DESMOND CHIBUZOR EZIMOH

(2322527)

International Business Management

WORD COUNT: 4,500 WORDS

Contents
1. Introduction..................................................................................................................................2
2. Countries Identified.....................................................................................................................2
Cultural Differences between Nigeria and India..........................................................................2
3. Macro and Micro Analysis..........................................................................................................4
3.1 PESTEL Analysis......................................................................................................................4
3.1.1 Nigeria.................................................................................................................................4
3.1.1.1 Macro Environment Analysis.......................................................................................4
3.1.2 India........................................................................................................................................5
3.2 Porter's Five Forces Analysis.....................................................................................................6
3.2.1 Nigeria.............................................................................................................................6
3.2.2 India.................................................................................................................................7
3.3 SCLEPT analysis for KFC's entry into Nigeria and India.........................................................8
3.3.1 Summary of the SCLEPT................................................................................................8
4. Orientation Adopted by the Organization..................................................................................10
5. KFC Targeting and positioning strategies in Nigeria and India................................................11
6. Analysis of the Marketing Mix adopted by KFC (Standardization/Adaptation/Glocalization) 13
7. Conclusion and Recommendations............................................................................................17
References:....................................................................................................................................18

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1. INTRODUCTION

Kentucky Fried Chicken (KFC) is a global fast-food restaurant chain that specializes in fried

chicken. The business has operations in several nations and adjusts its marketing tactics to suit

each market's social and commercial demands (KFC, 2022). In this report, I aim to assess KFC's

global marketing initiatives in two culturally diverse nations: India and Nigeria.

2. COUNTRIES IDENTIFIED

The choice of Nigeria and India as the two countries for this analysis is based on their cultural

diversity and potential for business expansion. Nigeria, located in West Africa, has a population

of over 200 million, while India, located in South Asia, has a population of over 1.3 billion,

according to Trading Economics (2022) and World Bank (2022) data.

Cultural Differences between Nigeria and India

The word "culture" is a complex one with several definitions. Different definitions of culture

have been offered by various authors. Culture was described by Hofstede as the "collective

programming of the mind which distinguishes members of one human group from the other" in

his 1980 definition. Culture is also described as the "values, beliefs, norms, and behavioural

patterns of a national group" by Leung et al. The definition of culture given by Nakata and

Huang (2002) as "that complex whole which includes knowledge, beliefs, arts, morals, and

habits acquired by man as a member of a society" is cited by Yapraka (2008). India and Nigeria

have distinct cultural differences. Islam is the predominant religion in Nigeria, with more than

50% of the population identifying as Muslim. In contrast, India is primarily Hindu, with around

80% of the population practising Hinduism. India is generally considered a collectivist society,

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where the family and community take precedence, whereas Nigeria is more individualistic, with

a greater emphasis on personal achievement. Dietary preferences also vary between Nigerians

and Indians, with Nigerians tend to prefer meat and fish, while Indians mostly consume a

vegetarian diet. KFC's operations and marketing techniques in Nigeria and India have been

impacted by the cultural variations between those two nations.

It could be challenging to introduce new items in an Islamic atmosphere. Ramadan and other

religious celebrations are rigorously observed. Religion matters to managers because it has an

impact on their way of life, beliefs, values, and attitudes. Along with politics and business in

general, it also has an impact on work and societal norms. According to Wind & Douglas (2007)

in their article on international marketing segmentation,” Difference in belief systems between

cultures may affect consumer behaviour and purchasing patterns” Dietary laws associated with

one religion could affect the marketing of food products and service delivery (Wind & Douglas

2007). For example, According to the Islamic religion, a chicken must be drained of blood before

it is cooked or prepared (Halal). It is believed that eating a chicken with blood could affect your

spirituality and deeds in Islam. This affects the marketing mix of fast food companies based in

Islamic countries because they have to abide by Islamic law. Hence religion affects international

marketing in several ways.

In Nigeria, KFC has had to adapt to the local culture and consumer preferences, including

offering halal chicken and spicy menu items that appeal to Nigerian tastes (Ojo & Ojo, 2020).

The company has also had to navigate the complex business environment in the country,

including the high cost of doing business and infrastructure challenges (Ojo & Ojo, 2020).

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Despite these challenges, KFC has been successful in Nigeria and has become a popular fast-

food chain in the country (Akinsanmi, 2018).

In India, KFC has had to adapt to the diverse cultural and religious practices in the country. KFC

has made certain adaptations to their product offerings in India to cater to the dietary preferences

and religious beliefs of the local population. For instance, the company has refrained from

serving beef or pork products in India due to the country's significant Hindu and Muslim

populations (KFC, 2020). In addition, KFC has had to contend with intense competition from

local fast-food chains and adjust their prices to meet the demands of the price-sensitive Indian

market (KFC, 2020). Despite these challenges, KFC has managed to thrive in India and has

established a strong presence in the country's fast-food industry (KFC, 2020).

3. MACRO AND MICRO ANALYSIS

To evaluate KFC's global marketing strategies in Nigeria and India, it is critical to thoroughly

investigate both the macro and micro contexts of both countries. The macroenvironment is

defined by SCELT analysis to include elements like political, economic, social, technological,

environmental, and legal aspects, whereas the microenvironment is defined by Porter's Five

Forces analysis to include components like suppliers, consumers, competitors, intermediaries,

and the general public. Below are summaries of each country's cultural, economic, political,

legal, environmental, technological, and market-competitive situations.

SCLEPT Analysis:

Factors Nigeria India

Social 211 million population, diverse culture 1.3 billion population, diverse culture
Cultural Over 250 ethnic groups, each with its Over 2,000 ethnic groups, over 1,600
culture languages

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 Legal Complex legal environment, Complex legal environment, regulations
regulations vary vary
Economic Heavily reliant on natural resources One of the fastest-growing economies
globally
Political High levels of corruption Complex political environment
Technologica Growing technological landscape The rapidly evolving technological
l landscape

MACRO ANALYSIS:

Nigeria has a population of over 211 million people, making it the most populous country in
Africa. The economy is heavily reliant on oil and gas, leading to an unstable economy.
Additionally, Nigeria is known for its high levels of corruption, which affect both government
and private sectors. The country has a diverse cultural background, with over 250 ethnic groups,
each with its language and culture. Nigeria has a complex legal environment, with regulations
varying from state to state. The technological landscape is growing, with the country adopting
digitalization at a fast pace (WTO, 2021).

India has a population of over 1.3 billion people, making it the second-most populous country
globally. The country has a diverse cultural background, with over 2,000 ethnic groups and more
than 1,600 languages spoken. India is a developing country, and the economy has been growing
steadily over the years, making it one of the fastest-growing economies globally. The country has
a complex political and legal environment, with regulations varying from state to state. The
technological landscape is also rapidly evolving, with the country being a hub for tech start-ups
(CIA World Factbook, 2021).

MICRO ANALYSIS

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Competitor Analysis:

Nigeria:

KFC faces intense competition in the fast-food industry in Nigeria. The major competitors of
KFC include Domino's Pizza, Mr. Biggs, and Tantalizers, among others. These companies offer
similar products and services, and they are also adapting to the local market by introducing
Nigerian dishes on their menus. Domino's Pizza, for example, has introduced a pizza with suya, a
popular Nigerian spice, while Mr. Biggs has added yam to their menu.

India:

KFC also faces intense competition in the fast-food industry in India. The major competitors of
KFC include McDonald's, Subway, and Domino's Pizza, among others. These companies offer
similar products and services, and they are also adapting to the local market by introducing
Indian dishes on their menus. McDonald's, for example, has introduced McAloo Tikki, a
vegetarian burger made with a potato and peas patty, while Domino's Pizza has introduced a
pizza with paneer, a popular Indian cheese.

Market Analysis:

In Nigeria, the bargaining power of suppliers is high, given the high levels of corruption in the
country, which may lead to the formation of cartels. The bargaining power of customers is low,
given that fast food is not a necessity, and there are numerous substitutes available. The threat of
new entrants is low, given the high cost of entry and the intense competition in the market. The
threat of substitutes is high, given that traditional Nigerian cuisine is readily available and
relatively cheaper.

In India, the bargaining power of suppliers is moderate, given that the market is relatively new,
and suppliers may not have formed cartels yet. The bargaining power of customers is moderate,
given the diverse cultural background and varying tastes and preferences. The threat of new
entrants is low, given the high cost of entry and the intense competition in the market. The threat

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of substitutes is moderate, given that traditional Indian cuisine is readily available and relatively
cheaper.

In conclusion, KFC must conduct a thorough analysis of the macro and micro factors that may
affect their operations before entering a new market. The SCLEPT framework provides a
comprehensive analysis of the factors that may affect KFC's operations in Nigeria and India. The
competitor and market analysis reveal the intense competition in both markets, requiring KFC to
adopt a glocalisation strategy, modifying its products and services to local preferences while
maintaining the core elements of the brand.

3.2 Porter's Five Forces Analysis

3.2.1 Nigeria

The competitive landscape in Nigeria's fast-food industry is intense, with players such as

Domino's Pizza, Mr Biggs, and Tantalizers, among others (Mintel, 2020). Given the high levels

of corruption in the nation, suppliers have strong negotiating leverage, which could result in

cartel formation. Fast-food chains are subject to increased prices and demands from suppliers.

Because there are so many alternatives and fast food is not a need, consumers have little leverage

when negotiating prices (Mintel, 2020). Given the prohibitive cost of entrance and the fierce

market competition, the threat of new entrants is minimal. According to Euromonitor (2021),

opening a restaurant has high startup expenses, and can be challenging to secure the appropriate

permits and licenses. Given that traditional Nigerian food is easily accessible and reasonably

priced, alternatives pose a significant challenge. Local food joints and street food vendors offer

traditional Nigerian cuisine, which is widely popular among the Nigerian population

(Euromonitor, 2021).

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3.2.2 India

The fast-food industry in India is highly competitive, with players such as McDonald's, Subway,

and Domino's Pizza, among others (Euromonitor, 2021). Given that the market is still developing

and that there may not be any established cartels among suppliers, their negotiating strength is

moderate. Given the wide range of cultural backgrounds and personal preferences, consumers

have a moderate amount of bargaining power. Due to their high prices compared to nearby street

food sellers, Indian consumers are price-conscious and want value for their money, which

presents a hurdle for multinational fast food businesses. Given the high barrier to entry and the

fierce market rivalry, the threat of new competitors is minimal. Creating a restaurant has

substantial startup expenses, and getting the required licenses and permits can be challenging

(Euromonitor, 2021). Given that traditional Indian food is widely accessible and relatively

affordable, the threat of alternatives is minimal. Indian consumers have a strong emotional

connection to traditional cuisine and are likely to choose it over international fast food (Mintel,

2020).

Overall, the fast food business is extremely competitive in both Nigeria and India due to limited

customer bargaining power and the significant danger of alternatives. The capacity of KFC to

provide distinctive goods and services that satisfy regional tastes and preferences while

upholding its brand identity is essential to the company's success in various areas. The

corporation's adoption of a glocalization strategy in both countries is a positive step because it

enables the company to offer regional specialities while keeping its reputation as a global brand.

3.3 SCLEPT analysis for KFC's entry into Nigeria and India
Factor Nigeria India

Social Large youth population and high A diverse population, emphasis on

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 urbanization rate. vegetarianism

Cultural Multicultural, English-speaking, and Multicultural, diverse cuisine,

diverse cuisine vegetarianism

Legal A stable political climate and foreign A complex legal system, restrictions

investment-friendly on foreign brands

Economic Emerging economy and growing Emerging economy, growing middle

middle class class

Political Political instability, corruption Democratic, diverse political views

Technological Limited access to technology, low High smartphone usage, fast-

internet penetration growing tech industry

3.3.1 Summary of the SCLEPT

Nigeria:

i. Social: Nigeria has a large youth population and a high urbanization rate, which presents

opportunities for KFC to target urban areas and younger consumers.

ii. Cultural: Nigeria is a multicultural country with a diverse population and a variety of

local cuisines, which may present both opportunities and challenges for KFC in adapting

its menu to suit local tastes.

iii. Legal: While Nigeria has made some efforts to improve its political and economic

climate in recent years, it still faces significant challenges in terms of corruption,

bureaucratic red tape, and security issues, which may pose obstacles for foreign

companies like KFC looking to enter the market.

iv. Economic: Nigeria's economy is emerging and its middle class is growing, which may

present opportunities for KFC to target a new segment of consumers.

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 v. Political: Nigeria has political instability and corruption, which may present challenges

for KFC in terms of navigating the business environment.

vi. Technological: Nigeria has limited access to technology and low internet penetration,

which may pose challenges for KFC's marketing and supply chain operations.

India

i. Social: socially, India's diverse population and preference for vegetarianism may pose

challenges for KFC's menu and require adaptation to suit local tastes.

ii. Cultural: India's varied cuisine and diverse food culture could make it easier for KFC to

tailor its menu, but the emphasis on vegetarianism may necessitate significant menu

changes.

iii. Legal: Legal considerations may pose a challenge for KFC in India, given the country's

intricate legal system and restrictions on foreign brands, necessitating careful navigation

of the business environment and adherence to local regulations.

iv. Economic: From an economic standpoint, India's growing middle class and emerging

economy could represent an opportunity for KFC to target a new segment of consumers.

v. Political: India is a democratic country with diverse political views, which may require

KFC to tailor its marketing and messaging to different regions and demographics.

vi. Technological: India has high smartphone usage and a fast-growing tech industry, which

may present opportunities for KFC to leverage digital marketing and technology to reach

consumers.

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4. Orientation Adopted by the Organization

KFC is recognized for its global standardization plan, aiming to provide the same products,

services, and customer experience worldwide. The company's international marketing approach

is geocentric, viewing the world as a single market, with a focus on building a global brand

image while also adapting products and strategies to local markets. In Nigeria and India, KFC

has adjusted its menu to suit local tastes while keeping a consistent brand image and marketing

message across all international markets. KFC's international marketing strategy is a mix of

standardization and adaptation approaches. The standardization approach is evident in the

standardized menu offered in all countries, which includes signature items such as the Original

Recipe chicken, Twister wraps, and Zinger burgers (Lu, 2020). Standardization is also evident in

the uniform store design, layout, and the company’s logo, which is the same across all countries.

This strategy helps KFC maintain a consistent brand image globally (Lu, 2020).

KFC has also implemented an adaptation strategy by adjusting its products to meet local tastes

and preferences. In India, KFC has introduced a variety of vegetarian options, including the Veg

Zinger Burger, Veg Rice Bowl, and Chana Snacker, to appeal to the significant vegetarian

population (Sudhir, 2021). In Nigeria, KFC has adopted a glocalization strategy, where the

company has modified its menu to include local favourites such as jollof rice, a popular Nigerian

dish. KFC has introduced the Streetwise bucket, which is a smaller serving size designed to cater

to the lower-income population (KFC Nigeria, 2021). KFC has also adapted its promotional

strategies in different countries. For example, in Nigeria, KFC has partnered with local

celebrities and influencers to promote its products on social media platforms such as Instagram

and Twitter (KFC Nigeria, 2021).

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5. KFC Targeting and positioning strategies in Nigeria and India
KFC's targeting and positioning strategies in Nigeria and India vary based on the cultural

differences and consumer behaviour in each country. Here is a brief analysis of KFC's targeting

and positioning strategies in these two countries:

1. Targeting strategy:

a. Nigeria: KFC focuses on middle and upper-class consumers in Nigeria who are

attracted to Western fast food culture and are willing to pay higher prices. The

company primarily targets urban areas with high traffic, such as commercial centres

and malls, to attract young families and working-class individuals. The "aspirational

class," who are interested in Western culture and lifestyle, is KFC's main target

audience in Nigeria. This demographic is growing in Nigeria, with an increasing

number of young professionals and urban dwellers adopting Western lifestyles (The

Punch 2019). KFC has also localized its menu to cater to Nigerian tastes and

preferences, offering dishes such as Jollof rice and plantain in addition to its

traditional menu items (CNN Business 2019).

b. India: KFC targets both the urban and rural population in India with a mix of

Western and local offerings. The company has localized its menu to cater to Indian

tastes and preferences, offering dishes such as the "Chizza" (chicken pizza) and the

"Mutton Zinger" burger. KFC has also targeted college students and young

professionals by offering affordable meal deals and discounts. KFC primarily aims

at the expanding urban middle class in India, which has higher disposable income

than the rural population and is increasing at a fast pace. KFC is also targeting

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 growth opportunities in Tier II and Tier III cities in India, as per the IIM (2014)

report.

2. Positioning strategy:

a. Nigeria: KFC presents itself as a high-end fast food chain that provides fresh,

quality food and a comfortable dining atmosphere. They set themselves apart from

other fast-food restaurants by highlighting their use of fresh ingredients, spacious

seating areas, and air conditioning. KFC also employs advertising campaigns that

position their brand as trendy and desirable, featuring slogans like "So Good." (CNN

Business 2019).

b. India: KFC positions itself as a fun and youthful brand that offers a blend of

Western and Indian flavours. They emphasize their use of local ingredients to create

a unique menu that appeals to Indian tastes. Additionally, KFC prioritizes

convenience and accessibility, making their meals available in many locations and

offering a diverse range of options. The company has invested heavily in digital

marketing campaigns to attract younger consumers, including social media

influencers and online promotions (Marketing91).

Overall, KFC's targeting and positioning strategies in Nigeria and India reflect the specific

cultural and consumer trends in each market. By adapting its menu and marketing strategies to

local tastes and preferences, KFC has been able to establish a strong presence in both countries.

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6. Analysis of the Marketing Mix adopted by KFC
(Standardization/Adaptation/Glocalization)

KFC has used a combination of Standardization, adaptation, and glocalization strategies to

address the differences between the Nigerian and Indian markets.

Product: KFC's product offerings are similar across different markets, but it has adopted a

localization strategy by adapting its menu to the local tastes and preferences of consumers in

Nigeria and India. In Nigeria, KFC offers a variety of spicy chicken-based meals, while in India,

the company offers chicken meals with Indian flavours (KFC, 2022), the company does not serve

beef or pork products in India, given the country's large Hindu and Muslim populations (KFC,

2020). KFC has standardized its menu globally to maintain a consistent brand image across all

countries by offering its signature menu items such as fried chicken and burgers across all its

international markets (Lu, 2020). However, KFC has also adapted its product offerings to suit

local tastes and preferences. For example, in India, KFC has introduced a range of vegetarian

products to cater to the large vegetarian population (Sudhir, 2021).

Price: KFC has adopted an adaptation strategy by offering different price points in different

countries. The company offers affordable prices in Nigeria to attract the young and price-

sensitive population, it offers meal options such as the Streetwise bucket, which is priced at a

lower price point than the regular menu items (KFC Nigeria, 2021). In India, the company has

positioned itself as a premium brand and offers premium prices to attract the middle and upper-

middle-class population (KFC India, 2021).

Promotion: KFC has adopted a mix of standardization and glocalization in its promotional

strategies in Nigeria and India. KFC has leveraged its international brand recognition and

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marketing campaigns, such as the "finger-licking good" slogan, to promote its products in these

markets (Akinsanmi, 2018; KFC, 2020). KFC uses similar marketing strategies across different

markets, but the company adapts its advertising messages to meet the cultural and economic

needs of each market. In Nigeria, KFC promotes its products as trendy and affordable, while in

India, the company promotes its products as premium and high-quality (Euromonitor, 2021).

People: KFC has adopted a glocalization strategy by hiring local staff and training them to

deliver high-quality service that aligns with the company's global standards. KFC hires local

staff in each market to provide a personalized and culturally sensitive service to its customers.

The company also provides training to its staff to ensure that they adhere to KFC's global

standards.

In summary, KFC has adopted a mix of standardization, adaptation, and glocalization strategies

in its marketing mix in Nigeria and India. The company has adapted its menu, pricing,

distribution channels, and promotional strategies to fit the local market conditions and consumer

preferences, while also maintaining some degree of standardization in its global brand image and

quality standards. KFC has also leveraged its glocalization strategy by hiring local staff and

training them to deliver high-quality service that aligns with the company's global standards.

Competitive Landscape: Local fast-food businesses like Mr Biggs and Chicken Republic,

which sell comparable goods at reasonable costs, pose a serious threat to KFC in Nigeria. while

Local fast-food restaurants like McDonald's and Domino's, which have a significant presence in

India, compete with KFC there.

Consumers behaviour

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In Nigeria, consumers tend to prioritize the quality and taste of food products over their price

(Olorunshola, Adebayo, & Atolagbe, 2019). However, due to the prevailing economic conditions

in the country, price is also a significant factor that influences consumer behaviour, particularly

among low and middle-income consumers (Olorunshola, Adebayo, & Atolagbe, 2019).

Consumers in Nigeria also tend to prefer locally sourced food products over imported ones

(Olorunshola, Adebayo, & Atolagbe, 2019).

In India, consumers tend to prioritize value for money, quality, and taste when making

purchasing decisions (KPMG, 2021). Indian consumers are also highly price-sensitive, with price

being a crucial factor that influences their purchasing decisions (KPMG, 2021). Additionally,

consumers in India tend to be more health-conscious, and there is a growing trend toward plant-

based and vegetarian diets (KPMG, 2021).

Competitive Strategy

KFC's competitive strategy is to differentiate itself from its competitors by offering unique

products and experiences. The company achieves this by adapting its menu to include local

flavours and preferences, hiring local staff to provide culturally sensitive services, and

positioning itself as a premium fast-food chain (KFC, 2022).

KFC has adopted a competitive pricing strategy in both Nigeria and India by offering affordable

prices to attract low and middle-income consumers. This is in line with the company's global

strategy of providing value to its customers (KFC, 2020). In Nigeria, KFC faces stiff competition

from local fast-food chains such as Mr Biggs and Chicken Republic, which offer similar

products at competitive prices (Akinsanmi, 2018). To remain competitive, KFC has invested in

16
localized advertising campaigns that resonate with the Nigerian culture and offer affordable

prices to attract price-sensitive consumers (Akinsanmi, 2018).

In India, KFC faces competition from local fast-food chains such as McDonald's and Domino,

which have established a strong presence in the country (KFC, 2020). To compete effectively,

KFC has adopted a similar localized marketing strategy by adapting its menu to cater to the

Indian palate and offering affordable prices to attract price-sensitive consumers (KFC, 2020).

The company has also invested in localized advertising campaigns that showcase how its menu

items are infused with Indian spices to appeal to the Indian consumer (KFC, 2020).

Market entry strategy

The primary method by which KFC penetrates the international market is through international

franchising, other methods could be through a joint venture and wholly joint subsidiary

depending on the country. This is to reduce financial risk and the cost of operations. Yum Group

develops KFC restaurants throughout the world through franchising. (www.yumfranchises.com)

KFC CHINA (EAST ASIA). KFC entered the Nigerian market in 2009 and the Indian market in

1995 through joint ventures with local partners (KFC, 2020). The company has since expanded

its presence in both countries by opening new stores and increasing its menu offerings to cater to

local tastes (KFC, 2020).

In Nigeria, KFC initially faced some challenges, including high import duties and a challenging

business environment (Akinsanmi, 2018). However, KFC managed to overcome these challenges

by collaborating with local suppliers and adapting its menu to satisfy local tastes, as reported by

Akinsanmi (2018).

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7. Conclusion and Recommendations

To summarize, KFC has successfully extended its business to Nigeria and India. By tailoring its

products and marketing mix to meet the unique requirements of each market, the company

followed a localization strategy. In each country, KFC targeted specific customer segments, such

as the youth in India and the middle class in Nigeria, and established itself as a premium fast

food restaurant. However, KFC's international marketing strategies still have room for

improvement.

i. For example, KFC could increase its investment in Nigeria to raise brand awareness and

enhance its supply chain in India to ensure consistent product quality. Additionally, the

company could consider adding more local flavours to its menu to appeal to the local

tastes and preferences of customers.

ii. Regarding future expansion, KFC could explore other culturally different markets like

China and Japan, where it could improve its localization strategy and benefit from the

increasing demand for fast food. KFC could also take advantage of technology to

improve its customer experience and operational efficiency.

iii. Overall, KFC's success in Nigeria and India demonstrates the importance of cultural

adaptation and market segmentation in international marketing. By adopting a

glocalization approach, companies can effectively cater to the needs of diverse customers

and gain a competitive advantage in foreign markets.

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