KFC brand in China

Jun 21st, 2015
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Tactical store location and spread as well as a strong logistics network and supply chain are the driving force behind the success of the KFC brand in China. KFC initially focused on entry into local areas in order to command a wide presence throughout China building a national business with outlets all over the country.

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Case Study 2IntroductionKFC Chinas current marketing strategy while previously effective, may lose relevance and hence effectiveness in the future. While the price of the KFC product caters to a large demographic the diversity and localisation may not be enough to accommodate for the changing needs of Chinese consumers. Moreover, distribution and supply networks may require review as well as the means of promoting the brand. Overall, for a steady growth KFC China must consolidate on and adapt the current marketing mix of price, product, promotion and place ensuring success in the long run.AnalysisProductThe variety of products created and offered by KFC aim to specifically appeal to the Chinese consumer and have shown a large degree of effectiveness. Localisation of offerings by region in an effort to please local consumers is an important aspect of the marketing strategy of KFC China (Week 6 Jeaney Yip). The company reinvented the original menu and even went to the extent of varying spiciness levels from region to region in order to cater for a larger number of Chinese consumers (Harvard Business Review 2011). Furthermore, KFC by producing multiple new products per year increase the period of growth and prolong the length of the maturity stage of each product thus preventing decline. While the core product is the actual food that KFC sells to consumers, the actual product is the atmosphere, brand equity and general dining experience which the restaurant offers. P

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