We find that McDonald's and KFC outlets are very close to each other, whether in busy business districts or quiet residential areas. As the world's two largest fast-food chains, why do they both open their outlets next to each other instead of choosing another area? Will they fight a "price war" to grab customers?

Aiming at this phenomenon, let's analyze a case:

McDonald's opened a chain store in a certain location, the first thing to do is to do some publicity to tell consumers that there is a new branch here, and we welcome you to come and taste it; when the publicity is almost over, KFC will open a store in its vicinity, and since there is not a great deal of difference between the two products, KFC does not have to advertise to achieve the effect of the publicity.

It can be said that KFC utilized the publicity of McDonald's to give itself free advertising, or rather, the opening of McDonald's outlets first brought positive externalities to KFC, which opened later.

Of course, the fact that McDonald's and KFC did not have vicious competition is mainly due to the different business strategies of the two.

While their product content is similar, but in the operation is not blindly to imitate each other, but the use of the target customer group repositioning or meal taste adjustment, that is, "product differentiation" this way to compete.

For example, McDonald's will target customers from the traditional children, family positioning to the more potential for consumption of the younger generation; while KFC accelerated the pace of localization, focusing on accelerating the introduction of new products with strong Chinese characteristics. So, the two companies do not fight the price war, or even a small increase in prices, can still win enough market share . The two fast-food giants next door to each other have been able to complement each other in this situation.

Summary:

Follow the right person to take the right path, as we all know, McDonald's site selection is very strict, in addition to KFC, many other catering companies will also be in the McDonald's store next to the McDonald's is the first to enter the Chinese market, at that time, very hot, a lot of people are too many people are because of McDonald's, close to the next choice of KFC. KFC, as a result, later KFC fire.