The Contrast Between Mcdonald and Kfc in China

McDonalds was founded in 1943, and 1967 British Colombia was its first international expansion, advertising to middle and upper class. McDonalds decided to expand internationally, due to the enormous success in America. There was heavy research involved in the expansion. Through globalization and internationalization, McDonalds were able to develop marketing strategies according to cultural needs, to serve specific target markets. McDonalds enter India’s foreign market and 1996 and is a tough foreign market to enter, but with McDonald’s success they were able to earn high revenue in India. The success strategy is researching and the development of food. McDonalds thoroughly analyzed the preferred taste, especially to not offend locals. Their key to success is to “think global, act local.”

With KFC operating as a franchise, it is required to pay a percentage of the revenue it has received to its parent company located in the United States. One of the important factors to be considered is regarding the current economic condition and growth forecast of the country it is operating in. In addition if the economy is experiencing a downturn, therefore affecting the country’s income per-capita, surely KFC shall be experiencing a decrease in the demand of their product. However, if the economic climate of the country is good which leads to an increase in disposable income, then more people are willing to spend their money at fast food restaurant that is considered a

The fast food industry in the US is witnessing the increasingly fierce competition among Chipotle, Chick-fil-A, McDonald’s, Jimmy’s egg and KFC. In addition, consumers increasingly favored foods clean and healthy. Foreseeing this need, numerous popular fast food restaurants sprung up promptly. The first Chipotle restaurant is opened in 1993 by Steve Ells in Colorado. On the contrary, McDonald’s is founded by McDonald’s family with a long history as well as one of the oldest brand in America. My paper will explain the similarities and differences in their three characteristics between Chipotle and McDonald’s, both of them are large enterprises in the fast food industry which have large market shares. Then, I also give opinions to differentiate

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.

REFERENCES•www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008

D2. Under this task I will justify and make recommendations in the KFC Company for improving in validity of the marketing research

The purpose of the following report is to compare the contribution towards social responsibility of two competing fast food franchises in South Africa, namely KFC (Kentucky Fried Chicken) and McDonald’s.

It opened its first outlet in 1990 in Shenzhen, and other major cities elsewhere in the country. Moreover, McDonald’d choose the family with children as their target customers at first, and later it aimed on youths from 4 to 30 years old. With its key word “young, fashionable and lively”, it hopes to provide light and happy dining experience for young people. While as for the foods, McDonald’s claimed that they would not change the menu in China at the very beginning of entry, and always stick to their American style. However, facing the challenge from KFC, it’s no longer easy for McDonald’s to stay “outside”. Fried egg, a new hot drink with honey and ginger which it’s widely believed in China that ginger decoction can help keep coldness away and Chinese pancake appeared on the breakfast menu. The strong market segmentation make KFC super-boom in China, whereas McDonald’s caught up from behind after it changed their strategy instantly. However, both of them successfully survive in Chinese market although they applied different

This case study determines the critical success factors used by Subway Restaurants Corporation to expand nationally, which the corporation wants to use also to expand internationally. In addition, this paper describes the competition and the prospect success in Asia-Pacific and Latin America. In general, the fast food industry is discovered with respect to the history and future plans of fast food chain Subway international for expanding and accretion in Asia-Pacific and Latin America, containing the four factors that Subway should use to compete and success in those markets. Each proposed country market has unique cultural and religious requirements should be realized by Subway, as well as the consumption patterns, market trends, and the franchise values which determine from the local traditional fast food compared to the viewpoint of Subway’s healthy alternatives and low expansion costs.

McDonald’s is the biggest fast-food chain in the world. The McDonald’s brand is worth about 95 billion dollars U.S., which leads the next place restaurant, Starbucks, by 78 billion dollars U.S. (Statista) McDonald’s makes the most money in fast food on the planet. 27.57 billion dollars U.S. was made in revenue in 2012(Statista). Currently, McDonald’s has over 35,000 restaurants operating all over the world in over 100 countries, which adds up to serving around 100 million people per day(Statista). All of this wasn’t possible if it wasn’t for Ray Kroc. In 1954, Ray Kroc had used all of his life savings in a becoming the exclusive distributor for a company that distributed milk shake makers called Multimixer. Kroc had heard word that there was a hamburger stand in California called McDonald’s, running 8 Multimixers at a time and he wanted to know why they needed so many for one hamburger stand, so he went to California to visit the stand. Having a menu with not many items to choose from, Kroc was surprised at how many people were coming to buy McDonald’s food. Kroc was so intrigued, he asked the owners, Dick and Mac MacDonald, to open more restaurants, which he would do personally. The first McDonald’s restaurant that Kroc opened himself was in Des Plaines, Illinois in 1955, which had the first ever Golden Arches (6th most known brand in the world as of 2013)

In the 21st century, everybody has become so busy in his life. People have to work more hours to live better life. So they prefer to eat fast food in the restaurant, which consume less time rather than cooking in the house. There are so many information on the internet that people are getting addicted to fast food, which is really unhealthy for them. So our main purpose to findout that is fast food really unhealthy for the people and if yes then how many its adverse effects will be. Because of there are lots of fast food company, we have choosen McDonald for our research perposal because it is well known and old fast food company all over the world. McDonald is the one of the leading food industry, which started in 1940 by two brothers Richard and Maurice McDonald in San Bernardino, California. In 1954, to began new restaurant outside California, Ray Kroc who was a entrepreneur and milkshake-mixer salesman, acquired the franchise of McDonald. He opened his first restaurant in Illinois, Chicago and established McDonald`s corporation. In 1961, Kroc had owned the whole McDonald business by pay 2.7 million dollars to McDonald brothers. To spread his business on the international level, Kroc opened first branch of McDonald in Richmond, British Colombia in 1967. After that McDonald started spreading its roots in other nations. In Porirua, New Zealand, first restaurant was introduced in 1976. In present era, there are more than 150 restaurants all over

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.

Thanks to cultural differences and Social Background influences, KFC in China faces challenges: it needs to establish a new management style.

Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.

Providing customers with the best of both worlds: west meets east. In addition to its radical strategic approach of localization with regard to its food, they extended that viewpoint when selecting their management team. By hiring Chinese executives, Yum! Brands is able to build relationships with the local suppliers more easily and quickly. It definitely helps with their competitive advantage that chicken is a staple meat in China. Given these factors, it is clear that KFC has a competitive advantage in this market. However, taking a closer look at the industry and thinking longer-term, the competitiveness is undesirable but there is still potential to improve profitability. See the analysis