Running Head: KFC’s CUSTOMER PROFITABILITY

KFC’s Customer Profitability

Student’s Name

Institutional affiliation
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KFC’s Customer Profitability

Kentucky fries chicken (KFC) is a fast food restaurant known globally, which has had a

successful experience in the global catering market. The company has been able to penetrate in

many countries market dues to its franchise and understanding of the food market [ CITATION

YuC09 \l 1033 ]. This has been illustrated by is diverse food menu serving different variety of

foods in different regions of china.[ CITATION Sch05 \l 1033 ] KFC established its first restaurant in

China’s city of Beijing in the year 1987. Currently KFC is the leading fast food restaurant in the

country with it being able to take over every town in the region. The better performance in the

Chinese market has been enabled by its strategic business ideologues. Its consumer profitability

has been facilitated with the following factors.

Order Size

KFC has become more profitable in China as it offers a wind range of different types of

food. Their orders are capable of luring Chinese customers into taking their breakfast, lunch,

dinners and late night dishes at KFC restaurants. According to [ CITATION Sch15 \l 1033 ]. The

restaurant menu caters for all local tastes and international tastes while offering enough variety

that encourages repeats from satisfied clients. For instance, introduction KFC have introduced

the new full Chinese breakfast menu across all their outlets alongside fish shrimp burger and

vegetable soups. By observing the consumer behavior the management team will identify the

needs of the consumers and produce products which meet the need of the consumer. Like in

china the company introduces foreign foods like “hamburger” which increased its order size and

attains better prices. [ CITATION Hus14 \l 1033 ], by understanding this KFC made a thorough
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research on the consumer needs and behavior towards their foods and made changes which

would generate more sales to them. Consumers will be aware of the quality of the product and

hence lead to high consumption rates and loyalty.

Marketing of the products also increases the rate of sales by introducing the product to

more consumers. According to [ CITATION Rob09 \l 1033 ], this makes the product widely known

and hence makes more returns after consumerism. The best application of marketing their

products would make many people in the country know their products and get to like them. The

more consumers are aware of the product the high rate they will rank the product and even

recommend others to your product.

Pricing

Since customers in China are price sensitive, KFC has adopted significantly low prices.

For instance, the best menu usually sold at 7 Euros in Europe only costs 18Yuan in China

representing 2.30 Euros in Europe (Verot, 2015).

Location

The location is what makes KFC successful in China. The first KFC retail shop was

opened in Beijing in 1987. Since it is the main town in the country, it made KFC marketing, sells

boom up within a short time, and has remained constant for years. Other locations in China are

located in crossroads within booming shopping centers and cities (Ethanxie, 2016). In this case,

the Chinese do not think of KFC as a fast food restaurant but rather a place to sit and dine

together as a family.
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infrastructure

With the introduction of over fifty new delicacies into their menu to meet customers’

demands meant that the restaurant had to offer a variety of foods most which were traditional

dishes that appealed their consumers [ CITATION Sch15 \l 1033 ]. Therefore, KFC must ensure that

they their restaurants have adequate space for food preparation. Fro in stance in Shanghai KFC

have enlarged their restaurants to twice their normal size to allow for bigger kitchens that will

accommodate more employees who work to meet deadlines. Besides, the restaurants have been

enlarged to allow for more space where clients can dine and linger comfortably. Car parks with

ample spaces are also available for visitors to park their cars. Consequently, KFC have

constructed a number of outlets which are centrally placed for ease of convenience for

consumers to easily reach them.

Conclusion

According to the above analysis, it’s evident that the above business strategies have

enables KFC restaurants expand its markets and perform well. The strategies well suit the

modern market and put in consideration the current modes and trends which when well mastered

will reflect a high turnover in the company.

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References

Bell, D. E. (2011). KFC's radical approach to China.

Ethanxie, K. (2020). What makes KFC successful in China ? The importance of marketing research.

Retrieved 2 March 2020, from https://mpk732t22016clusterb.wordpress.com/2016/08/21/what-

makes-kfc-successful-in-china-the-importance-of-marketing-research/

VEROT, O. (2015). KFC vs MacDo in China - Marketing China. Retrieved 2 March 2020, from

https://www.marketingtochina.com/kfc-vs-macdo-in-china/

Hussain, S. H. (2014). The impact of sensory branding (five senses) on the consumer: A case study on

KFC (Kentucky Fried Chicken).

Roberts-Lombard, M. (2009). Customer Retention Strategies of Fast-Food Outlets in South Africa: A

Focus on Kentucky Fried Chicken (KFC), Nando's, and Steers.

Schröder, M. J. (2005). "Fast foods and ethical consumer value: focusing on McDonald's and KFC."

British food journal.

Yu, C. &. (2009). American Fast Food in Chinese Market: A Cross-Culture Perspective: The Case of

KFC and McDonald's.

Yu, C. a. (2019). "American Fast Food in Chinese Market: A Cross-Culture Perspective: The Case of

KFC and McDonald's.".

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