Questions for discussion:
猫田米藏
1. Comparing KFC's failure and success in Hongkong, what were the major reasons for KFC to succeed the cond time?
2. What factors can be attributed to KFC's success in the Mainland？功利色彩
With the development of global economic integration, marketing needs to proceed in cross-cultural context. And culture diversity will bring out the differences about consumer spending ideas and behaviors, which will cau cultural barriers and conflict. In this essay, combining the successful operating experience of KFC in China, it is summed up that the implementation of the localization strategy can preferably ensure that cross-cultural marketing company could survive and develop in different cultural environment. This essay consist of three parts, from the three parts, the modes of KFC fast-food is well realized.
KFC in China
KFC was enter the Hong Kong market as early as 1973, and established their first business in June. But In 1975, all KFC restaurants in Hong Kong are clod for the reasons followed: They only take the American culture into account, using the operation method they did in United States without considering the fact that Hong Kong market, which is located in Asian, has great difference to the US market. The culture and taste are different between the two countries, and the level of economic development also has a very big disparity. The products KFC provided do not adapt to local customs and practices, and their brand awareness does not conform to the local culture.
KFC not only fail to have a good grip on the difference between Hong Kong culture and their native culture but also fail to coordinate the differences at an appropriate time. Their blind u of “ lf reference principle", their ignorant move bad on strong national n of superiority and over advocating personal development, are leading their failure in Hong Kong.
香煎里脊
Awareness of the errors, KFC enter the Beijing market which has a long diet culture in
1987.As a starting point, KFC began to fumble and continuously learn to adapt to the Chine market and society. Then they gradually formed an operation method with Chine characteristics. By this time, KFC has grown thousands of chain stores in China.
交通小知识KFC’s management tactics
Why KFC is able to come out at the head of Chine fast food industry in such a fierce market competition? This situation is inparable with its product innovation.
1. Product innovation可比性原则: Due to the correct understanding of the Chine culture, KFC is constantly trying to figure out the taste of Chine consumers in order to prent the typically Chine products. From “Mexican Twister”, which is changed from the traditional hamburger, to “Dragon Twister”, which is filled with Chine characteristics, KFC has made a great step to win its shares on the Chine land. In addition, KFC often launches some long-term or short-term new products, such as “Cod Fish Burger”, “Beef Wrap”, “Sichuan Spicy Diced Chicken” and so on. It treats needs as the guidance and constantly brings forth the new through the old to improve the satisfaction of the local consumers. In
2010, KFC officially launched veral kinds of breakfast porridge and the deep-fried dough sticks, which are quintesntial Chine food for breakfast, in all of its restaurants in China, making another step on its road of localizing its menu. And it is said that more Chine food is expected to enrich KFC’s menu in the near future.
2. Image innovation: 怎么看钢琴谱In the United State, it adopts Street-flavored decoration and jazz as background music to cater to the young fashion group, while in China, KFC is committed its brand to localization. Here its decoration style turns to reprent Chine tradition --- family, kinship, friendship and understanding. “Life tastes better with KFC!” During the Mid-Autumn Festival, the Spring Festival and other festivals, KFC creates a warm, harmonious and sharing image through television advertiments, which is so clo to the Chine traditional culture that our Chine always feel quite nice. KFC has already succeeded in shaping a very friendly, healthy, delicious and sweet brand image.
新来的邻居3. Service innovation: Service is an extension of the quality of products. There are no further sales without good rvice. The point is especially obvious in the fast food industr
y. As long as stepping into the restaurant, you will be provided considerate and thoughtful rvice by a warm and polite waiter with a smiling face. The customer does not need to worry about looking for asoning, napkins and other tiny things. And each KFC prepares unique tables and chairs and a children’s world specially for children. Everybody will have a good time in fully sharing the delicious food and the perfect rvice. KFC’s warm and thoughtful rvice culture has been welcomed and recognized in this state of ceremonies.
4. Training innovation: As a labor-intensive industry, KFC pursues “people-oriented" as its human capital management mechanism. KFC keeps investing capital and manpower in various aspects and levels of training from waiters in the restaurants to managers in the functional departments of the company management. The training is not only to help employees improve their job skills, but also to enrich and improve the staff’s knowledge structure and personality development Moreover, the KFC adopt the open employment. That is to say company does not make any special restrictions and requirements to its employee’s turnover. After strict training, maybe the local skilled workers and managers will choo to resign for various reasons and even be employed by the local competitive
companies. The relaxed environment makes the personnel turnover achieve an invisible cultural transmission. According to the preliminary statistics, KFC has totally accumulated training thousands of people for over 20 years in China and the basic training funds has exceeded more than one billion Yuan.
