This presentation is about the marketing and the management strategies KFC adopted in order to get fit into the chinese market.

2.  Infusing KFC into a brand that would be perceived as a part of
china.
 Expanding into small and mid-sized cities.
 Developing fast logistics and supply chain organizations.
 Training employees in customer service.
 Owning rather than franchising the restaurant.

3.  Twice as large in size as that in US.
 Floor area was increased so that people could dine in easily and
extended family of customers could be welcomed easily.
 Its menu had 50 items as compared to that of US which had 29 items
in its menu.
 Changed the recipes of their dishes according to the prefrences of the
people of different regions.
 Number of workers employed are twice as that in the US.

4.  Decided to embrace the smaller cities and expand their business at
national level with outlets all over the country.
 Lower cost of operations.
 Advantage of being the early movers.
 Rapid expansion has helped KFC move ahead of the competetion.
 KFC has 40% market share as compared to that of McDonalds
which stands at 16% market share only.

5.  In 1997, KFC china created its own warehouse and ran its own fleet
of trucks.
 Supplier Rating System helped the managers to buy the products
from the managers who perform the best.
 Relied on renting temporary warehouses and reserving space on
cargo airlines during the time of traffic jams in winters.

6.  Teams of new employees work side by side with the experienced
once.
 New recruits at KFC often have to learn basic people skills and
team work.
 Many competetiors have tried to copy it but didn’t match the level.
 Train the employees in personsal hygiene, from what to wear at
workplace to how often wash hands.

7.  More than 90% of Yum’s outlets in china are owned by the
company itself as compared to 12% in US.
 KFC china model is complex and owning it helps the company to
close control every aspect of the company.
 Permits centralized purchase which reduces costs and increases the
profits of the company.

8.  In 2002, 23% of chinese adults were overweight, in 1982, 6% adults were
overweight.
 Overweight and obese children aged between 7-17 yrs have tripled to
8.1% in the past 10 yrs.
 In 2005, a new concept “new fast food” was introduced and promoted
healthy living.
 More fruits and vegetables are included in the dishes.
 KFC’s children meals are served with vegetables and juice.
 Nutritional information is printed on every package and the hostess teach
on nutrition to the kids.