International marketing kfc


Published on

  • Be the first to comment

International marketing kfc

  1. 1. Kentucky Fried Chicken in Brazil Anna Brewer, Gabe Hyde, Emily Mallory
  2. 2. KFC Company information Based in Louisville, KY Parent company: YUM! Brands Ranked #239 on Fortune 500 List Each day, 12 million customers are served 36,000 locations worldwide World’s most popular chicken restaurant chain  World famous for Original Recipe fried chicken
  3. 3. KFC Internationally
  4. 4. KFC Internationally In 109 countries 5,200 in the U.S.  15,000 globally Globally there are 300 products served  Grilled chicken in the U.S. to salmon sandwich in Japan
  5. 5. Financial History Own 39% market share of the chicken-on-the- bone segment as of 2011 Video:
  6. 6. Financials
  7. 7. Target Market: Brazil Languages:  Portuguese (official)  less common: Spanish, German, Italian, Japanese, English, and a large number of minor Amerindian languages 87% urban population 55% of Latin American economy Over 50% of population is under the age of 30  Hits the key demographic for KFC
  8. 8. The Target Market Large gap between the rich and poor  26% population live below the poverty line (CIA World Fact Book) Literacy Rate: 88% male and female Obesity Rate: 11%  52nd out of 70 ranked nations in the world  Generally a healthy nation Consumer expenditure on food in millions  2011: $ 190,598.8  Expected for 2012: $ 199,582.2
  9. 9. The Target Market Consumer behavior  Brazilians have good culinary sense  Strong food and drink traditions  Crucial for KFC to align with natives (BFFC) Growth in Brazilian economy  emergence of a larger middle class with higher income per person  consumers to spend more on indulging themselves, rather than restricting their spends to basic necessities Brazilians are spending more on eating out  Seeking convenience
  10. 10. Industry Analysis
  11. 11. Industry Analysis 4 segments of market  Quick service  Take-aways  Mobile and street vendors  Leisure locations
  12. 12. Foreign Market Entry Method 100% franchised in Brazil  Aligned with BFFC (Brazil Fast Food Corporation) Strategy  Joined a strong franchise within the market  They already know the Brazilian culture and marketplace  BFFC knows the tastes and culture of the food industry Entered in the first quarter of 2007 with 4 restaurants in Rio De Janeiro Currently there are 18 locations  5 in Sao Paulo  13 in Rio De Janeiro
  13. 13.  Wagner Rodrigues  Executive Officer of YUM! Restaurants International in Brazil “With Brazil Fast Food’s extensive knowledge of the Brazilian fast food market, we believe that it is the perfect company to entrust with the continued growth, development, and consolidation of the KFC brand in Brazil.” -QSR
  14. 14. Competitive Analysis  Within Brazil  McDonalds  Burger King  Subway  Local Chain Competitors  Bob’s  Giraffa’s  Habib’s  Potential: Any fast food company could come into Brazil in the future and become a direct competitor  Wendy’s  Dairy Queen  Krystal’s
  15. 15. SWOT analysis: internal aspects  Strengths  BFFC alliance  Brand Equity is #2 in the world  Strong markets internationally already in place  The top international country-style chicken fast food company in the world  Weaknesses  Fairly new in the marketplace (2007)  The risk that comes with franchising (i.e. loss of control, consistency and quality)  Do not have a lot of healthy food options
  16. 16. SWOT analysis: external aspects Opportunities  18 KFC locations  Absolute room for expansion long-term  Blue Chip for growth opportunity behind China, India and African nations  5th largest country with over 170,000,000 people  Growing fast food market  Media availability in Brazil is the largest in South America Threats  Future competitors entering the market  McDonald’s is the market share leader  CPI is 3.8
  17. 17. The Marketing Mix Product Promotion Price Place
  18. 18. Product Strategy Description  Global leader in chicken fast food Quality: focus on improvements Health aspects  KFC has re-launched its grilled chicken menu in the US, which is aimed at satisfying consumers needs for health and convenience. In doing so, it is addressing consumer trends and countering concerns regarding fatty offerings in the fast food sector. Brand Name: Internationally known Kentucky Fried Chicken Branding  Colors: red and white  Coronel Sanders Image: Adaption verses Standardization  Doesn’t want to lose brand image, but mix “balance aggregation with adaptation”  Standardizing of some products, but also tailoring to customer’s needs
  19. 19. KFC Products: menu in Brazil  Core products same as the U.S. (original, extra crispy)  Unique dipping sauces to adapt to local taste  Culturally unique products  Farofa, black beans, parmiggano sandwich, I-Twist
  20. 20. Price Strategy Standard of living  Optimism: Majority of citizens believe it is improving Exchange rate: 0.52 Real = $1.00 Competitive pricing  Value pricing strategy: provide the best value per competition  Par Value Pricing: pricing is based on the competition U.S. pricing vs. Brazil pricing  Brazil: 20 Reals, For 6 pieces of chicken 2 sides  U.S. $12.99, For 6 pieces of chicken, 1 large side, 3 biscuits  20 Brazilian reals = $10.4058 US dollars
  21. 21. Place/Distribution Distribution  Goods direct to consumer  In store  Drive through  Delivery  Franchisees place food orders through BFFC’s procurement department Suppliers  Pilgrim’s Pride, Perdue Farms, Tyson Foods  Prefer to supply from within the country but use contingency plans to ensure quality Currently, 18 locations in Brazil
  22. 22. Promotion Media availability  Largest and most developed of South America  Of 170 million people, only 2.3 million have cable and 1.3 have satellite  71 million listen to the radio  75 million have computers but ONLY 5 million have the internet  Media power: radio and television  Freedom of speech in the press
  23. 23. Promotion Advertising Strategy  Brazil advertising is known for creativity and innovativeness (AEF)  Brazilians desire entertaining advertising  Most desired advertising is during soccer games  Emphasize physical beauty  Billboards, signs in the streets also utilized  Emphasize price and convenience  Combining meals and discounts
  24. 24. Promotion Corporate social responsibility initiatives  Coronel’s Scholars  Social Diversity  Supplier Code of Conduct  Packaging and the Environment  Animal Welfare Program
  25. 25. Animal Welfare Program YUM! Brands does not own, raise, or transport animals Influence the way the supplied animals are treated Monitor suppliers Council with highly respected experts in the animal welfare field to advise KFC Develops guidelines and audit programs for suppliers in the broiler industry Industry leading in poultry care and handling audit program