Kfc Vietnam

Topics: Vietnam, KFC, Fast food Pages: 13 (3059 words) Published: September 13, 2010


Table of Contents
1. Company Profile and History4
2. Current Market Situation4
2.1 PEST Analysis4
2.2 Porter’s Five Forces6
2.3 Competitor Analysis7
2.4 Market Segmentation8
3. SWOT and issue analysis11
3.1 SWOT analysis11
3.2 Key Successful Factors13
3.3 Issue Analysis13
4. Objectives14
5. Marketing Strategy14
Figure 215

1. Company Profile and History

Kentucky Fried Chicken (KFC), founded by Colonel Harland Sanders in 1930, has developed to become one of the largest fast-food chicken operator and franchiser around the world with more than a billion "finger lickin' good". In 1966, it went public and was acquired by PepsiCo, Inc. In 1997, PepsiCo spun-off of its quick service restaurants including KFC into an independent restaurant company, Tricon Global Restaurants, Inc (KFC Vietnam 2008). The company now was known as Yum! Brands Inc which included all the restaurants: A&W Restaurants, Long John Silver's, Pizza Hut and Taco Bell. KFC has more than 11,000 restaurants operating in more than 80 countries and territories in the world. Today it is one of the most famous and strongest brand names in the fast food market (Entrepreneur Media 2009). In 1997, KFC restaurants opened its first outlet in Ho Chi Minh City - Vietnam. Today, due to the trend of the busy life style and the increase in earnings of people in big cities like Ho Chi Minh City, KFC Vietnam franchise expanded its network so far to 75 restaurants with 47 outlets in Ho Chi Minh City, 15 outlets in Hanoi and others in many Vietnamese provinces (KFC Viet Nam 2008). Company officials considered Vietnam as a potential growth market in fast food industry. KFC’s goal is to secure its position as a market leader and increase the market share in Vietnam.

2. Current Market Situation

2.1 PEST Analysis

This section presents relevant background data on the current Vietnamese macro-environment.

Political Factors
After the join of Vietnam to the WTO, Vietnam’s new commercial franchising law provided for a legal regulatory climate conductive to the franchising sector. The government policy encouraged the opening up of foreign franchises which are expected to grow. With an annual growth of 30 percent in recent years, franchising showed great potential as a form of business in Vietnam (U.S Commercial Service 2009a). The stability and safety in politic environment was the key success for KFC Vietnam to grow expands its business and become the market leader in Vietnam’s fast food industry. Economic Factors

In recent years, Vietnam’s economic growth rate has annually increased at 7 to 8.5 percent and has been one of the highest in the world. With the estimated increase in GDP 6.5 percents in 2009, Vietnam is considered to be a true emerging market for U.S investors. In respond to face the high inflation rate, Vietnamese government implemented a monetary tighten measures to stabilize the Vietnamese Dong, cutting government expenditures in order to slow inflation (U.S Commercial Service 2009a). According to the market research company Nielsen estimated the fast food industry in Vietnam could grow by 40 percents and generate VND500 billion (Tuoi Tre 2009). With advantages on economic environment, KFC Vietnam has many opportunities to develop its market share, increase profits and expand number of restaurants to 80 (ITPC 2008). Socio-cultural Factors

Due to the rise of fast food in Vietnam and the change in eating habits of Vietnamese people, they were busier than ever before so they tended to eat fast food more often than traditional meals (Vietnamnet Bridge 2008). KFC always concerned about the social, cultural and ethical values of local community. Its restaurants had done product adaptation in order to suit local tastes, cultures and religion in Vietnam. This gave KFC an opportunity to grow and increase profits in Vietnamese market.

Technology Factors
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