Preview

A Case Study of Kfc’s Cross-Cultural Marketing in China

Satisfactory Essays
Open Document
Open Document
263 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
A Case Study of Kfc’s Cross-Cultural Marketing in China
A Case Study Of Kfc’s Cross-Cultural Marketing In China

A Case Study of KFC’s Cross-cultural Marketing in China

Summary: In 2007, KFC had opened 2000 outlet stores in china, leaving rival MacDonald’s far behind, achieving high praise from Chinese consumers and defeating challengers again and again. From the perspective of cross-culture, this paper tries to analyze the marketing strategy of the American fast food chain stores in china and give multinational food and beverage companies suggestions.
Key words: KFC, fast food, cross-cultural marketing
A Case Study Of Kfc’s Cross-Cultural Marketing In China

A Case Study of KFC’s Cross-cultural Marketing in China

Summary: In 2007, KFC had opened 2000 outlet stores in china, leaving rival MacDonald’s far behind, achieving high praise from Chinese consumers and defeating challengers again and again. From the perspective of cross-culture, this paper tries to analyze the marketing strategy of the American fast food chain stores in china and give multinational food and beverage companies suggestions.
Key words: KFC, fast food, cross-cultural marketing

1. KFC's success stories and their status in China
In 1987, KFC entered the ancient capital of Beijing, China, which has a long food culture and the world's largest population. KFC opened the first restaurant in at Qianmen of the downtown area. As a starting point, KFC began to constantly experiment and learn to adapt to Chinese society and market, and gradually forming a management model with Chinese characteristics. Till 2007, KFC had opened 2000 restaurants. This paper analyzes
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Gold Arches East
    • 1256 Words
    • 6 Pages

    Gold Arches East

    McDonalds has always been able to face the challenges that arise when trying to expand to foreign cultures. They have successfully expanded to over a hundred countries, including countries in East Asia. In the book “Golden Arches East” by James L. Watson, he studies different cities and how McDonalds has played a role in their cultures. Three places that he mentioned in his writing were Beijing, Seoul and Japan. They all share similarities in the way the culture was impacted positively and negatively, in society and politically. They have their differences in the way things were dealt with and how the public viewed the American company coming to their countries. In this paper, I will be talking about how McDonalds is involved in the cultural transformation of different cultures, as well as, if they created the trends mentioned or if they just followed the market they had to work with. I will also be covering my beliefs on whether or not what McDonalds got involved in was an American inspired, transnational culture crowding out indigenous cultures.…

    • 1256 Words
    • 6 Pages
    Better Essays
    Read More
  • Better Essays

    Bus 401 Mod 2 Case
    • 880 Words
    • 4 Pages

    Bus 401 Mod 2 Case

    The purpose of this paper is to write an essay about Starbucks global expansion strategy with a focus on China. Starbucks first went international in 1996 in Tokyo Japan; today there are over three thousand coffeehouses in thirty-seven different countries. “The number one priority of our company in terms of new growth is China,” said Howard Schultz, chairman of the coffee chain. “The US company has two hundred and nine stores across eighteen mainland Chinese cities, about one hundred and twenty of which lie in the capital or around Shanghai” Andrew Yeh wrote. Compared to the six hundred coffee shops in Japan Starbucks is behind in growth for China. With China’s emerging economy and booming population it is a no-brainer that a rapid expansion into China would be a great business opportunity.…

    • 880 Words
    • 4 Pages
    Better Essays
    Read More
  • Best Essays

    Explain Why Did Starbucks Fail In The Forbidden City
    • 3266 Words
    • 14 Pages

    Explain Why Did Starbucks Fail In The Forbidden City

    Nowadays, economic globalization is becoming an irreversible tendency; therefore, different multinational corporations always want to extend their branches to other countries, especially for the food companies, such as, McDonald’s, Starbucks, and Burger King. In recent years, the world has also witnessed that China’s economy has developed to a higher level since China has reformed and opened for more than 30 years. According to Lardy, in the middle of 1990s, China had become one of the largest world’s trading nations (Lardy, 1995, p.1). Now, Chinese customers have more desire and abilities to enjoy western food. Therefore, many multinational food corporations, such as, Starbucks, KFC, and Krispy Kreme, want to enter in Chinese market, and these companies…

    • 3266 Words
    • 14 Pages
    Best Essays
    Read More
  • Satisfactory Essays

    Unit 1 P6
    • 501 Words
    • 3 Pages

    Unit 1 P6

    The people in china eat fairly different types of foods compared to the people who are from the United Kingdom. If McDonalds sold the exact same food that they sell in the UK, this wouldn’t have the same affect and the McDonalds in China’s sales would decrease dramatically. McDonalds will need to research what foods and flavours Chinese people like, and then use this information to incorporate them into their foods and drinks when producing the menu’s for the Chinese public. McDonalds also need to make sure that their prices are affordable to make sure that they don’t miss out on the large amount of working class people in china’s very large population.…

    • 501 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Best Essays

    McDonalds: Brazil and China
    • 4560 Words
    • 14 Pages

    McDonalds: Brazil and China

    McDonald’s became part of China in 1990 with the first 500-seat store in the town of Guangdong province. As the Chinese came to love McDonald’s products, such as the food and the bright lively décor of the yellow and red and even the clown, it grew to a staggering 460 locations by the end of year of 2002 (Jie, 2008). At the end of 2004, McDonald’s grew to 600 locations throughout China. Nine years later, McDonald’s has 2,000 locations being presented in China with plans of spanning into even more provinces in China. McDonald’s theory on expanding is that they will establish and hold one spot until that location has been successful and running smoothly before opening another. McDonald’s doesn’t believe in opening up mass amounts of restaurants without having a successful establishment first. KFC, whom is McDonald’s biggest competitor doesn’t believe in this theory. KFC motto is that you open up as many stores as possible and then fix problems as they arise (Woke, 2011). KFC came to China in 1987 and opened 1,200 stores by the end of 2004. That was double the number of…

    • 4560 Words
    • 14 Pages
    Best Essays
    Read More
  • Better Essays

    Business Strategy Yum Brands
    • 906 Words
    • 4 Pages

    Business Strategy Yum Brands

    Over the last few years, Yum! Brands has opened up an average of 4 new brand stores per day around the globe. “The largest share of this growth is coming from its expansion in mainland China” (Burchett). According to Burchett, in 2010 alone, only counting the franchise Kentucky Fried Chicken stores of the Yum! brand empire, the number of stores open for business increased by 13% to 3,000 restaurants. When compared to global giant McDonald’s “mere” 1,500 stores in China, Yum! is in almost unheard of territory. Yum! brands as a whole have 3 times as many outlets as McDonald’s. With a superior distribution network, Yum! has a presence in over 700 cities in China, giving consumers in the 1.3 billion people population the opportunity to access its 24-hour delivery service from all corners of the country, not just its well-developed eastern coast. The company has stated that its ultimate goal is to have 20,000 Kentucky Fried Chicken stores up and running in China alone. Numbers like this show why Yum! is one of the most successful foreign brands to enter the Chinese market and why a enthusiastic outlook on stock growth is sensible. CEO David Novak’s recently famous statement, “I wouldn’t trade our long-term position with any consumer company in the world,” doesn’t seem like an overstatement as this brand has developed a robust global business strategy and plan that appears to be working.…

    • 906 Words
    • 4 Pages
    Better Essays
    Read More
  • Powerful Essays

    Levendary Café : the China Challenge
    • 1775 Words
    • 8 Pages

    Levendary Café : the China Challenge

    The entrance of china was more opportunistic expansion rather than strategic. The huge population of 1.4 billion people and annual GDP growth of 14.5% over the past decade, China’s urban population rise from 36.2% of the total in 2000 to 46.6% in 2009, and the strong middle class whose per capital income surged from RMB 6,282 to RMB 17,175 (In 2010, RMB 1 = USD 0.15.) all made china as great opportunity for the restaurant that was facing a mature market that had a growth of merely 1%. Another attractive factor of china market was the success of many American restaurants such as KFC, McDonald’s and Pizza Hut’s. However China has proven a difficult market for US restaurant chains such as California Pizza Kitchen and Applebee’s because such extremely different culture needs new commerce to strongly adapt to their culture. Levendary main issue is not entering Chain's market but whether such decision is a right decision and if do so how to survive in such aggressively competitive market, to which extent the management have a detailed plan about and control over the penetration in the new market, adequate information about the culture and a proper communication with the management in china.…

    • 1775 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    Heinz & Kfc Emerging Market Strategies
    • 961 Words
    • 4 Pages

    Heinz & Kfc Emerging Market Strategies

    The growth of the Heinz’s sales in the developing countries, such as China, India, Indonesia, Russia, and Brazil, is increasing quickly in recent years. Bill Johnson, the CEO of Heinz, thinks that referring to these countries as the emerging markets is not accurate anymore. They have huge consumers and high quality supporting industries. Focusing on this situation, Bill developed the Three A’s long-term strategy. The first A is “applicability” which means that the products should be suitable for the local culture. The second A is “availability” which means that the marketing strategy should be effective for the local population. The third A is “affordability” which means that the pricing strategy should be reasonable for the local conditions. And then a few years later, there is an added fourth A “affinity” which means that the relationship should be closed between the local employees and the local consumers and the company. The approaches to evaluate acquisitions in the emerging markets, which are different from the methods in the developed countries, are considering the per capita consumption trends, the macro environment and the overall state of the category. The issues in the developed economies, such as the tax system, the regulatory environment, currency trends, and the political climate, are easier to be compared with the problems in the United States by these governments’ authorization. However this process may take longer time in the emerging markets. Managers should try to avoid the business risks in the emerging markets by the diversifying. But the balance between the risk and the potential reward is also should be considered by the business managers. The developing process in the emerging markets is a long-term strategy. The products should tailor to the local tastes, and then there may be…

    • 961 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Why Subway Is Not Popular in China
    • 2140 Words
    • 9 Pages

    Why Subway Is Not Popular in China

    Most individuals point out that China is a special and huge market. Meanwhile, they also agree that some marketing strategies should be changed when the global brands expand in china market. Ambler, Wizel and Xi (2009) advised that foreign companies need to adapt to “Chinese characteristics” or “the special situation in China” in order to reach Chinese consumers. Therefore, this literature review mainly focuses on the importance of product, price, promotion and advertisement in China.…

    • 2140 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    A Study of Cross-Cultural Adaption of Kfc in China
    • 16613 Words
    • 67 Pages

    A Study of Cross-Cultural Adaption of Kfc in China

    Berry, J., & Kim, U. (1987). Acculturation and mental health. In P. Dasen, J. Berry, & N.…

    • 16613 Words
    • 67 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Changes in the Macroenvironment Affect Individual Firms and Industries
    • 1083 Words
    • 5 Pages

    Changes in the Macroenvironment Affect Individual Firms and Industries

    2. Compare and contrast McDonald’s strategies in China with those of Wal-Mart in Mexico. McDonald’s responded to the changing economic conditions in China that included increased incomes, urbanization, and use of automobiles. This led to the development of its strategy of emphasizing the drive-thru as a major engine of growth. The company had to develop relationships with Chinese governmental authorities and had to consider how local customs and preferences affected its menu offerings. Wal-Mart faced similar challenges in Mexico, particularly in terms of lifestyle differences…

    • 1083 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Best Essays

    Glocalisation In A Subsidiary Context
    • 1910 Words
    • 6 Pages

    Glocalisation In A Subsidiary Context

    According to Thomas Friedmann globalization should be considered the integration of everything with everything else; more specifically the integration of markets, finance and technology in a way that makes the world smaller than it has ever been before. In 2008 Levendary Café, an American “quick causal” fast food restaurant, took on this integration as a specific organization strategy. Their home market had been exhausted and their expansion had reached a plateau, why the board decided on a new strategy: to enter the Chinese market. This paper seeks to investigate 1) why and how Levedary Café has chosen to pursue Foreign Direct Investment (FDI) in China; 2) what difficulties the company has met due to strategic challenges of local responsiveness versus global synergy and finally 3) what opportunities Levendary Café has to restructure its investments in China when dealing with subsidiary strategy. We will do this by answering the following research question:…

    • 1910 Words
    • 6 Pages
    Best Essays
    Read More
  • Good Essays

    Compare and Contrast the Strategies of Carrefour and Wal-Mart in the Chinese Market
    • 1250 Words
    • 5 Pages

    Compare and Contrast the Strategies of Carrefour and Wal-Mart in the Chinese Market

    A recent article (Liu Jie, 2008) revealed that restrictions on business numbers, geographical positions and stockholders have been gradually diminished, which can be regarded as a supplement to promises to WTO. As a consequence of market liberalization, foreign retailers have gained rights to compete with domestic companies in Chinese market. Over recent years, Chinese market has appealed the booming entry to external retail chains and has become a fierce competition region for both foreign and internal companies, including Carrefour and Wal-Mart. Carrefour and Wal-Mart are well known worldwide largest retail giants recognized as France and America based companies respectively and are battling for the reputation of being the largest foreign retailer in Chinese market with increasing amount of outlets and sales( Moreau and Raphael ,2008). The purpose of this essay is to compare and contrast tactics of Carrefour and Wal-Mart in Chinese market.…

    • 1250 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Pest for Mcdonald in China
    • 2786 Words
    • 12 Pages

    Pest for Mcdonald in China

    McDonalds, being an American based fast food company was also very successful in other western countries. The cultural and consumer behavioral similarities among those nations might have caused a positive impact in this success. However it’s not only in western countries that McDonalds was successful but also in eastern countries as well. Among those Asian countries, McDonalds has become one of the most preferred fast food destinations. After xxx years of its operations, with vast experience in several cultures, McDonalds eyed the mainland Chinese market which they saw a huge potential of growth and expansion despite the fact that the Chinese government system and the law system was a bit tougher than other countries they were operating. At first they were not allowed to franchise in China, but in 2004 they were allowed. But unlike in other countries which McDonalds are operating, they are a bit reluctant to franchise in mainland China. On the other hand there is a tight competition among various food suppliers, both western foods and traditional Chinese foods.…

    • 2786 Words
    • 12 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    burger king
    • 276 Words
    • 1 Page

    burger king

    In 1990, McDonald's opened in Shenzhen of the first store. McDonald's has grown to 2012 stores cover 25 provinces and municipalities in 2008 and plan to open 500 new locations in next three years. (Yan and Li, 2009). McDonalds' in China can charge a premium price through providing high quality products to achieve their ownership advantage. In China, the labour input is less costly and natural resources can be easily get to produce the product for their location advantage. McDonald's China emphasis on Quality, Service, Cleanliness and Value. Therefore, McDonald's is perceived as scientifically clean environment by Chinese customers. And the food is also considered safer than traditional road side food. In China, Modifications in the menu is other key strategy in business practices and the approach in which McDonald's management overseeing the operations in China advertises. For instance, adding the teriyaki burger to meet the demand of consumers. Many customers will not realize McDonald's is and American Corporation for it accustomed to the Chinese culture. At first, McDonald's through having 50% local ownership and purchasing local product to present itself as a Chinese corporation. McDonald's invest in local schools, give scholarships and awards competitions. Now McDonald's director is trying to remake McDonalds being a foreign. McDonald's in several cities run 24 hours every day .McDonalds' has absorption the Chinese cultural and showing understanding, respect and assimilation.…

    • 276 Words
    • 1 Page
    Satisfactory Essays
    Read More

Related Topics