Can McDonald's De-throne The Colonel in China Summary
Start opened its first store in China in 1990; McDonald's has ambitious to expanse the market with 750 outlets by the end 2005 and planned to have 1,000 restaurants in 2008 by the time they sponsor for the Beijing Summer Olympics.
Chose a different way from their competitor, KFC, McDonald’s prefers the large cities to grow instead of opens outlets in second and third cities. Although McDonald’s is one of the biggest fast food brands in the Western word, but in China, they still way behind Yum! Brands, especially KFC. Yum! had a first move was the first fast-food restaurant enter China in 1987. Chinese people prefer chicken than beef also helped Yum!’s successful business in China.
McDonald’s had no plan to cede China to the Colonel. One hand, they are trying to adding drive-through restaurant to narrow the gap although KFC is three years ahead. The benefit came from drive-through in 2006 was good enough to make them hope to open twelve to fifteen drive-through every year for the coming three years. The other hand, they introduced menu changes, gave consumers more chance to have their food. In China, McDonald’s launched nine products less than 60 cents; they also launched a rice burger, targeted at higher spending consumers.
The bird flu might cause a fear from customer about chicken; convince them to enjoy a Big Mac or rice burger helped McDonald’s remain a brand in China to compete with KFC. Nutritional cocerns that have cast a shadow in developed market are less of an issue in
Chose a different way from their competitor, KFC, McDonald’s prefers the large cities to grow instead of opens outlets in second and third cities. Although McDonald’s is one of the biggest fast food brands in the Western word, but in China, they still way behind Yum! Brands, especially KFC. Yum! had a first move was the first fast-food restaurant enter China in 1987. Chinese people prefer chicken than beef also helped Yum!’s successful business in China.
McDonald’s had no plan to cede China to the Colonel. One hand, they are trying to adding drive-through restaurant to narrow the gap although KFC is three years ahead. The benefit came from drive-through in 2006 was good enough to make them hope to open twelve to fifteen drive-through every year for the coming three years. The other hand, they introduced menu changes, gave consumers more chance to have their food. In China, McDonald’s launched nine products less than 60 cents; they also launched a rice burger, targeted at higher spending consumers.
The bird flu might cause a fear from customer about chicken; convince them to enjoy a Big Mac or rice burger helped McDonald’s remain a brand in China to compete with KFC. Nutritional cocerns that have cast a shadow in developed market are less of an issue in