kfc vs mac donald

8/4/2019 Kfc vs Mac Donald

http://slidepdf.com/reader/full/kfc-vs-mac-donald 1/14

KFC fast food



INTRODUCTION OF KFC

Kentucky Fried Chicken is one of the largest fast food

Franchise concepts of today; it is present in various countries

around the world and it has been able to establish a renownedInternational reputation in multiple continents. Starting in the

United States in the 1930s, it has grown to become a true

multi-domestic company.

KFC has focused on foreign markets since the 1960s and

has found a new challenge today in conquering Asia.



HISTORY

The Kentucky Fried Chicken® was founded byColonel Harland Sanders (born on September 9,1890) at the age of sixty-five. KFC® is currently one

of the largest businesses of the global food serviceindustry and is widely known around the world asthe face of Colonel Sanders.

Every year, over a billion KFC® chicken dinners areserved featuring the Colonel’s “finger licking’ good” special recipe. The Colonel had spread his industryto more than 80 countries and territories globally.



KFC’s Journey From $105 to9.7 Billion $ in 58 years

1952, Col. Sanders started franchising his recipe door to door financed by $105.00

1964, Col Sanders had more than 600 franchised outlets in the US and Canada.

1964, Sold his interest to Massey & Brown for $2 million.

1966, KFC went public

1969, Listed on the NYSE

1971, KFC was acquired by Heublein Inc. for $285 million.

1982, Heublein & KFC Inc. was acquired by RJ Reynolds

1986, RJ Reynolds & KFC, was acquired by PepsiCo, Inc. $840 million.

1997, PepsiCo, Inc. spined-off it to Tricon Global Restaurants.

2002, Tricon changed it's corporation name to Yum! Brands, Inc. .

NOW:

Yum Brands, Inc. is the world's largest restaurant company in terms of system units with

nearly 32,500 in more than 100 countries and territories.

Current Market value of the Yum Brands on the NYSE is 9.7 Billion $.



SWOT ANALYSIS

STRENGTHS

KFC continued to dominate the Chicken Segment, with sales of 4.4

billion in 1999. Despite gain by Boston Market and Chick-fill A, KFC customer baseremained loyal to the KFC brand because of its unique taste.

KFC has continued to dominate the dinner and take out segment ofthe Industry.

Strong trademarks recipes.

Ranks highest among all chicken restaurant chains for itsconvenience and menu variety.

Generate $1B each year



MARKET SHARE



WEAKNESSES

KFC was loosing market share as other Chicken chain increasedsales at a faster rate.

KFC share of Chicken Segment sales fell from 71 percent 1989, to

less than 56 percent in 1999, a 10-years drop of 15 percent.KFC leadership in U.S market was so extensive that it had feweropportunities to expand its U.S restaurant base, which was onlygrowing at about 1 percent per year.

Failed to rank in top 20 in growth in 2000.

Lack of knowledge about their customers.

Question of over franchising leads to loss of control and quality.

Lack of focus on R&D.



OPPORTUNITIES

McDonald’s accounted for 35 percent of the Sandwich Segment while

Burger King ran a distant Second, with a 16 percent market share.

Per store sale at Burger King remained flat and Hardee’s per store sale

declined by 10 percent.

In family Segment, Friend’s and Shoney’s were forced to shut downrestaurants because of declining profits.

Within the Pizza Segment, Pizza Hat and Little Caesars Closedunderperforming restaurants.

Boston Market was a new restaurant chain that emphasized roasted rather

than fried chicken.In 1999, Boston Market soon entered Bankruptcy proceedings.

Church’s broadened its menu to include buffalo chicken wings, macaroni

and cheese, beans and rice and collard greens.

Baby boomers aged 35 to 50 constituted the largest customer group forfast-food restaurants.



THREATS

McDonald’s with sales of more than 19 billion in 1999, accounted for 15 percent of the sales of the nation’s top 100 restaurant chains.McDonald’s generated per store sale 1.5 million per year.Much of the growth in dinner houses came from new unit construction insuburban market and small town.

In Family Segment, Steak n Shake and Cracker Barrel expend itsrestaurant by more than 10 percent.KFC nearest competitor Popeye, ran a distant second with sales of 1.0 billion.In early 1990s’ many industry analysts predict that Boston Market wouldchallenge KFC for market leadership.Boston market and Chick-fil-A market share gains were achieved primarilyby taking customer away from KFC.Popeye’s replaced Boston market as the second largest chicken chain in1999.



FINDINGS ANDRECOMMENDATIONS

FINDINGS

KFC was trying to increase market share in other regionsof South America beside Maxico & Carabian. Butfinancial constraints restricted KFC from doing so.KFC focus on strengthening its position in Maxico &Carabian Only.New Competitors like Habib’s and Wendy’s wereestablishing new restaurants in Maxico.KFC had largest market share of fast food chains inMaxico.Devaluation of Peso does not effected KFC, becausetheir production plants in Maxico were utilizing localresources.



RECOMMENDATIONS

If KFC could increase company own restaurants, which enables it tocontrol quality, services and restaurant cleanliness. Therefore morecapital is needed.

On the other hand if company operated franchise based restaurants

throughout Latin America, its brand image could be build and itscompetitors will be loosing first more advantage.

Latin American markets is developing markets, so its growth is highand entry barriers are low.

KFC could make strategic alliances with key suppliers to gain

advantage over competitors in the market.An a peeling business model and good strategy has goldenopportunity to shape the rules and establish itself as the recognizemarket leader.



CONCLUSION

FOCUS OF THEIR STRATEGY SHOULD BE ON THECOUNTRIES LIKE CHINA, AND INDIA ETC BECAUSE THEY

PROVIDE MARKETS WHICH HAVE HIGH GROWTH RATE

ON THE OTHER HAND…..



KENTUCKY FRIED CHICKEN

QUESTIONS

&

ANSWERS

SESSION



SPECIAL

THANKS

TO

SIR AMJID ALI SHAH

KENTUCKY FRIED CHICKEN

kfc vs mac donald

Documents