Marketing Environment

Micro environment

Macro-environment

Company

Demographics

Suppliers

Economic

Intermediaries

Natural

Competitors

Technological

Public

Political

Customers

Cultural

KFC - CHINA

Facts about the case

Started in 1987 in China, using franchising model

( Micro- Intermediaries)

Yum Brands in China were the local franchisee.

( Micro- Intermediaries)

Yum brands expanded more branches during Beijing Olympics in 2008

( Macro- Cultural)

KFC introduced itself as healthier brand to adopt to chinese breakfast and dinner concept
( Macro- Cultural)

KFC initial impression in minds of chinese customers was fast food, tasty, exotic
( Micro- customers)

Initially prices were high, customers moved back to chinese food, their traditional food
( Macro- economic and social)

Facts about the case cont...

To get back customers , KFC modified its menu by combining chinese menu with their own
( Macro-cultural/social)

Both KFC and Mcdonalds introduced interculture management by modifying menu

( Macro- Cultural)

KFC could adopt much better than McD's because menu was more chinese specific, use of
"Chicken", more healthy options introduced
( Macro- Cultural)

KFC made prices affordable by introducing deals and coupons

( Macro- pricing strategy/economic)

Introduced CHAMPS process to keep the food healthy and restaurant hygienic
( Micro-company and internal process)

Chinese Govt. Was encouraging agriculture and poultry, KFC developed poultry of its own as
main item was "Chicken".
( Macro-Political)

Facts about the case cont...

Financially KFC got stronger as Pepsico bought the company and

this helped raise finance for the co
( Micro- Company, intermediaries, public)

HR issues like managers and and local employees were not happy,
lack of chinese speaking staff etc.
( Macro- cultural)

KFC modified its promotion strategy by focussing on chinese culture

of family, traditions, patiriotism etc. They promoted bucket chicken
heavily.
( Macro- Social/Cultural)