Kfc vs Mcdonald's in Shanghai

Topics: Marketing, Fast food, Marketing research Pages: 10 (2496 words) Published: November 7, 2008
Table of Contents

1.0Executive Summary

2.0Situation Analysis
2.1Market Summary
2.1.1Market Demographics
2.1.2Market Needs
2.1.3Market Trends
2.1.4Market Growth
2.2SWOT Analysis
2.4Products Offered
2.5Keys to success
2.6Critical Issues

3.0Marketing Strategy
3.2Marketing Objectives
3.3Financial Objectives
3.4Target Markets
3.7Marketing Mix
3.8Marketing Research


5.1Marketing Organization
5.2Contingency Planning

1.0Executive Summary

The fast-food market in Shanghai has become very competitive with the existence of both Western and Chinese cuisine oriented restaurants. KFC and McDonald’s are the top two most popular western fast-food brands among many other restaurants, including some domestic brands of Chinese fast-food which copied the Western service model. Consumers in Shanghai are giving importance to food, service, environment, price, convenience, brand and promotion in evaluating fast-food restaurants. There are some similarities and differences between KFC and McDonald’s in Shanghai, which are highlighted through this case study. New product development, clean environment, innovative entertainment facilities, efficient service, competitive pricing, promotional activities and demand fluctuations are some of the comparison criteria’s taken into consideration. The consumers range from all age group from children to older people with mainly a high percentage in young adults. Each of the target consumer group has their preferences and behaviors, which need to be analyzed and paid attention to accordingly. In order for future developments, KFC and McDonald’s have to plan to maximize the volume of customers and eventually increase their profits.

2.0Situation Analysis
In Shanghai, the fast food market is growing rapidly. In this competitive business, KFC and McDonald’s are facing issues on how to increase patronage and profits even as new fast-food restaurants continued to open. These two restaurants are continuously improving their products and services in order to keep attracting more customers and subsequently achieve good profit in return. Innovative ideas and efficient service need to be implemented and maintained to ensure a healthy market growth in future.

2.1 Market Summary
KFC and McDonald’s posses good information about their market and know a great deal about the common attributes of their customers. KFC and McDonald’s will leverage this information to better understand who is served, their specific needs and how they KFC and McDonald’s better communicate with them. KFC and McDonald’s target customers range from individuals and families from different age group and backgrounds.

Target Markets

Under 18 years – the third largest market consisting of children and students. •18 – 30 years – the largest group of customers, mainly young adults. •31 – 55 years – the second largest group which includes workers with different range of incomes. •Over 55 years – the smallest group of consumers, who normally come with families.

2.1.1Market Demographics
The profile for the typical KFC and McDonald’s customer consists of the following geographic, demographic and behavior factors:

The immediate geographic target is the city of Shanghai with a population of more than 16 million.

Male and female
Individual and families
All range of age, mostly from 18 to 30 years
Of the total consumers, around 65.6 percent are of low income group (under 1000 yuan per month)

Behavior Factors
Enjoy food prepared with consistent taste, variety, nutrition and high level of cleanliness. •Appreciate clean environment, entertainment facilities and good service system. •Spends an average expenditure of 24.07 yuan and an average time of 37.4 minutes per visit....
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