A brief overview is taken from different sources to summarize The Understandings of both Businesses. Strategic and Competitive Analysis on which KFC & McDonald are standing.

1. McDonald’sVS KFC
History & Analysis of Strategies Followed by
McDonalds & KFC
Group Members:
Syed Arslan Ghaffar
Muhammad Adnan Javed
Abdullah Zaman
Syeda Alina Shah Bukhari
Saleha Munir
Bernice Maria Joseph

2. McDonald’sVS KFC
o KFC was founded in 1939.
o In Pakistan it opened its first branch in January 27,
1997 near Gulshan-e-Iqbal.
o There are 68 outlets in 19 major cities of Pakistan
including eighteen in Karachi alone.
o Today KFC has more than 15,000 outlets in the world.
• McDonald was founded in 1955.
• In Pakistan McDonald was opened in
1998.
• Today they have 44 restaurants in 16
major cities of Pakistan including 8 in
Karachi.
• Globally they have more than 36,000
restaurants in 121 countries.
• McDonald is known as the largest and
best known multinational restaurant in
the world.

3. Logo: Stylized “M” letter
or “McDonald’s”
Logo: Stylized acronym KFC or
“Kentucky Fried Chicken”
Mascot: clown
Ronald McDonald
Symbol: brand’s founder
Colonel Sanders
Colors:Yellow, Red,White Colors: Red,White, Dark Blue
Slogans:
There's Fast Food,
ThenThere's KFC.
We do chicken right.
Finger Lickin'Good
Slogans:
McDonalds. I'm lovin' it.
Nothing can do it like
McDonald's, etc

4. COMPETITIVE ANALYSIS

5. STRATEGIC ANALYSIS & MARKET SHARE
Technological
Element
Almost Same Machines
KFC has advanced
machines
Socio-Cultural
Element
Hire Employees from
Local Area
Use 100% Halaal
(Zibiha) Chicken and
Beef
Economic
Element
Mix
Economy
Market Share
PEST – Analysis

6. Company
Employee
Service
Customer
SERVICES
CUSTOMER FIRST
Cleanliness
Hospitality
Accuracy
Maintenance of Facilities
Product Quality
Speed of Service
EMPLOYEE FIRST
McDonald's is continuously
doing Internal Marketing
"I'm loving it"
Front line employees,
managers
Customers
QSC&V
Finger Lickin' Good

7. Worldwide MarketShare in the fast
food industry
57%
2%
1%
1%
9%
9%
19%
2%
Others
Burger King
COSI
Panera Bread
Subway
KFC
McDonald's
Wendy's
KFC

9. Comparison
0
5000
10000
15000
20000
25000
30000
35000
KFC McDonald's
Restaurant numbers worldwide
15,000
31,000

10. Salience
Needs satisfied: Food
Category Identification:
Fast-food restaurant

11. Performance
McDonald's primarily sells
hamburgers, cheeseburgers,
chicken, french fries, breakfast
items, soft drinks, shakes and
desserts.
KFC primarily sells chicken pieces,
wraps, salads and sandwiches.
Outside the USA, KFC offers
hamburgers or kebabs and other
regional fare.

12. LETS FIRSTTALKABOUT
KFC…………..

13. Imagery: KFC
The company was
founded as Kentucky
Fried Chicken by Colonel
Harland Sanders in 1952
though the idea actually
goes back to 1930.
Initially his restaurant
generally served travelers,
often those headed to
Florida.
So the original idea of
KFC was based on selling
good enough chicken for
acceptable money to
occasional customers.

14. According to the
corporate website,
KFC is present in 110
countries and
territories around the
world. It has in excess
of 5,200 outlets in the
United States and
more than 15,000 units
in other parts of the
world
Through original recipes and the idea of selling fried chicken for acceptable
price it has become a popular American brand. They also established high
level service standards. Further investments from new ownersYum! Brands
and Pepsi made it recognized all over the world.The founder of company
remains the symbol of KFC even after his death.

16. PRICINGSTRATEGY
 Their products are priced high and target the
middle to upper class people
 KFC adopt the cost base price strategy.
 Pricing of the product includes the govt. tax and
excise duty
 The products are bit high priced according the
market segment and it is also comparable to the
standard of their product.
 In the cost based method we include the variable
and fixed cost.

17. PROMOTION
 Advertising
 Sales Promotion
 Public Relations
 Events and Experiences
 Coupons, Discounts and Bundled packages

19. SOCIAL MARKETING
 Face book
 Twitter
 Google+

20. NOWABOUT
McDonalds…….

21. Imagery: McDonalds
The business began in 1940,
with a restaurant opened
by brothers Richard and
Maurice McDonald in San
Bernardino, California.
Their introduction of the
"Speedee Service System"
in 1948 furthered the
principles of the modern
fast-food restaurant.The
original Mascot speedy was
replaced by Ronald
McDonald by 1967.

22. Number Of Outlets 36,900 (2016)
Revenue US $ 24.622 Billion (2016)
Net Income US $ 4.686 Billion (2016)
Total Assets US $ 31.024 Billion (2016)
Total Equity US $ 2.2043 Billion (2016)
No. Of Employees 375,000 (2016)
Outlets in Pakistan 44
Number Of Cities In Pakistan 16
McDonalds In Figures

23. Product LifeCycle
23

24. Products
Beverage :Cold Coffee, Ice Tea ,Hot
Serves,Mcshakes
24

25. What Mcdonald’sSale
25

26. 26
Location

27. McDonaldCompanyAssessmentSummary
Focus
Product Offerings
Technology, Locations
Marketing/Advertising
Renovation of Exiting Restaurants
Overall Cost Leadership
High Marketing/ Advertising Cost
Investment of Location property
Increased Technology cost
Implement Just-in-Time (JIT)
Differentiation
Added lounges
Premium coffees
Modern facilities
Defensive
No marketshare of own company
Only focus on themselves
Strategic Posture

28. 2005-2014McDonald's Revenue
28

29. CompetitiveAdvantage
 Striving to be cost leaders: prices cannot be matched by competitors.
 The speedy delivery of the food.
 Strong global presence and largest market share in fast-food industry.
 Net competitive advantage.
 They have been in the fast food business for a longer time than their
competitors.
 Franchising requires less capital than other growth methods
 Rapid Expansion
 Market Dominance
 Franchising puts a "business owner" in charge
 Franchise locations may operate better and more profitably than
"company owned" units
 Greater Buying Power
 Increased Name Recognition
29

30. CompetitiveAdvantage(Cont.)
 Increased Advertising and Marketing Budget
 New revenue streams are created
 Franchise Fees
 Franchise Royalty Fees
 Advertising and Marketing Administrative Fees
 Services provided to Franchises
 Sales of Products & Supplies
 Training Fees
 Sales of Promotional Items
 Rebates from Suppliers
30

31. 31
CPM Matrix

32. SOME PUNCHESTO EACHOTHER…….

33. Mcdonald’sService Philosophy “QSCV”

34. KFCService Philosophy “CHAMPS”
Champion Plan

35. Brand’s core: cheap & fast
food with a high level of
service.
Brand’s core: tasty
chicken for acceptable
price
Purchase situation:
Whenever you are
hungry and need to eat
cheap and fast
Purchase situation:
Whenever you are
hungry and want to
eat chicken for
acceptable price.
Consumers: middle and low
class employees, students and
children, travelers.
Consumers: middle and
low class employees,
students and travelers
Global brand Global brand

36. Judgments
McDonalds is
considered to be a
good and convenient
place to eat cheap
and fast. Usually
people are satisfied
about the level of
product’s quality and
service for the price
they are paying.
KFC is considered to
be good and
convenient place to
eat cheap chicken.
People are usually
satisfied about the
level of product’s
quality and service
for the price they are
paying.
BUT…

37. Being global brands make
them good targets for
criticism and applying
stereotypes.The main
accuse is related to obesity
and heart deceases caused
by the fast-food
consumption
The use of popular toys encourages children to eat
more McDonald's food contributing to many children's
health problems, including a rise in obesity.
KFC is continuously
accused for the animal
rights’ violations.
Both companies are supplied with soy beans by
Brazilian company Cargill which is mostly responsible
for the forest destruction and emissions of carbon
dioxide into the atmosphere.

38. Feelings
In general:
Convenient
Easy access
Friendly
Reliable
Fast
Not healthy
For children: fun
For the new markets:
western style, cool
In general:
Convenient
Cozy
Easy access
Better quality
for higher price
Not healthy
For the new markets:
western style, prestigious

39. Resonance
McDonalds KFC
Comparably low loyalty
level among consumers on
the “old” markets except
for children. Many
occasional purchases.
Existence of loyalty
among consumers mostly
based on their personal
preferences of chicken to
burgers.
Both companies have a high level turnover of staff.
There is even term McJob which means a low-paying
job that requires little skill and provides little
opportunity for advancement"

40. Majority of the criticism is constructive but there are some destructive
stereotypes which widely applied to global fast-food brands.
1) Only global brands are criticized for obesity, quality of ingredients etc.
but there are a lot smaller restaurants with less control which can use
worse quality ingredients and sell food containing much more calories
without any notice.
2) Global brands are often criticized for breaches of sanitary regulations
but there is no guarantee that in smaller restaurants ingredients are
washed before cooking.And even in an expensive restaurant a waiter
can spit into your soup.
3) Instead of smaller restaurants global networks are spending a lot of
money as a part of social responsibility policy such as recovering of
destroyed forests or help to children with some deceases.
4) Being big brands it’s necessary to find reliable supplier. As an example,
McDonalds switched to using coffee beans taken from stocks that are
certified by the Rainforest Alliance.
Breaking Stereotypes