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A Case Study of Kfc’s Cross-Cultural Marketing in China

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A Case Study of Kfc’s Cross-Cultural Marketing in China
A Case Study of KFC’s Cross-cultural Marketing in China

Summary: In 2007, KFC had opened 2000 outlet stores in china, leaving rival MacDonald’s far behind, achieving high praise from Chinese consumers and defeating challengers again and again. From the perspective of cross-culture, this paper tries to analyze the marketing strategy of the American fast food chain stores in china and give multinational food and beverage companies suggestions.
Key words: KFC, fast food, cross-cultural marketing

1. KFC's success stories and their status in China
In 1987, KFC entered the ancient capital of Beijing, China, which has a long food culture and the world's largest population. KFC opened the first restaurant in at Qianmen of the downtown area. As a starting point, KFC began to constantly experiment and learn to adapt to Chinese society and market, and gradually forming a management model with Chinese characteristics. Till 2007, KFC had opened 2000 restaurants. This paper analyzes KFC’s performance in China from four perspectives: product innovation, pricing strategies, channels and public relations

1) KFC's product innovation strategy
Facing the fierce competition in China’s fast-food industry, KFC attaches great importance to product innovation. China is still in the procedure of opening to the world, common people are extremely curious about the new things. Meantime, Chinese have a high sense of cultural identity, especially to the traditional foods. Using the Western “skin” to surround the Chinese “core” reflects KFC’s cross-cultural marketing success in product innovation strategy. From the Mexican Chicken Meatloaf to the Old Beijing Chicken Volume, KFC continuously make breakthrough and innovation combined with the characteristics of Chinese culture, not only providing consumers with a variety of choices, but also bring the fast food industry a wide range of competition, in which KFC consolidates its leading position in China’s fast food industry.

2)



References: “China’s Most Contributive Multinational Corporations in 2007,” Executive, January 1, 2008. “KFC’s Special Customer,” Journal of Beijing Petroleum Managers Training Institute, June 9, 2007. Guo Qi, “A Comparison between Chinese and Western Fast Food Industry,” Market Forum, March 12, 2008. Li Benhui, “Learning from Yum Group’s Chain Operation and Innovating A New Model in China’s Catering Industry,” Market Modernization, May 1, 2008. Li Jiang, “KFC and Foreign Fast Food,” Art & Design, May 24, 2008. Li Wentao, “On KFC’s Localization in China according its Brand Positioning,” Enterpriser World, April 1, 2008. Lin Guanghai, “Crisis Management of Enterprises,” Corporation Research, February 5, 2007. Long Weili, “Yum Group Changes for China,” Foreign Investment in China, January 1, 2008. Xing Mei, “Crises Management in P&G’s Withdrawal from the Counter and KFC’s Success,” Money China, September 1, 2006. Yao Hongyu, “Inspiration from KFC’s Success,” Landbridge Horizon, February 1, 2007.

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