Outline: I. Introduction and overview of KFC Corporation II.
Body 1. Environment factors effect to international strategies of
KFC 1.1. National environment 1.1.1. Home country: America 1.1.2.
Host countries 1.1.2.1. Vietnam 1.1.2.2. Australia 2. International
environment factors 1.2.1. The political environment 1.2.2. The
economic environment 1.2.3. The social cultural environment 1.2.4.
The demographic environment 1.2.5. The technological environment 2.
How does KFC segment the market 2.1. In America 2.2. In Vietnam
2.3. In Australia 3. Best activities that KFC used in Vietnam
III. Conclusion
I. The introduction and overview of Kentucky Fried Chicken 1.1.
Introduction International marketing (IM) or global marketing
refers to marketing carried out by companies overseas or across
national borderlines. This strategy uses an extension of the
techniques used in the home country of a firm. It refers to the
firm-level marketing practices across the border including market
identification and targeting, entry mode selection, marketing mix,
and strategic decisions to compete in international markets. A
international company must have a good international marketing
strategy. To be successful in home country environment and host
country environment, international businesses need use several
factors in the environment to gauge the direction in which they
should steer. There are various environmental factors which can
impact the businesses in an economy. These environmental factors
can be categorized into external and internal environment of the
businesses. The internal environment of the company includes the
factors which are within the company and under the control of
company like product Organizational culture, Leadership, and
Manufacturing (quality). On the other hand, the external factors
are not under the control of the company and include Social
environment, political conditions, suppliers, competitors of the
company, Government regulations and policies, accounting agencies
like Accounting standard board, Resources in an economy and
demographics of people. From that, we can see environmental factors
have much effects to international marketing strategy of an
international company. And here is the case of KFC - the world's
most popular chicken restaurant chain. It is not only successful in
American, but also in many other countries over the world. To do
this, KFC always evaluates the environmental factors and often find
ways to succeed through innovative technologies, clever marketing
tactics and unique product and service offerings. So, what are
those environmental factors? How does KFC segment the market? What
is the best activity KFC used in Vietnam? Lets find the answer for
these questions in the details below.
1.2. Overview of KFC KFC, founded and also known as Kentucky
Fried Chicken, is a chain of fast food restaurants based in
Louisville, Kentucky, in the United States. KFC has been a brand
and operating segment, termed a concept of Yum! Brands since 1997
when that company was spun off from PepsiCo as Tricon Global
Restaurants Inc. KFC Corporation, based in Louisville, Kentucky, is
the world's most popular chicken restaurant chain, specializing in
Original Recipe, Extra Crispy, Kentucky Grilled Chicken and
Original Recipe Strips with home-style sides, Honey BBQ Wings, and
freshly made chicken sandwiches. While its primary focus is fried
chicken, KFC also offers a line of grilled and roasted chicken
products, side dishes and desserts. Outside the USA, KFC offers
beef based products such as hamburgers or kebabs, poutine, pork
based products such as ribs and other regional fare. The company
was founded as Kentucky Fried Chicken by Colonel Harland Sanders in
1952, though the idea of KFC's fried chicken actually goes back to
1930. Although Sanders died in 1980, he remains an important part
of the company's branding and advertisements, and "Colonel Sanders"
or "The Colonel" is a metonym for the company itself. The company
adopted KFC, an abbreviated form of its name, in 1991. Newer and
remodeled restaurants will adopt the new logo and name, while older
stores will continue to use the 1980s signage. Additionally, Yum!
continues to use the abbreviated name freely in its advertising.
Every day, more than 12 million customers are served at KFC
restaurants in 109 countries and territories around the world. KFC
operates more than 5,200 restaurants in the United States and more
than 15,000 units around the world. KFC is world famous for its
Original Recipe fried chicken made with the same secret blend of 11
herbs and spices Colonel Harland Sanders perfected more than a
half-century ago. Customers around the globe also enjoy more than
300 other products from Kentucky Grilled Chicken in the United
States to a salmon sandwich in Japan. KFC is part of Yum! Brands,
Inc., the world's largest restaurant company in terms of system
restaurants, with more than 36,000 locations around the world. The
company is ranked 239 on the Fortune 500 List, with revenues in
excess of $11 billion in 2008
II. Body 1. Environment factors effect to international
strategies of KFC 1.1. National environment 1.1.1. Home country:
America 1.1.1.1. Economy and social environment American fast food
The development of American Fast Food
The Modern fast food industry originated in the United State in
the 1920s, and developed rapidly, became epidemic all over the
world from 1950s. The emergence of the western-style fast food
resulted from the rapid economic development in the United State
and the great acceleration in the peace of life. In the 1950s, most
married women stayed home to keep house and take care of their
children. In the 1960s, many women returned to the work place. This
meant that they had less time and energy for housework and
preparation of meals, so they depended more on TV dinner and fast
food restaurants. Single parents also have little time to spend in
the kitchen. People living alone also depend on this type of food,
since cooking for one is often more trouble than it is worth.
People require food which is readily available, affordable, and
nutritious and tasty. The most obvious characteristics of American
fast food are speed and abundant supply of cooked food. Some fast
food was slightly processed and can be quickly ripen while selling.
At a primary stage, with the help of industrial management
experience, American fast food chains adopted standardization in
raw materials of their food, processing, pricing and service.
Therefore, the major reason for the rapid development of western
fast food has been the supply of safe and convenient fast food to
people who are very busy and in a hurry. The characteristic of
American Fast Food American fast food is well-known all over the
world. To sum up, the characteristics of its success can be due to
following the eight Fs. They are, respectively, Fast, Full, Fresh,
Fried, Family, Fordism and Franchising. Among them, fast, full and
fresh can be easily understood. They mean the speed, quantity and
quality of the food supplied. Fried refers to the kind of food
because
American people like fried food very much. Also, this food can
be easily transported. Family and fantasy emphasize peoples feeling
of having a meal in the fast-food restaurant. Fast food should meet
the need of families. To the children, the food can not be too
greasy, and the prices can not be too high for their parents. In
order to make customers feel at home, the toilet in the restaurant
should be clean and the dinning tables should be neat and tidy.
Most of the fast-food restaurants do not supply wine. Fordism is
the way of flow process which was employed by Ford U.S ai first. It
included a refined division of labor, decreasing the cost, saving
production time and using automated equipment instead of manual
production. This method was widely used in the American fast food
industry in the last century. The last F refers to franchising. In
the beginning, by franchising those fast-food companies were able
to see their products and expand the sales in the domestic market,
to be exact, the American market. Some local people in different
cities paid money to the parent company and would then be allowed
to sell products and receive guidance in operating and managing the
business from the parent company, and moreover, they can obtain the
support the conduct drumbeating. This style of parent company
operating together with some subsidiaries has some advantages, such
as low cost, more likelihood of success while the risks are lower.
The American fast-food industry spread from the eastern cities to
the west, and then to more and more countries abroad. 1.1.1.2.
Competitors KFC will be beaten, wont it? While the series of stunts
drove buzz and the introduction of grilled chicken spied short-term
sales, the moves also contributed to a lack of consistent brand
positioning and a distraction from KFCs flagship product, both of
which have hurt the chain and allowed competitors to creep in and
carve out share. Although KFC remains the largest player in the
growing segment of fast-food chicken, its share continues to drop.
KFCs market share tumbled six full points since 2005 to 30% in
2009, while the category grew from $14,5 billion to $16,1 billion.
Ever-growing threats? Brands such as Chick-fil-A. The much-smaller
chain, at least by locations, has built a cult-like following with
high-quality sandwiches, better-for-you options, excellent service
and clean stores. It now commands 20% of the markt with just 1,500
locations.
Thats less than one-third of KFCs 5,200-store U.S presence.
Moreover, chick-fil-A operates on a six-day week, as its
restaurants are closed on Sundays. KFC doesnt just need to look out
for not only direct competitors like Popeyes, Chick-fil-A but also
hamburger chains selling chicken sandwiches and supermarket chains.
1.1.1.3. Customers Healthy food
KFC has used partially hydrogenated oil in its fried foods. This
oil contains relatively high levels of trans fat, which increases
the risk of heart disease. In the United States, the Center for
Science in the Public Interest (CSPI) filed a court case against
KFC with the aim of making it use other types of oils or make sure
customers know about trans fat content immediately before they buy
food. In October 2006, KFC said it would begin frying its chicken
in trans fat-free oil (