KFC's Entry into Chinese Market: Challenges and Solutions

This presentation discusses KFC's entry into the Chinese market, the challenges it faced, and the solutions it implemented to ensure branding success. It also provides recommendations for future entry into another country. The presentation highlights the importance of thorough research about the target market's culture, preferences, and behaviors, and the need for personalized positioning.

Poster template by ResearchPosters.co.za
A
B
Why there was a need for
KFC to launch in the
Chinese market?
KFC launched in the Chinese
market in order to rebuild its
brand in China while
promising the citizens to have
a much tighter control after
the scandal that the company
has face over the misuse of
the drugs by the poultry
suppliers of the company.
What could KFC do to ensure
customers still visit KFC after the
‘translation error’?
It could have ensured that the quality
control of the company is tighter and
stricter than every before. It should
show the customers how it is planning
to test the meat and the other
ingredients. With the same, it should
have strengthened the oversight of
the farmers as well as should
encourage them for improving the
technology.
Solution to the problem
In order to address the future issues it should
improve its shareholder responsibility, its
management training scheme along with its
localised corporate culture. It should depart
from the localised supply system and should be
willing to outsource like McDonald’s outsourced
to HAVI.
What KFC should have done
prior to entering the Chinese
market to ensure branding
was
successful
China has a very challenging
market. KFC should have
made a thorough research
about the Chinese market and
their culture and preferences.
It should have also understand
the behavior of the consumers
in this market and develop its
products accordingly.
Recommendations for future entry
into another country
It should first get a clear idea of the people of the
very place, their food habits, their preferences
and their behaviors. It should provide them
features services and products. With the same, it
should also set a target market with a clear
personalized positioning.
International
marketing
References:
Tian, X. and Slocum, J.W., 2016. Managing corporate social responsibility in China. Organizational Dynamics, 45(1), pp.39-46.
HASHMI, A.R. and Ping, X.I.A.O., 2015. Dynamic Spillovers from the Rival: Evidence from the Entry and Expansion of KFC and McDonald’s in the Chinese Cities1.
Shen, Q. and Xiao, P., 2014. McDonald's and KFC in China: Competitors or Companions?. Marketing Science, 33(2), pp.287-307.
Bajpai, H. and Adhikari, A., 2018. Retailing in Emerging Markets. In Strategic Marketing Issues in Emerging Markets(pp. 61-68). Springer, Singapore.
Chan, T.S., 2015. Franchising of Us Fast Food Chains in Hong Kong: Entry and Expansion Strategies. In Proceedings of the 1989 Academy of Marketing Science (AMS) Annual Conference (pp. 163-167). Springer, Cham.
Johar, M., Maruyama, S. and Truong, J., 2017. The contribution of Western fast food to fast-growing body mass in China. Applied Economics, 49(8), pp.797-811.
Witkowski, T.H., Ma, Y. and Zheng, D., 2013. Cross-cultural influences on brand identity impressions: KFC in China and the United States. Asia Pacific Journal of Marketing and Logistics, 15(1/2), pp.74-88.