PROJECT: CONSUMER BEHAVIOUR

Cross Country Cultural Analysis

Industry - Food and Beverages

Company For Reference- KFC

INTRODUCTION

Over the past decade, agri-food export from the EU to the Asia Pacific Economic
Cooperation (APEC) has more than doubled. In 2019, the value of these exports hit €74,710
million. This trend looks set to continue, with the Asian food and beverage market expected
to increase by a compound annualised growth rate of 11% between 2020 to 2024, reaching
US$277 billion (approximately €238 billion). There is much potential for multinational food
and beverage firms to build or extend activity in APAC markets. To maximise the
opportunity, it is important to keep up to date with relevant legislation and consumer trends.

To see how differences in culture and consumer preferences can be tackled in the broad and
diverse Asian market, this project considers the various strategies employed by KFC. KFC
(Kentucky Fried Chicken) is an American fast food restaurant chain that specializes in fried
chicken. It is the world's second-largest restaurant chain (as measured by sales) after
McDonald's, with 22,621 locations globally in 150 countries as of December 2019. KFC
operates around 8,065 outlets in Asia, China being its biggest market with 4,563 outlets.
 IN JAPAN:

A CONSUMER BEHAVIOUR ANALYSIS

OVERVIEW

The Japanese are affluent consumers who set trends in Asia. The attitudes and consumption
behaviours of the Japanese people make this mature market significantly different from those
of other Asian countries. Consumers are increasingly interested in a diverse variety of foods
that have superior taste, are safe and nutritious, and are offered at a reasonable price.
Japanese consumers demand and will pay a premium for high-quality food products,
provided they exceed expectations.

Japan is experiencing a demographic and cultural shift. It is facing a rapidly aging

population with 22% of its people aged over 65 years. In addition, the number of people
living on their own is rising, as is income inequality. Further, Japanese women are becoming
more empowered and the population as a whole is seeing an increase in life-style diseases.
All of these factors affect what Japanese consumers look for in food products and services.

CONSUMER TASTES AND PREFERENCES

Japanese consumers desire high quality, nutritious, tasty, and safe food at a reasonable
price. Product freshness and origin is very important and influences purchasing decision for
foods and beverages. Japanese consumers are skeptical about food safety, particularly older
consumers who have a low level of trust and growing concerns about Anzen (safety) and
Anshin (peace of mind).

Traditional consumption patterns are changing due to the influence of Western style eating
habits such as dairy and meat consumption. Fish and seafood have seen a decrease in the
Japanese diet, and sugar, confectionaries, oils and fats have seen growth. As consumers look
to save money, they are turning to more processed and frozen foods. Ready-made meals are
rising in popularity with a segment of the population to address the demand for convenience
and the increasing number of single households.
As the Japanese eat out more often, due to their fast-paced lifestyle, there is a growing trend
to consume fast foods. There are two types of fast foods in Japan-Japanese family-run food
shops and western-style. Japanese-style fast foods fall under four categories: bentos, noodles,
rice with toppings, and street foods. Western-style dining is dominated by North American
fast-food chains, which results in the consumption of more meat and processed foods.

Japanese consumers place a high value on new experiences, which has been ingrained into
the national mindset. Interestingly, Japanese consumers over 50 years of age are also very
keen to experience new things, and believe this is important to their wellbeing (Datamonitor,
―Age Complexity, 2019).

KFC’S APPROACH

1. Local Preferences

KFC in Japan reflects the local preference for dark meat over white meat, and serves rice
bowls and bento boxes familiar to Japanese consumers. It is however far more expensive
than in the U.S., which is partially made up for by the fact the workers receive extensive
culinary and service training, and you can get your chicken delivered straight to your door.

2. Conquering Christmas

One of the most striking things about KFC Japan is its popularity on Christmas. This
tradition dates back to the extremely popular "Kurisumasu ni wa kentakkii!" ("Kentucky for
Christmas!") marketing campaign of 1974. According to legend, KFC Japan's ad executives
were inspired by a group of foreigners who couldn't find turkey for Christmas dinner and
opted for the Colonel's chicken instead. Today about 3.6 million people in Japan order
chicken from KFC on Christmas.

3. Seasonal Success
Adapting itself to the Japanese taste, KFC offers seasonal menus and unique chicken
flavors. During the summer season, they serve soy sauce flavor fried chicken as well as hot
& spicy chicken and fried cutlet sandwiches.

4. Social Media Expansion

KFC Japan has shifted its marketing costs into social media relatively earlier. Now it offers
coupons and points on its app and newsletters on the message app most popular in Japan,
Line.

5. Incentivising Experiences
Once a year, KFC in Japan offers “all you can eat” campaign at their stores. It only costs $12
USD for an adult and 9$ USD for a kid. In addition to this all you can eat campaign, KFC has
opened “KFC bars” that target the adult population. At those bars, they offer alcohol and
chicken, so customers can eat their chicken with beer. This also became the trend in Japan,
especially among salarymen (business men in Japanese).

CONCLUSION

Japan has many opportunities for food & beverage companies who are willing to take the
time to establish business relationships and meet the necessary regulatory requirements
enforced by the country. As we saw in the case of KFC, there are market opportunities for
products that provide solutions for convenient living, address emerging health issues and
aging, and satisfy the consumers’ need for new experiences. Companies can use the insights
from KFC’s approach to help them tailor their marketing strategies in Japan.

Narayan Dutt Bahuguna

BMS/19/36
 KFC IN CHINA

OVERVIEW :
Culture is the most basic cause of a person’s wants and behavior. Country, like China, who
has such a long history, has rich culture background. So it is very critical for international
cooperates who want to do business in China to know about Chinese culture and how it
works to buyers’ behavior.

* FACTORS INFLUENCING CONSUMPTION HABITS :

* Principles such as guanxi (relationship issues), mianzi (status of "face" issues), and
collectivism play a major role in forming the behaviour of the Chinese people .

* Due to the collectivist nature of the Chinese, personal sources such as friends, families and
neighbours become crucial evaluators of options.

STRATEGIES USED BY KFC IN CHINA :

1. INFUSING A WESTERN BRAND WITH CHINESE CHARACTERISTICS -

They made a special effort to welcome extended families and groups. In the United States, by
contrast, KFC outlets are designed primarily for takeout.

KFC China’s menus typically include 50 items, compared with about 29 in the United States.
The menu variety adds traffic and encourages repeat visits.

2. Expanding rapidly :

Rejecting the measured growth of its China competitors and of KFCs in other countries, KFC
China set its sights on rapid expansion. Some 700 Chinese cities now have outlets.

With KFC as its flagship chain, Yum! has become China’s largest restaurant company by far,
with more than 250,000 employees and about 40% of the market for fast-food chains.

3. Focusing on ownership rather than franchising :

In KFC’s early days, China required foreign companies to have local partners; but when the
country became more receptive to wholly owned foreign enterprises, KFC China switched to
a strategy of company-owned outlets—another way in which it challenged the dominant
logic. (More than 90% of Yum!’s outlets in China are company owned, compared with 12%
in the U.S. and 11% in other international markets).

* WHAT UNIQUE DISHES DOES KFC CHINA OFFERS ?

1. KFC'S THREE MUSHROOM SPRING ROLL :

In 2013, KFC began selling spring rolls. Spring rolls are a traditional Chinese festival food,
and people will eat them during the Spring Festival. KFC’s spring roll stuffing contains three
kinds of mushrooms, namely, Tricholoma, mushrooms, and Flammulina velutipes.

2. SIX GODS FLOWER DEW - FLAVOURED COFFEE :

Another magical special product of KFC this year is six gods flower dew flavor coffee. If
you don’t know, six gods flower dew is a very famous mosquito repellent in China. It has a
strong mint and floral flavor.

3. EVERYTHING IN A BIG PANCAKE :

KFC also sold Chinese savory crepe (or just called Jianbing), a street food from northern
China. Cooking it is so enjoyable that the cook pours the liquid batter into a boiling pan and
adds eggs, chopped onions, coriander, Youtiao and sauces before it sets completely. This dish
is called “everything in a big pancake” by KFC in China.

ANSHUL

BMS/19/16
 IN SRI LANKA:

A CONSUMER BEHAVIOUR ANALYSIS

SRI LANKAN CULTURAL OVERVIEW:

Following are the cultural highlights of Sri lanka:

● Sri Lanka is a land of great cultural diversity. Religion pervades many aspects of life
and constitutes a basic element of this diversity. Buddhist and Hindu temples, as well
as mosques and churches, with their own colourful rituals, are the most readily visible
features of the cultural landscape.

● Indigenous and traditional foods of Sri Lanka present a perfect blend of cultural
diversity with human wisdom that has been evolved through generations in
establishing a cultural heritage and an identity.

● In the Sri-Lankan culture, food is treated with the highest gratitude, respect, and
generosity, expressed by sharing and offering to fellow humans, animals as well
as the divine powers. Sri Lankans love to share foods with neighbors, family, and
friends; house visits are always accompanied with bundles of food items.

CONSUMER TASTES AND PREFERENCES

● The cuisine of Sri Lanka is primarily influenced by that of Southern India, Indonesia
and the Netherlands.

● Spicy curries are favourite dishes for lunch and dinner. A very popular alcoholic drink
is toddy or arrack, both made from palm tree sap.

● Much of Sri Lanka's cuisine consists of steamed rice served with spicy curry.. Curries
in Sri Lanka are not just limited to meat or fish-based dishes, there are also vegetable
and even fruit curries. A typical Sri Lankan meal consists of a "main curry" (fish,
chicken, or mutton), as well as several other curries made with vegetable and lentils.
 ● Sri Lankan cuisine is known to be among the world's spiciest, due to the high use of
different varieties of chili peppers.

RESEARCH- Fast Food Consumption Behaviour of Sri Lankans:

OBJECTIVE: The purpose of this research was to identify which factors contribute in
creating brand loyalty towards the fast food industry in Sri Lanka, with special reference to
internationally franchised fast food brands currently operating in the country.

RESULTS: The results revealed that, food quality, brand image and promotions significantly
influence the brand loyalty of the fast food brands. Other factors included in the study: price
and atmosphere were not significant factors in influencing the brand loyalty.

KFC’S APPROACH

1. Picking up the nerves of the Consumer!

KFC in Sri Lanka reflects the local preference for Spicy food.

This also reflects how KFC adopted as per the preferences of the
the locals to serve its customers as per their preferences of spicy
food in both, veg and non- veg cuisines.

2. Conquering the Taste of Sri Lanka (Food Festivals)

Capturing the opportunity of the renowned food festivals of India, KFC entered the Sri
lankan market with an aim of targeting the local population with high discounts on its most
preferred food products.

Burger Fest at KFC Sri Lanka

3. Climate study:

Sri Lanka, being an island with a tropical climate, coconuts and fish are two of the most
influential components of Sri Lankan cuisine. Fish is made into curries, and coconut in some
form or another, is a dominant ingredient in cooking.

4. Economic Analysis:

KFC studied the economic structure and traits of Sri Lankan households, which is relatively
lower than other developing countries, and adopted its prices accordingly to meet their needs.

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Sahil Rohra
BMS/19/40
that the food tastes excellen t.

IN BANGLADESH
BANGLADESH

BANGLADESH CULTURAL OVERVIEW :

●Bangladesh has a rich, diverse culture. Its deeply rooted heritage is thoroughly reflected in
its architecture, dance, literature, music, painting and clothing. The three primary religions of
Bangladesh (Hinduism, Buddhism and Islam) have had a great influence on its culture and
history.

●Bangladesh is a unique example of multicultural country where along with the 98% Bengali
population there are at least 45 small ethnic groups who possess different cultures like their
own language, food habit, dress, music etc.

CONSUMPTION AND CUISINE PATTERN :

As with most Asian countries, rice dominates Bangladesh in terms of food production and
consumption. However, with sustained increase in income, persistent commendable GDP
growth, urbanization, and significant reduction in poverty, people tend to consume more
diversified food, ready to eat food, and food away from home. The findings from this study,
based on data from Bangladesh Bureau of Statistics, lend support to this consumption
propensity and indicate that with time rice is becoming cheaper and animal and plant foods
are getting dearer and expensive. This implies that the national agricultural policy of
Bangladesh must recast to match the future food demand of people and to meet the increasing
challenge of reversing the rising prices of non‐staples including animal foods.

Bangladeshi cuisine refers to the food and culinary traditions prevalent in Bangladesh.
Dating far in the past, the cuisine emphasizes fish, vegetables and lentils served with rice.
Because of differences in history and Bangladeshi geography, the cuisine is rich in regional
variations. While having unique traits, Bangladeshi cuisine is closely related to that of
surrounding Bengali and North-East Indian, with rice and fish as traditional favorites.
Bangladesh also developed the only multi-course tradition in South Asia. It is known as
Bangaliketa styled cuisine. Bangladeshi food is served by course rather than all at once.

Kentucky Fried Chicken stands for high-quality fast food in a popular array of complete
meals to enrich the consumer’s everyday life. KFC strives to serve great-tasting, “finger
lickin’ good” chicken meals that enable the whole family to share a fun, uninhibited and
thoroughly satisfying eating experience, with the same convenience and affordability of an
ordinary Quick Service Restaurant. TFL successfully launched the flagship KFC on South
Avenue, Gulshan in September 2006. It has already won over the heart of the Dhaka crowd
with its great tasting food, high standard of hygiene, cleanliness, terrific interior and of course
excellent and affordable pricing.

What unique dishes does KFC Offer in Bangladesh?

KFC Rice
KFC’s first-ever rice meal, a delectable combination of crispy chicken fillet and fluffy white
rice with Original Recipe sauce or spicy tomato sauce. To make it more refreshing, KFC Rice
Meals come with regular NESTEA® Green Tea. These all new sensations will give everyone
the energy to excel!

Potato Wedges
These crispy potatoes are seasoned with a special blend of herbs and spices so good they’ll
drive a wedge between you and the common french fry forever. Source: www.google.com
2.8 Popcorn Nuggets All white meat, like every nugget should be. Our extra crispy Popcorn
Nuggets are made from 100 percent solid white meat. Grab a box to go or add them as a side.

Coleslaw

Freshly prepared in store with cabbage, carrots, just the right amount of onion and our
signature dressing. Our cole slaw can teach your family-reunion cole slaw a thing or

STRATEGIES USED BY KFC IN BANGLADESH :

Running a successful business is not like a field of dreams; you can build it but they might
not come true. You have to let people know about the product or service you offer, and
persuade them to buy or use it. And you have to let people know about your product or
service repeatedly.

In KFC Generally there is no age limit focus by the KFC. The target and focus is on each
and every individual in a society. KFC finds its largest demographic in the young of any
society. Life cycle stage: Closely connected to age, the life cycle stage of a consumer group
defines what will be the need of that particular customer. For this KFC offer kids meal with
toys and veggi burger for old age people.

Generally KFC target upper class, upper middle class, middle class and middle lower class

KFC in Bangladesh only focus following geographic segmentation. These are:- City: Because
Bangladesh is a developing country and the fast food business highly profitable in only
Dhaka and Chittagong city that’s why KFC only focus on this two city. Key Spots are:
Tourist spots Commercial Areas ,University.

KFC divides market on the basis of psychographic variables like: Life Style (Lifestyle is not
specific) Personality (Personality is ambitious and authoritarian)

In Bangladesh KFC can permit their customer to celebrate various occasions. They also offer
their customer on cricket match “KFC Popcorn Chicken”, on Valentine’s Day special couple
discount offer. Benefits: Several products are targeted towards the benefits sought by the
customer. For this KFC only focus some social class.

There are two ways to grow a business. First is to acquire new customers and second is to
retain your existing customers. The more loyal your customer is to you, the more your
customer base will increase. That’s one more kind of behaviour which marketers target. In
case of KFC, they have some advantage because they are well known chain international fast
food company.

Kr Jayant Raj
BMS/19/34
 IN SOUTH KOREA

SOUTH KOREA CULTURAL OVERVIEW

South Korea is a small peninsula located between China and Japan. Koreans believe in
sincerity and loyalty and follow certain codes of conduct while meeting, eating, praying and
even celebrating. At times when many other cultures would shake hands, Koreans bow. They
bow as a sign of gratitude and respect to the person they are meeting.

South Korea has been characterized by a rise of Christianity and Buddhism.

Buddhism is the religion in Korea with the most followers and its teachings have a great
impact on Korean lifestyle, culture and art.

The Korean society depends on farming so many of their celebrations focus on events to pray
for a good harvest like the Hanshi (Cold Food Festival) celebration.

Household Consumption Expenditure

Food and non-alcoholic beverages 13.8%

FACTORS INFLUENCING CONSUMPTION HABITS OF SOUTH

KOREA.
South Korea is a consumer society. Purchases not only serve the primary needs but also for
image and status reasons.

Korean cuisine is largely based on rice, noodles, vegetables and meats. Some of the famous
Korean dishes include bibimbap, bulgogi and dakgalbi. The Korean culture is based on
politeness and respect and this is clearly evident in Korean table manners.

The economic slowdown and the high level of debt have pushed some Koreans to pay
attention to their spending. Consumption is used to make a statement. Purchases are made in
department stores, shopping centres but also in new types of stores (example: food retailers
like kfc, Starbucks etc).
Consumers are increasingly less attracted to domestic products while purchases of foreign
products are growing.

South Koreans tend to change their consumption behaviour. Koreans are increasingly
looking for leisure free time.

KFC IN SOUTH KOREA

The biggest and most well known fried chicken restaurant in the world KFC / Kentucky Fried
Chicken is popular here in South Korea. There are over 165 outlets currently here in South
Korea most of which at franchise owned. The first store opened over 30 years ago back in
1984.

SEOUL, South Korea — KFC in South Korea has what KFC in the US wishes it had.

There are the ordering kiosks, which are a nice cheat when you're in a country and don't
speak the language.

KFC MENU ITEMS YOU CAN ONLY FIND IN SOUTH KOREA

No. 1 "The infamous Double Down"

It's a beast of a sandwich,also fantastic if you like this in fast-food, deep-fried decadence.

No. 2 "Beer on the menu"

It's served in a paper cup and it only costs 3,000 won, or about $2.50 With Colonel's finger
lickin' good fried chicken.

No. 3 "Super-sized cheese stick!"

This is a mozz stick with impressive stretchiness, delicious cheese, and a nice fried outer
layer. No soggy crust here.

No. 4 "Tender tteokbokki"

You can order a bowl of tteokbokki and chicken tenders. KFC's take on the rice rolls is spicy
and gummy-in-a-good-way.

Cheap beer and endless variations on fried chicken classics — honestly, there's nothing more
you could ask at such low prices and great food quality.

By Prachi
BMS/19/23
 IN SINGAPORE

Cultural overview

In 1977, KFC came into Singapore along Somerset road, and now it is one of the largest
chains in the country. Today KFC serves more than 1 million customers each month through
over 80 stores across Singapore. This makes KFC one of the largest fast food chains in the
country. KFC is in competition with many of the largest Restaurant chains like McDonald’s,
Jollibee and many others, not just in Singapore but all over the worlDed.

Factors influencing consumption habits

The fast food fan — who eats fast food about four times a week — is no stranger to queues,
as he waited 3.5 hours for a taste of Filipino fast-food chain Jollibee when it first arrived in
Singapore back in 2013.

Fast-food consumption is most prevalent in young adults, high income and middle education
level groups. Frequent fast-food consumption in Singapore is associated with unfavourable
dietary and nutrient profiles and abdominal obesity.

What strategies KFC used to attract market?

Price: Bucket meals is one of the best choices for you, because of their less amount.

Delivery: Available daily from 11:00 AM to 11:00PM. A minimum order of 14$ and
overcharge of 4$ apply for every delivery order.

Unique Dishes: They always updated their menus with time to remain in competition with
their competitors.
KFC in Singapore

UNIQUE DISHES

Kentaco :- It combined our favourite fried chicken with the iconic Mexican taco. Instead of a
tortilla shell, a piece of folded fried chicken was used to hold iceberg lettuce, tomatoes,
shredded cheese and sauce together.

Waffle Original Recipe Double Down:- The first Double Down came to Singapore in 2012
boasting chicken patties as buns and yet KFC still managed to one-up that creation. Inspired
by the classic chicken and waffles combination, it is featured a sweet Belgian waffle in
between two Original Recipe chicken fillets.

Brown Sugar Boba Tea Tart:- The tart had a milk tea flavour infused into its creamy custard
and was topped with sweet jelly boba – all wrapped in a buttery pastry. With such an
imaginative creation, we wouldn’t be surprised if a “Dalgona tart” is next in the pipeline.
By:- Pulkit Asiwal

BMS/19/59
 IN VIETNAM:

Vietnamese Culture overview

The Vietnamese culture is one of the oldest in Southeast Asia and is heavily influenced by the
Chinese culture.
Later, French colonial rule in Vietnam introduced the Western culture to the country and led
to the spread of Catholicism and the adoption of the Latin alphabet.
Once the communist regime started in Vietnam, several restrictions were placed over cultural
exchanges with the Western civilization.
Despite the changes over the years, some elements of the Vietnamese culture like the
veneration of the ancestors, respect for family values, devotion to study, etc., remained intact.
Factors influencing consumption habits

Vietnamese cuisine encompasses the foods and beverages of Vietnam, and features a
combination of five fundamental tastes in overall meals.

Each Vietnamese dish has a distinctive flavor which reflects one or more of these elements.

French cuisine has also had a major influence due to the French colonization of Vietnam.

Vietnam is an agriculture-based country, thus, Vietnam food culture is influenced by the Wet
Rice Civilization for thousands of years.

Vietnamese food culture is affected much by the country’s geography.

Each region has its own unique features in ways of cooking and enjoying dishes.
KFC in Vietnam

KFC is by far the most frequently visited fast food restaurant chain in Vietnam, with 45% of
respondents visiting its stores often, according to the survey by Ho Chi Minh City-based

Top reasons cited for favoring KFC were: delicious food (66 percent); convenient location
(63 percent); suitable for family and the youth (60 percent); and variety on the menu (56

percent).
Around 87% of respondents order fast food online often. Among these, KFC is once againt
the most.

Experts theorize that the lack of sustained success is due in part to fast food's price point
compared to local alternatives;

A separate survey found that customers consider purchasing nutritious and organic foods a
"top priority." Meanwhile, in the fast food survey, respondents said they visit KFC because
the food is delicious;

Strategies made by company

KFC faced many difficulties in accessing the Vietnam market, as consumers were unfamiliar
with the concept of “fast food” and the taste of it. Therefore, KFC continuously suffered
losses during the 7 years since opening the store.

To overcome the initial difficulties, KFC had taken important strategies about products,
prices and distribution systems.

In the first step to the Vietnam market, KFC used reasonable, careful pricing tactics to
penetrate the market.
They also used low prices to attract a large market share before competitors caught up. In
addition, KFC identified a clear distribution strategy, hitting psychology of young people,
who were keen on Western cuisine.
Potential, targeted customers of KFC were young people.

KFC had expanded their network, mainly targeted to large cities such as Hanoi, Sai Gon, Da
Nang, Hue and so on where had convenient transportation, commercial , supermarkets,
amusement parks .

How does KFC satisfy its customers ?

When entering Vietnam market, KFC has changed the taste, size, design of products to suit
the tastes of Vietnamese.

KFC has its own differences in the mix of 11 spices, creating a special taste for fried chicken.

The important point in the product development strategy is to create differentiation versus
other products, so that consumers can perceive which product of KFC brand , Lotteria or
Jollibe.

Besides the traditional dishes such as fried chicken and hamburgers,

KFC has added a number of items processed with Vietnam tastes such as Crispy Chicken
with Lemon Leaf, Crispy Chicken without Bones, Soft Bread, mixed Cabbage, especially
some dishes of chicken rice.
With the expansion into other materials, KFC has created excitement and curiosity for
domestic cconsumer.

KFC is currently the market leader in Vietnam Fastfood industry with market share of 79%.

LAUNCHING NEW PRODUCT – KFC IN VIETNAM

HANBOK CHICKEN!!!

GUAVA SPARKLER MOCKTAIL!

SEAWEED SOUP!!!

However, KFC is still confronted with the fierce competition from rivals Lotteria, and other
potential competitors, especially the newcomer: McDonald’s. Consequently, KFC needs to
make provisions for the future.

A survey by VietnamCredit found that consumers' top priorities when buying foods and
drinks are Nutritious (60.3%) and Organic (51.5%).

first major international fast-food franchise agreement, PepsiCo Restaurants International, a

unit of PepsiCo Inc., signed a contract with local private conglomerate Thien Nam Corp. to
open a Kentucky Fried Chicken outlet in Ho Chi Minh City's Superbowl shopping mall later
this year.

By- Manish Kumar

BMS/19/39
KFC HONG KONG

Hong Kong despite being an administrative region of China shows the culmination of various
asian and European cultures, having its own nationality and currency (apart from China).
Therefore, this Asian region becomes all the way more important for companies especially
catering to the food and beverages sector to understand the underlying consumer behaviours of
the ‘Hong Kongers’.

In the below Case let's try to understand how KFC managed to strike a huge amount of market
share amongst the Hong kongers and what strategies it implemented in attaining so.

How KFC Hong Kong studies Consumer behaviour of Hong Kong and what
region-specific cuisines were launched that were a super hit?

Hong Kong is a special administrative region of China, located to the east of the Pearl River
on the south coast of China. Due to its location, there always has been a great deal of influence
from China and Japan on its culture.

● This influence is extended to the food culture as well. Okonomiyaki is a savoury

pancake that originates from Japan. Garnished on top of the pancake are the
syrupy and dense Okonomiyaki sauce, mayonnaise bonito flakes, and seaweed
flakes.
● KFC Hong Kong used this dish to capture the consumers in the Hong Kong
specific region by modifying it to the local taste and preference for chicken and
seafood.
● KFC Hong Kong used the bone-in fried chicken in place of the pancake base.
This option was a super hit in general consumers since the toppings of the
Okonomiyaki balance better on a flat platform.
 Furthermore KFC plays very strategically and adapts to the new markets by either
modifying the existing products or introducing new products.

● According to the news of a study commissioned by Green Monday from market

research firm Ipsos, 83% of Hong Kong’s population plans to adopt healthier eating
habits and lower meat consumption. And as we reported this May, Deliveroo Hong
Kong revealed an increase of 104% in vegan options since the beginning of the
pandemic.

● KFC Hong Kong playing very smartly trying to capture the Hong Kong market,
launched a series of products in selected Hong Kong locations under the name The New
Era Plant-Based Series, offering plant-based products from two top US plant-based
producers: the New Era Nuggets come from Alpha Foods and the New Era Burger from
Gardein, through a partnership with Green Monday

Conclusion of Case with Hong Kong

 KFC in Hong Kong initially tried to understand the core consumer behaviour of the local
population and then the culture it inherits as well as the upcoming culture that is being
influenced from the western side like the vegan meals as discussed in the above case. Hence,
KFC quickly adopted the new way that was being driven by the new trends and influences
and introduced a series of meals to attract more consumers.

If to be concluded in a single sentence, KFC has 2 primary strategies that have contributed
to its big success, first is researching the niche and second is being always flexible.

Chirag Kumar
 KFC in Philippines

-Himanshi Singh Pawar (BMS/19/56)

Cultural Overview
The Philippines is a culture in which East meets West. The Filipino people have a distinct
Asian background, with a strong Western tradition. The modern Filipino culture developed
through influence from Chinese traders, Spanish conquistadors, and American rulers. Filipino
people tend to be very hospitable, especially to Western visitors. Because of their strong ties
to Spanish culture, Filipinos are emotional and passionate about life in a way that seems more
Latin than Asian. This is easily seen in the works of contemporary artists such as Rody
Herrera in his painting Unahan Sa Duluhan.The family is the basic and most important aspect
of Filipino culture.

Factors Influencing consumption habits of Philippines

Beauty, convenience, health and hygiene are the four key factors that drive the buying habits
of Filipinos.
1) Filipino women care about their looks, and 72% of them specifically like to improve their
hair and change their complexion.
2) Filipinos also purchased 19% more hand sanitizers and 9% more baby wipes/wet tissues
from June 2009 to June 2013.
3) Fun runs, exercise and other physical activities have been promoted and practiced more by
Filipinos in recent years. In addition, Filipinos are now choosing the healthier lifestyle as
shown in their food product choices.
4) Filipinos want food, beverage and cooking choices to be fast, easy and convenient.

KFC Philippines
KFC Philippines Milestones Kentucky Fried Chicken has come a long way since it first set
foot in the Philippines in 1966— from the humble beginnings of Colonel Sanders serving
travellers in the back of a filling station, to selling chicken by the bucket in 1957.
With the rise of delicious and new food creations came the growth of the business in
numbers. Filipinos from all over the country craved KFC so much that in 1999, KFC opened
its 100th store in Taft PGH. The brand went on to proclaim its newly designed logo in 2006
that it created a huge logo visible from space. It was also in the same year where KFC opened
a redesigned store in Market Market.

1) Double Down Dog

The Double Down Dog sandwiches a hot dog between two fried-chicken fillets, something
that caught the attention of everyone else around the world. To add to the mayhem, KFC
initially only released 50 of these per day and in selected branches only, though they became
a mainstay for limited time afterwards.

2) Cheese Top Burger

The Cheese Top Burger is a regular chicken burger with a piece of American cheese melted
on top of the bun. Understandably, the Cheese Top Burger attracted attention globally,
though not all of it was good.

3) ChiliLime Chicken
Eight years ago, KFC decided to spice things up with a pretty bold fried-chicken flavor.
Aside from KFC's signature spice blend, this variant also had additional heat from chili and a
bright tang from lime. Compared to everything else on this list, the ChiliLime Chicken isn't
that out-of-the-left-field, but you have to admit it's unique.
Marketing strategies
1) KFC (Kentucky Fried chicken) uses demographic segmentation to serve the market as per
the customer needs & wants.
2) The consumers of KFC are the young as well as young adults.
3)It used to serve the same menu all around the world which means that it was using an
undifferentiated targeting strategy.
 IN
TAIWAN

Cultural Overview

Taiwan’s culture may be described as traditional and conservative, like most other Asian
cultures but to a greater degree. It is mainly Chinese in origin and is patriarchal and
patrilineal, with the family at the centre of cultural activities.

Unique Cuisine

Taiwanese cuisine is often associated with influences from mid to southern provinces of
China, most notably from the south of Fujian (Hokkien) which often leads to it being
classified as or grouped with 'Southern Fujianese cuisine'. However, influences from all of
China can easily be found as a result of the Kuomintang retreat to the island which brought
along many Chinese cuisines.

There are also influences from Japanese cuisine due to the period of Japanese rule, as well as
influence from indigenous cultures on the island. Traditional Chinese food can be found in
Taiwan, specifically dishes from Guangdong, Jiangxi, Chaoshan, Shanghai, Hunan, Sichuan
and Beijing.
Fried chicken is king in Taiwan with Taiwanese popcorn chicken and Taiwanese style fried
chicken taking first and second place, respectively. To compete with local Taiwanese
contenders, KFC has had to make extensive adaptations to its offerings in the local market.
KFC has made many changes in its menu, such as :

•KFC's breakfast option of congee rice porridge topped with fried chicken, pork floss and
sweet corn.

•A popular dessert at KFCs in Taiwan are caramelized egg custard tarts, which closely
resemble those seen in Macau, and come in some new, wild Asia-centric flavors such as
brown sugar mochi egg tart.

•There were actually four kinds of fried chicken in KFC, including the crispy fried chicken
with and without spicy flavor, fried chicken with thinner skin, and the pomelo fried chicken.

KFC has adopted many strategies to expand in different ways. Targeting audiences with
different tastes, traditions and culture was tough. They had to change their menus as per local
preferences. Introduces something new, innovative.

KFC has done a lot of work to continuously invent and launch new products; products that
better fit the consumer’s taste preference, has allowed them to keep the competition at bay.

Anirudh Yadav (BMS/19/60)

OVERVIEW

Thailand lies between Cambodia, Myanmar, and Laos, with the Gulf of Thailand to its south.
The culture in Thailand is a mix of strong Indian influences, Chinese traditions, and elements
that are uniquely Thai.

Thailand is separated into four distinct regions. Despite the overarching strength and unity of
Thai culture, each region has its own unique cultural and geographic features.

Although there is still a strong national identity, local food, dances, music, celebrations, and
beliefs have begun to play a more important role in Thai life.

KEY ELEMENTS

Thailand is world-famous for its mouthwatering cuisine and for good reason. It is also
known as Foodie Nation by many.

Thai food has been influenced by other Southeast Asian cuisines such as Indian and
Chinese, but it still manages to be completely different from them.
Thai cooking places emphasis on lightly prepared dishes with strong aromatic components
and a spicy edge.

The key to cooking any Thai dish lies in perfectly balancing the five key flavours - sour,
bitter, salty, sweet and spicy, which takes skills to master. Each Thai dish is therefore never
dull, always bringing in the much needed punch to your palate.

In Thailand, food thus forms a central part of any social occasion, and it often becomes
the social occasion in itself or a reason to celebrate. This is partly due to the friendly, social
nature of Thai people, but also because of the way in which food is ordered, served, and
eaten.

Attention to detail and how pretty it looks when served are relevant to the eating experience.
Thai food presentation is among the most exquisite in the world; serving platters are
decorated with all variety of flower-carved vegetables and fruits, palace-style stir-fries
include elegantly carved vegetables within the dish itself.

Family and friends unite and share through food.

KFC- LARGEST QSR CHAIN IN THAILAND

The KFC organisation is in good shape with an effective structure in Thailand. 700 KFC
restaurants now operate in Thailand and increasing urbanisation with the continuous
construction of infrastructure projects, particularly roads, will increase opportunities for KFC
restaurants in the future.

Thailand is now the eighth largest KFC market in the world.

The exclusive menu offers items in Thailand- including a bucket of crispy popcorn chicken
drizzled in green curry with rice, Thai milk tea topped with ice cream and tiny chunks of
brownies, battered prawn rings and salted egg tarts makes it really special and different from
others at the same time. All tailor-made to suit a nation which considers food as its heritage
and takes responsibility to carry forward it with delicacy.

One of the meals that's setting the internet alight is the famous 'Chick and Cone', which is a
waffle cone filled with popcorn chicken, topped with its signature spicy sauce.
Another recent and one of the most highlighting additions to Thailand KFC has been Meat
Zero, Plant Based chickens.

Consumers will barely notice that the chicken they are eating is made from plants. Whenever
they want to skip real meat, they can have this and they will still enjoy the familiar delicacy.

The launch of Meat Zero’s plant-based chicken is part of KFC Thailand’s sustainability plan
and the chain plans to expand the offering to other outlets in the country.

KFC Thailand has also been advertising aggressively and their strategies have led them to
become the largest restaurant service chain in Thailand.

They also aim to attract new generations who become more conscientious about their
health and sustainable consumption. Plant Based chickens is one step in that direction.

So, we can conclude how important, Food & Beverages are to Thai people. Thus, Thai food
is one of the most important aspects of their culture.

SUBMITTED BY:
DAKSH SETIA, BMS/19/8
 KFC CAMBODIA
Bhavuk bms/19/31

OVERVIEW
Central in the nation's cuisine are soups and fish sauce from the Vietnamese and the Chams;
Indian curries; stir-fries, fried rice and sweet and sour dishes from the Chinese; pastries,
baguettes and coffee from the French; spices from the Far East, and fruit and vegetables from
the Americas.

CONSUMPTION HABITS

ambodia’s central staple is rice – indeed, the Khmer word for “to eat” is nam bai, directly
translated as “eat rice”. A meal without rice is merely a snack. Other important starches include
manioc (also known as cassava), taro and sweet potatoes.

Fish and other seafood are the top protein on the menu, thanks to the abundance of life in the
rivers, the Tonlé Sap lake and offshore. Beef, pork, chicken, duck and other poultry are widely
available but more expensive than fish dishes. Other less common sources of protein include
locusts, water insects, various snakes and land crabs.

Despite their Buddhist faith, the majority of Cambodians do not adhere to strict vegetarianism.
“Vegetarian” dishes will often be cooked with fish sauce and incorporate animal fat or broth.

KFC CAMBODIA
- Established in March 2008 in Cambodia.
- First restaurant situated along Monivong Boulevard, Phnom Penh
- KFC is one of Royal Group of Campanies Ltd (The Royal Group) business, a partnership
with the Malaysian QSR brands and Rightlink Corporation.

- The Royal Group is one of the largest conglomerates in Cambodia with substantial
investments in media, telecommunications, banking, education, property development and
trading.
- KFC BALINESE CRUNCH

As its name hints, the all-new Balinese Crunch has flavours inspired by the tropical island of
Bali. What does this mean? Well, essentially, it has tropically spicy & citrusy flavours infused
into KFC’s signature Hot & Spicy fried chicken. Additionally, there are numerous fresh herbs,
spices, and traditional ingredients used including kaffir lime leaves, lemongrass, shrimp paste,
and citrus shallot seasoning, and more! This refreshing addition to the KFC menu will stimulate
our taste perceptions for it is spicy, sourish, saltish yet sweet in each crunchy bite!
Just by hearing the name, Chizza, we can tell that it’s pizza with chicken as a topping, right?
WRONG! Chizza is a big piece of deep-fried boneless crispy chicken topped off with Jalapeno
Cheese, pizza sauce, chunks of chopped pineapple, and onion creating a perfectly balanced
combination of flavors.

Let’s introduce to you another special menu from KFC, named Black Pepper Crunch, the
best meal for spicy lovers. Sprinkled with black pepper and lime juice on top, each piece of
amazingly spicy and crispy chicken will surely be the greatest reward for your taste buds. Each
and every single bite of it will give you all 3 of these at once: super yummy, crunchy & spicy!
Black Pepper Crunch is now up in town, so you can find it at all KFC outlets which is
available from 7400 riels (or USD1.80). It is also served with a few options of Combo sets as
well. Just grab the ones that perfectly fit you or your groups.
 A CONSUMER BEHAVIOUR ANALYSIS

IN INDONESIA

The culture of Indonesia is varied, with its melting pot of colonial and immigrant influences
as well as its indigenous traditions, from the Portuguese traders to the Dutch colonialists to
Chinese, Indian and Malay settlers. Most people in Indonesia define themselves by their local
culture, rather than their national culture.

Indonesian culture is focused around the community, with a hierarchical structure.

Indonesian traditional meals usually consists of steamed rice as staple, surrounded by

vegetables and soup and meat or fish side dishes. In a typical family meal, the family
members gather around the table filled with steamed rice and several other dishes.

Factors influencing consumption habits of Indonesia

· Indonesians have been described as resilient, resourceful, tenacious and

courageous, putting up with life's difficulties with wry good humour. The
Indonesian character can loosely be generalized as a mix of Muslim, Southeast
Asian and it own indigenous elements.

· The Indonesian economy is expected to rebound by 4.4 percent in 2021.

· Basically, Indonesian cuisine can be classified based on six major islands across
the country. Each has different food culture characteristics that are shaped by the
natural conditions, history, and culture of the region.

For example; The food in Sumatra Island is much influenced by Indian and Chinese
culture.
KFC IN INDONESIA

The first KFC was started in 19 June 1978. PT Fast Food Indonesia Tbk is the only franchise
holder of the Kentucky Fried Chicken (KFC) brand in Indonesia. The KFC brand is
Indonesia’s market leader in the fast-food chain of restaurants. At the start of 2015, the
company had a total of 493 outlets in more than 100 cities across Indonesia (including
Jakarta, Bandung, Semarang, Surabaya, Medan, Makassar and Manado).

Only in KFC Indonesia

1. "Yakiniku Bento"

KFC Indonesia takes their time to arrange every piece of this food in compartments and this
contributes to making it quite easy to eat.

This dish is a combination of lettuce, crispy mushrooms, and white rice. This dish isn’t
complete without its tomato sauce and classic chicken bites.

2.” Refreshing Float” The refreshing float is the thing u can only find in Indonesia. Its
refreshing flavours are derive from local fruits. This drink comes in 5 different refreshing
flavours.
Available Only in Few Countries

1.“Brown Sugar Boba Tea Tart”

Indonesia’s consumers take top spot for consuming three cups of bubble tea per person per
month, KFC Brown Sugar Boba Tea Tart has flaky puff pastry crust filled with milk tea
infused egg custard and topped with brown sugar jelly bobas.

2.“Crispy Fried Chicken Skin”

For those who like their chicken skin without the meat that usually comes with it, KFC has
just the thing: KFC Chicken Skin.

Strategies By the Company

Product and Service

 As part of KFC‘s global marketing strategy, KFC still maintained certain standardisation in
their restaurants 4P‘s marketing mix implementation in Malaysia and Indonesia. For instance,
the core products of KFC the Original Recipe fried chicken, french-fries, soft drink and
desserts are available in the menu of restaurants in both countries. As both countries are
Islamic countries, the foods served are also halal food. KFC Malaysia for one has the Halal
Malaysia certificate for all their restaurants, while KFC Indonesia received their certificate
from the Majelis Ulama Indonesia. The most apparent difference between the menu in KFC
Malaysia and KFC Indonesia is the lack of potato-based item in KFC Indonesia menu. Where
in Malaysian KFC, the chicken meal is always combined with mash potato and the option of
potato wedges, plain or cheesy, the chicken meal in Indonesian KFC is always partnered with
white rice. While KFC Malaysia also serves rice in their restaurants, it is in the form of
Chinese inspired chicken rice.

Price

The prices of products in Indonesia are comparatively cheaper in Indonesia than in Malaysia.
This might be because of the purchasing power parity that existed between both countries and
the lower cost of raw items in Indonesia. KFC in both countries also utilises branded core
value and branded affordability strategy for their products, as per standardisation strategy of
KFC in general. Both signature menu items fall under branded core value and branded
affordability is reserved for kids and teen/youth menus, combos and time specific combos.

Place

The Indonesian government also is hampering the effort of KFC Indonesia to open more
outlets. The Indonesian government set limits to how many outlets and restaurants all
international fast food chain operators in the country can have. This is done in order to
protect small business operated by the local. In Malaysia, there is no such regulation by the
federal government holding KFC Malaysia back from opening more outlets and restaurants.
Other than that, KFC of both countries have the same strategy of opening outlets and
restaurants in every big cities in the country. KFC of both countries also will open its outlets
and restaurant at high accessibilities area like near universities. This is to ensure that every
outlets and restaurants opened will have the maximum exposure to the most number of
customers.

Promotion

Promotion KFC Malaysia uses the global tagline of ‘So Good‘ for its marketing but KFC
Indonesia uses ‘Jagonya Ayam‘, meaning the champion of chicken, instead. The traditional
and printing media is employed by both KFC Malaysia and KFC Indonesia. KFC Indonesia,
however, is more active in its promotion in the cyber world with creation of its KFCKU.com
community forum for its customers. In fact, KFC Indonesia is quite active in promoting this
community forum as well as its other social websites like Facebook, Twitter and YouTube
with the logo prominently displayed at its website. The company’s social websites are also
updated frequently and the feed can be accessed directly from KFC Indonesia website just by
clicking the corresponding logo of the social websites.

Nidhi, BMS/19/57
 IN

MALAYSIA

Malaysia is a multi-cultural society. The main ethnic groups are the native Malays as well as
large populations of Chinese, and Indians. When visiting the country, it is clear that the
ethnicities retain their religions, customs and way of life.

Consumption and Cuisine pattern:

· Malaysia's cuisine reflects the multiethnic makeup of its population.

· Many cultures from Malaysia and the surrounding areas have greatly influenced
Malaysian cuisine, with strong influence from Malay, Chinese, Indian, Thai, Javanese, and
Sumatran cuisines

· Spices are the most prominent feature of Malay Dishes.

What strategies KFC used to penetrate Malaysian market?

1. Price: They use market penetration pricing for new products. KFC sets their price
slightly lower as compared to their competitors

2. Halal Meat: As majority of the Malay Population is Muslim, they provide Halal meat
to customers as they hold a certificate for the authentication.

3. Unique Dishes: Adding unique Items to the menu based on the cultural taste and
preference of the people.

What unique dishes does KFC Malaysia Offer?

1. Chiizza: This is an exciting dish that throws away the thick or thin pizza crust and

replaces the crust with a piece of breaded chicken.

2. Paper wrapped Chicken: A delicious spicy and juicy variety of chicken which is
cooked while being inside the paper.

3. Mashed Potato: In Malaysian KFC, the chicken meal is always combined with mash
potato and the option of potato wedges, plain or cheesy.

4. 5 Variety of Burgers and No Salad: Is what somehow resembles uniqueness of the

menu.

Md. WAIS LALI

BMS/19/62