According to relevant research data, China's foreign fast food consumption, 16 to 25-year-old young people in both the proportion of the consumer population or the proportion of the amount of consumption, are more than 60%. And accounted for 30 to 40% of the children and parents market, the right to consume is basically decided by the parents of adults. It can be said that foreign fast food consumption decision makers are basically adults, never children, especially in the "fast food health crisis" frequently today.
Product positioning is similar
We all know that earlier KFC and McDonald's product positioning there is a big difference, McDonald's burgers as the main products, more suitable for Europeans and Americans (which is from the U.S. food industry research organizations on the 2002 and 2003 U.S. fast-food sales and the number of restaurant statistics can be seen for two consecutive years, ranked in the top three were McDonald's, Burger King and Wendy's, while the food industry research organizations in the U.S. fast-food sales and restaurant statistics can be seen for two consecutive years. , Burger King and Wendy's, and they are all fast food chain groups with burgers as their main products). KFC is a fast-food chain that focuses on chicken products, which are more suitable for Asian, especially Chinese, tastes than McDonald's, and are therefore more easily accepted by Chinese consumers. In recent years, although McDonald's has also strongly launched similar to KFC's "McSpicy Chicken" and "Chicken Thigh Burger", however, KFC's sixty years of experience in cooking chicken can not be replicated in the short term, and its image as a "chicken expert" can not be replicated. However, KFC's sixty years of experience in cooking chicken cannot be replicated in the short term, and its image of "expert chicken cooker" is impossible to imitate. Than the taste than the feeling of the catering market, the slightest difference in products will largely put McDonald's in an unfavorable competitive position.
In the localization of products, KFC has spared no effort to meet the different needs of Chinese consumers. Since the mid-1990s, KFC has been determined to create a brand for the Chinese that is tailored to their needs.
What we also found in our study of KFC and McDonald's is that, while each sees the other as its most important and direct competitor, both have done well in the Chinese market. They did not fall into homogenization and then fight each other in the vicious competition in the price war, but each in its own way to enhance their competitiveness, the result of competition is to achieve a win-win situation. This may be more worthwhile for local Chinese companies to think about and learn from.
Honestly, from a global perspective, McDonald's and KFC do not belong to the same weight class rivals, whether it is the history of development or the overall size and strength, and even brand equity, KFC are behind McDonald's. But why has the Chinese market become the most important market for KFC? But why the Chinese market can become KFC overwhelmingly against McDonald's "base camp"?
KFC's leap in China should first be attributed to the decision-makers' understanding of the special characteristics of the Chinese market and pay attention to it, especially to the integration of cross-cultural management is a deep understanding of the true meaning of the choice of the right generals in order to avoid mistakes. Secondly, we should attribute KFC's implementation of three differentiated competitive strategies in the Chinese market ("targeting high-growth markets, pre-emptive action, and accelerated expansion"), strategic chain management, multi-brand integration and synergy, and two flexible chain models ("direct chain" and "franchised chain") to the fact that KFC has been able to achieve the best results in the Chinese market. "and" franchise chain "), the assurance of this system laid the foundation for the acquisition of competitive advantage.
For McDonald's, through the analysis of its development curve in the Chinese market, it is not difficult to find that McDonald's development strategy in the Chinese market with "lagging behind and sluggish" and "travel swing" two characteristics, and long-term adherence to the "direct chain". "Direct chain" strategy (as late as August 2003 before the implementation of the "franchise chain" model in China, while KFC was one step ahead in 1999, and in 2003 has developed more than 40 franchised stores), from the McDonald's global From the perspective of McDonald's global market positioning, the Chinese market has become its support for the development of other markets in the "blood machine" function, in particular.
Long-term organizational decision-making mechanism on the remote and slow, in the strategic key location decision-making, McDonald's is often paranoid about the "price is right" principle of stability and conservatism, in many cities (such as Shanghai) on the establishment of strategic stores for KFC to get a head start, but also affects the expansion of its market in China.
KFC's main target consumers are family members. The promotion focuses on young people who are more receptive to foreign cultures and new things, and all the food, services and environment are purposely designed. This is because young people prefer the light and breezy atmosphere of western fast food, and hope to influence family members of other age groups to visit. In addition, KFC also spends a lot of energy on children's customers, specially set up a children's dining area in the store, as a children's birthday celebration area, arranged to meet the children's preferences for colorful decorations, and toys as gifts on holidays, on the one hand, we hope to cultivate children's habit of eating fast food from childhood, and on the other hand, we hope that through the children's drive to attract the whole family members to the store to receive warm service. When children grow up, KFC may become part of their lives.
It can be said that it is precisely because of the inconsistency between the two companies' emphasis on the Chinese market and the global market that has led to the divergence of several major factors in strategic decision-making, which has determined the speed of expansion and the number of chain stores developed by the two companies in the Chinese market.
KFC has always wanted to create a fun atmosphere for the whole family to dine together, emphasizing the added value. This will leave some deeper impressions. They have a lot of good memories that happened at KFC. When guests come to a restaurant, the first thing they feel is the taste of the food. If the food doesn't taste good, no matter how cheap it is, it's useless. No matter how good the service is and how beautiful the decoration is, the customers will not be happy. KFC's market advantage is its unique taste of chicken food, positioned in the "world-famous chicken cooking expert", "cooking chicken as delicious as in KFC", which is also the biggest difference between KFC and McDonald's positioning. KFC's sixty years of experience in chicken cooking has produced a series of fried chicken products, such as original chicken, spicy chicken wings, crispy chicken thigh burgers, boneless chicken tenders, etc., which are crispy and golden on the outside and juicy on the inside, and are widely praised by customers for their unique and fresh flavors. KFC has also been reinforcing its "chicken expert" selling point in various advertising campaigns.
Chinese people love to eat chicken, chicken is the first of the chicken, duck, fish and meat, compared with other foreign fast food, chicken products are also more in line with Chinese people's tastes, easier to be accepted by the Chinese people. From McDonald's quietly broke its global market uniform "beef burger" menu, launched in the Chinese market and KFC similar to the "McSpicy Chicken" and "chicken thigh burger", more can be seen. The company's menu of "Beef Burger" is similar to KFC's in China.
KFC is not satisfied with its current success, but continues to spend huge human and financial resources to find out what is suitable for Chinese people's tastes, what KFC's products they like, why they like KFC, and so on. We're going to adjust our service, adjust our food, and even introduce new products.
3. Costs and prices on the basis of high ups and downs
As we all know, as a fast food, stable product prices have been one of the symbols of the continued soundness of its operations. KFC and McDonald's both in the pricing of similar products, in a long time is basically flat. But then in June 2003, McDonald's began to swing up the price of a sharp weapon, first of all, forced by the global performance and cost control pressures, the implementation of a comprehensive counter-trend price increases; and in the distance from the overall product price increases in more than 8 months (both in March 2004), McDonald's will be nearly ten kinds of staple products all cut to five dollars within the highest rate of reduction of up to 50%, resulting in a number of areas of a moment to snap up off the sale of dilemmas, and all of this is in the All of this is implemented on the basis of reduced product capacity and even quality. KFC has rarely been so price repeatedly, has always insisted on going "the right price and qualified products" route.
It is reported that McDonald's product cost control has also been high. In product procurement and supply, McDonald's tends to its U.S. domestic enterprises to provide sources of goods for China, while KFC is more interested in the development of local suppliers in China. Coupled with its supply chain synergies with Pizza Hut and other brands **** enjoyment effect, KFC in the control of product costs is also slightly better.
4, site selection strategy on the implementation of high and low
Factually speaking, McDonald's and KFC in the site selection strategy, each has its own Bible. Whether it is the rigorous process of site selection and consideration of standards, it is difficult to distinguish their superiority. The president of McDonald's East China once declared, "The reason why McDonald's chain stores open a red-hot one, the reason is that the first is the location; the second is the location; the third is still the location." But in the actual implementation of the process, its high and low but can be seen: KFC's site selection success rate is almost 100%, while McDonald's is often difficult to say that the closure of the event (December 1, 2002, McDonald's Chengdu Shuangnan store suddenly "disappeared" without a trace. This is the first McDonald's store in mainland China to close. However, according to informed sources, McDonald's Sichuan **** has 10 branches, in addition to the main store has been profitable, the other two stores occasionally profitable, the rest are basically in a loss-making state. (Just when the fallout from the closure of McDonald's Chengdu Shuangnan store hadn't fully subsided, news of another store closure broke in late May 2003 in the southern country of Guangzhou.)
What we also found in our study of KFC and McDonald's is that, while each sees the other as its most important and direct competitor, both have done well in China. They did not fall into homogenization and then fight each other in the vicious competition in the price war, but each in its own way to enhance their competitiveness, the result of competition is to achieve a win-win situation. This may be more worthy of Chinese local enterprises to think and learn from.
Take a closer look at the city, and see which restaurant has the edge over KFC and McDonald's?
KFC is also way ahead in mainland China in terms of revenue and annual expansion rate
For years, KFC and McDonald's have been at war. Last year McDonald's to take the price war, KFC has maintained the previous price, and Sudan red incident also let McDonald's image also greatly reduced, I think this is not only accidental events, and remember last year when McDonald's launched the ten yuan package, but also attracted a lawsuit with the consumers, and the other day's Yang Shing Lin about McDonald's, and how to explain it?
Upstairs is right, when the food industry comes into another country, it is important to localize the development of food culture, and I would like to say that KFC is doing a really good job too. A lot of good products to name a few, as well as its products cover a wide range of age groups of people's needs, there are also children's packages, if you pay attention to it, look at your neighborhood KFC every month there are some by the children's activities, will also be given to the children who have a birthday in the KFC to send a birthday gift. I think this better satisfy and develop potential customers