KFC's Marketing Strategies in Vietnam
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The assignment delves into the marketing strategies employed by KFC in Vietnam. It examines KFC's target audience within the Vietnamese market and analyzes their position within the competitive fast-food landscape. The document also explores specific marketing tactics utilized by KFC to achieve success in Vietnam, considering factors like cultural nuances, consumer preferences, and economic conditions.
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The Hospitality Business Plan
1. Introduction of the chosen organization
Kentucky Fried Chicken (KFC), a brand pioneered by Mr. Harland Sanders was
originally created for his own livelihood after development and has become one of the fastest
food service systems in the world. Currently, it belonging to one of the brands of Yum Brands
Inc (USA) and has more than 20,000 restaurants in 109 countries and territories worldwide.
KFC is famous for its unique flavorful fried chicken that is created by 11 different spices with
traditional recipes. Besides traditional dishes such as Fried Chicken or Hamburger, coming to
Vietnam market, KFC has prepared many dishes suitable for Vietnamese taste such as mixed
cabbage (Coleslaw), chicken rice, shrimp hamburger, etc.
In addition, despite being a fast food model, they provided friendly service style, a cozy
and comfortable restaurant atmosphere are the keys to success not only in Vietnam but also in
many countries. The first store opened in Ho Chi Minh City in December 1997, June 2006 at
the Hanoi capital and in the following years expanded to other provinces across Vietnam. So
far, KFC has more than 140 large and small stores, with more than 3,000 employees, at the
same time creating career opportunities for citizens. Vietnam is a developing country with the
need of modernisation, KFC is one of the international companies that have spent 10 years
1. Introduction of the chosen organization
Kentucky Fried Chicken (KFC), a brand pioneered by Mr. Harland Sanders was
originally created for his own livelihood after development and has become one of the fastest
food service systems in the world. Currently, it belonging to one of the brands of Yum Brands
Inc (USA) and has more than 20,000 restaurants in 109 countries and territories worldwide.
KFC is famous for its unique flavorful fried chicken that is created by 11 different spices with
traditional recipes. Besides traditional dishes such as Fried Chicken or Hamburger, coming to
Vietnam market, KFC has prepared many dishes suitable for Vietnamese taste such as mixed
cabbage (Coleslaw), chicken rice, shrimp hamburger, etc.
In addition, despite being a fast food model, they provided friendly service style, a cozy
and comfortable restaurant atmosphere are the keys to success not only in Vietnam but also in
many countries. The first store opened in Ho Chi Minh City in December 1997, June 2006 at
the Hanoi capital and in the following years expanded to other provinces across Vietnam. So
far, KFC has more than 140 large and small stores, with more than 3,000 employees, at the
same time creating career opportunities for citizens. Vietnam is a developing country with the
need of modernisation, KFC is one of the international companies that have spent 10 years
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suffering losses with a sustainable journey to become a familiar brand of the Vietnamese
people.
2. Mission, vision, objectives and strategy statement
Strategy defines and represents an organisation's purpose through the company's
mission, vision, goals or values.
Mission : To maximise profitability, improve shareholder value and deliver sustainable
growth year after year.
Vision : To be the leading integrated food services group in the ASEAN region delivering
consistent quality products and excellent customer-focused service.
Values of KFC are potential, the Colonel’s values are not a marketing gimmick. They are
alive and well inside our walls – in our food, our people, our services and our restaurants. At
KFC, we have a passion for food, and serve it with pride. We belive to ensure that every
guest leaves happy.
Objectives : Bringing to consumers a leading brand of food, creating bright and fun for
people of all ages. "Young in mind, active in life" is the criterion and strategic brand of KFC
Vietnam
Strategy statement : KFC uses demographic segmentation to serve the market according
to the needs and desires of customers, mainly young people. KFC used to serve a sample
menu worldwide with indiscriminate targeting. But recently they've started localising their
menus, transforming their value-based product positioning strategy. In the consumer's mind
when thinking of fried chicken comes KFC. To have a strong foothold like today, KFC has a
very unique product strategy. They constantly diversify their products, but also develop
chicken rice, mixed cabbage, and soft bread for many markets. Vietnam's eating culture is
very familiar and they have responded quickly to a nutritious meal. In addition they also offer
different prices for consumers to have more choices. KFC's strategy is to localise wherever
they go, they use communication very effectively and a huge amount of interaction.
3. Macro-environmental analysis
PESTEL analysis highlights six environmental factors in particular: political,
economic, social, technological, ecological and legal.
- Political factors
The Vietnamese federal government has implemented monetary tightening measures in
Vietnam Dong to cope with high inflation prices by cutting government spending to slow
inflation. The fast food industry in Vietnam has grown in the past ten years up to 40%
(according to research by Nielsen Company). Therefore, this is also an opportunity for KFC
to expand further for the benefits of the economic environment in Vietnam. Vietnam's new
franchise law was legalised after Vietnam joined the WTO in 2006. The Government of
Vietnam has used trade rules to promote foreign franchising with the expectation that it will
develop in the future. The 30% growth over many years shows great potential as a form of
business in Vietnam.
people.
2. Mission, vision, objectives and strategy statement
Strategy defines and represents an organisation's purpose through the company's
mission, vision, goals or values.
Mission : To maximise profitability, improve shareholder value and deliver sustainable
growth year after year.
Vision : To be the leading integrated food services group in the ASEAN region delivering
consistent quality products and excellent customer-focused service.
Values of KFC are potential, the Colonel’s values are not a marketing gimmick. They are
alive and well inside our walls – in our food, our people, our services and our restaurants. At
KFC, we have a passion for food, and serve it with pride. We belive to ensure that every
guest leaves happy.
Objectives : Bringing to consumers a leading brand of food, creating bright and fun for
people of all ages. "Young in mind, active in life" is the criterion and strategic brand of KFC
Vietnam
Strategy statement : KFC uses demographic segmentation to serve the market according
to the needs and desires of customers, mainly young people. KFC used to serve a sample
menu worldwide with indiscriminate targeting. But recently they've started localising their
menus, transforming their value-based product positioning strategy. In the consumer's mind
when thinking of fried chicken comes KFC. To have a strong foothold like today, KFC has a
very unique product strategy. They constantly diversify their products, but also develop
chicken rice, mixed cabbage, and soft bread for many markets. Vietnam's eating culture is
very familiar and they have responded quickly to a nutritious meal. In addition they also offer
different prices for consumers to have more choices. KFC's strategy is to localise wherever
they go, they use communication very effectively and a huge amount of interaction.
3. Macro-environmental analysis
PESTEL analysis highlights six environmental factors in particular: political,
economic, social, technological, ecological and legal.
- Political factors
The Vietnamese federal government has implemented monetary tightening measures in
Vietnam Dong to cope with high inflation prices by cutting government spending to slow
inflation. The fast food industry in Vietnam has grown in the past ten years up to 40%
(according to research by Nielsen Company). Therefore, this is also an opportunity for KFC
to expand further for the benefits of the economic environment in Vietnam. Vietnam's new
franchise law was legalised after Vietnam joined the WTO in 2006. The Government of
Vietnam has used trade rules to promote foreign franchising with the expectation that it will
develop in the future. The 30% growth over many years shows great potential as a form of
business in Vietnam.
- Economic factors
According to VnExpress, KFC and Lotteria in Vietnam are the fastest-growing fast food
companies with trillions of revenue, but the revenue growth rate started to decline partly due
to the expansion of the market. For instance, convenience stores, customers change their
preferences from saving time and more convenience because it appears nearly everywhere on
the street. Vietnam's GDP growth in recent years has left foreign countries as an emerging
market, at 7.1% (2018). Compared to a few years ago, the fast food industry in Vietnam is
estimated. It has grown and generated high revenue according to Nielsen Market research,
but recently the trend of healthy eating has started to gain consumer attention. Moreover,
market research company Euromonitor said international companies dominate the restaurant
market in Vietnam was set up by small families but did not have the potential to deal with big
competitors. In May 2018, according to the European Commission's report the Food and
beverage market entry handbook, Vietnamese people spend 78% of their time eating out at
local vendors restaurants and only 1% of the choice to go for fast food.
- Social factors
KFC often pays attention to the ethnic, social and honest values of the locality.
Restaurants have adjusted dishes and drinks to suit the taste and civilisation of the local
Vietnam, but in general, the fast food chain is growing more slowly. One of the factors
affecting the slow growth is due to the changing eating habits of Vietnamese people and a
higher priority for health. A large portion of Vietnamese consumers identify good health as a
sign of success compared to wealth. In addition, KFC has been criticised for using enticing
advertisements to attract children and people to the restaurant while they are hiding risks and
health-related problems when consuming fast food.
- Technological factors
This is a very important factor to become more competitive and keep up with the ever-
changing trends. Without state-of-the-art technology a company will go a lot slower in the
market. Most of these daily stores have a click-and-take option so you can order food before
you arrive at the store, help you save time in queue. KFC has adopted many new technologies
whenever they think it is time to introduce new technology. They use the latest technology in
machines, stoves, and ovens to organize the cooking order and reduce the time it takes to
prepare food. They have applied a HACCP product quality management system (a quality
management system based on hazard analysis and critical control points) into all of their
production processes. To increase profit and sales, self-order and online ordering kiosks are
applied and with good results. Better social media advertising also helps KFC increase its
digital presence.
- Environmental factors
Being a big fast food chain, it is not surprise that KFC makes a big contribution to the
environment. They have switched from cardboard to paper to be recyclable and
biodegradable in order to reduce the amount of tons of packaging. In addition, KFC has
adopted a number of measures to reduce carbon emissions and make its supply chain more
environmentally friendly.
According to VnExpress, KFC and Lotteria in Vietnam are the fastest-growing fast food
companies with trillions of revenue, but the revenue growth rate started to decline partly due
to the expansion of the market. For instance, convenience stores, customers change their
preferences from saving time and more convenience because it appears nearly everywhere on
the street. Vietnam's GDP growth in recent years has left foreign countries as an emerging
market, at 7.1% (2018). Compared to a few years ago, the fast food industry in Vietnam is
estimated. It has grown and generated high revenue according to Nielsen Market research,
but recently the trend of healthy eating has started to gain consumer attention. Moreover,
market research company Euromonitor said international companies dominate the restaurant
market in Vietnam was set up by small families but did not have the potential to deal with big
competitors. In May 2018, according to the European Commission's report the Food and
beverage market entry handbook, Vietnamese people spend 78% of their time eating out at
local vendors restaurants and only 1% of the choice to go for fast food.
- Social factors
KFC often pays attention to the ethnic, social and honest values of the locality.
Restaurants have adjusted dishes and drinks to suit the taste and civilisation of the local
Vietnam, but in general, the fast food chain is growing more slowly. One of the factors
affecting the slow growth is due to the changing eating habits of Vietnamese people and a
higher priority for health. A large portion of Vietnamese consumers identify good health as a
sign of success compared to wealth. In addition, KFC has been criticised for using enticing
advertisements to attract children and people to the restaurant while they are hiding risks and
health-related problems when consuming fast food.
- Technological factors
This is a very important factor to become more competitive and keep up with the ever-
changing trends. Without state-of-the-art technology a company will go a lot slower in the
market. Most of these daily stores have a click-and-take option so you can order food before
you arrive at the store, help you save time in queue. KFC has adopted many new technologies
whenever they think it is time to introduce new technology. They use the latest technology in
machines, stoves, and ovens to organize the cooking order and reduce the time it takes to
prepare food. They have applied a HACCP product quality management system (a quality
management system based on hazard analysis and critical control points) into all of their
production processes. To increase profit and sales, self-order and online ordering kiosks are
applied and with good results. Better social media advertising also helps KFC increase its
digital presence.
- Environmental factors
Being a big fast food chain, it is not surprise that KFC makes a big contribution to the
environment. They have switched from cardboard to paper to be recyclable and
biodegradable in order to reduce the amount of tons of packaging. In addition, KFC has
adopted a number of measures to reduce carbon emissions and make its supply chain more
environmentally friendly.
- Legal factors
The KFC company operates in many countries around the world, it must comply with all
laws relevant to the country in which it operates. Specifically, they need to disclose all
relevant information in the financial statements, and pay the appropriate amount of tax so that
stakeholders know their real position. Therefore, any non-compliance can put the company in
danger. KFC operates in the food business so food hygiene and safety standards as well as
quality need to be met depending on each country.
M1 Critically analyse the hospitality macro environment to determine
and inform strategic management decisions
Mainly, political, economic, environmental and social factors have a great influence on
KFC. As seen, KFC products are highly appreciated by consumers for their quality.
Therefore, KFC should continue to promote this strength to improve quality further to
enhance its reputation and increase its competitive position in the market. KFC should create
new and more novel products, design more heart-shaped hamburger for lovers. This will
cause excitement and curiosity for everyone. Another solution is to expand the menus that
blend Vietnamese and Western styles. For example, adding ingredients such as vermicelli,
pho, noodles, but can be processed in Western style. Currently, the KFC distribution system
is being strongly competed with other fast food brands and also with the tendency to open up
when Vietnam joins the WTO, KFC needs to take more active measures to continue
attracting. retain customers. Strict management of its distribution system from employee
selection, facilities, location, storage, and preservation needs to be consistent in quality at
stores across the country. In addition, developing a door-to-door delivery system, improving
the quality of the team as well as the delivery process to ensure on-time delivery.
Currently, the three words "KFC" have become quite familiar to consumers. According to
the research data, it can be seen that advertising and promotion factors significantly affect the
youth's decision to choose KFC, so KFC should continue to maintain advertising and
promotion as outlined above. Regarding competitors, continue to promote 4Ps to maintain
their current positions and strategies to position more firmly in the minds of customers to
create a deep KFC image in the mind, whenever it comes to chickens, fried refers to KFC.
Regarding public relations, KFC should make public about the origin of raw materials and
nutritional content in each meal with the press and consumers in order to create confidence in
quality and actively do charity activities.
Marketing budget allocation based on the market objectives and the market cycle of the
product. While the revenue growth of KFC and Lotteria in recent years decreased to less than
5%, the sign of gradually going sideways, the fried chicken chain from the Philippines
(Jollibee) maintained the double-digit growth. This result makes the race of two-way codes in
the fast-food market gradually becoming a trio. In 2019, the revenue is nearly 1498 billion
VND (65646 USD), so how much revenue is expected in 2020 to allocate to the cost of
advertising, direct marketing, sales promotion and PR.
4. Industry analysis :
a. Porter’s 5 force model
Porter's Five Forces Model is a model that identifies and analyses five competitive
forces in all industries and helps identify the industry's weaknesses and strengths. It often be
The KFC company operates in many countries around the world, it must comply with all
laws relevant to the country in which it operates. Specifically, they need to disclose all
relevant information in the financial statements, and pay the appropriate amount of tax so that
stakeholders know their real position. Therefore, any non-compliance can put the company in
danger. KFC operates in the food business so food hygiene and safety standards as well as
quality need to be met depending on each country.
M1 Critically analyse the hospitality macro environment to determine
and inform strategic management decisions
Mainly, political, economic, environmental and social factors have a great influence on
KFC. As seen, KFC products are highly appreciated by consumers for their quality.
Therefore, KFC should continue to promote this strength to improve quality further to
enhance its reputation and increase its competitive position in the market. KFC should create
new and more novel products, design more heart-shaped hamburger for lovers. This will
cause excitement and curiosity for everyone. Another solution is to expand the menus that
blend Vietnamese and Western styles. For example, adding ingredients such as vermicelli,
pho, noodles, but can be processed in Western style. Currently, the KFC distribution system
is being strongly competed with other fast food brands and also with the tendency to open up
when Vietnam joins the WTO, KFC needs to take more active measures to continue
attracting. retain customers. Strict management of its distribution system from employee
selection, facilities, location, storage, and preservation needs to be consistent in quality at
stores across the country. In addition, developing a door-to-door delivery system, improving
the quality of the team as well as the delivery process to ensure on-time delivery.
Currently, the three words "KFC" have become quite familiar to consumers. According to
the research data, it can be seen that advertising and promotion factors significantly affect the
youth's decision to choose KFC, so KFC should continue to maintain advertising and
promotion as outlined above. Regarding competitors, continue to promote 4Ps to maintain
their current positions and strategies to position more firmly in the minds of customers to
create a deep KFC image in the mind, whenever it comes to chickens, fried refers to KFC.
Regarding public relations, KFC should make public about the origin of raw materials and
nutritional content in each meal with the press and consumers in order to create confidence in
quality and actively do charity activities.
Marketing budget allocation based on the market objectives and the market cycle of the
product. While the revenue growth of KFC and Lotteria in recent years decreased to less than
5%, the sign of gradually going sideways, the fried chicken chain from the Philippines
(Jollibee) maintained the double-digit growth. This result makes the race of two-way codes in
the fast-food market gradually becoming a trio. In 2019, the revenue is nearly 1498 billion
VND (65646 USD), so how much revenue is expected in 2020 to allocate to the cost of
advertising, direct marketing, sales promotion and PR.
4. Industry analysis :
a. Porter’s 5 force model
Porter's Five Forces Model is a model that identifies and analyses five competitive
forces in all industries and helps identify the industry's weaknesses and strengths. It often be
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used to specify the structure of an industry to define a company's strategy, Porter's model can
be applied to any segment of the economy in search of profitability and attractiveness.
To be able to see how KFC has adapted and how successful we are together analysis of
5 pressure blocks as defined by Michael Porter that KFC is facing in Vietnam.
- Rivalry between existing competitors
1 2 3 4 5
Competitor
Concentration
Industry
growth
rate
High
exxit
barriers
Competitor
Differentiation
High
fixed
costs
Currently, foreign fast food companies are operating in Vietnam more and more and are
continuing to penetrate this potential market with the opening of more stores in almost all
provinces and cities across the country. Can say about :
* Lotteria of Korea appeared in 1972 in Japan and 01/2004 officially entered Vietnam.
Currently present in 30 cities with 210 stores nationwide.
* Jollibee of Philippines (JFC) is the first and biggest fast food group in Asia established in
1978. Entering Vietnam market in 1997 with 1 store operating under the franchise form, there
were about 70 years old. The store is mainly located in the South and will continue to expand
in the future when they have purchased the chain of Pho 24 and Highlands Coffee.
* The Pizza Company of Thailand. In April 2013, TPC - a fast food brand belonging to
Minor Food Group (Thailand), was officially present in Ho Chi Minh City. The brand
currently has more than 60 stores in Vietnam.
- The threat of entry
be applied to any segment of the economy in search of profitability and attractiveness.
To be able to see how KFC has adapted and how successful we are together analysis of
5 pressure blocks as defined by Michael Porter that KFC is facing in Vietnam.
- Rivalry between existing competitors
1 2 3 4 5
Competitor
Concentration
Industry
growth
rate
High
exxit
barriers
Competitor
Differentiation
High
fixed
costs
Currently, foreign fast food companies are operating in Vietnam more and more and are
continuing to penetrate this potential market with the opening of more stores in almost all
provinces and cities across the country. Can say about :
* Lotteria of Korea appeared in 1972 in Japan and 01/2004 officially entered Vietnam.
Currently present in 30 cities with 210 stores nationwide.
* Jollibee of Philippines (JFC) is the first and biggest fast food group in Asia established in
1978. Entering Vietnam market in 1997 with 1 store operating under the franchise form, there
were about 70 years old. The store is mainly located in the South and will continue to expand
in the future when they have purchased the chain of Pho 24 and Highlands Coffee.
* The Pizza Company of Thailand. In April 2013, TPC - a fast food brand belonging to
Minor Food Group (Thailand), was officially present in Ho Chi Minh City. The brand
currently has more than 60 stores in Vietnam.
- The threat of entry
According to M-porter, potential competitors are those that are not in the industry on the
market but may affect the industry in the future. That depend on two very important factors in
.Firstly, the Industry attractiveness, it shown through many factors but in short will be overall
through 3 expenditures: rate of return, number of guests row, number of businesses in the
industry, number of businesses industry. We can see Vietnam with a population of over 80
million inhabitants is enormous environment with the food industry. Besides trying to create
KFC from more than half a century ago, he was successful with the public secret blend of 11
aromatherapy and herbs along with the century. That made it expensive to enter the industry.
KFC is also encountering many barriers when entering the Vietnamese market, such as:
capital,
engineering, commercial factors, distribution systems, customers, brands, the specific
resources, input materials (patented, source controlled force of government protection, etc.
Compared with other industries, the real industry ,the product does not require high capital.
Technology and specific resources are key sost important. From there, we see that the barriers
to entry into the industry are also quite high.
- The threat of substitues
market but may affect the industry in the future. That depend on two very important factors in
.Firstly, the Industry attractiveness, it shown through many factors but in short will be overall
through 3 expenditures: rate of return, number of guests row, number of businesses in the
industry, number of businesses industry. We can see Vietnam with a population of over 80
million inhabitants is enormous environment with the food industry. Besides trying to create
KFC from more than half a century ago, he was successful with the public secret blend of 11
aromatherapy and herbs along with the century. That made it expensive to enter the industry.
KFC is also encountering many barriers when entering the Vietnamese market, such as:
capital,
engineering, commercial factors, distribution systems, customers, brands, the specific
resources, input materials (patented, source controlled force of government protection, etc.
Compared with other industries, the real industry ,the product does not require high capital.
Technology and specific resources are key sost important. From there, we see that the barriers
to entry into the industry are also quite high.
- The threat of substitues
The fast food market has only been active in recent years because the taste of the market
has been awakened by firms. However, Vietnam is an agricultural country with a rich and
diverse culinary culture, so the pressure from alternative products is not small for fast food
restaurants. In the same fast food industry, Popeye's is known as Louisiana's cuisine. Their
menu and tastes are similar to KFC's, offering customers a choice of fried seafood, biscuits
and mashed potatoes. To alleviate this pressure group of food companies quickly, so we can
promote our strengths and connect with each other if needed to build firm foothold in the
Vietnamese market.
- The bargaining power of buyers
Bringing quality products and services to customers is the most important thing, KFC is
responsible for making a decision where to import from. The amount of poultry they get is
huge, which means that suppliers have to ensure a standard and clean source of raw
ingredients, like not injected poultry. There are a couple of reasons for this see why customer
pressure is not small in Vietnam for the fast food industry.With a large population and rapidly
has been awakened by firms. However, Vietnam is an agricultural country with a rich and
diverse culinary culture, so the pressure from alternative products is not small for fast food
restaurants. In the same fast food industry, Popeye's is known as Louisiana's cuisine. Their
menu and tastes are similar to KFC's, offering customers a choice of fried seafood, biscuits
and mashed potatoes. To alleviate this pressure group of food companies quickly, so we can
promote our strengths and connect with each other if needed to build firm foothold in the
Vietnamese market.
- The bargaining power of buyers
Bringing quality products and services to customers is the most important thing, KFC is
responsible for making a decision where to import from. The amount of poultry they get is
huge, which means that suppliers have to ensure a standard and clean source of raw
ingredients, like not injected poultry. There are a couple of reasons for this see why customer
pressure is not small in Vietnam for the fast food industry.With a large population and rapidly
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growing urban population growth rate has created a part of the young has a rather high
income and is accompanied by their willingness to spend pay. It is a fact that every
Vietnamese family is willing to pay more for it. Health is also a concern, currently the
number of fat people obesity, cardiac spike and KFC was listed as a risk on. This is the
challenge that KFC needs to overcome, creating confidence for customers and branding.
- The bargaining power of suppliers
Suppliers control the quantity of goods provided to KFC, having the right to decide
whether or not they wish to continue with the buyer contract. If anyone wants to copy the
KFC menu they can pay the supplier many times the amount. If that happens, KFC will lose
its suppliers and not reach the market. In addition, the price issue of agricultural products that
suppliers to the company is also a pressure, due to fluctuating prices in Vietnam, long-term or
short-term contracts also need to be company noted. Vietnam is an agricultural country so
cultivated. Cultivation and breeds are two main professions that are very prosperous.That has
created an advantage in KFC Vietnam.They farer risk to reduce damage, actively build close
relationships with reputable suppliers. Top product quality to ensure quality in the market
(CP Vietnam.) All documents are subject to inspection by the authorities and with the
implementation of these strategies, KFC has implemented two goals at the same time:
Ensuring to supply quality products to the market and reduce the risk from your suppliers.
As a result, that strategy worked when avian flu was discovered in Vietnam. While processed
products from poultry scurry, KFC is straight ahead important breakthrough. That
achievement is due mainly to efforts and vision strategy of KFC.
income and is accompanied by their willingness to spend pay. It is a fact that every
Vietnamese family is willing to pay more for it. Health is also a concern, currently the
number of fat people obesity, cardiac spike and KFC was listed as a risk on. This is the
challenge that KFC needs to overcome, creating confidence for customers and branding.
- The bargaining power of suppliers
Suppliers control the quantity of goods provided to KFC, having the right to decide
whether or not they wish to continue with the buyer contract. If anyone wants to copy the
KFC menu they can pay the supplier many times the amount. If that happens, KFC will lose
its suppliers and not reach the market. In addition, the price issue of agricultural products that
suppliers to the company is also a pressure, due to fluctuating prices in Vietnam, long-term or
short-term contracts also need to be company noted. Vietnam is an agricultural country so
cultivated. Cultivation and breeds are two main professions that are very prosperous.That has
created an advantage in KFC Vietnam.They farer risk to reduce damage, actively build close
relationships with reputable suppliers. Top product quality to ensure quality in the market
(CP Vietnam.) All documents are subject to inspection by the authorities and with the
implementation of these strategies, KFC has implemented two goals at the same time:
Ensuring to supply quality products to the market and reduce the risk from your suppliers.
As a result, that strategy worked when avian flu was discovered in Vietnam. While processed
products from poultry scurry, KFC is straight ahead important breakthrough. That
achievement is due mainly to efforts and vision strategy of KFC.
b. Stakeholder analysis
Stakeholder, which can be an individual, a group of people, or an organisation with an
interest in the performance and success of a project. Stakeholder can include the following
groups of people: suppliers, members, internal employees, customers, outside investors or
regulators. Determining the right stakeholder is one of the factors determining the success of
a project. If the stakeholder is not secure, your project will be unlikely to succeed.
When there are too many people who can influence an issue, conflict is inevitable. One of
the problems that often occurs is a conflict of interest or a connection between those
stakeholders. However, in reality these conflicts are sometimes not easily discernible, but
sometimes they confront each other directly. This seriously affects the development of the
business. Stakeholders are tied to a company with some type of assigned benefits, often in the
long run and because of greater demand. Not only that, but also conflicts between internal
and external stakeholders. For example, when a factory operates profitable for the business,
the employees' jobs cause noise and air pollution to the surrounding environment. From there,
leading to residents around complaints, if the factory cannot find a solution, they will be
forced to close and that will affect the interests of shareholders and employees. Even the
employee might be also live in the surrounding place.
Specifically, on KFC's related parties including shareholders, the managers and the
employees. In addition, they also include franchisees, which are independent companies or
individuals that operate many KFC restaurants around the world under the parent company's
brand. The franchisee must provide the strategic aspect so it has a significant impact.
Conduct a stakeholder analysis / mapping is not only a way of identifying and
understanding the different sometimes contradictory expectations of the stakeholders that the
organization must interact, but also a part of the stakeholder approach. general. The matrix
consists of two axes: one of the potential for cooperation and one of the potential to hinder
Stakeholder, which can be an individual, a group of people, or an organisation with an
interest in the performance and success of a project. Stakeholder can include the following
groups of people: suppliers, members, internal employees, customers, outside investors or
regulators. Determining the right stakeholder is one of the factors determining the success of
a project. If the stakeholder is not secure, your project will be unlikely to succeed.
When there are too many people who can influence an issue, conflict is inevitable. One of
the problems that often occurs is a conflict of interest or a connection between those
stakeholders. However, in reality these conflicts are sometimes not easily discernible, but
sometimes they confront each other directly. This seriously affects the development of the
business. Stakeholders are tied to a company with some type of assigned benefits, often in the
long run and because of greater demand. Not only that, but also conflicts between internal
and external stakeholders. For example, when a factory operates profitable for the business,
the employees' jobs cause noise and air pollution to the surrounding environment. From there,
leading to residents around complaints, if the factory cannot find a solution, they will be
forced to close and that will affect the interests of shareholders and employees. Even the
employee might be also live in the surrounding place.
Specifically, on KFC's related parties including shareholders, the managers and the
employees. In addition, they also include franchisees, which are independent companies or
individuals that operate many KFC restaurants around the world under the parent company's
brand. The franchisee must provide the strategic aspect so it has a significant impact.
Conduct a stakeholder analysis / mapping is not only a way of identifying and
understanding the different sometimes contradictory expectations of the stakeholders that the
organization must interact, but also a part of the stakeholder approach. general. The matrix
consists of two axes: one of the potential for cooperation and one of the potential to hinder
the business, the fact that stakeholders can move away from their boxes as their interests have
changed.
Employees ( Parttime ) Employees ( Fulltime )
Media
Goverment
Customers
Shareholders
Lenders
Chairman / Directors
c. SWOT analysis (or Situational Factors Analysis Summary (SFAS))
INTERNAL ENVIROMENT ANALYSIS SUMMARY (EFAS)
Internal
factors
Weight Rating Weighted
Score
Comments
Strengths
Reputable and
quality products
0.3 4 1.2 Secret homemade 11
herbs recipes
Wide distribution
system
0.2 3 0.6 Had expanded their
network, mostly
targeted to big cities
Weaknesse
s
High employee
turnover rates
0.3 2 0.6 Shortage of long
term staff
Unhealthy menu 0.2 4 0.8 Mostly deep fried
food
Total
Scores
1 13 3.2
+ Power -
-Level of Attention / Interest +
changed.
Employees ( Parttime ) Employees ( Fulltime )
Media
Goverment
Customers
Shareholders
Lenders
Chairman / Directors
c. SWOT analysis (or Situational Factors Analysis Summary (SFAS))
INTERNAL ENVIROMENT ANALYSIS SUMMARY (EFAS)
Internal
factors
Weight Rating Weighted
Score
Comments
Strengths
Reputable and
quality products
0.3 4 1.2 Secret homemade 11
herbs recipes
Wide distribution
system
0.2 3 0.6 Had expanded their
network, mostly
targeted to big cities
Weaknesse
s
High employee
turnover rates
0.3 2 0.6 Shortage of long
term staff
Unhealthy menu 0.2 4 0.8 Mostly deep fried
food
Total
Scores
1 13 3.2
+ Power -
-Level of Attention / Interest +
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INTERAL ENVIROMENT ANALYSIS SUMMARY (IFAS)
External
factors
Weight Ratin
g
Weighted
Score
Comments
Opportunities
Young population 0.2 3 0.6 Hitting psychology
of young people,
the number of the
youth are
increasing
Vietnamese’s people
income increased
0.1 2 0.2 Salary growth in
every industry
from low to higher
Innovation on healthy
menu
0.3 4 1.2 To target different
types of customers
Threats
Not stable currency
rates
0.2 3 0.6 They still put a
great deal on the
VNmese market,
despite constant
losses
Consumer are more
concerned about their
health
0.2 4 0.8 Consumers tend to
reduce on oily food
Total Scores 1 16 3.4
SITUATIONAL FACTORS ANALYSIS SUMMARY (SFAS)
Strategic factors Weight Rating Weighted
score
Duration Comments
Short Intermediate Long
ST1 – Reputable and
quality products
0.3 2 0.6 X KFC has a wide
range of stores in
External
factors
Weight Ratin
g
Weighted
Score
Comments
Opportunities
Young population 0.2 3 0.6 Hitting psychology
of young people,
the number of the
youth are
increasing
Vietnamese’s people
income increased
0.1 2 0.2 Salary growth in
every industry
from low to higher
Innovation on healthy
menu
0.3 4 1.2 To target different
types of customers
Threats
Not stable currency
rates
0.2 3 0.6 They still put a
great deal on the
VNmese market,
despite constant
losses
Consumer are more
concerned about their
health
0.2 4 0.8 Consumers tend to
reduce on oily food
Total Scores 1 16 3.4
SITUATIONAL FACTORS ANALYSIS SUMMARY (SFAS)
Strategic factors Weight Rating Weighted
score
Duration Comments
Short Intermediate Long
ST1 – Reputable and
quality products
0.3 2 0.6 X KFC has a wide
range of stores in
all provinces and
a strong service
staff
WE1 – High employee
turnover rate
0.4 3 1.2
X
Unstable changes
often make much
employees do not
have a lot of
experience, also
spend lots of
recruitment costs
and training but
not long using
staff.
OP3 – Innovation on
healthy menu
0.1 2 0.2
X
Creative more
vegetable side
dishes to attract
more kinds of
consumers.
TH2 – Consumer are
more concerned about
their health
0.2 2 0.4
X
Currently the
number of fat
people obesity,
cardiac spikes
and KFC was
listed as a risk on.
Total Scores 1 9 2.4
5. Capability analysis:
a. McKinsey 7s Model
The McKinsey 7S Model is a benchmark for organisational performance, assuming that
an organisation has 7 internal elements that need to be linked and strengthened to create the
success of the organisation.
The McKinsey 7S model specifies 7 factors classified as "hard" and "soft" factors. Hard
factors are easy to identify and are influenced by governance, while soft ones are harder to
grasp, are more ambiguous and are influenced by corporate culture. Staff and skills
KFC's unique culture always recognises the merit and passion of the profession per
worker in KFC. Considering staff as a key element in its sustainable development strategy,
KFC Vietnam always promotes restaurant management training programs. No asset of a
business is more important and valuable than the people who make the organization
successful. Moreover, there is nothing more precious than the word "wisdom" and "virtue" of
the people who accompany each other on the company's development. To do this, in 2016,
KFC Vietnam cooperated with Hoa Sen University to organise the training program
"Effective restaurant management” for restaurant managers for 6 months.
a strong service
staff
WE1 – High employee
turnover rate
0.4 3 1.2
X
Unstable changes
often make much
employees do not
have a lot of
experience, also
spend lots of
recruitment costs
and training but
not long using
staff.
OP3 – Innovation on
healthy menu
0.1 2 0.2
X
Creative more
vegetable side
dishes to attract
more kinds of
consumers.
TH2 – Consumer are
more concerned about
their health
0.2 2 0.4
X
Currently the
number of fat
people obesity,
cardiac spikes
and KFC was
listed as a risk on.
Total Scores 1 9 2.4
5. Capability analysis:
a. McKinsey 7s Model
The McKinsey 7S Model is a benchmark for organisational performance, assuming that
an organisation has 7 internal elements that need to be linked and strengthened to create the
success of the organisation.
The McKinsey 7S model specifies 7 factors classified as "hard" and "soft" factors. Hard
factors are easy to identify and are influenced by governance, while soft ones are harder to
grasp, are more ambiguous and are influenced by corporate culture. Staff and skills
KFC's unique culture always recognises the merit and passion of the profession per
worker in KFC. Considering staff as a key element in its sustainable development strategy,
KFC Vietnam always promotes restaurant management training programs. No asset of a
business is more important and valuable than the people who make the organization
successful. Moreover, there is nothing more precious than the word "wisdom" and "virtue" of
the people who accompany each other on the company's development. To do this, in 2016,
KFC Vietnam cooperated with Hoa Sen University to organise the training program
"Effective restaurant management” for restaurant managers for 6 months.
Teamwork skill is when an individual have the ability to work with all types of people
regardless of their age, gender and career goals. In addition to training in KFC, staff are also
given comments on each individual and identify what skills each person has and what their
strengths are. Each employee has their own part of the job. They learn new skills by working
with others and by helping each other. There is no discrimination for old staffs. After
retirement, KFC old staffs can join the store as a front clean-up people. Shared values & Styles
- Shared values
KFC brings experiences in the form of comfortable spaces, delicious food, intimate
services and a polite restaurant. Those are the values that contribute to the positive aspects.
KFC creates a connection with customers because in addition to fried chicken they are
interested in other things. Displayed on their website, you can read and contact them as you
are served in their restaurant. Because these values drive people to buy more and more fast
food. However, for these values to be effective, the strategy in the company is essential.
regardless of their age, gender and career goals. In addition to training in KFC, staff are also
given comments on each individual and identify what skills each person has and what their
strengths are. Each employee has their own part of the job. They learn new skills by working
with others and by helping each other. There is no discrimination for old staffs. After
retirement, KFC old staffs can join the store as a front clean-up people. Shared values & Styles
- Shared values
KFC brings experiences in the form of comfortable spaces, delicious food, intimate
services and a polite restaurant. Those are the values that contribute to the positive aspects.
KFC creates a connection with customers because in addition to fried chicken they are
interested in other things. Displayed on their website, you can read and contact them as you
are served in their restaurant. Because these values drive people to buy more and more fast
food. However, for these values to be effective, the strategy in the company is essential.
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- Styles
KFC is currently following a democratic management style, where they encourage and
motivate the team members to complete their tasks and jobs. This style is effective as it is
highly responsible, but the safety of its employees is taken very seriously by KFC.
+ Transactional leadership – rely on the exchange between leaders and followers. KFC
educated managers are high energy and enthusiasm at the same time.
+ Organisational leadership – is clear and complex. It is clear that if employees follow the
rules and be hard working then they will be rewarded. But it is complex because it bases on
the KFC reward system. It is also a group and social phenomenon to follow the order of the
boss to displays a strong culture. Structure, Strategy & Systems
- Structure
KFC’s structure has been subjected by CEO Roger Eaton to increase the target market
focusing on other classes. Under the structure, KFC not only focusing on the customer they
also making improvements in the menus and dinning experience following to the customers
demand. They uses geographic market segmentation maily and divided markets like :
America, Europe, Asia, Middle East and Afica, other countries.
- Strategy
KFC has now become a well-known fast food brand with a target market targeting young
people, half of the Vietnamese population is under 30. KFC's selection of the target market is
precisely because in the Western countries, they consider it a product of an industry, while in
Vietnam it is a restaurant but fast service. KFC affirms food quality through quarantine
certificates and through collected research data, 78% of students are KFC's customers. Along
with that, rival Lotteria also has 45% trust from customers. In addition, the company uses
Optional Pricing to try to increase the amount that customers spend. Optional “extras” has a
lot to do with that, they offer cheaper side dishes after choosing the main course. Besides,
KFC offers combos and values for customers when putting together products and offering a
slightly lower price.
- Systems
Due to its large business scale, KFC's organisational system includes recruitment, finance,
and complex IT system. In the restaurant system, daily operations need the number of
employees to participate in serving customers. This quantity is subject to constant
modifications to speed up the service and quality of food preparation and preparation. If the
restaurant system is well implemented then there are sure to be some operational failures.
b. VRIN/VRIO framework
VRIO framework was developed by Jay B. Barney with the aim of evaluating the
organisation's resources on the micro-environmental level including financial, human,
physical and non-physical resources such as market information, industry knowledge, and
more.
KFC is currently following a democratic management style, where they encourage and
motivate the team members to complete their tasks and jobs. This style is effective as it is
highly responsible, but the safety of its employees is taken very seriously by KFC.
+ Transactional leadership – rely on the exchange between leaders and followers. KFC
educated managers are high energy and enthusiasm at the same time.
+ Organisational leadership – is clear and complex. It is clear that if employees follow the
rules and be hard working then they will be rewarded. But it is complex because it bases on
the KFC reward system. It is also a group and social phenomenon to follow the order of the
boss to displays a strong culture. Structure, Strategy & Systems
- Structure
KFC’s structure has been subjected by CEO Roger Eaton to increase the target market
focusing on other classes. Under the structure, KFC not only focusing on the customer they
also making improvements in the menus and dinning experience following to the customers
demand. They uses geographic market segmentation maily and divided markets like :
America, Europe, Asia, Middle East and Afica, other countries.
- Strategy
KFC has now become a well-known fast food brand with a target market targeting young
people, half of the Vietnamese population is under 30. KFC's selection of the target market is
precisely because in the Western countries, they consider it a product of an industry, while in
Vietnam it is a restaurant but fast service. KFC affirms food quality through quarantine
certificates and through collected research data, 78% of students are KFC's customers. Along
with that, rival Lotteria also has 45% trust from customers. In addition, the company uses
Optional Pricing to try to increase the amount that customers spend. Optional “extras” has a
lot to do with that, they offer cheaper side dishes after choosing the main course. Besides,
KFC offers combos and values for customers when putting together products and offering a
slightly lower price.
- Systems
Due to its large business scale, KFC's organisational system includes recruitment, finance,
and complex IT system. In the restaurant system, daily operations need the number of
employees to participate in serving customers. This quantity is subject to constant
modifications to speed up the service and quality of food preparation and preparation. If the
restaurant system is well implemented then there are sure to be some operational failures.
b. VRIN/VRIO framework
VRIO framework was developed by Jay B. Barney with the aim of evaluating the
organisation's resources on the micro-environmental level including financial, human,
physical and non-physical resources such as market information, industry knowledge, and
more.
Valuable
• Wifi and internet access in stores
• Quality products
• Large chain of restaurants serving fast food
• Well-known brand name in the market
• Company leadership and a strong vision
• Employees are valuable to the company, they are well trained
• Strong distribution network, reaching more and more customers
• Financing helps invest in outside opportunities and combat threats
Rarity
• Well-known brand name in the market
• Company leadership and a strong vision
• Focus on continuous innovation
• Raw materials are easy to supply so competitors can import from the same source
• Train other staff in other places
• The sites are well planned and selected
• Financial resources only a few companies own
Inimitability
• Well-known brand name in the market
• Focus on continuous innovation
• Employees at KFC can move to a similar environment where they offer more incentives and
bonuses
• The KFC Patent is difficult to copy because it is not allowed by law
• KFC's distribution network is very large, competitors who want to compete must also invest
a huge amount of capital
Organisational support
• Focus on continuous innovation
• Company leadership and a strong vision
• Well-known brand name in the market
• Financial resources are invested in the right place
Value Rarity Inimitability Organisational
support
Physical Yes No Yes Yes
Financial Yes No No Yes
Human No Yes Yes Yes
6. Strategic options and proposed strategies
a. Porter generic strategies / Ansoff’s matrix = SAFe criteria
Porter Generic Strategies Ansoff Matrix Strategies
• Wifi and internet access in stores
• Quality products
• Large chain of restaurants serving fast food
• Well-known brand name in the market
• Company leadership and a strong vision
• Employees are valuable to the company, they are well trained
• Strong distribution network, reaching more and more customers
• Financing helps invest in outside opportunities and combat threats
Rarity
• Well-known brand name in the market
• Company leadership and a strong vision
• Focus on continuous innovation
• Raw materials are easy to supply so competitors can import from the same source
• Train other staff in other places
• The sites are well planned and selected
• Financial resources only a few companies own
Inimitability
• Well-known brand name in the market
• Focus on continuous innovation
• Employees at KFC can move to a similar environment where they offer more incentives and
bonuses
• The KFC Patent is difficult to copy because it is not allowed by law
• KFC's distribution network is very large, competitors who want to compete must also invest
a huge amount of capital
Organisational support
• Focus on continuous innovation
• Company leadership and a strong vision
• Well-known brand name in the market
• Financial resources are invested in the right place
Value Rarity Inimitability Organisational
support
Physical Yes No Yes Yes
Financial Yes No No Yes
Human No Yes Yes Yes
6. Strategic options and proposed strategies
a. Porter generic strategies / Ansoff’s matrix = SAFe criteria
Porter Generic Strategies Ansoff Matrix Strategies
Low
cost Differentiation
Focus
Low
Cost
Focus
Differentiatior
Market
Penetration
Market
Development
Product
Development
Diversify
Related/
Unrelated
3 4 2 3 4 5 4 3/1
3 3 1 2 2 4 3 2/0
2 2 1 2 2 4 3 2/0
Total 8 9 4 7 8 13 10 7/1
- Porter Generic Strategies
+ Low cost: This cost is related to cost reduction in order to gain a competitive advantage
used in different consumer markets. The goal of maintaining a market leading position is
based on effective management of the value chain. KFC may be more open to targeting the
middle class as they generally consider the price factor in every country. To increase sales,
encourage consumption as well as increase a stronger competitive advantage, KFC has the
ability to pay for its products.
+ Differentiation: Differentiation is also a strategy that allows KFC to expand its customer
base. KFC's goal is to address the needs of consumers' health concerns as well as build an
increasingly sustainable customer loyalty system. They invest a lot in advertising to
distinguish KFC from other brands because they have a strong foothold. In consumers' mind,
the KFC logo is already familiar with the red background and the image of a white hair man.
+ Focus strategy: This strategy also helps the company target specific market segments.
Specifically, focus on low cost serving customers with the lowest possible price. Focusing on
product characteristics, KFC brings continuous changes in design to satisfy customers'
psychology.
- Ansoff Matrix Strategies
+ Market penetration: Applying a market penetration strategy that requires KFC to not only
do marketing and promotion, but also reduce product prices to increase sales through cost
leadership. The reality is that market entry is increasingly expensive. This has to do with the
differentiation of KFC and its potential to develop products and services.
+ Market development: This strategy has been applied because the restaurant system is
present globally. They have strong brand name, tasty food and reasonable price. The
company's distribution network covers all developing countries. There must be a significant
Suitabili
ty
Acceptabili
ty
Feasibili
ty
cost Differentiation
Focus
Low
Cost
Focus
Differentiatior
Market
Penetration
Market
Development
Product
Development
Diversify
Related/
Unrelated
3 4 2 3 4 5 4 3/1
3 3 1 2 2 4 3 2/0
2 2 1 2 2 4 3 2/0
Total 8 9 4 7 8 13 10 7/1
- Porter Generic Strategies
+ Low cost: This cost is related to cost reduction in order to gain a competitive advantage
used in different consumer markets. The goal of maintaining a market leading position is
based on effective management of the value chain. KFC may be more open to targeting the
middle class as they generally consider the price factor in every country. To increase sales,
encourage consumption as well as increase a stronger competitive advantage, KFC has the
ability to pay for its products.
+ Differentiation: Differentiation is also a strategy that allows KFC to expand its customer
base. KFC's goal is to address the needs of consumers' health concerns as well as build an
increasingly sustainable customer loyalty system. They invest a lot in advertising to
distinguish KFC from other brands because they have a strong foothold. In consumers' mind,
the KFC logo is already familiar with the red background and the image of a white hair man.
+ Focus strategy: This strategy also helps the company target specific market segments.
Specifically, focus on low cost serving customers with the lowest possible price. Focusing on
product characteristics, KFC brings continuous changes in design to satisfy customers'
psychology.
- Ansoff Matrix Strategies
+ Market penetration: Applying a market penetration strategy that requires KFC to not only
do marketing and promotion, but also reduce product prices to increase sales through cost
leadership. The reality is that market entry is increasingly expensive. This has to do with the
differentiation of KFC and its potential to develop products and services.
+ Market development: This strategy has been applied because the restaurant system is
present globally. They have strong brand name, tasty food and reasonable price. The
company's distribution network covers all developing countries. There must be a significant
Suitabili
ty
Acceptabili
ty
Feasibili
ty
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commitment to human resources and geographic expansion is also safer. KFC understands
local cultures and values before entering newly researched regions.
+ Product development: The modification or development of product lines to change in
terms of revenue. The competition in recent years has become more difficult, prompting KFC
to launch new products targeting the target market. It does not actually take too much time as
they leverage their strong brand perceptions to attract customers. The company uses
resources to expand product lines but requires the use of new technologies to develop this
strategy.
+ Diversify related / Unrelated: Launching brand new products in a new market is risky.
Being able to discover new products in new markets is based on the ability to reduce costs.
Focusing on diversification is still safer. Like modifying products, adopting a relevant
diversification strategy improves the organisation's sustainability.
b. Bowman’s strategy clock
A model that explores options to position strategically to deliver the most competitive
position in the market. The purpose of the strategy meter illustrates that a business will have
multiple choices about how to position a product based on two dimensions - price and
perceived value.
Bowman's Strategy Clock shows how companies can position a product or service in two
dimensions. The different combinations of these two faces in the Bowman strategy watch
result in eight specific strategies, divided into four sections, displayed as a single watch. A
company can choose a position on the Bowman strategy watch to give the most competitive
advantage.
Sorry ! I will fill the clock later !
- Low price
KFC drives low costs in Vietnam, namely that the product is sold at a low price leading to
low margins on individual products. However, high volumes of output can still generate high
profits. To serve the needs of the market with the lowest possible price but still bring the best
value.
- Hybrid
Food supplements are available at low prices and in high quality. KFC applies a
combination strategy in Vietnam to always change its various menu. KFC has added to its
menu fruit teas such as peach tea and milk tea for those who do not like soft drinks. In
addition, they constantly have promotions about fried chicken with new Asian-style sauces
such as seafood green sauce, spicy sauce, flava roasted chicken.
- Differentiation
KFC Vietnam improves differentiation in their products by improving the quality of not
only fried chicken but other fried side dishes, and introducing healthier foods. Fried dishes
are of course not healthy, but KFC has introduced Mashies filled with vegetables, chicken
skewers will be less fat than fried dishes with lots of flour. They also have chicken salad, as a
vegetable salad and served with chicken tenders.
- Focused differentiation
KFC is a strong player in the fried chicken market. They consult with customers and
gradually improve the quality of products and services. What makes the difference is that
local cultures and values before entering newly researched regions.
+ Product development: The modification or development of product lines to change in
terms of revenue. The competition in recent years has become more difficult, prompting KFC
to launch new products targeting the target market. It does not actually take too much time as
they leverage their strong brand perceptions to attract customers. The company uses
resources to expand product lines but requires the use of new technologies to develop this
strategy.
+ Diversify related / Unrelated: Launching brand new products in a new market is risky.
Being able to discover new products in new markets is based on the ability to reduce costs.
Focusing on diversification is still safer. Like modifying products, adopting a relevant
diversification strategy improves the organisation's sustainability.
b. Bowman’s strategy clock
A model that explores options to position strategically to deliver the most competitive
position in the market. The purpose of the strategy meter illustrates that a business will have
multiple choices about how to position a product based on two dimensions - price and
perceived value.
Bowman's Strategy Clock shows how companies can position a product or service in two
dimensions. The different combinations of these two faces in the Bowman strategy watch
result in eight specific strategies, divided into four sections, displayed as a single watch. A
company can choose a position on the Bowman strategy watch to give the most competitive
advantage.
Sorry ! I will fill the clock later !
- Low price
KFC drives low costs in Vietnam, namely that the product is sold at a low price leading to
low margins on individual products. However, high volumes of output can still generate high
profits. To serve the needs of the market with the lowest possible price but still bring the best
value.
- Hybrid
Food supplements are available at low prices and in high quality. KFC applies a
combination strategy in Vietnam to always change its various menu. KFC has added to its
menu fruit teas such as peach tea and milk tea for those who do not like soft drinks. In
addition, they constantly have promotions about fried chicken with new Asian-style sauces
such as seafood green sauce, spicy sauce, flava roasted chicken.
- Differentiation
KFC Vietnam improves differentiation in their products by improving the quality of not
only fried chicken but other fried side dishes, and introducing healthier foods. Fried dishes
are of course not healthy, but KFC has introduced Mashies filled with vegetables, chicken
skewers will be less fat than fried dishes with lots of flour. They also have chicken salad, as a
vegetable salad and served with chicken tenders.
- Focused differentiation
KFC is a strong player in the fried chicken market. They consult with customers and
gradually improve the quality of products and services. What makes the difference is that
they are always innovating their food in some aspects, not only that, they also serve fresh and
pure fast food.
c. Blue Ocean thinking & Strategy canvas
The Blue ocean strategy is a strategy to develop and expand markets in which competition
is not necessary. The blue ocean encompasses all industries that currently do not exist
because of newly created demands and the desire to bring high profits. This is a great and fair
opportunity for all businesses, however, even in the red ocean the strategic category is always
associated with risk factors.
The strategy canvas allows your organization to see a simple outline of all the elements a
competitive industry invests in, what buyers receive. It shows how similar players' strategies
are and reveals how they push the industry towards the red ocean that provides a common
basis for change. Furthermore, it forces users to redirect their focus from competitors to
alternatives.
Location Cost Service
Quality Atmosphere Connection
Speed Taste Marketing Availability
0
1
2
3
4
5
6
7
8
9
10
Strategy Canvas of Fast Food in Vietnam
KFC Lotteria Popeyes McDonalds
The line graph above illustrates the strategy canvas of fast food in Vietnam recently.
There are many criteria to identify fast food companies in Vietnam such as location, price,
service quality, space, taste, promotion and service speed. Currently, the number of KFC
(140) and Lotteria (210) stores in Vietnam is the second most in the country, almost
anywhere or in the mall you can see a red color store, it could be KFC or Lotteria. Price is
also a factor that makes consumers choose the food of a restaurant, especially you serve
similar products from each other. KFC and Popeyes usually have promotions to buy 1 get 1
free with soft drink, or a very affordable combo, KFC will be on the Tuesday & Thursday
and Popeyes will be Wednesday every week. Lotteria runs more powerful marketing, they
often release combos on every occasion, they also use the method of promoting through the
reviews of food reviewers, running the combo value at half the price on Shopee .It means that
you can buy the e-voucher on Shoppee first, then come to the restaurant, show the code you
pure fast food.
c. Blue Ocean thinking & Strategy canvas
The Blue ocean strategy is a strategy to develop and expand markets in which competition
is not necessary. The blue ocean encompasses all industries that currently do not exist
because of newly created demands and the desire to bring high profits. This is a great and fair
opportunity for all businesses, however, even in the red ocean the strategic category is always
associated with risk factors.
The strategy canvas allows your organization to see a simple outline of all the elements a
competitive industry invests in, what buyers receive. It shows how similar players' strategies
are and reveals how they push the industry towards the red ocean that provides a common
basis for change. Furthermore, it forces users to redirect their focus from competitors to
alternatives.
Location Cost Service
Quality Atmosphere Connection
Speed Taste Marketing Availability
0
1
2
3
4
5
6
7
8
9
10
Strategy Canvas of Fast Food in Vietnam
KFC Lotteria Popeyes McDonalds
The line graph above illustrates the strategy canvas of fast food in Vietnam recently.
There are many criteria to identify fast food companies in Vietnam such as location, price,
service quality, space, taste, promotion and service speed. Currently, the number of KFC
(140) and Lotteria (210) stores in Vietnam is the second most in the country, almost
anywhere or in the mall you can see a red color store, it could be KFC or Lotteria. Price is
also a factor that makes consumers choose the food of a restaurant, especially you serve
similar products from each other. KFC and Popeyes usually have promotions to buy 1 get 1
free with soft drink, or a very affordable combo, KFC will be on the Tuesday & Thursday
and Popeyes will be Wednesday every week. Lotteria runs more powerful marketing, they
often release combos on every occasion, they also use the method of promoting through the
reviews of food reviewers, running the combo value at half the price on Shopee .It means that
you can buy the e-voucher on Shoppee first, then come to the restaurant, show the code you
had for staff and then enjoy without paying anymore, except you want to have something
extra portion.
Although Mcdonalds is a very popular brand in foreign countries, but in Vietnam it is
not as strong as the rest of the competition, they also run ads and promotions. If you
download their app, you will have a plenty of vouchers. In terms of service quality as well as
atmosphere, depending on the location of the store, the element of cleanliness is also very
important to make customers come back or not. The taste of the dishes is also up to each
person, the assessment is based on objective factors, but Vietnamese people are familiar with
the taste that KFC and Lotteria bring because they have been here for a long time. In
addition, there are several reviews online about Lotteria's food, which are often not fresh and
undercooked. In general, fast food brands have a unique character and they are still on the
rise, attracting customers and are all serious competitors.
In short, the strategy diagram is a graph showing the position of each enterprise in the
industry. Each business in the industry will compete in different ways through quantitative
determination in each criterion. No business tries to do all the best because that is impossible.
Businesses will choose one to several criteria to focus on doing better than other businesses,
using it to attract customers in the market. The remaining criteria are maintained at an
acceptable level so as not to lose customers because of it. The view of each customer
criterion changes over time. Enterprises will always have to update whether customers are
attaching importance to a certain criterion that they have not included in the table, a certain
criterion that they no longer appreciate, a criterion they value more. compared to before
7. Key actions
Balanced scorecard
This is a strategic management model at the most basic level, guiding the business during
the process of setting up, implementing, monitoring and measuring the results of the strategy.
In addition to the financial factor, BSC focuses on three other non-financial measures that
affect the business performance of the business, namely, the customer, internal operations,
learning & development.
The benefits of BSC are :
+ BSC helps in better strategic planning
The Balanced Scorecard provides a framework that shows the causal relationship between
target elements, meaning that they have agreed upon a certain core strategy.
+ BSC helps improve corporate communication
The BSC model not only helps your partners and employees better understand the strategic
content, but is also impressive and easy to remember each of the strengths, weaknesses, etc of
the metrics you are implementing.
+ BSC helps to closely link different projects in the business
With the framework of the BSC model in place, every small project plan has a foundation
and a strategic basis for easy construction. This way, you can ensure that the entire business
is on the same page, with no project being wasted.
+ BSC helps to improve reporting performance
extra portion.
Although Mcdonalds is a very popular brand in foreign countries, but in Vietnam it is
not as strong as the rest of the competition, they also run ads and promotions. If you
download their app, you will have a plenty of vouchers. In terms of service quality as well as
atmosphere, depending on the location of the store, the element of cleanliness is also very
important to make customers come back or not. The taste of the dishes is also up to each
person, the assessment is based on objective factors, but Vietnamese people are familiar with
the taste that KFC and Lotteria bring because they have been here for a long time. In
addition, there are several reviews online about Lotteria's food, which are often not fresh and
undercooked. In general, fast food brands have a unique character and they are still on the
rise, attracting customers and are all serious competitors.
In short, the strategy diagram is a graph showing the position of each enterprise in the
industry. Each business in the industry will compete in different ways through quantitative
determination in each criterion. No business tries to do all the best because that is impossible.
Businesses will choose one to several criteria to focus on doing better than other businesses,
using it to attract customers in the market. The remaining criteria are maintained at an
acceptable level so as not to lose customers because of it. The view of each customer
criterion changes over time. Enterprises will always have to update whether customers are
attaching importance to a certain criterion that they have not included in the table, a certain
criterion that they no longer appreciate, a criterion they value more. compared to before
7. Key actions
Balanced scorecard
This is a strategic management model at the most basic level, guiding the business during
the process of setting up, implementing, monitoring and measuring the results of the strategy.
In addition to the financial factor, BSC focuses on three other non-financial measures that
affect the business performance of the business, namely, the customer, internal operations,
learning & development.
The benefits of BSC are :
+ BSC helps in better strategic planning
The Balanced Scorecard provides a framework that shows the causal relationship between
target elements, meaning that they have agreed upon a certain core strategy.
+ BSC helps improve corporate communication
The BSC model not only helps your partners and employees better understand the strategic
content, but is also impressive and easy to remember each of the strengths, weaknesses, etc of
the metrics you are implementing.
+ BSC helps to closely link different projects in the business
With the framework of the BSC model in place, every small project plan has a foundation
and a strategic basis for easy construction. This way, you can ensure that the entire business
is on the same page, with no project being wasted.
+ BSC helps to improve reporting performance
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The BSC can be used as an overview report outline. This makes reporting faster and cleaner,
with content that focuses best on the most important strategic issues.
There are also some drawbacks :
+ The organisation must be recognised as a set as it involves significant changes in corporate
culture to implement.
+ To develop a suitable scorecard requires a strong mindset, not quickly.
I do not know how to score this strategy, could you please explain it for me? Thank you!
I will do the citing after I receive your formative feedback.
https://marketingai.admicro.vn/chien-luoc-marketing-mix-cua-kfc-di-den-dau-ban-dia-hoa-
den-do/
https://kfcvietnam.com.vn/vi/gioi-thieu.html
https://www.mbaskool.com/pestle-analysis/companies/18067-
kfc.html#:~:text=Technological%20Factors%3A&text=KFC%20is%20a%20technology
%20savvy,predict%20what%20customers%20will%20order.
https://studymoose.com/kfc-exploring-strategy-essay
https://www.businessinsider.com/coronavirus-kfc-dragon-fruit-burger-pink-bun-in-vietnam-
2020-3#dragon-fruit-baked-goods-became-a-massive-hit-in-vietnam-after-abc-bakery-
debutedpink-dragon-fruit-baguettes-in-mid-february-1
https://global.kfc.com/our-values/
https://www.marketing91.com/marketing-strategy-of-kfc/#:~:text=KFC%20(Kentucky
%20Fried%20chicken)%20uses,was%20using%20undifferentiated%20targeting%20strategy.
https://e-vocable.com/kfc-vietnam-essay/
https://www.statista.com/statistics/444749/inflation-rate-in-vietnam/
https://e.vnexpress.net/news/business/industries/fast-food-chains-in-the-slow-lane-amid-
focus-on-health-3938914.html
http://hanoitimes.vn/world-fast-food-revenues-slow-in-vietnam-struggling-to-lure-local-
consumers-42199.html
https://www.vir.com.vn/foreign-fast-food-giants-defy-losses-in-vietnam-61613.html
https://www.vietnam-briefing.com/news/vietnams-average-wages-rise.html/
https://www.case48.com/vrio-analysis/13728-KFC
with content that focuses best on the most important strategic issues.
There are also some drawbacks :
+ The organisation must be recognised as a set as it involves significant changes in corporate
culture to implement.
+ To develop a suitable scorecard requires a strong mindset, not quickly.
I do not know how to score this strategy, could you please explain it for me? Thank you!
I will do the citing after I receive your formative feedback.
https://marketingai.admicro.vn/chien-luoc-marketing-mix-cua-kfc-di-den-dau-ban-dia-hoa-
den-do/
https://kfcvietnam.com.vn/vi/gioi-thieu.html
https://www.mbaskool.com/pestle-analysis/companies/18067-
kfc.html#:~:text=Technological%20Factors%3A&text=KFC%20is%20a%20technology
%20savvy,predict%20what%20customers%20will%20order.
https://studymoose.com/kfc-exploring-strategy-essay
https://www.businessinsider.com/coronavirus-kfc-dragon-fruit-burger-pink-bun-in-vietnam-
2020-3#dragon-fruit-baked-goods-became-a-massive-hit-in-vietnam-after-abc-bakery-
debutedpink-dragon-fruit-baguettes-in-mid-february-1
https://global.kfc.com/our-values/
https://www.marketing91.com/marketing-strategy-of-kfc/#:~:text=KFC%20(Kentucky
%20Fried%20chicken)%20uses,was%20using%20undifferentiated%20targeting%20strategy.
https://e-vocable.com/kfc-vietnam-essay/
https://www.statista.com/statistics/444749/inflation-rate-in-vietnam/
https://e.vnexpress.net/news/business/industries/fast-food-chains-in-the-slow-lane-amid-
focus-on-health-3938914.html
http://hanoitimes.vn/world-fast-food-revenues-slow-in-vietnam-struggling-to-lure-local-
consumers-42199.html
https://www.vir.com.vn/foreign-fast-food-giants-defy-losses-in-vietnam-61613.html
https://www.vietnam-briefing.com/news/vietnams-average-wages-rise.html/
https://www.case48.com/vrio-analysis/13728-KFC
https://vnexpress.net/kfc-viet-nam-tu-thuong-hieu-fast-food-den-giang-duong-cuoc-doi-
3526239.html
https://kfcteamwork.weebly.com/about.html#:~:text=At%20KFC%20staff%20members
%20have,at%20the%20drive%20through%20area.
https://www.studocu.com/vn/document/national-economics-university/essay-on-marketing-
management/essays/marketing-mix-strategy-of-kfc/3684981/view
https://www.reuters.com/article/us-leisure-yum-kfc-idUSN3034528920061030
https://cafef.vn/tang-doanh-thu-hon-40-jollibee-tro-lai-cuoc-dua-ban-duoi-kfc-lotteria-trong-
phan-khuc-fast-food-20200919154341272.chn?
fbclid=IwAR2ZGWa5pTRgm6mO2dKK9VaGYt1FT5-PAJ7ZeysKjL7Ic0uIHCCfOtik4MI
https://www.news24.com/fin24/companies/advertising/so-what-are-kfcs-values-20150527
http://managementviews.weebly.com/organisational-cultural-environment-of-kfc/kfc-
organisational-environment#:~:text=Management%20style%3A,granted%20at%20the
%20same%20time.
https://www.slideshare.net/zenoae/kfc-83875675
http://heartofcodes.com/kfc-marketing-strategy/
https://ladigi.vn/chien-luoc-marketing-cua-kfc-tai-thi-truong-viet-nam
https://www.essay48.com/13728-KFC-Porters-Generic-Strategies#:~:text=KFC's
%20competitive%20advantage%20strategies%20can,to%20handle%20the%20competitive
%20pressure.
3526239.html
https://kfcteamwork.weebly.com/about.html#:~:text=At%20KFC%20staff%20members
%20have,at%20the%20drive%20through%20area.
https://www.studocu.com/vn/document/national-economics-university/essay-on-marketing-
management/essays/marketing-mix-strategy-of-kfc/3684981/view
https://www.reuters.com/article/us-leisure-yum-kfc-idUSN3034528920061030
https://cafef.vn/tang-doanh-thu-hon-40-jollibee-tro-lai-cuoc-dua-ban-duoi-kfc-lotteria-trong-
phan-khuc-fast-food-20200919154341272.chn?
fbclid=IwAR2ZGWa5pTRgm6mO2dKK9VaGYt1FT5-PAJ7ZeysKjL7Ic0uIHCCfOtik4MI
https://www.news24.com/fin24/companies/advertising/so-what-are-kfcs-values-20150527
http://managementviews.weebly.com/organisational-cultural-environment-of-kfc/kfc-
organisational-environment#:~:text=Management%20style%3A,granted%20at%20the
%20same%20time.
https://www.slideshare.net/zenoae/kfc-83875675
http://heartofcodes.com/kfc-marketing-strategy/
https://ladigi.vn/chien-luoc-marketing-cua-kfc-tai-thi-truong-viet-nam
https://www.essay48.com/13728-KFC-Porters-Generic-Strategies#:~:text=KFC's
%20competitive%20advantage%20strategies%20can,to%20handle%20the%20competitive
%20pressure.
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