...Kentucky Fried Chicken and the Global Fast-Food Industry Case Analysis 1.0 Source Problem The change in demographic trends in the past two decades has seen an overall increase in costs for KFC and other fast food chains. Due to immense price competition and saturation of the US market, KFC is unable to raise its prices to cover the increased costs. The slower US population growth rate, oversupply of fast food chains and the minuscule 1% growth in the US restaurant industry per year has resulted in KFC¡¦s focus on expansion of their international markets. 2.0 Secondary Problems 2.1 Short Term - New product introductions are slow. - Market research inefficiency. Eg. Germans were not accustomed to buying takeout or ordering over the counter. McDonalds performed better in this aspect. - Crispy strips and chicken sandwiches cannibalized the fried chicken sales. 2.2 Long Term - Differences between the PepsiCo and KFC corporate strategy and culture. - PepsiCo/KFC poor relationship with franchisees. - Increased competition from direct and indirect competitors. - Reduction in market share in the US market. - Risks involved in international operations: long distances made it difficult to control quality and service, increased transportation and other resource costs, and time, culture and language differences increased communication and operational problems. - Fast food sales grew at a slower rate (5%) in comparison to other sectors in the restaurant industry. ...
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...CASE ANALYSIS: Kentucky Fried Chicken and the Global Fast-Food BUS 478 D1.03 Professor Wosk By: Frank CHU 20005-6416 March 3, 2003 0 Individual Case – Kentucky Fried Chicken History and Introduction Kentucky Fried Chicken Corporation (KFC) is the world’s largest chicken restaurant chain. It operates more than 10,200 restaurants worldwide in more than 79 countries. After PepsiCo brought up KFC in 1986, KFC carried out significant changes in different areas including the new focus on product quality, the new product offerings and differentiation, and the control system. Recently, KFC is inevitably facing a lot of business problems such as losing market shares and dealing uncertainties with the international markets. This report will focus on the recent matters that KFC have and will organize into four sections. First it will analyze KFC’s external environments, then the internal. Later, it will discuss the company’s global environments and strategies. At the end, it will provide recommendations for the identified problems. External Analysis The external analysis will focus on Porter’s five forces. Risk of entry by potential competitors The threat of entry barrier of the chicken fast-food chain industry is moderate. On one side, the entry barrier is low because the entry capital investment is low. For example, Chick-fil-A enters the industry by opening many small units in the food courts of shopping malls. Instead of investing millions in building restaurant houses, those...
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...CASE STUDY Kayem Foods, Inc. al fresco BzzCampaign Brand Evangelists Drive Trial, Sales of Growing Brand BzzAgent Copyright © 2004 BzzAgent Inc. 273 Summer Street 4th Floor Boston, MA 02210 Ph 617.451.2280 Fx 617.451.9922 1 CASE STUDY New Brand Enjoys “Ripple Effects” of Targeted Word-of-Mouth K ayem Foods, Inc., the New England company founded in 1909, offers eight leading brands of hot dogs and sausages. In response to healthconscious consumers who were looking for high quality alternatives to traditional sausage products, Kayem created the al fresco brand of chicken sausages to “provide people with delicious foods that are healthy and convenient, meeting today's active lifestyles,” offering flavors such as roasted garlic, sweet apple, sundried tomato and basil, spicy jalapeno, teriyaki ginger, and sweet Italian. The award-winning sausage is prepared without artificial flavors, preservatives or nitrates and contains less fat and sodium than pork sausage. Kayem engaged BzzAgent, Inc. to conduct a word-of-mouth marketing campaign resulting in exponential trial and increased sales of al fresco in target markets. access to a BzzCampaign online homepage with these features: • A communication guide about the lifestyle benefits of al fresco • Instructions about where to find al fresco in local markets • A printable request form to encourage stores to carry the brand • A basic profile of likely consumers i.e. BzzTargets • A list of nine suggested BzzActivities...
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...I. ISSUES In 1996, KFC remained the world’s largest chicken restaurant chain and third largest fast food chain. It held over 50 percent of the U.S market in terms of sales and ended 1995 with over 9000 restaurants worldwide. KFC opened 234 new restaurants in 1995 and operated in the 68 countries. One of the first fast food chains to international during the late 1960’s, KFC had developed one of the world’s most recognizable brands. Despite of the KFC’s past success in the U.S market, much of the KFC’s growth was driven by its international operations, which accounted for 94 percent of all KFC restaurants built in 1994 and for 100 percent of the increase in 1995. Domestically the restaurant count dropped by seven restaurants because of unit closures, intense competition among the largest fast food competitors resulted in a number of obstacles to further expansion in the U.S market. Expansion of free standing restaurants was particularly difficult. Fewer sites were available for new construction and those sites, because of their increase cost, were driving profit margins down. However the most critical or major issue of this case in the future will be their ability to handle changes. Their system is older, in terms of facilities and product form, and their attitudes still don’t reflect the realities of their changing business environment. One on the great challenges at KFC is that there is a lot that needs fixing and the...
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...In 1996, KFC remained the world’s largest chicken restaurant chain and third largest fast food chain. It held over 50 percent of the U.S market in terms of sales and ended 1995 with over 9000 restaurants worldwide. KFC opened 234 new restaurants in 1995 and operated in the 68 countries. One of the first fast food chains to international during the late 1960’s, KFC had developed one of the world’s most recognizable brands. Despite of the KFC’s past success in the U.S market, much of the KFC’s growth was driven by its international operations, which accounted for 94 percent of all KFC restaurants built in 1994 and for 100 percent of the increase in 1995. Domestically the restaurant count dropped by seven restaurants because of unit closures, intense competition among the largest fast food competitors resulted in a number of obstacles to further expansion in the U.S market. Expansion of free standing restaurants was particularly difficult. Fewer sites were available for new construction and those sites, because of their increase cost, were driving profit margins down. However the most critical or major issue of this case in the future will be their ability to handle changes. Their system is older, in terms of facilities and product form, and their attitudes still don’t reflect the realities of their changing business environment. One on the great challenges at KFC is that there is a lot that needs fixing and the toughest challenge is that they have...
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...Marketing Research Assignment – Wendy´s Case Martin Meister – Boston University THE WENDY´S CASE A DEMOSTRATION HOW MARKETING RESEARCH AND ANALYSIS CAN HELP RESOLVING A MANAGEMENT DECISION PROBLEM Martin Meister – martinmeisterg@yahoo.com Boston University - MET AD 856 fall 2012 – Professor Vladimir Zlatev February 27, 2012 1 Marketing Research Assignment – Wendy´s Case Martin Meister – Boston University Table of Contents Introduction ...................................................................................................................................................... 3 1. - Problem Definition ....................................................................................................................................... 3 a. - Background to the problem...................................................................................................................... 3 b. - Statement to the problem........................................................................................................................ 4 2. - Approach to the Problem ............................................................................................................................. 5 3. - Research Design ........................................................................................................................................... 8 a. - Information needs ........................................................................................
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...pet food market. Although “Show Circuit” will need to reshape its prospective target markets views on conventional dog food, it has a researched and proven formula that will provide an improvement in dogs’ coat shine. With the current market trend projecting an increase in dog food sales, the high production cost of “Show Circuit” will not be a strong external threat. With a good media strategy, store positioning, a creative market introduction, “Show Circuit” will be able to successfully compete with larger well known dog food brands. The Internal Factors Strengths: · Specialty high quality dog food · Small solid following among “show dog” kennels in Boston, MA · Freshest dog food in Market; 85% federally inspected beef by-products, beef, liver, and chicken, 15% highest-quality fortified cereal · Completely balanced frozen dog food Used and recommended by professional “show dog” owners for years. · Located in frozen food section right next to “people” food. · Record of “Blue Ribbon” winners as current product users. Weakness: · Cheaper dog foods that are more readily available. · Less than one-half of dogs in the US are regularly fed prepared dog food. · “Show Circuit” is not nationally distributed or marketed. · Relatively unknown to Target Market, new product to public. · No microwavable defrost options. · “Show Circuit” is among...
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...the risk of being sick once vaccinated and whether these vaccinations actually work. The argument on both sides range from First Amendment right issues all the way to disabling health concerns. This essay will serve to examine and elaborate both the positive and negative perspectives on vaccinations in infants and children and why certain parents hesitate in vaccinating their children. The center of disease and control prevention(CDCP) claim there are five important vaccinations every child should receive. The chicken pox vaccine, measles, mumps, rubella (MMR) Vaccine, the Hepatitis vaccine, the haemophilus influenza type B(HIB) Vaccine, and pneumococcal conjugate vaccine. The chicken pox vaccine is probably the most common immunization. Chicken pox is an airborne disease that spreads quickly among younger children. Some symptoms include fever and an itchy, bumpy red rash. Before the vaccination came to pass, approximately 100 people on average would die from chicken pox every year(CDC). Just like anything injected into the body, there are risks to this vaccine. However, the chances of these...
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...Corporate Social Responsibility Agenda: 1. Introduction * What is the CSR (CSR definition)? 2. Why CSR (Importance of CSR)? 3. Approaches of CSR 4. Critics of CSR 5. Real Cases for CSR 6. Ref. 1. Introduction a. What is the CSR (CSR definition)? CSR is about how companies manage the business processes to produce an overall positive impact on society. Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large (The World Business Council for Sustainable Development http://www.mallenbaker.net/csr/definition.php) The way in which firms seek to voluntarily align the interests of owners and other stakeholders with the long-term best interests of the society (Thomsen, S.Conyon) The stakeholders include Stakeholders include customers, employees, suppliers, government, the environment and the wider society 1. Why CSR (Importance of CSR)? Companies promote CSR for a variety of reasons It’s good for business Customer demand Improves corporate reputation Increases financial performance 2. Approaches of CSR The CSR have 3 approaches: - Win-win: engaging in CSR leads to higher profits - Delegated philanthropy: stakeholders prefer firms that engage in philanthropic activities on their behalf - Insider-initiated...
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...Company History: KFC Corporation is the largest fast-food chicken operator, developer, and franchiser in the world. KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare. KFC, a wholly owned subsidiary of PepsiCo, Inc. until late 1997, operates over 5,000 units in the United States, approximately 60 percent of which are franchises. Internationally, KFC has more than 3,700 units, of which two-thirds are also franchised. In addition to direct franchising and wholly owned operations, the company participates in joint ventures, and continues investigating alternative venues to gain market share in the increasingly competitive fast-food market. In late 1997 the company expected to become a wholly owned subsidiary of Tricon Global Restaurants, Inc., to be formed from the spinoff of PepsiCo's restaurant holdings. New Management for Kentucky Fried Chicken In 1964 Sanders sold Kentucky Fried Chicken for $2 million and a per-year salary of $40,000 for public appearances; that salary later rose to $200,000. The offer came from an investor group headed by John Y. Brown, Jr. a 29-year-old graduate of the University of Kentucky law school, and Nashville financier John (Jack) Massey. A notable member of the investor...
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...An Analysis of “Up from Slavery” In the autobiography “Up from Slavery”, Brooke T. Washington describes his early life as a slave and at the end he tells about his speech at the Atlanta Exposition. Washington grows up on a plantation in Virginia with his mother, brother and sister. He does not know much about his father besides that he is white and lives on another plantation. He talks about his “not especially cruel” owners and the unknown history of his ancestry. Washington lives in the plantation kitchen where his mother works as the plantation cook. In the first chapter he describes the place he lives in and duties he has to fulfill as a slave. Further on he talks about education and about how the life as slave during war is. He also reveals the feelings of slaves toward whites, the hopes of Afro-Americans and how the feelings and difficulties after being free. How does Washington create such a lively and reliable description of the life as a slave in the story “Up from Slavery”? Autobiographies are always written in first-point of view and should not be confused with a standard biography that is written in third-person by “authors who knew the subjects well or by people who have thoroughly researched the lives of the characters” (Hammond). Through the first-point of view lives are captured in a direct way. “Up from Slavery” is an autobiography, since Washington tells about his own life, and therefore uses the first-point of view. Washington is privileged...
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...Teaching Note Overview This case describes the evolution of the global fast-food industry and Yum! Brands, Inc.’s development of the Pizza Hut and KFC franchises worldwide. It focuses on international business risk assessment and develops a model of country evaluation that students can use to analyze international business and market entry decisions in a variety of industries, regions, and countries. Teaching Objectives 1. Develop skills in industry analysis 2. Develop skills in global industry analysis. 3. Develop knowledge of franchising and the costs and benefits of expanding globally using franchises versus company-owned stores. 4. Develop skills in international business risk analysis. 5. Develop skills in country portfolio evaluation and assessment. Suggestions for Using the Case This case has been used successfully in undergraduate, MBA, and Executive MBA classes in strategic management, marketing management, and international business. It can be used in undergraduate courses to develop student skills in industry structure analysis, strategy analysis, and international business risk assessment. The teaching note is designed to give students practice in each of these three areas. Instructors may choose to use the case to discuss only one of these three areas during a single class period or to cover all three areas over two class periods. The case can be also used for student presentations and...
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...by, Tiju Sam Thomas Acknowledgement This research project is based on Generation Y and their characteristics. I would like to express my gratitude to Mathieu Brepoels for his guidance and support in my research. Contents What is a Brand | 4 | What is Branding | 4 | Generation Y/The Millennial Generation | 5 | Why Generation Y is important | 5 | How to reach Millennials | 6 | Different Mediums to reach Millennials | 7 | Characteristics | 8-19 | Reference | 20 | What is a Brand Simply putting, a Brand is a promise to the consumers. It tells them what they can expect from your products and services, and it differentiates your offering from that of your competitors, For example, if we take the case of Nike which represents athleticism, fun, good health, performance, strength etc. So it promises the consumers certain things like athleticism, fun, good health, performance, strength etc. The American Marketing Association defines a brand as: a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate from those of competitors. What is Branding Branding is the process involved in creating a unique name and image for a product in the consumers mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. Consistent...
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...Freedom Lost, Factory Farming With Egg Laying Chickens Katelyn Felix Upper Iowa University Filth, confinement, disease, mutilation, and deprivation are a few things that come to mind when factory farming is mentioned. It is a rapidly growing problem in the United States. Factory farming first started in the 1930’s on a low scale. New kinds of incubators lead to chickens being able to be produced in larger quantities in large scale operations. After World War II the increased demand of eggs led to specialized breading and an increase in factory farming in the United States. Soon following suit between the 1960’s and 1970’s was the boom of fast food chains thus increasing the demand for cheap, fast products (Safe for Animals, 2012). Mass production swept the nation at the expense of the animals and our health. This movement cannot be stopped unless people can get informed with what is happening in these factory farms, and possible alternatives to better our nation’s moral standing. Factory farming of egg laying hens is when they are kept under strict guidelines with intensive methods in order to achieve mass production, in this case, of eggs. These hens are deprived of life, they are only used as means of production and might as well be categorized as machines. First let’s discuss the killing and disposal of chickens in this industry. In the egg industry obviously hens are the only useful chicken to these business owners, seeing as males cannot produce eggs, because of that...
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...INDUSTRY Strategic Management PRESENTED BY SHAHRYAR HASSAN 4517 KHALID YOUSUF 3724 SAQIB RAHIM 5286 TOUSEEF ALI 7363 RAFIQUE AHMED 5445 EXECUTIVE SUMMARY The case is about KFC, which is the third largest fast food chain with over 12,200 outlets in 99 countries. The outlets comprise of franchises, company owned and affiliated. One of the issues faced by KFC was that it offered only chicken related products and they were facing stiff competition globally where they suffer great losses but they continued there business even where they were facing losses to maintain there presence in the region due to which its customers were related to a certain segment. This issue can be resolved by diversifying its menu. Other issues like customer’s taste and preferences changes could be resolved by introducing new menu items that cater to their preference and innovating the product line. Complaints of bad customer service can be reduced by training the employees for proper customer dealing. Industry’s Dominant Characteristics Market Size and Projected Growth The total sales for the top US Fast Food industry were $422 billions in the year 2003. The top 7 chicken chains sales were 9861 million. Growth was around 3.3% in 2003. Scope of Competitive Rivalry Companies having presence globally by offering franchises and company owned outlets but now companies prefer to have joint venture with local...
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