level of outsourcing, increase globalization, increase the supply, increase the competitive pressure and increase the customers.The KFC mission statement is to “sell food in a fast, friendly environment that appeals to pride conscious, health minded consumers”.

Kentucky Fried Chicken (KFC) is a popular fast food chicken restaurant chain around the world. (Bell, Shelman, 2011) It is one of the subsidiary of Yum Brand. This company also operates the Pizza Hut and Taco Bell. (Yum! Brands, Inc, 2016) KFC was founded by Harland Sanders in 1952. (Bell, Shelman, 2011) Sanders was successful in creating the brand, even the logo of KFC brand is the portrait of him. He became a notable figure in American history thanks to his great contribution on creating KFC brand. Nowadays, KFC becomes more and more popular, the sales ranking of KFC was the 11th among the worldwide restaurant brands. (The QSR 50, 2015) The sales of KFC in 2014 was 4200 million dollars. (Details in Appendix 1) It means KFC has a large quantities of consumption needs. Actually, KFC has 14,577 restaurants around the world and 70% of them are located outside America (Yum Brand Annual Report, 2015). The restaurant profit was increased year by year from 2013 to 2015. (Details in Appendix 2) Therefore, it is potential to enlarge the customer base by analyzing consumer behaviors.