Have you seen them in China?
Mashed Potatoes & Gravy
• Adapts its restaurants to local tastes, different cultural and political climates.
Reference: /menu/ /doc/39507717/A-Brief-History-of-Kfc
Positioning features of KFC:
1. Chicken cooking expert
2. Focusing on Serving families
3. Good quality & relatively high price
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• Feature 1: Chicken cooking expert
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What’s the difference_ KFC in the U.S
• Outlets: about 5,200 (compare with McDonald's 18,590)
Geographic Segmentation
• Different opportunities in developing new outlets between the western U.S. and the eastern U.S.
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Market Segment
• Subset of a market • Have similar characteristics • Need similar products
• • • •
Distinct from other segments Exhibit common needs Respond similarly to a market stimulus Can be reached by a market intervention
• Reference:/time/ma gazine/article/0,9171,543845,00.html 10
Demographic Targeting
• • • • Taste:Localization! White meat to dark in its chicken burgers No more coleslaw and mashed potato Etc.
KFC’s Market Positioning in China
KFC positions itself as chicken cooking expert not only in China, but also in all over the world. (The worlds’ leading chicken fast food) Focus on and produce a variety of chicken products Localization of chicken products in China
Segmentation, Targeting & Positioning—KFC in China
L/O/G/O
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Outline
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Background
Big market share in China: 2,100 locations in 450 cities；
•a percentage cost chart of the KFC sales in 2009
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Demographic Targeting
• Family especially with children are mainly targeted. • Age is between 6-65. • Gender is both males and females. • Family size is 1-2, 3-4, 5+ • From special consumption to common consumption
Reference: /wiki/Market_segmentation
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Segment Bases
Psychographic
• --stratum, lifestyle, character
Behavioral
• --attitudes
Geographic
Demographic Segmentation:
• Income: Above $10,000, below the average level in U.S
Psychographic Segmentation:
• Social class: Middle or below
•
Reference: /wiki/List_of_countries_with_McDonald´s_franchises; /about
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Geographic Targeting
• KFC has outlets internationally and sells its products according to geographic needs of the customer. • In China KFC focuses how geographically its customers demand different products.
• Reference:/time/ma gazine/article/0,9171,543845,00.html 11
KFC’s Market Positioning in China
A position is the way a firm’s product, brand, or organization is viewed by the customers relative to the competition. Positioning is based on attributes of products and services.
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KFC’s Market Positioning in China
• Feature 3: relatively high price
KFC’s price position is in middle or high level in fast food industry in China. Average price for personal meal is around ￥30( GDP per capita is ￥96 per day in 2011)
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Geographic Targeting
• Example: • Initial outlet: • Four candidate cities: Tianjin, Shanghai, Guangzhou and Beijing • Criteria: Risk-benefit analysis • First mover advantage • Final decision:Beijing in 1987 • Reference:/wiki/% E8%82%AF%E5%BE%B7%E5%9F%B
Target Segment – Psychographic
• Stratum -early years, target to upper and middle class -now, transfer to the public class
• Lifestyle -fast paced, loving chicken
• --country, region, climate, terrain
Demographic
• --age, gender, career, income, family type
Reference: /markets/market-segmentation/5
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KFC’s Market Positioning in ห้องสมุดไป่ตู้hina
• Feature 2: Focusing on Serving families
KFC devote itself to serving customers in family group and enhancing the atmosphere of family. Serving family meal set Entertainment facilities for little children
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What’s the difference_ KFC in the U.S
• Target market: mainly focus on busy-working employees and young people in first and second tier cities. • Reasons: • The big cities are more developed with better transportation conditions and dense populations. • Busy-working employees have a fast pace, they require saving time on preparing food and having a full meal in a very short time. • Younger people pay less attention on healthy-diets and are less willing to cook.
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Target Segment – Behavioral
KFC divides the attitudes of customers into several types • Promote new products continuously for customers who prefer trying new taste. e.g. Countless shrimp • Provide special food during certain periods for customers who like seeking novelty. e.g. Qixi package • Normal meal for those customers who do not easily change their taste.