KFC Analysis

KFC has a very long history and has the most recognizable brand in chicken. With over 50% of the market share it
becomes very difficult for new companies who may want to enter the market. KFC has name recognition around the
world and has been globally positioned for many years. KFC�s secret recipe of 11 herbs and spices has made it the
leader in chicken for the last fifty years. KFC sells three recipes: Original recipe, Extra Crispy, and Tender Roast.

The many sales of KFC during the 1970�s and 1980�s lead to a very confusing direction and took the focus of the
company off of its original strategy. During the 1980�s and 1990�s KFC struggles were much do to the inability to
bring new products to the market quickly and it�s innovation of new products. KFC fell behind the market in new
products and was copying other fast food chains to stay competitive. KFC changed its strategy in the late 1990�s,
which included adding items to its menu. KFC then in an effort to address its declining market share began building
smaller restaurants in non-traditional outle

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The merger with PepsiCo was met with large cultural issues as the KFC employees were used to the previous
strategy of a laid-back, self-governing environment, to an environment who demanded tighter control over operations.
Other segments of the industry are turning to new menu offerings. ts, airports, shopping malls, and hospitals. They
believed the franchisees knew the business better than they did. The second largest threat would be other chicken
chains that are now adding other types of food to their product lines.

The largest threat KFC is faced with is the restaurant industry as a whole. The consumer continues to have many
choices when it comes to fast food restaurants. By the year 2000 only 27 percent of the restaurants were company
owned. The cultural differences took the focus away from the chicken business. KFC’s target market of four person
middle class families is not their main consumer. The main consumer of KFC is a middle aged white male.

The loss of market share and slowing growth also was due to the many mergers they went through during a limited
time period. KFC established units that sold both Taco Bell and KFC or KFC and Pizza Hut. By the year 2000 more
than 50 percent of KFC�s restaurants were located outside the United States. As we will address further in this
report KFC is continuing to expand in foreign markets, which is one of Yum!s goals for growth. took over KFC there
seems to be a better relationship with the management of the two companies and a much more intense focus on the
growth and expansion of the market.

This brings up the point of what is KFC�s defined market. KFC�s strategy for growth, KFC began expanding in
foreign markets as far back as the 1950�s and are currently the 3rd largest fast food chain as of 2000