KFC in China: Recommendations for Brand Success
Added on 2023-06-07
2 Pages1674 Words264 Views
Individual Poster Presentation
KFC in China
Introduction
KFC is a fast food chain that operates in
various countries across the world. It
identifies countries whose markets seem
promising and venture in them with the
sole aim of becoming the market leader.
The chain has been operational in China
for more than 30 years and it holds about
40% of the fast food market share in
China. However, there have been many
challenges that it has faced in China such
as the problem of translation of its
tagline.
Need for KFC to launch in the
Chinese Market
In China, various reasons gave KFC a
reason to invest here. Firstly, the Chinese
fast food market was one of the most
promising markets in the world. The
Chinese consumer has been known over
the years as being curious and
experimental, and this gave KFC as an
upper hand as it opened its first restaurant
in Qianmen in 1987, Liu (2008, P. 12).
Evidence points out that thousands of
Chinese were eager to have a bite of the
western food, and KFC rode on this
whirlwind advantage to become
successful.
Another need for KFC to venture into the
Chinese fast food market was to bridge the
gap that existed in the industry. There
were not many Western fast food
restaurants in China at the time, and
therefore, there was the need to ensure that
the West was well represented in the East.
Many consumers in China always wanted
to taste Western food, but they had little or
no exposure to them.
Therefore, in line with their objective of
venturing to all corners of the world, KFC
had to consider this issue.
Finally, KFC’s strategies and policies
urged them to expand o china. The local
partner’s strategy allowed it to partner and
collaborated with local brands. They went
ahead and created a local team internally,
whereby the leadership team was drawn
from Taiwan. KFC had the confidence of
venturing into this market because their
team knew the industry in China, the
culture as well as the global standards that
. What could KFC do to ensure
customers still visit KFC after
the ‘translation error’?
One of the most important decisions
would change the slogan that resulted in
the translation error. The translation
error offended the Chinese consumer
because it was understood as being rude
and uncivilized according to the Chinese
Culture (Bell & Shelman 2011, P. 22).
Therefore, KF would attract more
customers to their restaurants if they
changed the slogan to a more civilized
one and one that is clear tot eh Chinese
consumer. Additionally, customers
would still visit KFC because KFC
would have shown the Chinese
customers that they cared about what
they felt and that making the customer
happy was one of their first priorities.
KFC would have ensured that customers
still frequented their restaurants by
employing more Chinese attendants Liu
(2008, P. 12). This strategy would work
wonderfully through showing the
Chinese consumers that it meant well
even though the translation had
offended them. The consumers would be
confident that just as the attendants were
one of their own, they had nothing to
worry about buying from KFC. Many
consumers feel secure and an urge to be
loyal to a brand whenever they are
served with people who they can
identify with concerning their
background and social standings (Bell &
Shelman 2011, P. 22).
Recommendations
When KFC plans to enter into another
foreign market in the future, some
recommendations should be taken into
consideration. Franchising is one of the
steps that should be considered. As a
brand, KFC should license some other
businesses to open branches of the
restaurant. The franchises, on the other
hand, are going to pay a certain fee in
accordance o their agreement with KFC.
This strategy is cheap and would enhance
the brand name of KFC such that it shall
be able to penetrate more regions that
could be possible if KFC did it alone (Liu
2008, P. 12). Additionally, there will be
no maintenance costs that will accrue to
KFC because the franchises are going to
foot their bills and cost of running.
KFC should incorporate direct exporting
before it has entered into a new market.
In this case, there would be direct selling
to the market that the chain is trying to
break into. The aim of direct exporting is
to see how well a brand does in the target
market and what needs to be improved to
make it more viable. Once KFC has
obtained data regarding sales in this
respect, they shall be able to determine
whether they should venture into the
market
er
KFC in China
Introduction
KFC is a fast food chain that operates in
various countries across the world. It
identifies countries whose markets seem
promising and venture in them with the
sole aim of becoming the market leader.
The chain has been operational in China
for more than 30 years and it holds about
40% of the fast food market share in
China. However, there have been many
challenges that it has faced in China such
as the problem of translation of its
tagline.
Need for KFC to launch in the
Chinese Market
In China, various reasons gave KFC a
reason to invest here. Firstly, the Chinese
fast food market was one of the most
promising markets in the world. The
Chinese consumer has been known over
the years as being curious and
experimental, and this gave KFC as an
upper hand as it opened its first restaurant
in Qianmen in 1987, Liu (2008, P. 12).
Evidence points out that thousands of
Chinese were eager to have a bite of the
western food, and KFC rode on this
whirlwind advantage to become
successful.
Another need for KFC to venture into the
Chinese fast food market was to bridge the
gap that existed in the industry. There
were not many Western fast food
restaurants in China at the time, and
therefore, there was the need to ensure that
the West was well represented in the East.
Many consumers in China always wanted
to taste Western food, but they had little or
no exposure to them.
Therefore, in line with their objective of
venturing to all corners of the world, KFC
had to consider this issue.
Finally, KFC’s strategies and policies
urged them to expand o china. The local
partner’s strategy allowed it to partner and
collaborated with local brands. They went
ahead and created a local team internally,
whereby the leadership team was drawn
from Taiwan. KFC had the confidence of
venturing into this market because their
team knew the industry in China, the
culture as well as the global standards that
. What could KFC do to ensure
customers still visit KFC after
the ‘translation error’?
One of the most important decisions
would change the slogan that resulted in
the translation error. The translation
error offended the Chinese consumer
because it was understood as being rude
and uncivilized according to the Chinese
Culture (Bell & Shelman 2011, P. 22).
Therefore, KF would attract more
customers to their restaurants if they
changed the slogan to a more civilized
one and one that is clear tot eh Chinese
consumer. Additionally, customers
would still visit KFC because KFC
would have shown the Chinese
customers that they cared about what
they felt and that making the customer
happy was one of their first priorities.
KFC would have ensured that customers
still frequented their restaurants by
employing more Chinese attendants Liu
(2008, P. 12). This strategy would work
wonderfully through showing the
Chinese consumers that it meant well
even though the translation had
offended them. The consumers would be
confident that just as the attendants were
one of their own, they had nothing to
worry about buying from KFC. Many
consumers feel secure and an urge to be
loyal to a brand whenever they are
served with people who they can
identify with concerning their
background and social standings (Bell &
Shelman 2011, P. 22).
Recommendations
When KFC plans to enter into another
foreign market in the future, some
recommendations should be taken into
consideration. Franchising is one of the
steps that should be considered. As a
brand, KFC should license some other
businesses to open branches of the
restaurant. The franchises, on the other
hand, are going to pay a certain fee in
accordance o their agreement with KFC.
This strategy is cheap and would enhance
the brand name of KFC such that it shall
be able to penetrate more regions that
could be possible if KFC did it alone (Liu
2008, P. 12). Additionally, there will be
no maintenance costs that will accrue to
KFC because the franchises are going to
foot their bills and cost of running.
KFC should incorporate direct exporting
before it has entered into a new market.
In this case, there would be direct selling
to the market that the chain is trying to
break into. The aim of direct exporting is
to see how well a brand does in the target
market and what needs to be improved to
make it more viable. Once KFC has
obtained data regarding sales in this
respect, they shall be able to determine
whether they should venture into the
market
er
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