KFC's Entry into the Chinese Market: Lessons Learned and Recommendations

This presentation discusses KFC's entry into the Chinese market and the challenges they faced with language barriers. It also provides recommendations for successful market entry, including market analysis, language interpretation, and firsthand market research.

INTERNATIONAL MARKETING
Why there was a need for KFC to launch in the Chinese market.
When a product enters a new market, there is usually a new
advertising language that is used to capture the attention of the
consumers with an objective of attracting them to buy the products.
Kentucky Fried Chicken commonly known as KFC learnt the lesson the
hard way when they entered the Chinese market. When they entered
the market, they had the tag line, finger licking good which when
translated in Mandarin means eat your fingers off. This wasn’t the
intended message that KFC presented to their consumers. The main
reason why KFC launched its products in the Chinese market was
because, the Chinese wanted to have a taste of the products from the
West (Wenzel, 2018, p.271). As a result, the company had to
penetrate the market and establish a solid foundation in terms of
consumer loyalty and product preferences.
What KFC should have done prior to entering the Chinese market to
ensure branding was successful?
Market entry into a new region or country is always a
challenging step for any organization. For KFC, there are a number of
consideration that the organization should have made before
entering China. First, the organization ought to have carried a market
analysis. In marketing, market analysis can be defined as the process
of learning more about consumers in a specific geographical region. A
good market analysis is made of target market which consists of the
potential consumers and client. The target group can be classified
based on age, sex and income level. Secondly, there is the outlook of
the industry and the description of the organization a which in this
case is the food and beverage industry.
Having adequate information of the food and beverage
industry of the target region would help the organization to
understand the nature of the market. Thirdly, a major element of
market analysis is the market need which would influence the nature
of services and products being sold to the consumers.. Understanding
the market trends would provide an opportunity for the KFC to adapt
to the changing needs of consumers (Wenzel, 2018, p.271).
What could KFC do to ensure that consumers still visit KFC after the
translation error?
Language barrier hinders effective communication between
consumers and organization. In the case of KFC, they could have
come up with an advertising media through the television that
defines the purpose of their tag line. The use of visual media would
help in making their tagline effective in Chinese in regards to their
language and cultural practices. The visual media would be aired on
television and the internet for people to understand the intent of the
message that was used on the tagline.
The second approach will be coming up with an innovative
tagline. This means that the organization would have to eliminate the
tagline that they were previous using (Steven 2018, p.45).
This approach could be effective through conducting a
customer satisfaction survey where they would be asked questions
particularly on the best tagline that is to be used.
From the above illustration, KFC should come up with a new marketing
strategy that will factor in the needs of the consumers and the issue on
language barriers. KFC should therefore use an appropriate language
that will be understood by the Chinese consumers.
Solutions to the problem
The major problem that KFC was experiencing was language
barrier which led to people misinterpreting the purpose of the
message. Learning to communicate a new language is always
challenging to consumers when businesses enter new market. The
solutions towards solving the problem of language is early preparations
before penetrating the market. Preparations will involve conducting a
market analysis where the organization will conduct vital information
with an objective of long-term planning (Steven 2018, p.56). As an
illustration, KFC could focus on finding more information about the
economic indicators of the country, socio-cultural factors, political
factors and technological factors.
Secondly, when penetrating a new market, KFC ought to have
used the services of a professional and local people to help them in
translation of the local dialect with an objective of addressing the
needs of the consumers. Skillful people especially in language
interpretation would provide adequate information which would be
used in the marketing strategies. With this approach, it would be
difficult for KFC to make the mistake that resulted in language barrier
hence preventing effective communication between the consumer and
the organization.
Recommendation
Market entry into a new region will require an organization to
adopt the following recommendations. One, there should be a
thorough analysis of the market before entry. Market analysis will
involve use of the following business tools, SWOT and PESTLE. These
analysis tools will provide the organization with adequate information
regarding market performances. Secondly, when entering a new
market, organizations should consult a professional when it comes to
language interpretation and formulation marketing strategies (Ma,
2018, p.25). With a professional, the company/organization will have
all the information that they need before penetrating the market.
Lastly, before penetrating a new market, organization should send their
representatives to analyze the market and present firsthand
information/data to the organization that can be used to analyze and
understand the market.
References
Ahi, A., Baronchelli, G., Kuivalainen, O. and Piantoni, M., 2017.
International Market Entry: How Do Small and Medium-Sized
Enterprises Make Decisions? Journal of International Marketing, 25(1),
pp.1-21.
Ma, A.K., 2018. Multinational corporations: To change or not to
change? That is the question. Journal of Cultural Marketing Strategy,
3(1), pp.21-30.
https://www.freightwaves.com/news/europe/england/where-did-all-
that-chicken-go-kf [Accessed 18 Sep. 2018].
Steven, Q., 2018. Fast Food, Street Food: Western Fast Food's Influence
on Fast Service Food in China.
Wenzel, A., 2018. Talking Food, Talking Race: Food Storytelling in a
Californian Ethnoburb. Who decides? Competing Narratives in
Constructing Tastes, Consumption and Choice, p.271.