Post on 05-Apr-2018
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page 24/16/2012 Presentation
$105 to a $13 Billion Brand: KFC
The worlds most popular chicken restaurant chain was
founded in Kentucky, Louisville state of US.
Col. Sanders started franchising his recipe door to door
financed by $105.00
Sold his interest to Massey & Brown for $2 million
More than 11,000 outlets spanning 85 countries and
territories around the world.
Currently KFC is owned by Yum Brands, Inc. which is the
world's largest restaurant company in terms of system
units with nearly 32,500 in more than 100 countries and
territories.
Foundedby
Colonel
Harland
Sanders
in 1952
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page 34/16/2012 Presentation
KFC is a franchisee.
The franchisee process is asfollows:Step 1 :- QUALIFICATION 2-3 WEEKS.
Step 2 :- OPERATION INTERVIEW 3-5WEEKS.
Step 3 :- DISCOVERY DAY/APPROVAL3 WEEKS.
Step 4 :- SITE STRATEGYEXPLORATION 8-10 WEEKS.
Step 5 :- SECURING SITE CONTROL 2-
16 WEEKS.
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page 44/16/2012 Presentation
KFCs entry in India:
KFC entered India in 1995 and has been in midst ofcontroversies since then.
KFC opened its first fast-food outlet in Bangalore in June1995
Though the contribution from Indian market to the totalKFC turnover is a miniscule amount, they rate India as thenumber one player potential wise.
Currently KFC is enjoying a year-on-year growth of 100percent.
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page 54/16/2012 Presentation
Cultural factors in India that went against KFC:
Believed to be expensive .. no value for money.
Wanted to position itself as a family restaurant , notas a teenage hangout.
Ambience was missing.
Perceived differences in eating habits.
Tried to target the vegetarian segment. However thisbackfired as in India having veg food cooked in a nonvegetarian kitchen doesnt come out well with the
vegetarian segment.
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page 64/16/2012 Presentation
Cultural factors contributing to KFCS success in India:
Reducing the psychic distance by handling over of
operations to local people so that customers couldrelate to them more easily.
Able to adapt to cultural differences, tastes andpreferences. For example keeping in mind the Indiantastes buds KFC launched a fierier ZINGER
BURGER. Price sensitivity of the two economies drove KFC to
introduce menus that were easy on the consumers
pocket.
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Leading food service retailer with more than 31000local restaurants serving more than 58 million
people in 118 countries each day.
Favorites-World Famous Fries, Big Mac, Quarter
Pounder, Chicken McNuggets and
Egg McMuffin.
Brand mission : Be our customer favorite place
and way to eat.
MCDONALDS
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Mc Donald's in India.
McDonalds entered India in 1996.
McDonalds India has a joint venture with
Connaught Plaza Restaurants and Hard Castle
Restaurants.
Connaught Plaza Restaurants manages
operations in North India whereas Hard Castle
Restaurants operates restaurants in Western
India.
Today it has 169 Restaurants across India.
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BUSINESS MODELCONTD.
Franchise Model Only 15% of the total
number of restaurants are owned by theCompany. The remaining 85% is operated by
franchises. Product Consistency By developing a
sophisticated supplier networked operationand distribution system, the company has
been able to achieve consistent product taste
and quality across geographies
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BUSINESS MODELCONTD.
Act like a retailer and think like a brand
McDonalds focuses not only on delivering
sales for the immediate present, but also
protecting its long term brand reputation.
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CONCLUSION
In India fast food market is strongly dominated bythese 2 brands. But when it comes to comparingthese two brands the following study brings us toa conclusion that as far as market presence and
brand value is concerned McDonald's hasdefinitely proved a point for themselves. But KFCwho re entered in 2003 has shown a rapidprogress and no wonder if in the coming years
KFC overtakes McDonalds in the Indian marketshare. Time will be the evidence for this, but fornow its Ronald McDonald who is sitting highatop compared to the Colonel.
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