KFC's China Failure: A Case Study on Global Brand Management

This case study examines KFC's expansion into China and the branding challenges it faced, particularly the mistranslation of its tagline. The analysis covers the reasons for launching in the Chinese market, steps KFC should have taken to ensure successful branding, and solutions to address the translation error. It also provides recommendations for future ...Read More

About KFC
Popularly known as the KFC, Kentucky
Fried Chicken is a fast food restaurant
chain based in America and
specializes in fried chicken . The chain
has its headquarters in Kentucky and
measured by sales it’s the second
largest restaurant chain after the
burger leader McDonalds
(Businessinsider.com. 2018). The
chain is located in around 20000
locations. The chain expanded into
China in the year 1980. Due to
translation error, their tag line was
misunderstood but since the idea was
relatively new in the country, their
idea was accepted.
Q1. Why was it launched in the Chinese market
The KFC opened its first outlet in China in the year 1987 , in Beijing.
The Chinese market seemed fairly reasonable to the company and
since a very long period of time, KFC had been planning to expand in
the east. Hence, for this reason, they decided to capture the Chinese
market which was very large in number and had not been targeted
by other fast food chain companies.
Q2. What KFC should have done to ensure that their branding was
successful before entering the Chinese market
Before expanding to the Chinese market, KFC should have taken the given
steps:
The organization should have :
• Thought globally, act locally: The company should have kept their
international tagline but should have considered its meaning in
Mandarin, before implementing it (Wheeler 2017).
• Moreover, like McDonalds and Apple, it should have focused on the
differences and formed a tagline based on the plan.
• Focusing on similarities: Certain aspects of the plan should not be
altered and kept the same instead (Truetowords.blogspot.com. 2018).
If KFC had followed these steps, it would have been successful earlier.
Q3. Steps to be taken to ensure that the customers still visit the store
been after the translation error
In order to ensure that the customers kept visiting the store even after
the error took place, KFC could have taken the following steps:
• Formulized a local tag line: The company could have come up
with a local tagline, which would have ensured that the goals of
the company match with its image (Urde 2013).
• Given offers: Various promotional offers could have been
provided to the customers as a token of apology and gratitude for
their acceptance (Kfc.com. 2018).
• Issued correctional errors
• Provide healthier meal options
Various advertisements on newspapers and billboards could have been
issued which would be correctional in nature.
Q.4 Solution to the problem
A solution to the stated problem in the given case study
would be that KFC would be required to re-align its
expansion strategy before it takes into consideration
expansion into any foreign location like China. Hence, in
order to have avoided the translation problem in China,
KFC should have considered their local language and the
meaning of their tagline in the Mandarin language and
considered to be reasonable or not. However, as it was
unable to do so, it could apply certain corrective
measures for improvement. Hence, the following steps
could be taken as a solution to avoid such problems in
future:
• Translation of the language: KFC needs to consider the
manner in which the translation of the language
would be considered.
• Precise re-meaning to be conveyed: Once it is
translated, the organization should try and understand
the re-meaning and try to maintain association with
the brands original tagline (Telegraph.co.uk 2018).
• Context and interpretation of the message:
Understand the way in which the meaning will appear
to the brand users.
• Using foreign words: Avoid using foreign words
Q.5. Recommendations for future entry in another country
To avoid the problem that took place with KFC in China , it is recommended
that the organization takes into consideration the following aspects before
expanding to a foreign country :
1. Thorough understanding of consumer behavior
2. Proper brand positioning- To establish dominance
3. Understanding the brand translation: Changing the tagline instead of
any miscommunication chances (Smh.com.au. 2018).
4. Thinking widely: Taking into consideration all aspects.
5. Finding good partners: So that the partners can assist the business in
the long run.
Conclusion
Therefore, from the given analysis done on
KFC and its error in China, it could be
understood that the culture and language of a
company tends to play a major role in
deciding the success of a foreign firm. Hence,
as learnt from the study of KFC, it should be
understood by all the organizations that in
order to be successful in the long run, it needs
to ensure that it maintains a global outlook
but understands the local integrities for a
sustainable competitive advantage.
Introduction
When an organization is expanding into a foreign country, there are
various aspects which the company is required to consider in order to
become socially acceptable in the foreign location (Adage.com 2018).
However, many companies fail to do so and therefore, they face
backslash in the country. The poster examines, the case of KFC and
the problems it faced in China when its tag line was misunderstood.
References:
Adage.com., 2018. 6 cringeworthy blunders brands china . [Online]. Retrived from:
http://adage.com/article/global-news/6-cringeworthy-blunders-brands-china/294017/ ( 05
September. 2018)
Businessinsider.com., 2018. KFC China Ad camoaign is failing. [Online]. Retrived from:
https://www.businessinsider.com/kfc-china-ad-campaign-is-failing-2013-12 ( 05 September.
2018)
Dailymail.co.uk ., 2018. Article 1358784. [Online]. Retrived from:
http://www.dailymail.co.uk/news/article-1358784/KFC-ditches-finger-lickin-good-healthier-
slogan.html ( 05 September. 2018)
Kfc.com. , 2018. Its Finger Lickin Good. [Online]. Retrived from:
https://www.kfc.com/ ( 05 September. 2018)
Smh.com.au., 2018. Companies. [Online]. Retrived from:
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after-60-years-20110221-1b22e.html ( 05 September. 2018)
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abandons-finger-lickin-good-slogan-in-a-bid-to-boost-its-image.html ( 05 September. 2018)
Truetowords.blogspot.com., 2018 Language barrier finger lickin good. [Online]. Retrived
from: http://truetowords.blogspot.com/2011/09/language-barrier-finger-lickin-good.html (
05 September. 2018)
Urde, M., 2013. The corporate brand identity matrix. Journal of Brand Management, 20(9),
pp.742-761.
Wheeler, A., 2017. Designing brand identity: an essential guide for the whole branding
team. John Wiley & Sons.
Source : Dailymail.co.uk .2018.