International Marketing Project Report Kfc Viet Nam

INTERNATIONAL MARKETING

PROJECT REPORT

KFC Vietnam

Instructor: Dr. VŨ THẾ DŨNG

Group No. 01:

1. Nguyễn Thành Được 2. Nguyễn Đăng Hạt 3. Nguyễn Thị Minh 4. Phạm Thị Hồng Phượng 5. Lê Thị Thúy Linh 6. Lữ Vân Phan Nhớ 7. Đoàn Giang Sơn 8. Trần Thị Ngọc Quyên

JUNE, 2012

School of Business International University – VNU HCM

[KFC] International Marketing

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CONTENT

1. Abstract

2. Introduction

3. Methodology

4. KFC Corporation

4.1 Overview

4.2 Goals

4.3 Value

5. KFC Vietnam

6. KFC in Vietnam Market:

6.1 Marketing Strategy (4Ps)

6.1.1 Product

6.1.2 Price

6.1.3 Place

6.1.4 Promotion

6.2 Problems

6.2.1 Problems in the past

6.2.2 Potential Problems

6.3 Seven years of loss

7. KFC in India

7.1 Product

7.2 Price

7.3 Place

7.4 Promotion

8. Conclusion

9. References

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1. Abstract

The world is flatter and flatter thanks to globalization and the development of

information technology. Local people in any nation can enjoy and experience products

and services from other countries or continents. In other words, consumers' needs are no

longer bound to products available within their country's borders. This can be seen in the

consumption from daily products to luxury goods. As globalization expands, local people

have chance to try various food and cuisine from other cultures. This paper analyzes the

success of KFC Vietnam- a giant fast food brand through their four Ps (product, price,

place and promotion) in international perspectives. This paper also compares the

strategies of KFC Vietnam and those of KFC India to provide more insights into the

success of this brand globally. Lessons learned from the case of KFC Vietnam will make

some specific recommendations to businesses in fast food industry in Vietnam market.

2. Introduction

One of the identities that help people be distinct from one culture to another culture is

eating habits. Geographic sites and local food supply determine what people eat and how

to enjoy food. Take for an example, people from Asia consume more vegetables than

people from Western countries to some extent. Western people tend to have quick and

simple lunch while Asian people prefer longer one.

However, this is not to say that local people always stick to the way and type of food they

eat from time to time. As we can see, Everyday American and European people dine at

Japanese, Thai, Vietnamese or Chinese restaurants. Similarly, on the other side of the

globe, Asian people enjoy their meals at French or Italian restaurants. To be more

specific, foreign restaurants are now more popular in Vietnam, especially Western style

fast food with more than 200 restaurants nationwide. KFC, Lotteria are Jollibee, Pizza

Hut are just some brands to name. As a matter of fact, more and more teenagers and

young people go to fast food restaurants when hanging out with friends and family.

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In this research, fast food is defined as hot food such as a burger that is quick to cook or

is already cooked and is therefore served very quickly in a restaurant. (Cambridge

Advanced Leaner’s Dictionary)

Among brands mentioned above, KFC is the market leader with 100 restaurants till the

end of the year 2011, and account for 60 percent of fast food market share in Vietnam.

That is the reason why this brand is chosen for study to better understand fast food

market in Vietnam.

This study examines the case of KFC Vietnam through their product, price, place and

promotion strategies to provide answer to first question:

1. What makes KFC Vietnam successful in international marketing perspectives?

The case of KFC India is also analyzed to answer the second question:

2. Are the strategies of KFC Vietnam similar to those of KFC India?

KFC Vietnam did not make any profit until 2004 after seven years of operation in

Vietnam. The third question this research aims to answer is:

3. Why did KFC Vietnam not leave its market after seven years of loss?

3. Methodology

The methodology for this research is qualitative method in which we analyzed data from

two sources: secondary data collection from articles and websites, and primary data from

observation.

Three KFC restaurants in District 1, 3, and Phu Nhuan in Ho Chi Minh City were

selected as they are located in three most typical busy districts.

This study was conducted in 20 days from June 4 –23, 2012.

4. KFC Corporation

4.1 Overview.

KFC Corporation, also known as Kentucky Fried Chicken is the world's most

popular chicken restaurant chain. KFC primarily sells chicken pieces, chicken

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sandwiches, chicken pot pies, crispy chicken strips, wraps and salads. KFC is part of

Yum! Brands, Inc., the world's largest restaurant company in terms of restaurant system,

with more than 36,000 locations around the world.

KFC, based in Louisville, Kentucky, is the world's most popular chicken

restaurant chain specializing in Original Recipe, Extra Crispy and Colonel's Crispy

Stripschicken with home-style sides and freshly made chicken sandwiches. Since its

founding by Colonel Harland Sanders in 1952, KFC has been serving delicious, already-

prepared complete family meals at affordable prices. Perfecting its secret recipe of 11

herbs and spices in 1939, for the last 60 years, of being the chicken experts, KFC wore

the title of being the market leader in its industry. Serving delicious and hygienic food in

a relaxing environment made KFC everyone’s favorite. Since then, KFC has been

constantly introducing new products and opening new restaurants for its customers. Up to

now there are over 17,000 KFC outlets in 109 countries and territories around the world,

serving millions of customers each day.

Food, fun & Festivity are all what attached to KFC, leading the market since its

inception; People at KFC can proudly say, “We do chicken right”.

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Countries with KFC restaurants

4.3 Goals

Build an organization dedicated to excellence.

Consistently deliver superior quality, and value in our products and

services.

Maintain a commitment to innovation for continuous improvement and

growth, striving always to be the leader the market place changes.

Generate consistently superior financial returns and benefit our owners

andemployees.

4.4 Value

KFC’s commitment to provide the best food and best experience for the best value

the universal areas of customer expectation common to all cultures and all restaurant

concepts

Cleanliness

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Hospitality

Accuracy

Maintenance of Facilities

Product Quality

Speed of Service

5. KFC Vietnam

KFC is known in Vietnam under the special name “Gà rán KFC” – a fast food

restaurant chain serving the meals made from chicken, hamburgers and the most famous

meal is fried chicken

KFC entered the market for the first time in 12/1997 in Ho Chi Minh city. Now

this fast food restaurant chain has been in more than 18 provinces and cities of Vietnam.

• Time lines of first restaurants:

12/1997 – Ho Chi Minh City

06/2006 – Ha Noi

08/2006 – Hai Phong & Can Tho

07/2007 – Bien Hoa – Dong Nai

01/2008 – Vung Tau

05/2008 - Hue

12/2008 – Buon Ma Thuot

11/2009 – Đa Nang

04/2010 – Binh Duong

11/2010 – Vinh, Nghe An

05/ 2011 – Nha Trang – Khanh Hoa

06/2011 - Long Xuyen – An Giang

08/2011 - Quy Nhon & Rach Gia

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09/2011 - Phan Thiet

12/2011 – Hai Duong

Source: www.kfcvietnam.com.vn

In 2011, the total revenue of fast food industry was VND810 bn. and the growth

rate was about 26 percent. This growth rate makes fast food a very attractive market. The

following chart shows the current market share of KFC and its competitors.

Source: http://nhipcaudautu.vn/article.aspx?page=1&id=4202-subway-da-den!

http://tuoitre.vn/Kinh-te/468670/Thuc-an-nhanh-lan-nhanh.html

Product information

a. Key product planning

A product is anything that can be offered to a market that might satisfy a want or need

KFC product is classified as consumer product as it has no intermediates.

KFC offers specialty goods.

The stock turn over of KFC is high

Price and quality of the product is always compared.

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KFC’s product includes

Goods (Burgers, Chicken Meals etc)

Services (cleanliness, quick service, parties)

A typical KFC meal consists of chicken, coleslaw and potato & gravy. All of the

ingredients are of the highest quality and freshness. To ensure this, the company sets

rigorous standards for product uniformity and quality, which must be met by all

suppliers.

b. Key product line

KFC product line includes all chicken based products

Chicken (Original recipe chicken or Hot

chicken)

- 1 piece

- 3 pieces

- 6 pieces

- 9 pieces

- 18 pieces

Burgers/Snacks

- Shrimp burger

- Zinger burger

- Flava roast burger

- 3 pieces crispy Strips

- Flava roast chicken rise…

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- Original recipe chicken

- Hot &spicy chicken

- Sandwich

- Chicky meal with gift

- Popcorn chicken

- Sharenijoy

Side orders

- French fries

- Mashes potato

- KFC (Coleslaw)

- Sweet bun

Desserts & Beverages

- KFC cone

- KFC sundae

- Hot pie

- Pepsi

- Milo

- Egg tart

6. KFC in Vietnam Market:

6.1 Marketing Strategy:

6.1.1 Product:

The most important thing in product strategy of KFC is to differentiate their

product from other competitors in the same industry and gain competitive advantage in

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consumers’ mind. KFC’s original recipe is what made Colonel Sanders and KFC famous.

He developed the secret formula of 11 herbs and spices which cost millions of dollar and

it still defines irresistible flavor of KFC today. Also, the products of KFC in Vietnam, as

well as all over the world, are produced with similar recipe. KFC not only makes itself

unique from the others but also varies its products to create an abundant menu. In

addition to traditional dishes such as fried chicken and hamburger, when penetrating in

Vietnam, KFC tried to provide more options in order to satisfy Vietnamese tastes such as

fillet fried chicken, sandwich, gravy chicken rice, mixed cabbage and jumbo… The size

of hamburgers is also smaller to fit Vietnamese customers. The list of products is

classified in many categories to help customers feel free to choose their favorite food.

Moreover, adding shrimps, fishes to the menu makes customers interested and curious

rather than only serving chicken.

KFC not only focuses on developing new products and changing the quality to

catch up with customers’ demand but also takes care of customers’ health. The most

obvious evidence is that in 2007, after two years of experimenting, KFC found out that

the normal oil contains high linolenic acid (8%) which could cause heart attack. KFC’s

new recipe targeted the health conscious customers. Therefore, they introduced a savory

blend of six secret herbs and spices and slow-grilled to juicy perfection which has less

fat, calories and sodium than the original recipe fried chicken. This new recipe was

applied in 5500 KFC restaurants around the world, including Vietnam. Furthermore, in

2004, bird flu epidemic exploded in most of countries in Asia which affected directly the

sales of KFC in particular and other chicken-oriented restaurants in general. To gain

customer’s trust, KFC imported chicken from North America as well as made a close

processing to ensure food safety. Since KFC has long-term strategy in Vietnam, they

spend more time on gaining market share and getting the loyalty of customers here. KFC

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Vietnam only chooses prestigious and quality guaranteed suppliers with certified

qualifications to express their concern of customers’ health.

6.1.2 Price:

Price decision is a vital role to capture the market share. Although KFC extremely

succeeded in foreign markets and became one of the best in the fast food industry, they

virtually had no reputation when setting first step penetrating in Vietnam. And KFC was

so smart that they used low price strategy when coming to Vietnam in 1997 in order to

capture the market share before other big competitors such as Lotteria, Mc Donald’s

realized how potential Vietnam was. The purpose of this low price strategy was that they

wanted to retain a large number of loyal customers. New customers were also attracted

by this strategy, they would be curious about the products and tried at least once. The

other objective KFC considered when using this strategy was to maximize their market

share in comparison with other competitors in Vietnamese market. One famous slogan of

low price strategy was “An That No, Chang Lo Ve Gia”(Just eat all, Don’t Worry about

Price)

Then, when there were more loyal customers, KFC increased their price gradually.

As we can see, this strategy was definitely effective since from 2006, KFC began to gain

profit and the number of loyal as well as new customers all grew significantly. In the

fight of fast food, KFC knew how to make itself more special than the others by

possessing unique competitive idea such as combining 2 portions into one called combo

with lower price than having 2 separate dishes.

Place:

Today, the urbanization is growing very fast, most of the citizens become much

busier and more hurried. They do not have much time to prepare their meal at home.

Therefore, fast-food plays an important role in their daily life. It is easier to have meals in

a very convenient and quick way. Besides, the youth seems to be delighted with Western

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culture, they like modern life style. That can explain why KFC Vienam only opened

their stores mainly at commercial centers, department stores in big city like Ho Chi Minh

and Ha Noi.

KFC restaurants are designed to show both modern and quick service with eye-

catching decoration. Facilities are active and dynamic in red. When we go inside a KFC

restaurant we will see the brightness of KFC from logos to menu displays. All these

designs seem inviting to the youth.

Due to KFC placing itself close to schools, colleges, cinemas and supermarkets

which are mostly populated by the young and those who are in a hurry, KFC enjoys a

large number of footfalls everyday. In Vietnam,, KFC mainly focus on big cities such as

Ho Chi Minh , Ha Noi, Da Nang and other high populated areas. Getting deeper in each

city, KFC also try to locate at central districts in order to offer the convenience for

customers. For instance, in Ho Chi Minh, KFC Vietnam open outlets at supermarkets,

roundabouts, Commercial centers in District 1, 3, Phu Nhuan District, Tan Binh District,

6.1.3 Promotion:

Promotion is the method used to inform and educate the chosen target audience

about the organization and its products. The target customers of KFC Vietnam are

teenagers and young people. KFC Vietnam uses all types of promotion:

- Advertising

- Sales Promotions

- Public Relations

- Events and Experiences

- Coupons, Discounts and Bundled packages

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An organization finds most of its meanings and survival through promotion. At

KFC, promotion is the main tool to bring all chicken lovers’ attention towards its

delicious one-of-a-kind product, the Fried Chicken.

Advertising

KFC's advertising strategy is focused on building brand image, and making it

familiar to consumers about a new popular but fast food in the world. KFC is not only

advertising on print media such as newspapers and magazines but also advertising on

electronic media such as television and the Internet. Besides, KFC also regularly hold

outdoor advertising activities through billboards, posters, signs, leaflets.

The logo of the smiling Colonel is probably one of the most recognized faces in

the world and instantly brings the image of fried chicken to one’s mind.

KFC and its new company jingle, “finger licking good” is a frequent

announcement on televisions, billboards. The concept of showing a normal customer

deeply involved in devouring his piece of chicken usually turns on the drool in

everybody’s mouth and makes them rush to the nearest KFC store.

Using reminding advertisements, KFC stimulates repeated purchases of its

products. The company anthem “finger linkin good” is just a wake-up call to the

consumer to remind them how good they felt the last time they ate KFC chicken.

Sponsorship is also another tool to strengthen an organizations image. In its 100th

store opening celebration, KFC had sponsor 100,000USD for The Saigon Times

Foundation.

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Sales Promotion

KFC uses the following method to further enhance its sales.

- Premiums (VIP cards)

- Exhibits

- Coupons

- Entertainment

- Sales Promotion

All KFC outlets offer its customers with various forms of incentives to buy its

Chicken. Using coupons that one can acquire after spending a particular amount over a

period of fixed time, customers can enjoy the benefits of free meals or free add-ons.

Additionally, they provide meal vouchers and exciting offers in their printed ads,

which customers cut and bring along in order to have a discount on their receipt.

KFC is also timely to have other promotions on special cases of the year.

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and have the chance to get MORE ATTRACTIVE GIFTS:

+ 04 LAPTOPS

NOKIA N72 phone + 10

+ 10 MP4 player

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* With each purchase 01 large glasses of Pepsi, customers will receive 01 codes to

participating in the program drawn automatically by message to the operator (8113) or

visit Website: www.pepsiworld.com.vn.

KFC Vietnam also created a fan page on Facebook to get more loyal young customers.

They encouraged customers to write interesting status to win a iPad.

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* During the flu bird period, KFC launched promotions in which customer dared to have

chicken, customers with a VIP card of VND15,000 received 10% discount on each

order in one year from date of purchase.

6.2 Problems face KFC Vietnam:

6.2.1 Past problems:

The first problem KFC and other fast food restaurants has to overcome is

Vietnamese tastes. Various delicious, attractive and eye-catching food such as pho, rice

vermicelli, pancake, hot pot all together make a colorful and abundant cuisine in

Vietnam. From the appetite, we can see that people here have diversified tastes; however,

they all have the same point of not being interested in greasy food which is the

characteristic of most fast food. Besides, most food in KFC is fried chicken which mainly

targets young population from preschool children to the early 30s. Therefore, when

parents go with their little children to a KFC restaurant, they are reluctant to order

because they are not used to have fried chicken instead of rice for a meal. What they

really want is rice. Recognizing these needs, KFC has tried to diversify their menu by

adding up some dishes or combos which contain rice. Although these dishes/combos are

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used with fried chicken, parents feel satisfied and easier to order when entering KFC

restaurants.

Contrary to Western people desiring food with high calories, Vietnamese consume

more vegetables. Vietnamese people think fast and fat food is not good for health. Also,

the number of patients who catch heart attack, obesity, diabetes… are growing. These

diseases are becoming an obsession of almost citizens. And fast food is accused of being

one of the causes of these diseases. These are the reasons why people feel more reserved

and careful when choosing fast food for their meals.

KFC spent two years in laboratory to find a solution for this problem. Finally, they

found out a new recipe which contained less fat and calories. It was applied to all KFC

restaurants in the world. And once it was publicly introduced, the sales of KFC increased

dramatically. As a result, this new recipe gradually improved the reputation of KFC.

Another problem KFC had to face was the bird flu in 2004. The outbreak of bird

flu affected all chicken-oriented restaurants. KFC Vietnam was not an exception. People

did not consume sold chickens. Hence, its revenue extremely decreased in this period. At

that time, KFC found a good solution when diversifying their menu with products from

beef, shrimp and fish. They also strengthen their reputation simply by importing chickens

only from trusted sources in North America.

In conclusion, these solutions of KFC Vietnam were very timely and effective in

helping KFC Vietnam overcome crises period and consolidate their fame as well as

improve their image in customers’ mind.

6.2.2 Potential problems:

The problem KFC Vietnam has to face at the moment is that they have to compete

with other fast-food brand names like Lotteria, Jollibee and perhaps Mc Donald’s in the

future. All these competitors are stronger day by day in both finance and reputation.

Another problem concerns with Vietnamese taste. They prefer tough chicken rather than

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friable one. Moreover, people are more afraid of implicit disease from fast food such as

obesity, heart attack,… KFC Vietnam has improved this situation by experimenting and

creating less fat oil, but it seems not enough. KFC Vietnam should quicky set up a team

doing research about Vietnamese taste and propose some solutions in order to make KFC

to be closer to Vietnamese needs and desires before other competitors have more

valuable ideas.

6.3 Seven years of loss in Vietnam:

Why did KFC keep staying in Vietnam despite seven year of loss?

Entering Viet Nam market since 1997- at the time of financial crisis in Asia, KFC

Viet Nam has been continuously confronted with many obstacles. It’s not easy for

KFC to start business in such a country having a diversified cuisine as Viet Nam.

Besides, big disaster SAR in 2003 and domesticated bird flu in 2004 and 2005

affected significantly to the operation of KFC in Viet Nam. The fact is that during the

first seven years from opening the first restaurant, fast-food chain Kentucky Fried

Chicken had to bear excessive loss. In the first fifth year, there was only one new

restaurant each year. The very big question posed is that why KFC Viet Nam did not

give up in despite of loss in even seven years?

Mr. Tony Chew – chairman of shareholders of KFC Vietnam compared opening

the first restaurant with “cultivating seedlings”. Therefore, despite of loss, BOD of

KFC Viet Nam insisted on running business at the aim of long-term strategy. At

present, what we witness in the reality has proved it’s an excellent strategy that the

small seed has turned into a big tree, taking the root deeply to the new cuisine habit of

citizens in urban area and it expect to expand to other regions in the up-coming time.

(http://nextdiner.blogspot.com/2011/11/kfc-con-uong-thanh-cong.html)

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Mr.Pornchai Thuratum – General Director of KFC Viet Nam said: “Eight years

ago the Vietnamese market almost didn’t know the KFC brand-name and Vietnamese

people didn’t get used to fast food from KFC. So in the initial period we accepted

losses to develop our brand-name, to build the system of restaurants and to perform

marketing programs to have customers in the future”. He added: “We entered

Vietnam with a long-term business strategy. So it is acceptable earning profits after

seven years”.

http://www.klexpress.com/modules/general/index.php?page=news&act=detail&id=10

So what makes KFC Viet Nam believe that they can survive and develop in Viet

Nam and keep their business even they got lost in the first seven years?

Firstly, it comes from the reputation of KFCC which ranks second among the fast

food trademarks in the world, only after McDonald’s. KFCC band was very famous at

the time being, so it was full of promise for KFC Viet Nam to draw a lot of attention

from the customers about the quality and safety of the fried chicken here.

Viet Nam was a peaceful country and was on the way to prepare to join WTO.

Stable politics and increasingly international integration to some extent was expected

to facilitate KFC Viet Nam’s business.

Viet Nam has a young population structure that more than half of Viet Nam

population (64.54%) is under the age of 30 in 1999.

(http://www.gso.gov.vn/default.aspx?tabid=407&idmid=4&ItemID=1346 . Those

people are the KFC’s target customers who are easy to adopt the new things and are

favorable for Western cuisine style. The standard of living is getting better and better

and people, especially the youth, don’t only want to have enough to eat but they also

demand to have delicious food. This brings KFC Viet Nam a big chance to develop

Western fast food industry. Moreover, in the context of Viet Nam, with many young

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people, coming to western-style fast food restaurants not only to satisfy their hunger

but also to show off their status, to let others know that they are modern and trendy.

Understanding this psychology, KFC has advantage to focus on this class of

customers.

An obvious trend is that many people in urban areas now do not want to spend

their weekends and holidays staying indoor and cooking themselves. Now with the

appearance of KFC restaurant chain which offers delicious and plentiful food, modern

and spacious place, easy access to internet, good service, freely time and cozy

atmosphere, people have a another good place for eating, drinking, talking, chatting,

working, taking pictures and dating also.

Coming to Viet Nam, KFC doesn’t only create a new eating and drinking habit

with a new taste but also a new kind of serving – self-serving. This modern serving

offers the equality among people and saves time also and are favorable for customers

in urban areas such as Ho Chi Minh city. It can be said that KFC has created a new

breath of air in Vietnamese’s life style.

Another chance for KFC is the fact that people pay more attention to the foodstuff

hygiene and safety. They’re getting worried about the quality of fast food sold on the

pavement or in small traditional restaurants. Especially when bird flu epidemic broke

out in 2004, Vietnamese were really anxious about being infected. There came big

day for KFC to strengthen their brand name through strictly examined cooking

procedure with pure and credible source of chicken.

To sum up, in order to capture the market and get the belief of the customers, KFC

Viet Nam had no profit during 7 years. It’s not easy at all and requires the patience

and a strategic vision of KFC Viet Nam. The story of 7-year of loss of KFC Vietnam

remind us a philosophy in doing business – no investment, no benefit!

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7. KFC In India:

One of the first fast food corporate allowed to do business in India was KFC, and

they had permission to open new 30 outlets in early 1990s. The first outlet was opened in

Bangalore in 1995 because KFC realized that this city had a substantial upper middle

class population. Then, PepsiCo planned to open 60 KFC and Pizza Hut outlets across the

country in the next seven years.

But KFC faced problems in the form of protests by angry farmers. They said that

the growing numbers of fast food chains would deplete Indian’s livestock which caused

bad affects to Indian agriculture and the environment. KFC also faced severe protests by

People for Ethical Treatment of Animals (PETA), an animal rights protection

organization. PETA and regulatory authorities found that KFC’s chicken was fed which

contained nearly three times more flavor enhancing ingredients as followed by the law.

KFC had to stop doing business after facing so many problems which listed below.

- KFC did not appreciate the need for protecting animal rights in developed and

developing countries like India.

- They did not understand the importance of ethics in doing business.

- They did not examine the reasons for protests of PETA.

- KFC kept the original meal menu from U.S without adding the flavors and spices

which Indians liked.

- Major reason was KFC was targeting higher income group in India in order to

compete with the local chicken dhaba wala’s.

However, realizing the potential development in fast food industry in India, KFC

have not discouraged and it prepared carefully a new expanded program in this market.

Many indispensable changing was done and KFC decided to re-entry to India in 2003.

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From that time, KFC’s business has grown well and they intend to open 500 outlets in

KFC Segmentation

- Age: focus on the youth <30, because they are quite dynamic, and quickly

approach with market changing, suitable with innovative style of KFC.

- Income: focus on the medium and high income people. Because KFC always

wants to bring the high quality product and service to customers. Moreover,

KFC often chooses the posh place to open outlets with high expenses (renting,

air-condition…)

KFC competition

The competition in fast food industry in India is very fierce. There are some strong

brands in this market:

- MCDONALDS

- PIZZA HUT

- DOMINOES PIZZA

- COFFEE DAY

- BARISTA

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(Source:http://www.scribd.com/doc/86854290/kfc)

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The marketing mix in India

7.1 Product

In KFC menu, there are several kinds of meals which is suitable for individual, for

groups or families, for religion …

KFC has made change in meals when coming back to Indian market. KFC's

vegetarian menu is almost exclusive to India and is the most extensive. Most countries

either do not have a vegetarian menu, and some which do, have a burger at the most. For

the Vegetarians, KFC has great tasting vegetarian offerings that include the Veggie

Burger, Veggie Snacker and Veg Rice meals. Besides that, KFC also presents to Indian

consumers a new meal named Rizo Rice, the Appetizing rice made from a delicious and

colorful blend of exotic vegetable and fine Indian herbs.

7.2 Price

Now KFC is not only target to high income customer but also provide menu items

such as KFC’s Mini Burger for customers who have middle income.

KFC follows both optional pricing and mixed bundling pricing. A consumer can

buy dishes from the basic menu and go for add-ons (Optional pricing) and there are

combo offers which comprise a mix of items. KFC has variety of options in each

category. For example, in Bucket, there are menus with 8pcs, 12pcs and also 12pcs

variety bucket (Hot & Crispy Original Recipe and Chicken Strips).

KFC can compare the price with other competitors such as McDonalds, Pizza Hut,

and Dominoes. If the competitor provides the same products at lower price, then KFC can

put the price lower of its product too.

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7.3 Place

Today with the high urbanization, more and more people become hurried, busy

life, so fast food is an effective solution to save time. At the same time, KFC focus on the

youth’s liking of western style psychology. KFC has expanded its network across the

country, which are mainly in big cities: Dehli, Noida, Kolkata… KFC also choose the

convenient places with high number of young people such as universities, supermarkets

and industrial areas.

7.4 Promotion

KFC use promotion to inform and educate the target audience about its products.

They often do promotions in Advertising, Sales promotion, Public relation, Events,

Coupon.

KFC is using reminder advertisements with sentence: “Finger licking good” to

remind customer how good they felt the last time they ate KFC

All KFC outlets offer its customers with various forms of incentives to buy its

Chicken. Using coupons from outlets, newspapers that one can acquire after spending a

particular amount over a period of fixed time, customers can enjoy the benefits of free

meals or free add-ons. Additionally, they provide meal vouchers and exciting offers in

their printed ads.

(Source: www.facebook.com/KFCinIndia)

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(Source: http://lighthouseinsights.in/kfc-india-launches-fiery-grilled-campaign.html)

8. CONCLUSION:

Through the case of KFC, we can see that fast food business was not easy to set up

as well as grow up in Vietnamese market. Fast food industry has to overcome many

difficulties to have a position in customers’ minds. The successful lesson of KFC in

Vietnam has proved that if a business in fast food business wants to be successful in any

market should have strong brand name, long-term strategy, effective marketing

campaigns, well-designed service, a combination of standardization and localization, and

especially continuous improvement in order to adapt with the local environment.

9. REFERENCES:

Pham Anh Trung (2010) – Mo hinh franchise cua KFC tai Viet Nam.

[Type text] Page 27

Rick Dolphijn (2006). Capitalism on a Plate: The Politics of Meat Eating in Bangalore,

India.

Trinh Thi Phuong Lan (2011). Outlook of western-style fast food in Vietnam: The case of

KFC restaurants in Hanoi.

Websites:

http://www.klexpress.com/modules/general/index.php?page=news&act=detail&id=10

http://www.scribd.com/doc/86854290/kfc

www.facebook.com/KFCinIndia

http://lighthouseinsights.in/kfc-india-launches-fiery-grilled-campaign.html

http://www.kfc.com

http://www.kfcvietnam.com.vn

http://www.vnnhahang.com/forum/t451-tim-hieu-chien-luoc-phat-trien-cua-kfc-tai-

vn.aspx

www.gso.gov.vn/default.aspx?tabid=407&idmid=4&ItemID=1346

www.nextdiner.blogspot.com/2011/11/kfc-con-uong-thanh-cong.html

www.facebook.com/KFCVietnam

www.pepsiworld.com.vn

http://nhipcaudautu.vn/article.aspx?page=1&id=4202-subway-da-den!

http://tuoitre.vn/Kinh-te/468670/Thuc-an-nhanh-lan-nhanh.html

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International Marketing Project Report Kfc Viet Nam

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