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Kfc Case Analysis

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It is of critical importance that we develop a strong understanding of KFC’s current position and of the market in which it competes. The more comprehensive and well-founded our situational analysis is, the stronger our strategic marketing plan will be.

I. The character and attractiveness of the U.S. food service and fast-food industries in 1994

The fast-food industry is considered a subsection of the food service industry, or rather a submarket within a broader market. This broader industry, the US food service industry, is in what is known as the maturity stage.
Typically, the maturity stage exemplifies the following characteristics:
Sales continue but at slower pace.
• Competition leads to decreased market share or prices. …show more content…

III. The critical issues faced in 1994

In 1994, KFC Brand Development President Kyle Craig and KFC-USA were faced with several critical issues regarding the growth and development of KFC. Craig expressed that his main concern for KFC was the company’s ability to handle change in the future. However, there were many issues present that affected various aspects of KFC’s corporation, competition and customer.
There were numerous critical issues that involved the KFC corporation. One of these issues was the growth of international operations and declining domestic restaurant construction. The expansion of free-standing restaurants was seen as particularly difficult due to the availability of sites and the cost of construction. Another issue affecting the corporation was that of store refurbishment. Due to the age of many KFC restaurants, the expenditure of significant financial resources was required to refurbish and update these older restaurants. Refurbishments were also required to accommodate consumer demand for faster service that included drive through and dine-in options.
At the beginning of 1994, Craig noted that limited menu options and significant service problems presented considerable concerns for the business. The limited menu options would owe largely to changing consumer demands and the inability for KFC to stay current and focused. However, the service problems, which partly stem from the outdated systems and facilities in place

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