kfc case study analysis

Kfc consumer profile, types of kfc marketing channels, digital marketing strategy of kfc , kfc's social media marketing , kfc marketing strategy 2024: a case study.

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KFC uses demographic segmentation to serve the target market that has both vegetarian and non-vegetarian customer segments. Its offerings cater to kids, young adults, and almost all age groups. KFC's target audience can be categorized into four groups:

Teens and young adults
Budget customers

Its primary customer profiles incorporate teenagers and families because most teenagers are impulsive, and they love to dine out with friends or order online to have a meal with their family. The secondary customer profile includes adults, and the tertiary customer profile has people with lower budgets.

KFC started with an undifferentiated targeting strategy as it served the same menu worldwide. However, in recent times, it has started localizing its menu for better acceptability in the market. The KFC marketing strategy incorporates two types of marketing channels: Personal and Non-personal.

Personal channels involve communicating directly with the audience, such as a KFC salesperson introducing products to a customer in person or over the telephone. Non-personal marketing channels include the use of media both online and offline, such as

Promotion Campaigns
PR activities
Social Media

The KFC marketing strategy primarily includes SEO , content marketing , email marketing , social media marketing , and video marketing. However, the company pays special attention to social media marketing and uses the most popular digital marketing platforms to highlight its price and customer satisfaction.

KFC's Facebook and Twitter pages are extremely high on interactions with customers.

KFC's Facebook Pages

KFC uses Facebook as a medium to educate its customers with new offers, products, discounts, and other schemes. It also uses Facebook to address customer grievances. The brand ensures that they put across product-oriented content. It promotes online ordering facilities via social media.

KFC’s Official Facebook Page Displaying A Range of Meals

On festive occasions, the Facebook page has several animated photos that have often received tremendous responses and helped KFC connect with the audience on occasion. Their posts strike great engagement ratios, with likes soaring above 250,000 and comments reaching 5000+. On average, the total engagement level of the page is approximately 5% depicting quality interaction and engagement.

KFC's team that handles its Facebook page is extremely quick in responding to customers. They encouraged the audience to lodge a complaint of dissatisfaction at their outlets.

KFC's Twitter Handles

The Twitter handle of KFC is as interactive as the Facebook page. The team successfully pacifies unhappy customers and has an extremely high engagement level.

KFC’s Twitter Handle

To take interactions to the next level, the team organizes contests often integrated across Facebook and Twitter. They also promote new schemes and discounts via Twitter . Although the number of retweets or conversations on these tweets isn't quite high presently, the brand also seems focused on upscaling its business via Twitter.

KFC's Instagram Handles

KFC’s Instagram Post with the Latest Offers

KFC has several verified pages on Instagram for various countries besides its main page. It uses this digital marketing platform mainly to attract customers by posting luring images of food items on its menu. The brand also publishes posts about its present offers, new introductions, and other schemes.

KFC on Youtube

KFC India Youtube Channel Displaying Ads

Although KFC has video marketing on its list of digital marketing strategies, it uses its YouTube Channel for advertisements only. It has short videos of not more than two minutes, but the channel still has a good number of subscribers. The company uses Youtube as a secondary medium to show its ads.

KFC's Email Marketing Strategy

KFC restaurants create bulk mailings using the AMP technology to target its mobile phone users too. Its AMP emails are different from ordinary emails as these mails have interactive elements in the form of order buttons, product carousels, subscription forms, sliders, animations, an interactive showcase of meals, and more so that the emails do not get lost in the potential customer's inbox. The company also uses this strategy to segment its audience and personalize its email campaigns, targeting specific audiences. Their brand awareness campaigns lead to valuable conversions later.

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The KFC marketing strategy is strong and actively uses Twitter and Facebook to attract customers, share promotions and schemes, and solve customer grievances. The potential of YouTube has still not been completely explored by them.

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Home » Management Case Studies » Case Study of KFC: Establishment of a Successful Global Business Model

Case Study of KFC: Establishment of a Successful Global Business Model

By mid 1950s, fast food franchising was still in its infancy when Harland Sanders began his cross-country travels to market “Colonel Sanders’ Recipe Kentucky Fried Chicken.” He had developed a secret chicken recipe with eleven herbs and spices. By 1963, the number of KFC franchises had crossed 300. Colonel Sanders, at 74 years of age was tired of running the daily operations and sold the business in 1964 to two Louisville businessmen — Jack Massey and John Young Brown, Jr. — for $2 million. Brown, who later became the governor of Kentucky, was named president, and Massey was named chairman. Colonel Sanders stayed in a public relations capacity.

In 1966, Massey and Brown made KFC public, and the company was enlisted on New York Stock Exchange. During late 1960s, Massey and Brown turned their attention to international markets and signed a joint venture with Mitsuoishi Shoji Kaisha Ltd. in Japan. Subsidiaries were also established in Great Britain, Hong Kong, South Africa, Australia, New Zealand, and Mexico. In the late 1970s, Brown’s desire to seek a political career led him to seek a buyer for KFC. Soon after, KFC merged with Heublein, Inc., a producer of alcoholic beverages with little restaurant experience and conflicts quickly arose between the Heublein management and Colonel Sanders, who was quite concerned about the quality control issues in restaurant cleanliness. In 1977, Heublein sent in a new management team to redirect KFC’s strategy. New unit construction was discontinued until existing restaurants could be upgraded and operating problems eliminated. The overhaul emphasised cleanliness, service, profitability, and product consistency. By 1982, KFC was again aggressively building new restaurant units.

In October 1986, KFC was sold to PepsiCo. PepsiCo had acquired Frito-Lay in 1965, Pizza Hut in 1977 with its 300 units, and Taco Bell in 1978 . PepsiCo created one of the largest consumer companies in the United States. Marketing fast food complemented PepsiCo’s consumer product orientation and followed much the same pattern as marketing soft drinks and snack foods. Pepsi soft drinks and fast food products could be marketed together in the same restaurants and through coordinated national advertising .

The Kentucky Fried Chicken acquisition gave PepsiCo the leading market share in three of the four largest and fastest growing segments in the U.S., quick-service industry. By the end of 1995, Pizza Hut held 28 per cent share of $18.5 billion, U.S pizza segment. Taco Bell held 75 per cent of $5.7 billion Mexican food segment, and KFC held 49 per cent of the $7.7 billion, U.S chicken fast food segment.

Japan, Australia, and United Kingdom accounted for the greatest share of the KFC’s international expansion during the 1970s and 1980s. During the 1990s, other markets became attractive. China with a population of over 1 billion, Europe and Latin America offered expansion opportunities. By 1996, KFC had established 158 company-owned restaurants and franchises in Mexico. In addition to Mexico, KFC was operating 220 restaurants in the Caribbean, and in the Central and South America.

Many cultures have strong culinary traditions and have not been easy to penetrate. KFC previously failed in German markets because Germans were not accustomed to take-out food or to ordering food over the counter. KFC has been more successful in the Asian markets, where chicken is a staple dish. Apart from the cultural factors, international business carries risks not present in the U.S. market. Long distances between headquarters and foreign franchises often make it difficult to control the quality of individual franchises.

In some countries of the world such as, Malaysia, Indonesia and some others, it is illegal to import poultry, a situation that has led to product shortages. Another challenge facing KFC is to adapt to foreign cultures. The company has been most successful in foreign markets when local people operate restaurants. The purpose is to think like a local, not like an American company.

As KFC entered 1996, it grappled with a number of important issues. During 1980s, consumers began demanding healthier foods, and KFC’s limited menu consisting mainly of fried foods was a difficult liability. In order to soften its fried chicken chain image, the company in 1991, changed its name and logo from Kentucky Fried Chicken to KFC. In addition, it responded to consumer demands for greater variety by introducing several new products, such as Oriental Wings, Popcorn Chicken, and Honey BBQ Chicken as alternatives to its Original Recipe fried chicken. It also introduced a dessert menu that included a variety of pies and cookies.

Soon after KFC entered India, it was greeted with protests of farmers, customers, doctors, and environmentalists. KFC had initially planned to set up 30 restaurants by 1998, but was not able to do so because its revenues did not pick. In early 1998, KFC began to investigate the whole issue more closely. The findings revealed that KFC was perceived as a restaurant serving only chicken. Indian families wanted more variety, and the impression that KFC served only one item failed to enhance its appeal. Moreover, KFC was also believed to be expensive. KFC’s failure was also attributed to certain drawbacks in the message it sent out to consumers about its positioning. It wanted to position itself as a family restaurant and not as a teenage hangout. According to analysts, the ‘family restaurant’ positioning did not come out clearly in its communications. Almost all consumers saw it as a fast food joint specializing in a chicken recipe.

KFC tried to revamp its menu in India. Cole Slaw was replaced with green fresh salads. A fierier burger called Zinger Burger was also introduced. During the Navaratri festival, KFC offered a new range of nine vegetarian products, which included Paneer burgers. Earlier, KFC offered only individual meals, but now the offerings include six individual meals, two meal combos for two people, and one family meal in the non-vegetarian category. For vegetarians, there are three meal combos for individuals, and meals for couples, and for families.

KFC also changed its positioning. Now its messages seek to attract families who look not only, for food, but also some recreation. Kids Fun Corner is a recreational area within the restaurant to serve the purpose. Games like ball pool, and Chicky Express have been introduced for kids. The company also introduced meal for kids at Rs. 60, which was served with a free gift.

Over the years, KFC had learned that opening an American fast food in many foreign markets is not easy. Cultural differences between countries result in different eating habits. For instance, people eat their main meal of the day at different times throughout the world. Different menus must also be developed for specific cultures, while still maintaining the core product — fried chicken. You can always find original recipe chicken, cole slaw, and fries at KFC outlets, but restaurants in China feature all Chinese tea and French restaurants offer more desserts. Overall, KFC emphasizes consistency and whether it is Shanghai, Paris, or India, the product basically tastes the same.

Questions For Discussion

Analyse the case and determine the factors that have made KFC’s a success global business.
Why are cultural factors so important to KFC’s sales success in India and China?
Spot the cultural factors in India that go against KFC’s original recipe; KFC Fried Chicken.
Why did Kentucky Fried Chicken change its name to KFC?

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KFC Crisis Management Case Study: Preparing for the Unexpected

Crisis can strike unexpectedly and have a profound impact on a company’s reputation and bottom line.

The ability to effectively manage these crises becomes paramount, and one such case that captured global attention was the KFC crisis.

This blog post aims to delve into KFC crisis management case study examining the events of crisis and analyzing the company’s response.

By exploring the lessons learned from this event and studying best practices in crisis management, we can gain valuable insights into how businesses can navigate challenging situations, protect their brand reputation, and emerge stronger from adversity.

Join us on this journey as we uncover the intricacies of crisis management and uncover the key strategies necessary for successful resolution of a crisis.

Brief history of KFC as a global fast-food chain

Kentucky Fried Chicken, more commonly known as KFC, has established itself as a prominent global fast-food chain with a rich and fascinating history.

The story of KFC traces back to 1930 when Harland Sanders, a humble entrepreneur, started selling fried chicken from his roadside restaurant in Corbin, Kentucky. Known for his secret blend of 11 herbs and spices, Sanders’ fried chicken quickly gained popularity among the locals.

As word spread about the deliciousness of Sanders’ chicken, he began franchising his concept in the 1950s. This marked the beginning of KFC’s expansion into a worldwide phenomenon.

With its signature Southern-inspired flavors, crispy texture, and distinctive red and white branding, KFC grew rapidly across the United States and eventually ventured into international markets.

By the 1970s, KFC had become a global powerhouse, operating in numerous countries and serving millions of customers each day. Its success could be attributed not only to its mouthwatering fried chicken but also to its innovative marketing campaigns and strategic partnerships.

Over the years, KFC has continually evolved its menu to cater to changing consumer preferences, introducing new products like the famous KFC bucket, chicken sandwiches, and a variety of sides and desserts.

Today, KFC operates in more than 140 countries, with thousands of restaurants serving its iconic fried chicken to eager customers worldwide. The brand’s commitment to quality, consistency, and its unique blend of flavors has made KFC a beloved and recognizable name in the fast-food industry.

As we delve into the KFC crisis and its management, it is crucial to understand the significance of this global fast-food chain and its enduring legacy.

Through its journey, KFC has not only revolutionized the way people enjoy fried chicken but also faced its fair share of challenges, providing valuable lessons in crisis management for businesses worldwide.

Description of the specific crisis event

The specific crisis event that shook KFC and garnered significant attention occurred in February 2018. It all began when a major supply chain disruption caused a shortage of chicken, leading to the temporary closure of hundreds of KFC restaurants across the UK.

The shortage stemmed from issues with KFC’s new logistics partner, who experienced operational difficulties that disrupted the delivery of fresh chicken to the restaurants.

As a result, customers were met with signs on the doors of their local KFC branches, apologizing for the inconvenience and explaining the temporary closure.

Social media platforms quickly erupted with posts from disappointed and frustrated customers, expressing their disbelief at the absence of KFC’s famous fried chicken. The crisis intensified as the media caught wind of the story, further amplifying the negative publicity surrounding the situation.

The impact of this crisis was significant on multiple fronts. Not only did it disrupt the day-to-day operations of KFC restaurants, leading to financial losses, but it also tarnished the brand’s reputation.

Customers who had come to rely on the availability and quality of KFC’s chicken were left disappointed and turned to competitors for their fast-food cravings.

The incident also raised questions about KFC’s supply chain management and the robustness of their contingency plans.

In the face of this crisis, KFC found itself under immense pressure to resolve the supply chain issues, reopen the affected restaurants, and regain the trust of its customers.

The company’s crisis management strategy and subsequent actions would play a crucial role in determining the trajectory of their recovery and the restoration of their brand reputation.

Initial response from KFC

In the wake of the supply chain disruption and subsequent closure of numerous KFC restaurants, the company swiftly took action to address the crisis and communicate with its customers.

KFC acknowledged the issue and released an official statement expressing regret for the inconvenience caused. They emphasized their commitment to providing high-quality food and assured customers that they were working diligently to resolve the situation as quickly as possible.

To keep customers informed, KFC utilized various communication channels, including their official website and social media platforms. They provided regular updates on the progress of resolving the supply chain issues and reopening affected restaurants.

These updates included transparent information about the challenges faced, the steps being taken to rectify the situation, and estimated timelines for the restoration of normal operations.

Furthermore, KFC proactively engaged with customers on social media, responding to inquiries, and addressing concerns in a timely manner. They expressed gratitude for the patience and support shown by customers during this challenging time, striving to maintain an open line of communication and demonstrate their commitment to resolving the crisis effectively.

KFC also collaborated closely with its franchise partners and suppliers to mitigate the impact of the crisis. They worked together to explore alternative solutions, such as sourcing chicken from different suppliers or redistributing stock from unaffected locations to minimize disruptions and reopen restaurants as quickly as possible.

While the initial response from KFC showcased a proactive approach to crisis management, the subsequent actions and long-term strategies implemented would be crucial in determining the ultimate success of their recovery and the rebuilding of customer trust.

Evaluation of the initial response

The initial response from KFC in addressing the supply chain disruption and communicating with customers demonstrated several commendable aspects of crisis management. Here is an evaluation of their response:

Prompt acknowledgement: KFC promptly acknowledged the issue and expressed regret for the inconvenience caused. This proactive approach demonstrated their commitment to taking responsibility and addressing the crisis head-on.
Transparent communication: KFC provided regular updates to customers through various communication channels, including their website and social media platforms. By sharing transparent information about the challenges they were facing and the steps being taken to resolve the situation, they instilled a sense of transparency and honesty, which are essential during a crisis.
Engaging with customers: KFC actively engaged with customers on social media, responding to inquiries and concerns. This demonstrated their willingness to listen to customers and address their concerns promptly, which can help in maintaining a positive brand image and customer loyalty.
Collaboration with stakeholders: KFC collaborated closely with franchise partners and suppliers to find alternative solutions and minimize disruptions. This collaborative approach showcased their commitment to working together as a team and finding solutions collectively, which can be crucial in overcoming a crisis.

While the initial response from KFC showcased positive aspects, there are a few areas that could be further improved:

Clear action plan : While KFC provided regular updates, it would have been beneficial to outline a clear action plan or steps being taken to rectify the supply chain issues. This would have provided customers with a better understanding of the progress being made and instilled confidence in the company’s ability to resolve the crisis.
Compensation or alternative offerings: As an additional measure, KFC could have considered providing compensation or alternative offerings to customers affected by the closures. This could have helped in mitigating customer dissatisfaction and maintaining goodwill during the crisis.
Proactive communication: While KFC was responsive to customer inquiries, there could have been a proactive approach to reaching out to customers who were directly affected by the closures. Proactively addressing customer concerns and offering support can go a long way in building trust and loyalty.

Communication channels used by KFC

KFC utilized various communication channels to address the crisis and keep customers informed. Here are some of the communication channels employed by KFC:

Official Website: KFC utilized its official website as a primary platform for sharing updates and information regarding the supply chain disruption and restaurant closures. They dedicated a section or a prominent banner on the website to provide regular updates, explanations, and estimated timelines for the resolution of the crisis. This ensured that customers visiting the website could easily access the latest information.
Social Media Platforms: KFC leveraged popular social media platforms such as Facebook, Twitter, Instagram, and YouTube to communicate with customers. They posted regular updates, statements, and videos to address the crisis, inform customers about the progress being made, and apologize for the inconvenience caused. Social media platforms allowed KFC to reach a broad audience, engage in two-way communication, and respond to customer inquiries and concerns promptly.
Email Communication: KFC likely utilized email communication to reach out to customers who had signed up for their newsletters or loyalty programs. Through email updates, they could provide detailed information about the crisis, offer exclusive deals or promotions, and express their gratitude for customer support and patience during the challenging period.
Press Releases and Media Statements: KFC would have issued press releases and media statements to communicate with the media and the public at large. These official statements would have outlined the details of the crisis, the actions being taken, and the company’s commitment to resolving the situation. Press releases and media statements are vital in shaping public perception and ensuring consistent messaging across various media outlets.

Lessons Learned from the KFC Crisis

Following are the key lesson learned form the KFC crisis management case study:

A. Importance of preparedness in crisis management

The KFC crisis highlighted the crucial lesson of the importance of preparedness in crisis management. Being prepared means having a well-defined crisis management plan in place, including clear protocols and procedures to follow when unforeseen events occur.

Companies should anticipate potential risks and develop contingency plans to mitigate their impact. In the case of KFC, having a robust supply chain backup plan and alternative supplier relationships could have helped minimize the disruption caused by the chicken shortage. By proactively preparing for crises, businesses can respond more swiftly and effectively, mitigating the negative consequences and safeguarding their reputation.

B. Effective communication during a crisis

Effective communication is a fundamental lesson learned from the KFC crisis. In times of crisis, open and transparent communication with stakeholders is paramount. Promptly acknowledging the crisis, providing regular updates, and being accessible to address concerns demonstrate a commitment to transparency and build trust with customers, employees, and the public.

KFC’s use of various communication channels, including their website and social media platforms, allowed them to disseminate information widely and engage directly with customers. By maintaining open lines of communication, companies can manage expectations, alleviate concerns, and retain customer loyalty during challenging times.

C. The role of transparency and honesty

Transparency and honesty emerged as critical factors in the KFC crisis. Being transparent about the causes of the crisis, the challenges faced, and the steps being taken to resolve it helps build trust and credibility. KFC’s acknowledgment of the supply chain disruption and their commitment to resolving the issue demonstrated honesty, which is essential for maintaining the confidence of customers and stakeholders.

By openly sharing information, companies can demonstrate accountability, showcase their efforts to rectify the situation, and reassure customers that their best interests are being prioritized. Transparency and honesty are vital components of effective crisis management, enabling organizations to navigate challenging situations while preserving their integrity.

Final Words

KFC crisis served as a significant case study in crisis management, highlighting important lessons that businesses can learn from. The crisis emphasized the importance of preparedness, emphasizing the need for robust contingency plans and alternative solutions to mitigate disruptions.

Effective communication emerged as a crucial aspect, with KFC demonstrating the power of transparent and timely communication through various channels. Transparency and honesty played a pivotal role in rebuilding trust and credibility. By openly addressing the crisis, sharing information, and taking accountability, KFC showed their commitment to their customers and stakeholders.

About The Author

Tahir Abbas

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Kfc analysis: a comprehensive guide for business students, dr. wilson mn.

June 15, 2023
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Brief background on KFC

Kentucky Fried Chicken, or KFC for short, is a fast-food restaurant chain specializing in fried chicken. Harland Sanders founded the company in 1952, and it has since grown to become one of the world’s largest and most recognizable brands. Yum! Brands that also own Taco Bell and Pizza Hut.

Importance of understanding company analysis

Understanding company analysis is critical for business students who want to invest in, partner with, or work for a specific company. Analyzing a company like KFC can provide useful information about its operations, strategies, and competitive advantages.

Company Profile

A. company history.

It was founded in 1952 in North Corbin, Kentucky, by Harland Sanders, who developed a secret recipe for fried chicken. The company quickly grew and expanded through franchising, and by the 1970s, KFC had become a global brand. In 1986, KFC was acquired by PepsiCo, which later spun off its restaurant division into Yum! Brands in 1997.

B. Vision, mission, and core values

KFC’s vision is to “be the leading global quick-service restaurant company.” Its mission is to “put a smile on every customer’s face in every restaurant, every time.” KFC’s core values include customer focus, innovation, integrity, and teamwork.

C. Products and services

KFC’s core product is fried chicken, which is available in various formats, including individual pieces, sandwiches, and buckets. The company also offers sides such as mashed potatoes, coleslaw, and biscuits, as well as desserts and beverages.

D. Industry and market position

KFC operates in the fast-food industry, which is highly competitive and dominated by a few large players, including McDonald’s, Burger King, and Subway. KFC has a strong global presence, with over 24,000 restaurants in more than 145 countries. The company has a market share of approximately 14% in the U.S. fast-food industry.

E. Key competitors

KFC’s key competitors include McDonald’s, Burger King, Subway, and Chick-fil-A. These companies offer similar products and services and compete on factors such as price, quality, and convenience.

Financial Performance

A. revenue and profitability.

In 2020, KFC’s revenue was $26.2 billion, with a net income of $1.7 billion. The company’s revenue has been steadily increasing over the past five years, with a compound annual growth rate of 4.5%.

B. Key financial ratios

KFC’s key financial ratios include a gross profit margin of 56.8%, a return on equity of 68.5%, and a debt-to-equity ratio of 3.2. These ratios indicate that KFC is a profitable company with a high level of debt.

C. Stock performance

KFC’s stock price has been steadily increasing over the past five years, with a compound annual growth rate of 9.2%. As of April 2023, KFC’s stock is trading at $150 per share.

IV. Marketing Strategy

KFC’s main product is fried chicken, which is marketed as a high-quality, craveable, and convenient food option for customers.

KFC’s pricing strategy is competitive, with menu items priced at a similar level to its main competitors. The company also offers value menu items and promotions to attract budget-conscious customers.

KFC operates in various locations, including standalone restaurants, shopping malls, and airports. The company also offers online ordering and delivery services through its website and mobile app.

D. Promotion

KFC’s promotion strategy includes advertising campaigns that focus on the quality and taste of its products, as well as its brand heritage and unique recipe. The company also uses social media and influencer marketing to connect with younger consumers.

appeal to socially conscious consumers.

SWOT Analysis on Company

A. strengths.

Diversified product portfolio
Efficient supply chain management
Skilled and experienced workforce
Financial stability and profitability

B. Weaknesses

Poor management and leadership
Limited resources and capabilities
Dependence on a few key customers or suppliers
Inefficient production processes
Weak brand reputation

C. Opportunities

Emerging markets and new customer segments
Technological advancements
Changes in consumer preferences and behaviors
Strategic partnerships and collaborations
Mergers and acquisitions
Economic downturns and market instability
Changing government regulations and policies
Natural disasters and environmental factors
Supply chain disruptions and product recalls

Noteworthy research papers on KFC

A. Noteworthy research papers on KFC

“ KFC in China: Secret Recipe for Success ” by Warren Liu, Margaret Osborne, and Marc Bertoneche (Harvard Business School Case Study)
“ KFC and McDonald’s in China: Competitors or Companions? ” by Xiaojuan Ma and Yulu Kong (International Journal of Business and Management, 2011)
“A Study of Consumer Behavior towards Fast Food Restaurants: An Empirical Study of KFC and McDonald’s” by Jiaqing Chen and Xinxin Wang (International Journal of Business and Management, 2014)
“ An Analysis of KFC’s Marketing Mix in China ” by Jie Zhao and Xiangyu Liu (Journal of Business and Management Sciences, 2016)
“ A Comparative Study of McDonald’s and KFC in China: Perception, Preference, and Behavior ” by Yumei Zhuang and Hongmei Huang (Journal of Chinese Human Resource Management, 2018)

Essay Titles on KFC

KFC: From Fried Chicken to Global Fast Food Empire
The Marketing Strategies of KFC: A Comparative Analysis
KFC in China: A Case Study of Successful Localization
The Impact of Social Responsibility on KFC’s Brand Reputation
KFC and the Fast Food Industry: An Ethical Dilemma
The Role of Innovation in KFC’s Growth and Success
The Effects of Globalization on KFC’s Business Model
KFC’s Corporate Culture and Employee Motivation
The Effects of COVID-19 on KFC’s Operations and Sales
KFC’s Expansion into Emerging Markets: Opportunities and Challenges

Research Topics on KFC

The Impact of KFC’s Brand Image on Consumer Behavior
KFC’s Supply Chain Management: Strategies and Best Practices
A Comparative Study of KFC and Its Competitors in the Fast Food Industry
KFC’s Franchise Model: Advantages and Disadvantages
The Role of Digital Marketing in KFC’s Brand Promotion
KFC’s Menu Engineering: A Study of Consumer Preferences and Trends
The Effects of Cultural Differences on KFC’s International Expansion
KFC’s Customer Service and Satisfaction: A Comparative Analysis
The Effects of Corporate Social Responsibility on KFC’s Business Performance
A Study of KFC’s Market Entry and Expansion Strategies in Emerging Markets

Frequently Asked Questions on KFC

What does KFC stand for? KFC stands for Kentucky Fried Chicken.
When was KFC founded? KFC was founded in 1930 by Harland Sanders.
Where is KFC headquartered? KFC is headquartered in Louisville, Kentucky, United States.
How many KFC locations are there worldwide? As of 2021, there are over 24,000 KFC locations in more than 145 countries worldwide.
What is KFC’s most popular menu item? KFC’s most popular menu item is its Original Recipe fried chicken.
Does KFC have any vegetarian or vegan options? KFC offers a few vegetarian options, such as its Veggie Burger and Vegetarian Rice Bowl. However, it does not have any vegan options at the moment.
What is KFC’s secret recipe? KFC’s secret recipe is a closely guarded trade secret, consisting of a blend of 11 herbs and spices.
Does KFC franchise its locations? Yes, KFC offers franchising opportunities to prospective franchisees.
What is KFC’s market share in the fast food industry? As of 2021, KFC’s market share in the fast food industry is around 3.8%, making it one of the largest players in the industry.
What is KFC’s approach to corporate social responsibility? KFC has implemented various initiatives to promote sustainability, animal welfare, and community engagement, such as its “Finger Lickin’ Good” environmental program and its partnership with the World Food Programme.

We examined KFC, a popular fast food chain known for its fried chicken, in this report. We’ve talked about its history, business model, and operations, as well as its advantages, disadvantages, opportunities, and threats. We’ve also included a list of notable research papers, essay titles, and research topics about KFC. Finally, we addressed some frequently asked KFC questions, such as its market share, franchise opportunities, and approach to corporate social responsibility. A company analysis is an important exercise for business students because it allows them to gain a more in-depth understanding of a specific company and its operations. Students can identify potential areas for improvement and develop strategies for growth and success by analyzing a company’s strengths, weaknesses, opportunities, and threats. Furthermore, researching a company’s marketing strategies, consumer behavior, and competitive landscape can provide valuable insights into the broader business environment and assist students in making sound decisions about investment, employment, and entrepreneurship. In general, company analysis is an important part of business education and a useful tool for aspiring business professionals.

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KFC’s Radical Approach to China

Mary L. Shelman

To succeed, the fast-food giant had to throw out its U.S. business model.

Reprint: R1111K

Global companies face a crucial question when they enter emerging markets: How far should they go to localize their offerings? Typically they try to sell core products or services pretty much as they’ve been sold in Europe or the United States, with headquarters calling all the shots—and usually with disappointing results.

The authors, both of Harvard Business School, examined why KFC China has been able to find fertile ground in a market that is notoriously challenging for Western fast-food chains. KFC’s executives believed that the dominant logic behind the chain’s growth in the U.S.—a limited menu, small stores, and an emphasis on takeout—wouldn’t produce the kind of success they were looking for in China. KFC China offers important lessons for global executives seeking guidance in determining how much of their existing business model to keep in emerging markets—and how much to throw away.

Global companies face a critical question when they enter emerging markets: How far should they go to localize their offerings? Should they adapt existing products just enough to appeal to consumers in those markets? Or should they rethink the business model from the ground up?

David Bell is a Harvard Business School professor and chairs its marketing unit.
MS Mary L. Shelman is the director of the Agribusiness Program at Harvard Business School.

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Analysing the Marketing Mix of KFC with Detailed 4Ps and Company Overview

By Aditya Shastri

Previously, we had seen the SWOT Analysis of KFC . Today in this blog let us gain insights about the marketing mix of KFC.

Who doesn’t like spicy, tasty, and crispy fries and world-class juicy chicken? I guess we all do, and so I’m sure that we all have heard the name of the famous food joint, KFC.

KFC’s full form is Kentucky Fried Chicken and it’s an American fast-food giant with its headquarters in Louisville, Kentucky. It was founded in 1952 and has been operating in several countries and is the second-largest food chain after McDonald’s.

In this blog, we will be covering the 4Ps of the Marketing Mix of KFC, that is the product, price, place and promotion strategy, to understand the concept of marketing in a wider manner to be possible. Let’s start by knowing about KFC company.

KFC is considered to be a food joint that was first found in America and then slowly captured all the markets of the world. It became the second-largest food joint in the world after McDonald’s and has more than 25000 restaurants in about 147 countries in the world.

KFC was first opened in Bangalore in 1995 and from there the numbers increased to 300 outlets. Being the first foreign fast-food restaurant chain to enter the Indian market after the introduction of the liberalization policy, KFC was not supported in many parts of India because of the belief in the old customs, traditions, and food habits. But slowly, with time, most of the Indian market grew fond of their famous sandwiches and their special chicken nuggets. Today in India there are more than 200 outlets of KFC and alas, they keep on growing.

What’s new with KFC

Check out some current news about KFC:

KFC India’s latest campaign for the limited edition Double Down Burger has one clear message for chicken lovers – ‘Issey samjho mat, bas khao’ .
KFC Malaysia Initiates 50th Year Celebration With The Unveiling Of An Immersive ‘Kentucky Town’ Experience.
FC Youth Foundation is launching Big Boro Big Eats, a food aid and education programme for young people that will run for seven consecutive weeks from the 24 th of July to 8 th of September
KFC announced today that it has named Paul Tuscano Chief Digital Officer of KFC U.S.
KFC has launched KFCShop.com, a new merchandise store for all of your finger-lickin’ good fashion needs, in honour of National Fried Chicken Day.

Target Audience of KFC

Both vegetarian and non-vegetarian customer segments are part of KFC’s target market. Young adults and children alike find its items to be appealing. Young and active professionals are included. They cover highly populated cities.

Check out this buyer persona of KFC to understand the target customer:

Buyer’s Persona

Profession:

Quick, convenient meals.
Affordable, tasty fast food.
Occasional indulgence.
Student budget-friendly choices.
Trying new food trends.

Interest & Hobbies

Music, instrument (possibly).
Creative arts (painting, writing).
Hanging out with friends.
College events, extracurriculars.
Occasional outdoor activities.

Pain Points

Study-life balance.
Limited dining budget.
Balanced diet concern.
Dietary preferences.

Social Media Presence

Now that we have got insights about KFC. Let us understand the marketing mix of KFC.

Marketing Mix of KFC

Marketing mix means a set of techniques and tactics a company uses to get in touch with its target audience and promote itself. This marketing mix of KFC includes the 4Ps i.e. product, promotion, pricing, and place strategies.

Thus, we can say that a marketing mix is a tool that helps us to understand a company and its reach much better. Let’s get a better understanding of the marketing mix of KFC.

1. Product Strategy of KFC

Product strategy of KFC - Marketing Mix of KFC | IIDE

A product strategy is a brief outline of the list of the products a firm needs to sell and deliver to its customers.

KFC is famous for its world-class chicken, fries and sandwiches, but the list doesn’t end here. KFC keeps on introducing new items to their menu and that fulfils the deed of keeping the customers always on their toes. The fact that KFC keeps on introducing new items in their menu, helps it to build a strong product strategy and hence supports the marketing.

Some of the well-known and asked-for products of KFC are:

Chicken and Veg Zinger Burgers
Fiery chicken wings
Boneless chicken wings
Veg longers
French fries

2. Promotion Strategy of KFC

Promotion strategy of KFC - Marketing Mix of KFC | IIDE

Promotion strategy is concerned with the ways by which the products of a firm can be promoted in the market.

KFC being one of the biggest food giants promotes itself vigorously. The promotion mainly takes place through television ads, newspapers, magazines and commercial hoardings. KFC has sponsored the Big Bash League(BBL) of Australia and also many cricket games.

KFC’s latest ad campaign stars Allu Arjun, a popular actor, alongside the iconic Colonel Sanders. The ad focuses on the challenge of finding the perfect level of spiciness in food, which Allu can relate to. He tries KFC’s new Peri Peri Chicken and is delighted with its crispy, crunchy, and spicy taste, as seen in the ad. The campaign has already generated excitement among fans of both Allu and KFC.

KFC goes by the slogan ‘Its Finger-Lickin’ Good’ to remind its audience about its lip-smacking food products and delicacies.

3. Price Strategy of KFC

Price strategy of KFC - Marketing Mix of KFC | IIDE

Pricing strategy is the strategy used by firms to set the prices of their goods so that they can capture the attention of the market effectively and efficiently.

KFC uses a discriminating pricing policy with all its products. The products are of different pricing and ratings. The products sold in India are affordable and are highly bought by the Indian audience.

This Is now in front of its audience.

Though KFC indulges in promoting itself through mass media, television and newspapers, it is still short on sponsoring big events and products sold in different countries that have different pricing. KFC used the price skimming technique and the market penetration technique of marketing, This means that when the competitors entered the market, KFC lowered its prices to a huge extent and while introducing new products, KFC kept its prices bare minimum compared to the later stages to grab attention respectively.

4. Place Strategy of KFC

Place strategy of KFC - Marketing Mix of KFC | IIDE

This strategy is concerned with tracking down the places where the firm can find potential buyers for its products.

KFC’s marketing team is highly conventional in chalking out the grounds of their restaurants all over the country. Their audience-winning tactics are the result of KFC being such a big giant today. It has 25,000+ outlets in 147 different countries and KFC and its outlets.

All the outlets KFC have been strategically opened in areas where schools, colleges, offices or any other educational institution lie. This is because the youth is far more indulgent in these fast-food products than the country’s older population.

Online supply

In this fast-developing world of technology, KFC has also adapted to the online booking system. This benefits all age groups and mostly the working class people as they don’t have to travel to their outlets to pick up their orders.

When you need food from home or any other place you can order online from the website /apps where KFC has tie-ups and you can avail yourself of offers from 10%-30% and free delivery on the first order too.

Digital marketing strategy of KFC

Digital marketing is the need of the hour. Check out some of the digital marketing strategies of KFC in the following section:

SEO Strategy

As per SEO ranking, it is said that the number of keywords – below 500 is bad, above 1000 is good, and 10,000+ is amazing. As we can see, https://online.kfc.co.in/ has a total of 52,741 organic keywords, which is regarded as excellent. Hence we can say that the digital marketing strategy of KFC is remarkable.

With a monthly traffic of around 1,152,174, KFC is undoubtedly amazing.

E-commerce Strategy

Regarding its online presence, KFC has a website where users may make purchases. Since the website’s inception, its revenues have dramatically increased. Additionally, it offers lightning-fast delivery on its own. Additionally, it might be found on applications that deliver food.

Content Marketing

Two strategies are used by KFC for content marketing. The first is to develop distinctive chicken meals and garner media interest. Second, produce engaging content for unpaid websites like YouTube. They aim for both of them. They offer succinct, informative content on their many social media channels to draw the audience’s attention. The fact that they dubbed the same video in many languages to increase views is admirable. They disseminate articles, films, and even pictures as their content.

Social Media Marketing

They use Twitter, Facebook, and Instagram to promote their business and offer the most latest updates. In order to engage the audience, they hold contests and award rewards to the winners. Additionally, they consistently post pictures and videos along with the most recent details on specials, along with short, snappy, and attention-grabbing captions that act as a hook to persuade visitors to place an order. They go on speaking to Genz . Their followers retweet or reply to their amusing and biting tweets.

Top Competitors of KFC

Here is a list of some competitors of KFC:

McDonald’s: Perhaps the strongest rival in the fast food restaurant chain industry is McDonald’s. It frequently holds the top spot in most categories related to this industry, such as monthly customers served and sales volume. Understand in-depth about the brand using its marketing mix .
Burger King: Since it first began operating in the fast food industry, Burger King has established itself as a major player. Its primary focus on serving burgers provided it a distinct advantage because it allowed it to specialise and provide the best quality.
Subway: Subway has been in the fast food industry for half a decade, which is a strong indication that it is a brand you should pay attention to. To reach as many clients as possible, it has continuously grown both locally and internationally. You can get more insights about the brand through its marketing mix .
Dunkin Donuts: It came out as one of the top fast-food restaurant chains with the greatest number of franchise locations worldwide. When it first started, its main goal was to provide clients with coffee and donuts. However, as the line grew and new goods were needed, the company opted to expand its primarily coffee-focused menu by adding soft drinks, hot and cold beverages, as well as a breakfast menu.
Pizza Hut: After realising that it could also fill the void that other service providers had not exploited, Pizza Hut rose to become one of the top players in the fast-service restaurant chain market. Since it first began doing business, it has been committed to providing the greatest service and effectively attending to the unique demands of its clientele.

The marketing strategy and marketing mix of KFC should be well planned and strategized to sustain the changing market trends and keep up with the competition.

This brings us to the end of the analysis of the Marketing mix of KFC. Let us sum up our understanding in the next section.

KFC as a chain of restaurants is very powerful and has penetrated almost all the markets of the world. It delivers quality products at very affordable prices and satisfies its audience with timely delivery of its delicacies.

In the above case study based on the 4Ps of the marketing mix of KFC, we can see that the ideology and the tactics used by KFC are planned and practiced. It is through these tactics that KFC has become what it wants to be held all around the world. The placement of the restaurants is a commendable idea and has worked its way best to win the audience from all over the world.

So in the above case study on the marketing mix of KFC, you saw how companies are marketing digitally, so if you want to learn a digital marketing course after reading this. IIDE offers you various courses .

We hope u have gained some knowledge about the marketing mix of KFC. If you like it please share it with your friends and comment your thoughts on the case study. Also if you wish to read more such case studies check out our IIDE Portal .

Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs...... [Read full bio]

I love how detailed yet simple the marketing mix of KFC was on this blog. Could a SWOT analysis of Ryanair be done next?

This detailed analysis on the marketing mix of KFC was a great help. It is very well written and presented.

Well-presented marketing mix of KFC. thanks

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Strategy Case Study: Analyzing the Success of KFC in China

Table of Contents

KFC Globalization Strategy

One of the secrets behind KFC’s global success is due to how it adapts its business to different countries and cultures while also standardizing other aspects of its operations at the same time. What this means is that the company standardizes some critical branding and operational aspects of the company, but carefully localizes various other aspects of its business model to adapt to local variables. This is known as a transnational strategy which we have covered in a separate guide .

Adopting such a hybrid strategy often allows companies to bank on advantages from both approaches simultaneously. Localization of strategies can be particularly important for large countries such as China which have a strong culture and local traditions. In fact, China is so large and diverse that there are significant differences in subcultures even within the country. Different regions of China have different local variables that may even be unique to them. We will explore in further detail how KFC has successfully cracked the code while competitors like McDonald’s have struggled.

Before delving into the specifics of how KFC won over China, we need to complete the first step in strategy analysis, which is to explore the internal and external factors that influence the success of a business. Most of the facts and figures presented in this case study are taken from the company’s Annual and Sustainability Reports for 2021.

Overview of KFC in China

How did KFC enter China?

KFC entered China in 1987 through a joint venture with two local partners. One of them was Beijing Tourist Bureau, which held 27% of ownership, and the other was Beijing Food Production, which held 13%. The remaining 60% remained under KFC. This was a time when governmental regulation on foreign ownership in China was still quite strict. Hence, the company had no other option but to partner with these local entities. However, this partnership came with the added benefit of allowing the company access to the connections of these entities within the government which made KFC’s entry in China smooth and successful.

There were some changes made to foreign ownership regulations in the 1990’s which allowed the company to dissolve the joint venture structure. The fact that the company had established a good foothold in the market by then, with a strong distribution network, stores, fleet, and flow of operations, helped it set out further on its own.

What is KFC Called in China?

KFC is called ‘Kendeji’ in China and as one may infer, it is an approximate transliteration using a close pronunciation of ‘Kentucky’. The official name of the company is written as 肯德基 in Chinese (Kěn Dé Ji in Pinyin). This isn’t a literal translation since it is more common for foreign companies in China to adopt the closest phonetical words corresponding to the original foreign name of the company. The actual meaning of the Chinese characters in KFC China’s official is as follows.


肯	To agree or consent (to something)
德	Virtue, morality or ethics
基	Foundation, or basics (of something)

The choice of Chinese characters by foreign brands is often an effective signal of the company’s values and intended positioning strategy. What we can infer from the meanings of each individual character and their combines meaning is that KFC China aims to invoke a perception of trust and dependability in the minds of local Chinese customers. This is a particularly interesting choice, especially in the light of frequent food safety scandals in the food retailing industry of China, which we shall cover in subsequent sections.

KFC also has an unofficial nickname in China. Some people refer to it as ‘Kai Feng Cai’. This is a play on words as this name is taken from it’s initials, while also represents a popular dish in local cuisine. This another testament to the local association of KFC in China. The company has embraced this nickname in recent times by giving this name to its line of ready-to-cook meals.

Key Facts and Statistics About KFC China

Detailed analysis of various aspects of the company’s strategy, business model and performance in China shall follow in the subsequent sections. However, here’s a quick recap of some interesting facts and statistics about the company’s operations in China.

KFC’s revenue in China was just over USD$7 billion in 2021
The company operates 8,500 stores in the country
It opens around 3 new stores per day on average
Around 15% of the company’s stores in China are operated by franchisees
There are 8,500 KFC stores in China, as of 2022
KFC China sources the materials needed for its operations from 800 suppliers, as of 2022
Delivery orders typically account for about 20% of total sales
However, this increased to around 30% as a result of Covid-19

Growth of KFC in China

To say that KFC is ‘popular’ in China would be an understatement. The company has been far ahead of other international fast food retail chains in China since the 1990’s and continues to consolidate its position further. It must be recognized that right from the time of its entry in this market, KFC China successfully positioned its brand as being in tune with Chinese culture. In comparison, the localization efforts of McDonalds’s came a few years after its entry. This was a case of ‘too little, too late’ for McDonald’s as KFC made good use of its 3-year head-start to consolidate its position.

The success of KFC in China is exemplified by the fact that the company opens an astounding average of 3 new stores per day here! What makes this stat even more astonishing is the fact that these numbers are post-Covid!

The exponential growth achieved by the company can be better understood by looking at the number of stores under its banner in China. This is illustrated in the graph below. The company started gradually by establishing only 11 stores in its first 5 years of operations in this market. This was then scaled up to 100 stores within a decade. The next few years saw hundreds of stores being added every single year to reach almost 2,500 stores within a 20-year span.

As shown in the graph, the growth took a small hit during the few years following global financial crisis of 2008. However, it bounced back even stronger and hit a period of its highest growth during the next decade. As of the time of this case study in 2022, the KFC operates 8,500 stores in China. In comparison, McDonald’s only has about 4,000 outlets in China, which is barely half the number of outlets as KFC.

KFC China’s operations and profitability took a fairly big hit starting from the first quarter of 2020 due to the Covid-19 pandemic. This led to temporary store closures in many places and even permanent closures in some. During the peak of the pandemic in 2020, KFC had to close nearly 35% of its stores. However, the company has bounced back from this setback and looks to be back on track with its strategic vision of continuing to expand its presence in China by opening even more stores in 2022 and beyond.

Geographic Spread of KFC in China

When evaluating the growth of KFC in China, a key factor that needs to be taken into consideration is geography. Being a very large country, there is a high level of diversity in demographic variables for different regions of the country. The different cities in the countries are often separated by economists into four tiers based on economic growth, gross domestic product and geographic reach.

The Tier 3 and 4 cities often have a lower economic output, which also means that cost of labor would be less. It is also common to see lower populations and different social classes and levels of employment in these cities when compared to Tier 1 and 2 cities. While other foreign brands like McDonald’s have hesitated and stayed away from establishing outlets in lower tier cities due to lower perceived profitability, KFC has ventured and expanded much further in these areas as well. This distinction is also important to consider in the context of KFC’s success in China. More detailed discussion on this shall follow in subsequent sections.

Who Owns KFC China?

KFC China shares the same brand colors and imagery that all branches under the global fast-food restaurant chain of KFC have. However, it operates independently without direct influence or intervention from the branches in other countries. Unlike in other countries, KFC China’s ownership comes under Yum China which indirectly owns the subsidiaries operating the KFC brand in China.

This parent company is incorporated in the state of Delaware in the US. In other words, KFC’s operations in China are subject to the income tax regulations of both the US and China. The company effectively pays an income tax rate of 25% to Chinese authorities, plus an extra 10% withholding tax on the earnings which it repatriates out of the country (to its parent company). In contrast, companies which operate mainly in the US are subject to a flat corporate income tax rate of 21%.

However, not all stores in China are owned and operated directly by Yum China. Approximately 15% of the company’s stores in China are operated through franchising agreements with channel partners. KFC makes money from its franchisees by receiving both upfront franchise fees as well as on-going royalties such as a percentage of their sales.

KFC China Food Safety Issues and Scandals

KFC China has had its fair share of food safety issues and scandals over the years. In 2012, the company lost a lot of sales revenues due to a scandal related to claims that it was using antiviral drugs and growth hormones in its chickens. As this was in violation of food safety laws, the government launched a detailed investigation covering the use of antibiotics in food items.

The company had to fight an uphill battle to restore both consumer and government trust in its brand. KFC China also faced some controversy over food safety standards in 2015 when one of its suppliers was shut down due to claims of supplying expired meat. These kinds of issues increase consumer resistance towards the company, especially seeing as it is a foreign brand, a fact which invites additional scrutiny and concerns over trust in China.

SWOT Analysis for KFC in China

Based on our KFC China SWOT analysis, we have identified some key points that play a significant role in the company’s continued success in China.

Due to its adoption of the transnational strategy, the company benefits from using a well-established and recognizable global brand, while also reaping the rewards of adapting various elements of its business to suit local consumption patterns.

Another strength gained by the company solely due to this strategy is the fact that it does not need to look to management of the parent company in the US for decision-making. This allows the company to make quicker adjustments to capitalize on local trends.

The company has a key strength in procurement thanks to its strong presence in the country. Having so many stores in the country gives the company significant buyer power which often provides it the upper hand in negotiations with suppliers. The company has benefited even further in this regard through the central procurement model of its owner Yum China which also had other major restaurant chains such as Pizza Hut and Taco Bell under its banner.

The type of product which the company specializes in also gives it an edge over competitors like McDonald’s or Burger King. Fried chicken is a more generic and relatable product for Chinese customers as compared to hamburgers, which are obviously more alien to Chinese traditional cuisine.

Apart from price negotiation through high volume of purchases, the consolidation of the procurement function also gives the company an easier way to manage its extensive supplier network with better quality control and standardization measures.

The company has also managed to secure strategic locations for its stores which give it access to a greater level of footfall and customer traffic. This strength can also be traced back to the company’s first-mover advantage of being one of the first foreign food retail brands in the country. The company’s early entry to the market allowed it to lock-in prime locations before they competition became too high.

KFC no longer has the novelty factor which it used to have during its initial introduction to the country. Additionally, its excessive focus on localization of menu choices makes it more difficult for the company to stand out amongst a sea of local, home-grown restaurants.

The huge network of stores which the company has in China can be as much of a liability as it is a strength since it needs to invest more time and resources into managing this network. This is especially necessary when overseeing the operations of franchised stores and ensuring that they match the standard brand values of the company.

Opportunities

The changes to the ownership regulations in China in the 1990s was one of the first opportunities that the company immediately capitalized on. While the company had entered the market in a joint venture with local partners, it used this chance to dissolve the joint venture and consolidate ownership. This helped the company with faster and more efficient decision-making.

Another opportunity for the company in this market the relatively lower competition in lower tier cities since other foreign brands were predominantly focused on urban areas. The companies to make effective use of this opportunity to date as evidenced by the exponential increase in the number of stores year after year.

The size of the country and it’s population, combined with the fact that it is a growing economy with increasing disposable wages and less market saturation all provide a good climate for large companies to invest and grow rapidly. KFC has benefited greatly from these trends as part of its market penetration strategy, and the continued increase in its number of stores in the country is further proof of this.

The large size of the population and diversity in cuisines and tastes between different region also provide an obvious opportunity for market expansion through product diversification. KFC China also makes very effective use of this opportunity, as we shall cover in subsequent sections.

Food scandals and claims of contamination, adulteration or even diseases being spread through the operations of food retailers is a fairly common occurrence in China. This poses a major threat which can damage the trust in the brand. An isolated incident in a local area can have a significant negative impact on how the company is perceived across the country. In fact, KFC has already faced issues with foodborne diseases such as E. coli, Hepatitis A and Salmonella in its supply network. Another scandal took place in July 2014. The Chinese authorities closed restaurants in Shanghai following rumors of using expired meat. The brand broke the contract with their current supplier and tried to fix their good reputation.

The spread of diseases such as the Covid-19 pandemic in recent times or the African Swine Flu prior to that all have larger impacts in the food retail industry than in other sectors. The impact may not just be a disruption to operations; it might affect the profit margins directly. An example of this is how the price of protein and poultry went up drastically in China in 2019 due to the spread of the African Swine Flu.

It is important for the company to keep a tight control of its supply chain quality and effectiveness to protect itself against scandals and bad publicity. Negative incidents in the supply chain are especially harmful in the food retailing industry due to the direct impact that it has on health and safety of the consumers. KFC China has had some bad experiences in this regard, such as the failure of some of its upstream poultry suppliers to comply with the company’s established standards.

During the pandemic, many provinces had put tough measures in place to discourage travel. This was especially enforced during period of holidays, such as the Chinese New Year holiday in 2022. This was a tough pill for the company to swallow since holiday season is often the most profitable time of the year for the company. This was set against the backdrop of the fact the company had already suffered significantly due to operational restrictions caused by the pandemic.

The fact that the company leases nearly 8,500 properties in China opens the door to a lot of uncertainty. This includes various factors such as swings in the real-estate market and disputes over property ownership and inheritance which could disrupt store operations. Additionally, the company faces a huge risk since the Chinese government has the authority to obtain ownership and control of any land plots and the buildings which it considers to be in the interest of the public. There is usually no legal provision which the tenant can use to even claim compensation.

Another operational risk faced by the company arises from the fact that it deals with a large amount of cash as a part of its day-to-day operations. This opens the company to instances of fraud, theft and other forms of misconduct which are often difficult to detect and prevent.

PESTLE Analysis of KFC in China

Here’s our summary of the key points of external environment of KFC in China, using the PESTLE analysis tool. Detailed discussion of these points can be seen in the relevant subsections below.

The internal political environment of China is quite stable in terms of the party in power making the legislations. However, the government in known for making new sweeping changes on short notice. Often, the interpretation and application of new regulations is not clearly set out and there could be differences in enactment at local government levels. This element of uncertainty has a strong impact on KFC’s revenue in China. As we’ve mentioned before has spread out and expanded to the various tier levels in China which means that the company also has to deal with different local jurisdictions and administrative departments as well. Exposure to this level of uncertainty poses some difficulty to the vision of standardization which companies like KFC aim to achieve for better efficiency in operations.

On an international level, the situation becomes more difficult as the country often has soft escalations with both neighboring countries and those in the West, especially the US. For instance, the political tensions between China and US in 2020 led to various new policies being enacted by the Trump administration which affected businesses operating in China. Some specific examples include the Clean Network program which was launched with an aim of protecting U.S. telecommunication and technology infrastructure and the banning of transactions through certain software and applications which were associated with China. The list of banned applications included popular payment gateways such as Alipay, QQ Wallet and WeChat Pay. This was detrimental to operations of companies offering these payment options, including KFC for which sees a significant portion of digital orders and digital payments. In 2021, digital orders accounted for around 86% of total sales, and digital payments and mobile payments contributed to about 98% of total sales.

Despite all its efforts to come across as a brand which is well in-tune with local customs and traditions, there is no escaping the fact that the company is a well-recognized global brand originating in the West, and US specifically. This has created problems for the company in the past, such regional protests and boycotts from some segment of customers in China in the aftermath of political disputes regarding the claims of territories in the South China Sea.

Historically, the culture and traditions of Chinese consumers has encouraged them to pursue to long-term savings and makes them sensitive to price. Often, this mindset also leads them to seek out the best deals and promotions. More recently though, Chinese consumers are starting to show higher levels of individualism in their buying choices and are less price-sensitive compared to before. However, they are still more price conscious when compared to their counterparts in Western countries.

The tier system discussed in previous sections also points to an economic disparity across the country. Different regions are characterized by different levels of income and standard of living. Such differences in socio-economic backgrounds of consumers have implications on the type of products and price points that appeal to them. At the same time, it also represents differences for KFC in terms of the labor market which they can draw talent from.

Chinese consumers are found to be more willing to pay a higher price point for products that are perceived to be novel and foreign. This may have been the factor which guided the strategy of McDonald’s and other similar foreign brands to not localize their business as much as KFC did. The mistake in calculation of these other companies, and where KFC has done well, is that the novelty factor wears off soon unless products are being constantly innovated. In fact, the company is so good at keeping this novelty factor that it has invested resources in remodeling its stores regularly. In 2022, the company reported that nearly 78% of its outlets in China were remodeled or built in just the previous five years.

In terms of demographics, it is safe to conclude that the younger generation of customers often find fast-food brands such as KFC more appealing than older age groups. KFC has done well to make itself especially appealing to different target segments such as youth, rising middle class, teenagers, and college students. It has achieved this by choosing its marketing and advertising strategy carefully. Often, the company’s commercials show KFC products being shared in social settings and depicting KFC Stores as places where people can gather socially. The impact of this positioning strategy is noticeable in the fact that many Chinese eat KFC for Christmas as a social tradition, although perhaps not to the extent that this practice is common in Japan.

In recent times, the age structure of consumers in China has changed significantly. The one-child policy has led to a significant decrease in the fertility rate of the country. This has led to an increase in proportion of the older population segment. When combining this factor with the previous identified one about stronger preference for KFC from younger customers, the implication is obvious.

KFC can expect to see a proportion decline in its revenue as the average age of customers in the country increases further. However, against this background, the company has also done well to diversify its customer base through increased menu options and this another factor we shall touch upon in subsequent sections of this case study.

Technological

Technology has become increasingly accessible in recent times, and this is no different for the Chinese market. Many consumers in China are starting to show a preference for enhanced shopping experiences through greater digital interaction. The broader access to technology and the increasing trend of online shopping also contributed to this. This factor is noticeable through the fact that nearly 86% of the company’s total sales in China in 2021 were through digital orders. KFC China also relies on digital R&D centers to support its technological capabilities and capture customer value better. Three new R&D centers were established in 2021 alone.

The digital presence of KFC China is strong enough that it can run a massive loyalty program with 330 million members (this user base is shared with other brands under the Owner Yum China). This allows the company to reap the rewards in the form of higher order frequency and customer loyalty.

KFC China Mobile App and Digital Payments

KFC China also uses a sophisticated artificial intelligence algorithm called the “Super Brain,” which combines and integrates data gathered through everyday store operations. This data is analyzed to improve the decision-making capability of the restaurant managers. The company has even experimented with proprietary smart watches and smart glasses to closely monitor the real-time operations and process flows. This is supposedly for the purpose of making suitable adjustments to staff schedules and improve management efficiency.

On the flip side, such an approach does pose various questions in terms of data privacy and excessive monitoring of personnel. One might expect similar resistance to the use of facial recognition data by business to provide new services. China is one of the early adopters of the application of facial recognition technology for mobile payments and it has since become commonplace. While acceptance of this technology was rapid in the early stages, consumer resistance has been growing in recent years . Such kinds of reactions by customers affects how well KFC China can undertake digital transformation efforts in the country.

In China, there are several food-safety laws which lay down detailed guidelines and rules for food safety assessment, standards, production, inspection, and distribution. In the wake of several scandals in the supply chains of different players in the food industry, violations of established regulations often draw financial, administrative, or even criminal penalties. KFC has been on the receiving end of such sanctions on multiple occasions. However, it is a testament to the popularity of KFC in China that such scandals have failed to make a significant negative dent on the company’s presence in the country.

While we touched upon increasing adoption and advancements in terms of technology in the previous section, this is accompanied in parallel by an increase in regulatory measures in the areas of information security and protection. The laws and requirements covering data privacy and cybersecurity have been tightened in recent times.

It is also worth noting that the laws in China do not always offer the same type or extent of protection which is expected and even taken for granted in the US. This is particularly true in the field of intellectual property rights. Apart from vagueness in the coverage of these rights, there is also a noticeable inconsistency in the enforcement of these laws at different levels of government and across different regions of the country. In fact, there many restaurants in the country which use imagery imitating established brands such as KFC and McDonald’s, seemingly without legal repercussions.

Environmental

A key environmental factor of importance in China is the increasing awareness about the negative impact of non-sustainable and single-use packaging. Going back to the point of long-term orientation, which is emphasized in traditional Chinese culture, generation of unwanted wastes is highly discouraged. KFC China has tried to overcome this by gradually replacing some of its plastic packaging with paper-based and biodegradable alternatives.

The company claims that it reduced nearly 9,300 tons of plastic waste and 4,320 tons of paper waste in 2021. However, this is a measure that nearly every other competitor has also announced as taking, so it does not distinguish the company from others. There is definite room for innovation in this regard which can further cement the company’s popularity in the country.

There is also an increasing awareness of and demand for better nutrition and healthier product choices from consumers in China. To cater to this trend, KFC China opened some specialty stores promising to deliver on a healthy concept model. This was done under the ‘K Pro’ brand, which was launched in 2017. In place of items which used fried chicken, healthier alternatives such as salads, paninis, and juices.

Porter’s Five Forces Industry Analysis of KFC in China

We have analyzed the food retailing industry in China based on Porter’s five forces model and summarized it in the figure below. Please read the detailed discussion of each of the factors to better understand the logic behind our assessment.

Industry Rivalry (High)

The main foreign brands which represent a higher level of industry rivalry for KFC China are McDonald’s, Burger King and Domino’s Pizza. Pizza Hut and Taco Bell are other foreign brand competitors, but they do come under the same parent company as KFC China (Yum China).

Some local Chinese fast-food competitors include chains such as Daniang Dumpling, Kungfu, Zhen Kong Fu and Malan Ramen. These have seen an increase in popularity in recent years. However, a factor that works against these local chains is that they do not often gave the benefit of standardized cooking methods and ingredients that KFC China does due to the incredible efficiency of its operations. There are also Asian brands like Home Original Chicken, Hua Lai Shi and Dicos which offer American-style dishes such as burgers and chicken nuggets, often at cheaper prices.

Apart from strong competition from these large foreign and local chains, the rivalry in the industry is further intensified by the convergence in grocery, convenience, deli, and restaurant services. As such, industry rivalry in fast food retailing in China is considered to be high.

Bargaining Power of Buyers (Very High)

With fast food restaurants, the obvious factor which gives more power to the buyers is the lack of any effective switching costs. In recent times, companies have tried to increase their bargaining power by offering membership and loyalty programs. In fact, KFC China’s loyalty program is quite large with nearly 330 million members, as we have covered previously. There is also a significant overlap between the menus and specific food items between the different options in the market. This also results in better bargaining power for the buyers. As such, we consider the bargaining power of buyers in fast food retail in China to be quite high.

Bargaining Power of Suppliers (Low)

The SWOT analysis of KFC in China in the earlier section established the fact that company enjoys a stronger hand in price negotiations with its suppliers due to its high-volume purchases and centralized procurement model. While the growth of the company’s scale of operations and number of stores is accompanied by a similar increase in the number of local suppliers, the proportion for the two increases has not been the same.

While the number of stores nearly tripled in the decade between 2010 to 2020, the increase in the number of suppliers was less than double (from around 500 in 2010 to about 750 in 2020). This comparatively lower increase in the number of suppliers can be taken to imply a much stronger position for the company during negotiations with suppliers. As such, the bargaining power of suppliers is evaluated as being low.

Threat of Substitutes (High)

As identified in the PESTLE analysis of KFC China in the earlier section, there is a growing trend of health-consciousness among consumers in China. This drives up the demand for substitutes which are healthier food choices for the customers. KFC seems to be fighting this threat by offering healthy seasonal vegetables in its menu. It’s K Pro is also an attempt to directly tackle this threat.

While the ‘fast-food’ concept does stay true to its name and offer a quick turnaround between making an order and getting the food, there is an even faster substitute that fast-food companies need to be weary of. In China, many convenience stores and even groceries have a section of food products which were pre-packaged earlier in the day or just the previous day. This represents a good substitute option for the working population seeking to get a quick lunch while avoiding the queues at restaurants. KFC China’s launch of KaiFengCai series of ready-to-cook meals can be seen as a way for the company to expand further into what were previously substitutes. Overall, the threat of substitutes is considered to be moderate to high.

Threat of New Entrants (Low)

The cost of entering this market in China is fairly high with significant investments being required to establish the necessary infrastructure, stores, distribution network, food safety certifications etc. This makes it difficult for new entrants to come and challenge the major established market players. Having said that, the threat of new entrants for food retailers in China mainly comes from new forms of product distribution and delivery.

In recent times, China has seen an increase in the number of food delivery aggregators, and new forms of food retail and delivery services such as ghost kitchens, cloud kitchens and shared kitchens. These new entrants often hold a high novelty factor and try to offer a wider range of cuisines and novelty dishes which can pull customers away, especially in urban areas. As we have covered in previous sections though, the novelty factor is one that often wears away quickly, and this has been observed in the food retail sector in China in the past. Hence, the threat of new entrants is considered to be somewhere between low to medium.

KFC China Localization Strategy

General overview of kfc china vs us.

The most important feature of KFC’s localization strategy in China is its significant commitment to embracing the local culture through targeted adaptation efforts. This is most noticeable in terms of the menu options offered in its outlets in China as compared to the US.

It works in the company’s favor that Chinese customers perceive the company as being better than the average fast-food store. It is not considered a ‘cheap’ dining option, which is often the association that most fast-food chains including KFC have in other markets. Instead, the customers place it somewhere in between casual dining and fine dining. This is entirely down to the company’s transnational strategy of combining its globally recognizable branding with localization at nearly point possible.

Another difference between the two countries is in the style of cooking. In China, boiling is the more preferred technique of cooking rather than deep frying. There are also differences in Chinese table manners compared to the US, ranging from obvious aspects such as the usage of chopsticks to more obscure differences such as the general approach to consumption of food. Chinese consumers frequently gather to sit together and eat in comparatively larger groups than in America. KFC China offers a greater variety of choices in its menu as compared to KFC in America and this is better suited to the local trend of eating food in larger groups because these customers like to order and share several dishes with each other.

Whereas consumers in the US may hesitate in consenting to the use of facial recognition technology, Consumers in China area already used to this, as identified in our PESTLE analysis. Despite some resistance to the use of such technology emerging in recent times, this application of technology does not appear to be going out of trend in China in the near future. This is another difference in the digital presence and user interaction aspects of KFC in China vs America.

Another distinction is that the company focuses mainly on chicken-based products in North American markets. In China (and several other markets) the company also offers beef and pork products. However, it is worth nothing that the company’s focus on chicken gives it another edge over McDonald’s because Chinese consumers show a greater preference for chicken compared to beef (which McDonald’s has a greater focus on).

Localization of Menu Options

As we touched upon several times in earlier parts of this case study, localization of the menu and available items to suit local tastes and preferences is the cornerstone of KFC’s strategy in China. The staple food items consumed by a lot of people in China are rice, porridge, and noodles. In comparison, consumers in the US and other Western cultures show a greater preference of bread and wheat-based items as their main source of nutrition. KFC China has paid attention to this factor and various other local tastes and preferences and carefully adapted a localized menu which must be recognized as a critical success factor for the company. Here are some localized items which are available in KFC China but in the US and most other markets.

Matcha Ice Cream
Soy Sauce Chicken
Sandwiches With Prawns
Soymilk Drinks
Chicken Tendon Skewers
Fried Dough Savories
Rice-Based Meals
Fried Dough Sticks
Egg & Vegetable Soup
Chilli Beef Pancake
Dragon Twister
Grass Jelly Milk Tea
Shrimp Burgers
Egg Custard Tarts
Fish Ball Soup
Soup Dumplings (Xiao Long Bao)
Fried Donut Stick (Youtiao)
Beef Noodles
Seasonal Vegetables
Bamboo Shoots
Lotus Roots
Tree Fungus Salad
Pickled Chinese Cabbage
Smelly Tofu
Skewered Meat
Preserved Eggs (Cantonese-style Pidan)

However, the company has not abandoned its conventional Western-style products altogether. It does offer them in parallel since the perception of a certain level of foreignness is what allows the company to charge a higher price point than local competitors. This is also part of the hybrid transnational strategy that we explained at the beginning of this case study.

KFC China even localizes products for different regions and provinces within the country based on local tastes. For instance, its products in Shanghai are less spicy compared to its menu in Sichuan and Hunan to better suit local preferences in each of these regions. Similarly, the company also added Wong Lo Kat herbal tea to its menu only in the Guangdong provide as this is one of the oldest brands of herbal tea which is widely popular in this region.

The company’s commitment to localization of its menu items runs so deep that the company has even established its own seasoning facilities. To ensure the authenticity of its flavors, the company also makes use of traditional Chinese spices including aniseed, Chinese cinnamon and sesame oil.

The company has also set up a massive 27,000 square-foot ‘innovation center’ in Shanghai which focuses on coming up with new recipes, cooking methods and menu items. The company has also set up a food advisory committee to lobby for support in its favor. KFC China also began selling a range of products branded as ‘local street food’ in 2019. This included options like chuan, boiled skewers.

Apart from introducing local menu items, the company also fuses some dishes together to introduce more innovative and partly localized products. One of its new additions is prepared similar to the traditional dish known as Peking Duck with chicken being substituted instead. This dish also makes use of sweet sauce that is made using fermented flour as this is the condiment used in Peking Duck.

It is worth noting that KFC China has made a conscious decision to not completely localize its menu options and give up its foreign brand status completely. Instead, the parent company of KFC China spun off a completely new brand known as Dongfang Jibai (which means East Dawning) based on the business model of KFC to exclusively serve Chinese Food.

Localization Aspects in the Supply Chain

As we had covered in our earlier KFC China SWOT analysis, a key strength of the company is its central procurement system through which group sales are centralized. This provides several benefits such as better management and control of the supply chain, while also putting the company in a better position to protect against food safety issues and scandals which were a key threat identified for this market.

For the most part, KFC China sources its chicken and other necessary materials locally. Its network of nearly 800 local independent suppliers account for almost 90% of the requirements of the company. Due to the large scale of the company’s operations, it has a dedicated team of almost 1,400 employees who are focused solely on supply chain management activities. However, their roles within the supply chain system range from safety, quality assurance, and procurement management to delivery, logistics, and even engineering.

The company has also invested heavily in integrating its logistics in China, which is evidenced by ongoing acquisition of properties to establish new logistics centers, with 3 new hubs being set up just in 2021. The company also relies on its network of 32 logistics centers which it operates in close coordination with independent distributors to move material and products around the country.

The company has also put in place agreements with local delivery aggregators to have their products listed on and ordered through their respective platforms. This further expands the sales network and reach of the company.

Localization of Store Design

The company also localizes its store design and undertakes frequent remodeling to ensure that it is staying in tune with customer expectations and local trends or preferences. As we mentioned earlier, almost 78% of KFC China stores have been remodeled or built between 2017-2022. Other examples of the company’s localization in terms of store design include themed restaurants which focus on certain specific aspects of Chinese culture.

As part of localization of store designs, KFC China set up some themed restaurants in partnership with the National Museum of China and the Palace Museum. This collaboration granted KFC the rights for usage of imagery and interactive displays of historical and traditional Chinese culture and artefacts in selected stores. Another example is a restaurant in Chengdu which has a distinct theme which recognizes the contributions of the poet Du Fu who was a native of this city.

Apart from localization of aesthetic elements in its stores, some other store design choices of the company also seemed to be well-suited to this market. For instance, we identified in the PESTLE analysis that Chinese consumers are increasingly technology-savvy and are also becoming more conscious of environmental impacts. The company’s decision to trial some pilot projects in which photovoltaic panels were installed in its stores to generate solar energy also capitalizes on these trends.

Some other distinct store decorations used by the company include placement of Cantonese-style redwood palace lanterns in its stores. The company also updates the theme and design of its stores with special decorations for certain occasions, such as the Chinese New Year and other traditional festivals.

KFC China Palace Lanterns Store Decoration

Having covered localization of store design, it is also worth pointing that KFC brought over something from other markets, which was new to China. This was the inclusion of toilets in its facilities, which were also air conditioned. During the early years of the company’s operation in the country, such kinds of amenities were not common in public spaces and definitely not within local restaurants. This helped the company cultivate an image of luxury during its early days, although it has repositioned as a value-for-money option in recent times.

Variation in Pricing

As we identified earlier, Chinese consumers are typically more willing to pay a higher price for the products which they perceive as novel and foreign. This has allowed the company to charge a higher price in China as compared to other markets.

Overcoming Consumer Resistance

It was identified in our PESTLE analysis of KFC China that Chinese consumers are more sensitive to price. Compared to the US where KFC and other fast-food chains are already considered good ‘value-for-money’ options, KFC China charges a higher price point, as we have also mentioned earlier in this case study. Comparing these two points, it can be inferred that KFC China faced a greater value barrier of convincing consumers in China that its products still represent better ‘value-for-money’ for them when compared to other foreign and local brands.

Overcoming consumer resistance often requires educating consumers. In this regard, KFC is often quick to act on issues related to food safety standards and denounce outlandish claims such as the rumor that it was using ‘mutated’ chickens. In the wake of an earlier scandal, the company even put out a message on the paper placemats in its stores highlighting the steps that it was taking to ensure food safety in its supply chain. This proactiveness has allowed the company to weather the storm and recover fairly quickly from temporary drops in market value when such scandals come up.

Another strategy which the company uses to overcome consumer resistance is to focus on community development as part of its corporate social responsibility efforts. It seems to be picking and choosing specific initiatives which paint is as a part of the local community, instead of being just another foreign brand.

The KFC SWOT analysis in an earlier section of this case study revealed that Chinese consumers are becoming more wary about the incursion of technology such as facial recognition. Since the company makes use of this technology at the moment in many of its stores (even claiming that due to ‘positive feedback’, they have expanded this option to 1,600 KFC restaurants across China in 2021), it would do well to pay heed to changing trends and make adjustments to its services accordingly.

Concluding Remarks

This case study of KFC China’s success shows how the company has adapted its overall strategic outlook with locally driven tactics to consolidate its position in the market.

KFC China’s localization strategy has been comprehensive, starting from tangible elements like products (in the form of a locally driven menu) and store design (such as its themed restaurants and frequent remodeling), and extending to intangible elements such as payment systems (through the support of various local payment providers and facial recognition for payments) and advertisements.

Another thing that stands out is that KFC China expanded rapidly, yet organically to ‘lower tier’ cities, whereas competitors like McDonald’s hesitated, perhaps due to the perception of lower economic value. The fact that KFC expanded to the lowest tier of cities often means that it is the first foreign brand that residents of those localities experience. This continues to provide first mover advantage to the company, even to this day.

The market share of KFC China has remained high over the years. It is clear that China loves KFC, and that the company’s unassailable lead will hold strong for many more years to come. Even various food scandals over the years have failed to put a dent in the reputation and population of KFC in China.

In conclusion, the company’s strategy in China is an exemplary case study on the benefits of transnational strategy and how to execute it well.

<Disclaimer: The company logos used in this case study are registered to KFC>

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Most quick-service restaurants treat their websites as purely transactional moments, assuming that consumers are already converted and ready to order. KFC was no different. They let third-party delivery services handle most online orders, while they prioritized in-person experiences to reinforce their brand.

But consumer expectations have been shifting rapidly. They demand more convenience and personalization than ever before, expecting brands to meet – and exceed – their needs online and on the go. With estimates that quick-service restaurants will be 54% digital by 2025, KFC needed an agency partner to help bring their southern hospitality into the digital age.

They tasked us with crafting an industry-leading customer experience, both in-person and online, that would embody the warm, irreverent personality of their brand while pushing them ahead of their quick-service competitors.

From innovative drive-thru experiences to a completely revamped website and mobile app, we aimed to help KFC sell more finger-licking chicken by fusing the charm of the Colonel with the speed that modern consumers crave. We used insights from consumer research to overhaul the brand’s entire digital approach.

This meant developing new strategies for their online menu architecture and photography, elevating their brand with copy in the Colonel’s unique voice, and delivering both creative and technological support for their new best-in-class experience. We also created a dynamic design system for a future-proof platform that could scale their brand consistently across all channels.

Website Experience

Through insight-driven personalization, we created an online and mobile experience that was not only more convenient, but also more fun. We added customization that allowed customers to reorder their go-to favorites again and again, along with a recommendation tool to inspire new cravings based on previous purchases and behaviors.

App Experience

We built KFC's mobile app from the ground up, creating more connectivity between online and in-person experiences. New features include progress bars, which help consumers track the status of their orders, and digital ticketing, which enables more seamless pick-up and drive thru.

Omnichannel

We leveraged the brand’s strong visual identity to build a scalable design system with KFC’s personality infused into every element, from the typography to the overall Americana feel. We also used the brand’s iconic red in tasteful moments that livened up the experience, like key CTAs, and dialed up the deliciousness with close-ups of flavorful food to inspire craving and encourage discovery.

Relationship

As KFC’s creative technology partner since 2019, we’ve created an omnichannel digital transformation for one of the world’s biggest and best-loved restaurant brands. We not only overhauled their digital strategy from a creative perspective, but also helped build out their new technology – earning one of their Yum! STAR Awards for innovative digital experiences along the way.

Our partnership has driven large-scale growth for KFC in the US. By designing a more frictionless online-to-offline experience at drive-thru and pickup, we contributed to a 13% in same-store sales over a two-year period (2019-2021). Meanwhile, by reimagining KFC’s website and app experience we contributed to significant digital sales growth while bringing the unmistakable brand personality and voice of the Colonel into new digital territories.

Increase in same store sales over a two year period

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KFC Case Study: How KFC is building a winning culture where people grow & thrive

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Updated On Nov 17, 2022 at 02:41 PM IST

Flexibility at work: Even before the pandemic, when many companies were discussing and exploring mechanisms, we launched a hybrid way of working. We had a structure behind it, we expected our talents to be in the office for only communication, collaboration, celebration, and community days. We have a corporate calendar for this- 2-3 days we are in the office for these moments. During the pandemic, since working from home became a common practice, we added the WFH benefit, which supported them to have better wi-fi, a better headset, and ergonomic chairs. Also, during the pandemic as a distinctive approach, we launched the Work from Anywhere/Everywhere Policy. Our talents could work from “anywhere in the world.” This is a permanent practice now. 4 weeks a year, they can work anywhere in the world. We support them with a unique WFE monetary benefit so that they can ensure they have the appropriate distant working condition.
Wellness & well-being: During the pandemic, on top of our wellness programs, we launched an advanced 360 Wellness program. We had many virtual sessions about wellness. After the pandemic, we elevated the program and now, we work with a vendor, to give our talents a menu so that they can choose and create their own recipes. From Yoga to Salsa Dances, from Spa to Table tennis they create their own wellness routine. Other than standard wellness programs we work with global experts in finance, and psychology who can take consultation when needed. We updated our benefit structure and fixed all the friction points from a fairness perspective. irrespective of their levels we included all employees in our health and life insurance. Families are included in yearly health check-ups. Families became an integral part of the KFC community. We have family offsites outside Dubai for families.
Inclusion: We believe in ALL people. Our talents become their best selves when they feel that they are treated fair when they are included. Even during the pandemic, we kept our focus on diversity, inclusion, and belonging layers. We have 19 different nationalities in the office. Our gender parity ratio is 50%/50 same for advancements. Advt
Employee Resource Group: We have Employee Resource Groups where we aim to have micro communities for a better feeling of belonging. From cooking to outdoor, language learning to photography our talents are sharing their passions. We have Special programs like Shine (globally selected programs) where we focus on underrepresented groups. Shine is a program to: a. S ponsor them to have a fair share in the ladder of opportunities, b. H elp them to equip themselves with the right light skills c. I nspire them to unlock their own potential, d. N arrate their Stories, road blockers, friction points in life and e. E ncourage them to have an impact with their full potential.
By Anushree Sharma ,
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KFC Crisis Management Case Study: Preparing for the Unexpected. Tahir Abbas May 28, 2023. Crisis can strike unexpectedly and have a profound impact on a company's reputation and bottom line. The ability to effectively manage these crises becomes paramount, and one such case that captured global attention was the KFC crisis.
A Case Study of Consumer Satisfaction of Kentucky Fried Chicken
ORCID ID: 0000-0002-2501-1019. ABSTRA CT. The purpose of this study is to examine consumer satisfaction towards Kentucky Fried. Chicken Corporation (KFC). This pa per is presenting what are the ...
Updated in 2024: Detailed Business Model of KFC
Practical assignments, case studies & simulations from Business Review helped the students from this course present this analysis. ... Let us now see the competitor analysis of KFC. Top 5 Competitors of KFC. McDonalds: McDonalds is the world's largest fast-food restaurant chain. It's widely known for its yummy burgers, crispy fries, and ...
KFC Analysis: A Comprehensive Guide for Business Students
A. List of recommended books, articles, or case studies on KFC "KFC in China: Secret Recipe for Success" by Warren Liu, Margaret Osborne, and Marc Bertoneche (Harvard Business School Case Study) "KFC: The Making of a Global Brand" by Elaine Wu and Johny K. Johansson (International Journal of Business and Globalisation, 2010)
SWOT analysis: The tool of organizations stability (KFC) as a case study
Vol. 6, No 4, 2018. SWOT ANALYSIS - THE T OOL OF ORGANIZATIONS STABILITY ( KFC) AS A CASE STUDY. Soran K. Omer. Department of Administration and Accounting, Faculty of Humanities and Social ...
OPERATIONAL STRATEGIES AND MANAGEMENT OF KFC: AN ENQUIRY
case study on KFC restaurant, ... strategy reformulation that can be applied is the marketing mix strategy and the alternative strategy of SWOT matrix analysis. Based on the results of the study ...
Stepwise SWOT Analysis of KFC
It earns revenue of about US$27.9 billion. KFC has been growing through digital innovations and building the latest food stores, making it easier for their guests to enjoy chicken. Thus this makes us keen to know the SWOT analysis of KFC. In this blog, we have written about its strengths, weaknesses, opportunities, and threats.
KFC's Radical Approach to China
KFC's Radical Approach to China. by. David Bell. and. Mary L. Shelman. From the Magazine (November 2011) Summary. Global companies face a crucial question when they enter emerging markets: How ...
Analysing the 4Ps Marketing Mix of KFC
This marketing mix of KFC includes the 4Ps i.e. product, promotion, pricing, and place strategies. Thus, we can say that a marketing mix is a tool that helps us to understand a company and its reach much better. Let's get a better understanding of the marketing mix of KFC. 1. Product Strategy of KFC.
Strategy Case Study: Analyzing the Success of KFC in China
The SWOT analysis of KFC in China in the earlier section established the fact that company enjoys a stronger hand in price negotiations with its suppliers due to its high-volume purchases and centralized procurement model. ... This case study of KFC China's success shows how the company has adapted its overall strategic outlook with locally ...
PDF A Case Study of Consumer Satisfaction of Kentucky Fried Chicken
The purpose of this study is to examine consumer satisfaction towards Kentucky Fried Chicken Corporation (KFC). This paper is presenting what are the factors influencing consumer satisfaction. KFC is known as one of the most popular fast-food chains around the world. The findings indicate that the services and products of KFC give a big impact
KFC
With estimates that quick-service restaurants will be 54% digital by 2025, KFC needed an agency partner to help bring their southern hospitality into the digital age. They tasked us with crafting an industry-leading customer experience, both in-person and online, that would embody the warm, irreverent personality of their brand while pushing ...
KFC CASE Study Analysis
The impact of sensory branding (five senses) on consumer: A case study on KFC (Kentucky Fried Chicken). International Journal of Research in Business Management, 2 (5), pp-4572. Jarillo, J., 2013.
KFC Turnaround Strategy Analysis.docx
CASE STUDY: KFC Turnaround Strategy Analysis Introduction -KFC, also known as Kentucky Fried Chicken, is a renowned global fast-food chain known for its fried chicken.-With increasing competition and changing consumer preferences, KFC faced challenges that required a turnaround strategy.-The report will briefly touch upon competitive strategies, brand positioning, and communication mix.
Logistics and Supply Chain Management: A Case Study of KFC
Introduction. This report highlights the importance of effective logistics and supply chain management. Discussion in relation to the given case study KFC sheds important knowledge about the. requirement of better logistics management for ensuring clients' satisfaction. Some important.
KFC & Global Fast Food Industry
WELCOME TO OUR PRESENTATION f& Global Fast-Food Industry Case Analysis Presented For: Hare Krisna Kundo Course Teacher, Strategic Management fPresenter Presenters Sl. No. Name Student Id 01 Md. Shohag Ali [Group Leader] 1265 02 Md. Khairul Islam 1286 03 Md. Nazrul Islam 1292 04 Md. Waish Hasan 1295 05 Nawshad Haque 1959 First Batch, BBA Program ...
KFC Case Study: How KFC is building a winning culture where people grow
KFC Case Study: In an interaction with Özlem Kalaca Yurdakul, Chief People Officer, KFC Middle East, North Africa, Pakistan, and Turkey shares her thoughts on great resignation, the importance of learning and development opportunities, and building a culture where talent thrives. Read on to know some of the strategies to build a culture to win talent.
KFC CASE STUDY.pdf
CASE STUDY ANALYSIS I. Title of the Case KFC SWOT Analysis - A Case Study II. POINT OF VIEW The point of view of the Chief Executive Director together with the Board of Directors. III. TIME CONTEXT Present IV. STATEMENT OF THE PROBLEM An analysis of KFC's action plans towards consumer's choice over healthy foods - KFC insights. V. STATEMENT OF THE OBJECTIVE • To know the strategic ...
Case Study,KFC: A very fcking clever campaign,
A further 219 million social-media users were exposed to the branded "FCK" image, meaning that, within three months, the campaign had generated a total earned reach of more than one billion. All from a single press ad. In the weeks following the campaign launch, KFC steadily restored operations to normal, meaning restaurants could re-open and ...
Team Case Study--KFC.docx
Organizational and Business Strategy Analysis KFC Abstract KFC is one of the market leaders in the fast food industry in several countries. The research coupled with the case study gave a strong understanding of the history of KFC and how it has grown exponentially and internationally. The case study also gives information on the weaknesses of the company in Germany and Asia.