1. Product
In order to bring success in China, KFC knows that western restaurants need changed by using localization strategy. As cultural adaptation is the process of “adjusting the native ways of thinking and behaviors to be consistent with the local culture” (Kotler, 1982), KFC tends to launch Chinese food apart from western food like burger or chicken wings, for examples, Chinese food like congee and rice, and promote Chinese herbal tea in 2004. KFC launched Chinese products like ‘Wolfberry Pumpkin Congee’, ‘Chicken Porridge with Mushroom’, ‘Duck Soup’, even lunched the ‘Deep-fried dough sticks’ in 2008. 90% of its raw materials are coming from the local too. It is obviously that KFC is trying to create the Chinese taste food when it entering to China market. The Chinese food fit the local taste and it helps KFC to build up the relationship with the Chinese people. Also, KFC introduced several new products with Chinese regional characteristics aiming to adapt local taste. For instance, ‘Dragon Twister Combo’,
‘Sichuan taste Spicy Chicken’, ‘Cantonese flavor cushion chatter’, etc. As there are many cities in China, KFC wants to treasure different regional tastes, from Beijing to Sichuan or Cantonese tastes. The products that are particularly designed for the Chinese, which gives the chance to KFC promoting their brand to Chinese people and becomes the first western fast food restaurant with Chinese cuisines in China. While KFC has launched diversification products, no matter western food like burger, French fries, chicken wings, or Chinese food like congee, rice, soup, deep-fried dough sticks, etc. People can find different types of food in KFC and it introduces a new product every half month in average, which provided an innovative product lines to customers and enlarge its market in China.
2. Place
KFC is the first joint vendor of international fast food shop in China and its first restaurant is located in Tiananmen Square