A comparison of KFC and McDonald’s marketing strategy in China: Localization or Globalization
A comparison of KFC and McDonald’s marketing strategy in China: Localization or Globalization
Abstract
McDonald’s is the greatest fast food chain in the world, its company sales and operate income was largely exceeded KFC on a global scale, but it confronted a strong challenge from KFC when it emerged into China. This essay analyzes the comparison between KFC and McDonald’s marketing strategy, emphases on finding the similarities and differentiations from “Seven P Formula” and finally makes a conclusion that localization is more suitable than globalization as the marketing strategy when fast food chain emerged in China’s market.
Introduction
Localization or Globalization has long been discussed when choosing strategic orientation in international marketplace. These two international marketing philosophies influenced enterprises’ current situation and future development. There are two fast food international companies named McDonald’s and Kentucky Fried Chicken (KFC) who initially adopted different marketing strategies in China that led to differentiation for their future development. McDonald’s first franchise was founded in the United States in 1955, serve people for hamburger, french fries and other type of fast food, while KFC also from the same country, is now one brand of Yum, which first restaurant was founded in 1952 and mainly sells unique taste cooked chicken. From global scope, McDonald’s is exceeding KFC from company sales, operating profit to worldwide system units. McDonald’s company- operated sales were ＄18875 million, operating income was ＄8764 million and it had 35429 systemwide restaurants in 2013(McDonald’s, 2013), while KFC’s company sales were ＄11184 million, operating profit was ＄1798 million and there were 18875 KFC restaurants in 2013(YUM, 2013). However, as these two global fast-food brands emerged in China, the situation has been reversed. McDonald’s annual report uses APMEA (Asia Pacific, Middle East and Africa) as representative
Abstract
McDonald’s is the greatest fast food chain in the world, its company sales and operate income was largely exceeded KFC on a global scale, but it confronted a strong challenge from KFC when it emerged into China. This essay analyzes the comparison between KFC and McDonald’s marketing strategy, emphases on finding the similarities and differentiations from “Seven P Formula” and finally makes a conclusion that localization is more suitable than globalization as the marketing strategy when fast food chain emerged in China’s market.
Introduction
Localization or Globalization has long been discussed when choosing strategic orientation in international marketplace. These two international marketing philosophies influenced enterprises’ current situation and future development. There are two fast food international companies named McDonald’s and Kentucky Fried Chicken (KFC) who initially adopted different marketing strategies in China that led to differentiation for their future development. McDonald’s first franchise was founded in the United States in 1955, serve people for hamburger, french fries and other type of fast food, while KFC also from the same country, is now one brand of Yum, which first restaurant was founded in 1952 and mainly sells unique taste cooked chicken. From global scope, McDonald’s is exceeding KFC from company sales, operating profit to worldwide system units. McDonald’s company- operated sales were ＄18875 million, operating income was ＄8764 million and it had 35429 systemwide restaurants in 2013(McDonald’s, 2013), while KFC’s company sales were ＄11184 million, operating profit was ＄1798 million and there were 18875 KFC restaurants in 2013(YUM, 2013). However, as these two global fast-food brands emerged in China, the situation has been reversed. McDonald’s annual report uses APMEA (Asia Pacific, Middle East and Africa) as representative
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