INTRODUCTION
Background of KFC
Colonel Harland Sanders is the person that started KFC. Harland Sanders is born outside Henryville, Indiana. In 1936, Kentucky Governor Ruby Lafon makes Harland Sanders an honorary Kentucky Colonel in recognition of his contribution to the state’s cuisine. The birth of the Original Recipe happened in 1940.This was the recipe that blends with 11 herbs and spices.
In 1952, Colonel franchising his chicken business by traveling from town to town and cooking batches of chicken for restaurant owners and employees. In 1964, Kentucky Fried Chicken has more than 600 franchised in the United States, Canada, and England. Sanders sell his interest in the U.S. Company to a group of investors headed by John Y. Brown Jr. future
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They make a website of KFC so easily we just search in internet what do we want about KFC and so many information about KFC. There are also many transactions that do by internet and the KFC just delivered the order to the customer lazy to go out to buy some food, this is the reason they make an order delivered.
SWOT ANALYSIS OF KFC
STRENGTHS WEAKNESS
1. Strong market emerging around the world
2. Partnership with other leading fast food companies
3. Market leader as trusted company in chicken category as their primary product 1. Food menu which is unhealthy and demand in healthier food by customer
2. The numbers of employees turnover are high in rate
3. Lack in creating new food menu and limited menu offering
OPPORTUNITIES THREATS
1. Online marketing strategy
2. Home delivery services
3. Introduction to new food menu 1. Increase in competition of other fast food restaurant chains
2. Eating healthy habits
3. Lawsuits towards KFC
Strengths
1. Strong market emerging around the world- KFC have started to emerging world market especially countries such as India and China. India and China have large market opportunities that can be conquer by
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• Introduced new different menu items to keep up with local competitors.
• Pay closely aligned with customer service and restaurant performance.
So, the possible raise in other countries encouraged KFC to build a leading position and have more popularity. The practice of achievements saved a lot though R&D, creating and involving technology in developing work. These strategies are the gate to decrease costs and double profits in the business. KFC follows a blended low cost because it depended mainly on its brand name and original taste and recipes to be superior while at the same time benefits of cost savings from economies of scale keep them competing on price.
Business Level Strategy
A business level strategy that KFC utilized was effectively was, once a decrease in profit occurred the restaurant was closed down. A horizontal differential was implemented thru style options. KFC wanted to meet the needs of local markets. They not only introduce neighborhood programs, but also they hired locally. KFC also helped the vet out marginal products. KFC puts massive emphasis on having sanitary and updated restaurants. They also knew it their products were not reliable, customers would find other chicken providers. KFC paid close attention to service and dedicated time to maintaining the reliability of their product provided to their customers. The business level strategy is
Samuel Truett Cathy, better known as Truett Cathy was the founder of Chick-fil-A. He was a small-town boy who was born in Eatonton, Georgia on March 14, 1921. From a young age, Cathy always had passion for business. When he was younger he used to help his family make extra money by selling Coca-Cola, operating a paper route, and performing odd jobs. He made so much money with his paper route that he eventually became the “breadwinner” of the house.
During 1970s and 1980s, the chain expanded by opening new franchise in food courts at malls in suburban area. The first free standing-alone restaurant was opened in 1986 outside of the mall food court on North Druid Hills Road. Since then the company focuses more on developing stand-alone restaurant. In 2006, Chick-fil-A sales surpass $2 billion, marking the family-owned business as a billion-dollar brand. In 2015, the company opens the 5,000-square-foot restaurant in NYC, which is the largest Chick-fil-A’s free-standing restaurant in the country.
After they had gotten the business going smoothly the restaurant in Forest Park burned down. Truett decided to rebuild where people would stand up and order. Nobody liked this idea. So, Truett sold it to Ted Davis who turned it into a Kentucky Fried Chicken.]
The first time I have heard of the Chick-fil-A Franchise Opportunity was in the discussion about good opportunities of starting business in the Facebook community. My interest in different business opportunities to bring a change to my life prompted me to check what Chick-fil-A Franchise could offer to a motivated individual committed to developing one’s own business and making it successful entrepreneurships experience. I have studied a list of the top-ranking global franchises, their profiles and the industries they operate in. The American Franchisee Association was also a helpful resource for learning more about franchise opportunities. Out of the one hundred companies and corporations listed, eight represent franchises that are
Introduction Subway is an American fast food restaurant franchise that primarily sells sandwiches andsalads. It is owned and operated by Doctor 's Associates Inc. Subway is one of the fastest growing franchises in the world, with 44,280 restaurants in 110 countries and territories as of September 18, 2015. ] It is the largest single-brand restaurant chain and the largest restaurant operator in the world.
The author of “Fast Food Nation”, Eric Schlosser, informed Food Inc. by mentioning, “In the 1970s, the top five beef-packers controlled only about 25% of the market. Today, the top four control more than 80% of the market.” (Kenner, Food Inc.) Schlosser statistics provides a reliable data which strengthen logos in a certain
It is no secret that Americans generally enjoy fast food and chicken. In fact, each year the average American eats approximately seventy-three and a half pounds of chicken (2011, June 19). So how well do two of the most successful chicken-based fast food restaurants compare in convenience, quality, and variety? A comparison must be made between Chick-fil-a and Zaxby’s to find out.
One of their biggest competitors is KFC. In 2014, KFC was announced the former largest fried chicken franchises in the US. This was because Chick-fil-a was announced the largest. Chick-fil-a is also competing with McDonald’s corporation, Popeyes, and Yum Brands Inc.
In the review of the corporate level strategy, we can see many different competitive advantages branching from their use of corporate diversification and vertical integration. Going deeper into those strategies the three elements that allow for a competitive advantage for The Kroger Co. include operating into different markets, having a successful customer reward program, and by having many different locations nationwide under many different brand names. The VRIO analysis found that all three of these give Kroger’s a sustainable competitive advantage by being valuable, rare, costly to imitate and having the right organization structure business wide. In the review of the business level strategy, there were just as many different competitive
What types of marketing strategies is chick-fil-A following? The type of strategy that the founder and CEO S. Truett Cathy developed for Chick-Fil-A was a target marketing strategy. The reason is because S. Truett Cathy focused on building the companies and other strategies that he used around his Christianity beliefs. Chick-Fil-A also made sure that every employ focused on delivering the best service they could to every customer that they served.
Its objective is to retain and promote the best managers possible at every location to best influence the food and the customers positively. A unique method of staffing was enacted at Chipotle. The staffing structure ensured that the hourly employees could be promoted to better and higher paying positions and even into management. This career progression attracted and retained the best human resource talent and provided a motivating and positive career trajectory for lower-tier staff. The ability of managers to reward or withhold tangible and intangible rewards allows for the development of a meritocracy.
The Chick-fil-A marketing plan is focused on their purpose and desire to influence people they encounter. Once that was established it has been the driving force to their successful chain of restaurants. In addition to sticking with their core values, their dedication to serving a quality product and giving exceptional customer service experience. This attention to quality and preparing the chicken in smaller batches which means the food is served fresh, and this separates Chick-fil-A from other fast food restaurants. Chick-fil-A menu is tailored to target both the health conscious and regular consumers.
. McDonald’s shows the achievement in this need when the employee gets to be promoted from the initial work position to a higher level, With promotion ,the employee’s salary will increase too. In McDonald’s when a worker becomes manager or assistant manager, they will get a new uniform which differentiates them from the rest worker, this shows recognition of that particular position. Not only that, when an employee in McDonald’s is promoted it will be because their hard work will be recognized by the upper level managers. In conclusion, the promotion and increase of pay is a symbol of recognition from
The diagram above shown the CPM of McDonald’s and its competitor, KFC and Burger King; indicates McDonald’s is in a strong strategic position than its competitor. Some of the reasons McDonald’s is successful and has high market is due to it strong brand name recognition, a strong customer loyalty, and its global expansion. Furthermore, McDonald’s is also invested a large sum of money in advertising and very well known toward it charity program through Ronald McDonald’s House. Nevertheless, there are areas in which the organization can improve.
The price strategy which KFC is currently adopting is geographical pricing. It is because the menu prices is set differently in each country. For example, KFC Malaysia snack plate is priced at RM 5.95 while snack plate in Singapore is priced at SGD 6.40. Generally, they use market penetration pricing for new products. KFC sets their price slightly lower as compared to their competitors in order to entice customers away from their competitors.