Introduction
In this modern era, the lifestyle and pace of modern people has become faster changing. Therefore, people nowadays are demanding for fast food which can fill up their stomach in a shorter period so that they can save time. KFC Corporation (KFC), also known as Kentucky Fried Chicken is a fast food chain restaurants in Louisville, United States. KFC has operating segment and termed a concept of Yum! The company was finally spun off from the company Pepsi as Tricon Global Restaurants. KFC Corporation is the largest fast-food chicken operator in the world. Besides, it is also the largest fast-food chicken developer and franchiser in the world. Kentucky Fried Chicken was found by Harland Sanders in Corbin. KFC is mainly selling chicken pieces, salads, wraps, sandwiches, burger and etc.
The first Kentucky Fried Chicken restaurants in Malaysia was opened in 1973 and it is located on Jalan Tunku Abdul Rahman. And today, there are more than 390 Kentucky Fried Chicken Restaurants throughout Malaysia and it is still growing. In fact, Malaysia has allready developed a individual Malaysian personality of its own. It has captured a 44% of market shares in Malaysia. The character of KFC, Chicky and Friends has bring a lot of pleasure and fun to all kids. The Chicky Hour was broadcasted by TV3 on every Saturday morning at TV3.
KFC has located 6% of its estimated cost breakdown in terms of marketing resources. And it is equivalent to around 1.5 million out of 25 million for the marketing activities in the year of 2007. Besides, KFC owned corporate headquaters located in Jalan Sultan Ismail, Kuala Lumpur. Besides that, KFC is also has its own 15 warehouses and 25 logistic services which is basically located in Shah Alam, Kuala Lumpur...
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... and registered as members. And now, KFC is also playing the time strategy. They have offering different time pricing. They has snacks time in the afternoon with a cheaper price from Monday to Friday. Also, they are generally targeting family rather than single person. This is the reason why they provide Family Meals which are basically served at a cheaper rate. For economic factors, they also targetting upper class and middle class. KFC is now entering the market using market skimming. They set their price highter to target the middle to upper class of people. KFC adopt the cost base price strategy. Pricing of the product is including the government tax and excise duty and then comes the final stage of determine the price of their product. The food’s price is quite high according to the market segment and it is also comparable to the standard of their product.
In 1946 two brothers, Ben and Truitt Cathy, opened a diner in Atlanta Georgia called the Dwarf House Grill. The Dwarf House served a variety of typical grill food that included everything from burgers to hot dogs. All of that changed in 1961 when a poultry supplier stopped buy and sold Mr. Cathy chicken breast that were too large for the trays that they typically cooked the chicken on. Truitt Cathy decided that he did not want to throw out the chicken so he breaded the chicken and put it in the pressure fryer. He realized that he could cook the chicken in the same amount of time that it took to cook a hamburger and it tasted great. He had hamburger buns and pickles in the restaurant already and this is how the first chicken sandwich was made. In 1967 the first Chick-Fil-A store was opened in Atlanta’s Greenbrier Shopping Center and in 1986 the first freestanding franchise was opened. Today there are more than one thousand seven hundred Chick-Fil-A restaurants in thirty nine states. One of the ways that Chick-Fil-A has been able to make their company a success is through their unique approach to customer service. They are able to provide excellent customer service by turning individuals into team players. Teams can be seen in the hiring process, community involvement, national sponsorship, knowing what customers want, and cooperate culture. All of these different teams lead to excellence in customer service.
The fast food restaurant industry, which includes quick-service and fast-casual restaurants, is highly segmented with the top 50 companies accounting for only 25% of the industry’s sales. The $120 billion industry includes over 200,000 restaurants with 50% of those specializing in hamburger entrees. (hoovers.com 2008) The major competitors in the industry include McDonald’s, Burger King, Taco Bell, Subway, and KFC – Chick-fil-A’s major competitor in chicken sales. Chick-fil-A’s unique position in the market, specializing in chicken-based entrées, has lead to a competitive advantage which the company has been able to capitalize on. Recently, many competitors have added chicken entrees in order to compete in the market segment. Through marketing strategies and company initiatives, Chick-fil-A has tried to stay distant from competitors, offering a fresh alternative to the ordinary fast food restaurant.
John’s wife’s father purchased 3 Kentucky Fried Chicken restaurants in Waterloo Iowa. John and his wife, Marlynn Myers, moved into Marlynn’s parent’s home to manage the restaurants.
The Taco Bell and KFC “micro brand” known as ZAK Family Foods is successful for three important reasons: a concept of family, a passion for progress, and a dedication to social responsibility. These three elements have evolved organically from the brand’s very beginnings. In 1979, Jerry Zakaras, now CEO and Franchisee of ZAK Family Foods, began his journey to support his family as a Restaurant General Manager for a Pizza Hut in Plattsmouth, Nebraska. His cooperation with those working with him in the restaurant expressed itself in a way that was very familiar; it was the restaurant family. His value for family was what motivated him to explore the restaurant world, and it was what opened the doors to his business success.
Krispy Kreme is a product company and the most profitable part of the business is doughnut sales due to the high volume of loyal customers.
Yum! I love the s Brands Presented By: Ashish Chowdhary MBA - International Business. Introduction to the Company Yum! is an American fast food company and one of the world’s largest fast food restaurant companies with presence in over 125 countries, operating the licensed brands which are famous worldwide e.g. KFC (Kentucky Fried Chicken), Taco Bell, Pizza Hut, A&W Restaurants, Long John Silver’s and the Wing Street. The company was founded in 1997 as Tricon Global Restaurants, Inc.
To create the best, branded and a healthy eating catering company to the clients and to be recognized as one of the most admired companies in Malaysia within 5 years.
Fast food restaurants are popular among the consumers nowadays. Many fast food restaurants are trying to serve the needs in the market as people seek for quick and convenient place to eat. Due to the fact that there are a huge amount of fast food chains available in the global market, fast food companies have to strive for success. Just by providing quick and convenient style of eating for the customers is not sufficient to stay competitive. This is why it is interesting to study and learn about a fast food company that stands out in such a competitive environment. What has KFC China been doing to become successful? What marketing strategies did they use to dominate the market? We shall find out in the following sections.
Fast food chains use value pricing. This type of pricing is how much the customer thinks an item on the menu is worth. Basically what this means is customers see price as a primary indicator of a product’s value. Value pricing happens when a company increases a product’s benefits while either maintaining or decreasing the price. A great example of value pricing in McDonald’s is the ability to “super-size” drinks and fries. The value of the drink or fries is increased because a customer can get substantially more of the item for a fraction more of the
A fast food restaurant will have to have a good pricing strategy in order to ensure that competition does not push the firm out of business. This will ensure the restaurant remains competitive. For effective management of cash inflows, the management will require to create an environment whereby each item has been priced conspicuously and reflecting the cost of bringing the same to the table as well as the profit margins targeted by the restaurant (Mark 1998).
China is a niche market which means it focus to the competitive price ( low price) and quality product. So it is essential to make the price low even raising the income over there. The price should be keeping to meet the young age group and employed people of china( agriculture: 33.6%, industry: 30.3%, services: 36.1% , 2012 est.). It 's better to evaluate about the price of competitors which help to keep their own price according to the market and the competitors as well. So that the menu should be keeping affordable according to market
· Burger King Corp. that offers an array of value-priced offerings and makes kitchen and drive through upgrades
The Amalgamation of Richard, and Maurice McDonalds, and Ray Kroc in 1955, set in motion a great cultural phenomenon, that would lead to the transformation of American gastronomy, impact their health, and become a formidable global ambassador of Americanization--the Fast food culture (Wilson).
Burger King uses a dispersed configuration for day to day operations as the majority of their restaurants are franchises with local suppliers. Yet Burger King Headquarters uses a concentrated configuration for marketing and development of products, as well as pricing. This centralization of marketing assists all franchises worldwide and provides the greatest value for the company, but the direction of available products and pricing has proven detrimental to the overall success of the firm. An article on CNNMoney.com describes the failure of the $1 double cheese burger to stimulate sales and how a number of franchisees filed lawsuits against the headquarters due to being forced to sell the double cheese burger at less than cost in order to boost revenues for the headquarters and shareholders and not the franchisees.