Business Case Studies, Market Entry Strategies Case Study, KFC, in China

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Case Title:

KFC in China

Publication Year : 2004

Authors: Chandrasekar, T Phani Madhav

Industry: Retailing

Region:China

Case Code: MES0001

Teaching Note: Available

Structured Assignment: Available

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Abstract:
Western fast food giants like McDonald's and Subway, with Kentucky Fried Chicken (KFC) in the lead, dominate the fast food market in China. KFC is able to please the Chinese palate with its 'finger licking good' chicken that is part of the well-established dietary habits of the Chinese. The Chinese, who until the1980s, were used to untidy restaurants and unfriendly service, have embraced the ambience, rich decors and friendly service of KFC. As of 2003, KFC had more than 900 outlets, with its presence in 12 out of 13 provinces of China. KFC, apart from its popular products, also customised its offerings to suit the Chinese palate such as Peking duck, bamboo soup etc, that helped to win over loyal patrons. It is also the first food chain to introduce a drive-through restaurant in China. Despite heavy competition from western counterparts like McDonalds and Subway, and China's domestic food chains like Ronghua Chicken, KFC maintains its lead in the fast food market worth RMB 67.6 (US$8.1 billion) as of 2002.

Pedagogical Objectives:

  • To discuss the strategies that enabled KFC to become a dominant fast food retailer in China
  • To discuss the critical success factors of the Chinese fast food industry.

Keywords : Kentucky Fried Chicken (KFC); Chinese food culture; Customisation; Franchising; Harkland D Sanders; Market Entry Strategies Case Study; Fast food revolution in China; KFC's initial years in China; KFC's promotional activities

Contents : 
Introduction
Chinese Food Culture
History Of Kfc
Kfc In China
Joint Ventures: A Strategic Choice
Fighting Against The Odds
Promotional Activities
Growingwith Confidence

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