Kfc vietnam essay

MARKETING AND MANAGING EXECUTIVE SUMARY Table of Contents 1 ) Company Profile and History4 2 . Market Situation4 2 . 1 INFESTATION Analysis4 2 . 2 Porter’s Five Forces6 2 . several Competitor Analysis7 2 . 5 Market Segmentation8 3. SWOT and concern analysis11 several. 1 SWOT analysis11 a few. 2 Essential Successful Factors13 3. three or more Issue Analysis13 4. Objectives14 5. Advertising Strategy14 Appendix15 Figure 215 Reference16 1 . Company Account and Background Kentucky Deep-fried Chicken (KFC), founded simply by Colonel Harland Sanders in 1930, has evolved to become one of many largest fast-food chicken operator and franchiser around the world exceeding a billion dollars finger lickin good.

In 1966, this went general public and was acquired simply by PepsiCo, Inc. In 97, PepsiCo spun-off of its quick services restaurants including KFC in an independent cafe company, Tricon Global Restaurants, Inc (KFC Vietnam 2008). The company right now was known as Yum! Brands Inc including all the eating places: AW Eating places, Long David Silvers, Pizzas Hut and Taco Bells. KFC recieve more than 11, 000 eating places operating in much more than 80 countries and territories in the world. Today it is one of the famous and strongest manufacturers in the junk food market (Entrepreneur Media 2009).

In 1997, KFC eating places opened its first outlet in Ho Chi Minh City Vietnam. Today, due to the trend of the busy life style and the increase in earnings of folks in big cities like Ho Chihuahua Minh Town, KFC Vietnam franchise expanded its network so far to 75 restaurants with 47 outlets in Ho Chi Minh Town, 15 shops in Hanoi and others in numerous Vietnamese provinces (KFC Viet Nam 2008). Company representatives considered Vietnam as a potential growth industry in junk food industry. KFC’s goal should be to secure its position as a market leader and increase the business in Vietnam.. Current Market Scenario 2 . you PEST Analysis This section gives relevant background data around the current Vietnamese macro-environment. Political Factors Following your join of Vietnam towards the WTO, Vietnam’s new business franchising regulation provided for a legal regulatory weather conductive for the franchising sector. The government coverage encouraged the opening up of foreign dispenses which are likely to grow. With an annual growth of 30 percent in recent times, franchising showed great potential as a sort of business in Vietnam (U.

S Business Service 2009a). The stability and safety in politic environment was the important success to get KFC Vietnam to develop expands its business and become the market leader in Vietnam’s fast food sector. Economic Elements In recent years, Vietnam’s economic growth rate provides annually improved at 7-8. 5 percent and has been one of the highest on the globe. With the predicted increase in GDP 6. five percents in 2009, Vietnam is considered to be a true growing market pertaining to U. S investors.

In respond to confront the high inflation price, Vietnamese federal government implemented a monetary fasten measures to stabilize the Vietnamese Dong, cutting government expenditures in order to slow inflation (U. H Commercial Support 2009a). According to the market research company Nielsen approximated the junk food industry in Vietnam can grow simply by 40 percents and make VND500 billion dollars (Tuoi Tre2009). With positive aspects on economic environment, KFC Vietnam has many for you to develop the market share, enhance profits and expand quantity of restaurants to 80 (ITPC 2008).

Socio-cultural Factors As a result of rise of fast food in Vietnam as well as the change in diet plan of Japanese people, these people were busier than previously so that they tended to eat fast food more frequently than traditional meals (Vietnamnet Bridge 2008). KFC usually concerned about the social, ethnical and honest values of local community. The restaurants had done product adaptation in order to suit local tastes, civilizations and faith in Vietnam. This offered KFC an opportunity to grow and increase income in Japanese market. Technology Factors

APPLEBEES always support the work of research advancement in order to bring in the new technology. It applied latest technology in machines and boilers with technical checkup and routine service every six months. It made the food preparation become more quickly to buy and decreased the offering time. KFC Vietnam also use online site to provide consumers another instrument for placing your order via cellphone. In the future, customers may also order KFC companies perform on the web transactions (KFC Vietnam 2008). 2 . 2 Porter’s Five Forces Menace of new traders (Strong)

Just lately, Vietnamese government has used Commercial Regulation that motivates foreign franchises coming to Vietnam market. Costs for creating location, ordering furniture etc . are not very high. Because the awareness of American business businesses is strong, many Vietnamese businesses interested in taking possession to work American franchises (U. H Commercial Support 2009b). The American’s potential new traders could enter into Vietnamese industry are McDonald’s, Carls Jr, Burger King, Palabrota Bell, Subway and etc. Negotiating power of suppliers (Moderate)

The suppliers in Vietnam acquired moderate bargaining power. APPLEBEES Vietnam took the supply of fresh and quality poultry meat coming from Thai-invested CLUBPENGUIN Viet Nam Livestock Company and Lengthy Binh the industry joint venture with France (ICARD 2004). APPLEBEES started aiding local suppliers with technological support to improve their item. The good relations between KFC and native suppliers decreased supplier negotiating power. Bargaining power of purchasers (Moderate) The bargaining benefits of buyers in Vietnam is moderate and so they have various degree. Specific buyers are much less powerful because they purchase in small items.

A buyer intended for occasion such as birthday party can be stronger with the demand for even more service and additional promotion like invitation credit card and lower price price. Threat of replacement (Strong) Substitute competitors of KFC are typical small eating places that offer meals service. The threat is usually strong with all the variety in kinds and traditional Japanese taste just like Pho Hoa or Com Tam Moc. KFC must lower this kind of threat by simply enhancing it is promotion in order to popularize goods so that the buyer will purchase KFC rather than other replace products.

Competitive Rivalry (Moderate) Threat of direct rivals is average because APPLEBEES is the marketplace leader in Vietnam with 75 eating places. There are two main opponents: Lotteria and Jollibee (KFC Vietnam 2008). The danger may rise in 2010 since Lotteria will increase their restaurants to 70 outlets. Regarding to this competition, KFC as well plans to growth total restaurant to 100 products and recently enhances all their service simply by cutting short its delivery time to less than 30 minutes (Look At Vietnam 2008). 2 . 3 Rival Analysis Immediate competitors: Tombola and Jollibee

Indirect rivals: Pizza Inn, Kinh Perform Bakery, Duc Phat Food handling business, Tour L’ensemble des Jour. 2 . 4 Marketplace Segmentation In accordance to Kotler et ing (2005), you will discover four variables which can be accustomed to segment the customer market. In the case of KFC, we considered four variables which are: ¢ Geographic segmentation ¢ Demographic segmentation ¢ Psychographic segmentation ¢ Behavioral segmentation Geographic segmentation This portion is used to divide an industry into diverse geographic models such as metropolitan areas, regions or perhaps neighborhoods (Kotler et al 2005). Globe Region |South East Asia | |Country |Viet Nam | |City |Ho Chi Minh Metropolis, Ha Noi, Da Nang, Hai Phong | |Density |Urban | |Climate |Not specific |

KFC Vietnam used geographic segmentation to be able to mainly allocate the restaurants in big cities which may have a large inhabitants such as Ho Chi Minh City, St?lla till med ett Noi, Weil Nang, Haifisch Phong. HCM city and Ha Noi has been chosen as two main industry of KFC Viet Nam with 45 restaurants (HCM city) and 19 restaurants (Ha Noi). Currently, client purchases happen to be strongest in Ho Chihuahua Minh Town. Consumers inside the South likewise tend to demonstrate a greater level of brand consciousness than persons in the North and Central regions (U.

S Commercial Service 2009c). This can clarify why KFC has many restaurants in HCM metropolis rather than in Ha Noi and other cities. With the aim of long-term expanding in Vietnam market, KFC firstly focus on the center of North and South of Vietnam after that gradually open up the its entire network to various other regions. Demographic segmentation The goal of this segmentation is used to divide the marketplace into organizations based on market variables just like age, family size, salary, occupation etc (Kotler ain al 2005). |Age Adults: 17″29 Children: 4″14 | |Gender |Both Males and Females | |Family Size |1-2, 3-4, 5+ | |Income |Above 5 millions VND/month | |Occupation |Students, young representatives |

KFC Vietnam focuses in these pursuing variables: Age group segmentation: KFC concentrated on young people from the age among 17 to 29 years of age, family provides children. The younger generation are lively to modify the take out trends as well as the ability to buy fast food meals a few times per week is absolutely possible. Moreover, KFC Vietnam is additionally paid attention to kids from four to 14 years old. Cash flow segmentation: Vietnam is among countries which having low GDP per capita so that this can be one of the problems for KFC penetrates to Vietnam’s junk food industry.

People who have medium profits (more than 5 hundreds of thousands VND/ month) are a main segment that KFC wish to focus for the reason that abilities to enjoy fast food of those people are more frequent. However , people with low income can also be customers of KFC however the chance for those to go to KFC restaurants is not usual. Occupation segmentation: By choosing HCM city and Ha Noi are two main big cities where there are great numbers of universities, universities and educational institutions so KFC can connect to a big industry consists of college students, pupils and young people who also work in down-town areas and generally go to KFC restaurants to acquire meals.

Psychographic Segmentation |Social Class |Middle class and High class | |Life Design |Western | |Personality |Not specify |

Vietnam is one of countries which having a rapid development in GROSS DOMESTIC PRODUCT. The Western-style fast food is actually excitedly made welcome in Viet Nam and is adopted quickly by the teenagers (Tran 2008). Vietnamese lifestyle will be motivated by the lifestyle of Western where was the original hometown of fast food. This is the reason that KFC consider Vietnam is known as a potential take out industry to develop. The cultural class that KFC need to attain can be middle school and top quality. Behavioral Segmentation Occasion |Regular occasion | |Benefits |Food, service, feel, price | |User Position |Regular users and new users | |Loyalty Status |Medium and Strong |

According to Mr. Ponchi Torato (KFC Country Director, Vietnam), KFC had carried out survey based upon consumer knowledge, attitude and it received good act in response from customers. KFC Vietnam is assessed as a incredibly good service, good food, food care, good feel and affordable price (National Public Car radio 2009). Therefore , KFC launched professional styles from personnel to solutions in order to take the best to consumers. 2 . a few The Product Existence Cycle Analysis INTRODUCTION PROGRESS MATURITY DROP PROFIT TIME

Due to the occurrence in Vietnam 10 years in the past, KFC has become considered to be initially of maturity phase. Coming from 1997 to 2005, KFC suffered losses for a decade and it really began to obtain profit 5 years ago. KFC reaches the last phase of progress due to their increasing in location from the The west to North of Vietnam (KFC Vietnam 2008). They tend to begin and continue to grow in maturity stage with the head position (Vietnamnet Bridge2006). Consequently , KFC continue to develops and earns earnings although it is at maturity phase. 2 . BCG Matrix Examination HIGH GROWTH RATE LOW LOW LARGE LOW BUSINESS According to BCG Matrix Analysis, APPLEBEES is placed in the Cash Cow. This can be the result of the large market share of KFC with 75 eating places in Vietnam but the marketplace growth was still low. Coming from 2006 till 2009, APPLEBEES started submiting profits and expanding the network to other provinces such as Vung Tau and Dong Nai to gain the market growth. Using firm term approach, KFC might be a star in Vietnam’s junk food industry. a few. SWOT and issue examination 3. 1 SWOT research Strengths |Weaknesses | |Secret recipe |Not cover extensively in other provinces | |Brand name |High price | |Good food quality |Staff quality | |Prime spots | | |Quick finalizing time | | |Variety in menu | | |Sophisticate income | | |Opportunities |Threats | |Fast growth of 15-24 age group |Strong competition in Vietnam | |Rise of fast food tendency |The menace of new traders | |The increase in Thai income |Bird flu disease | | |The embrace government fees | | |High pumpiing | three or more. 1 . you Strengths ¢ KFC offers secret formula consists of 11 herbs and spices which make KFC end up being the most famous take out brand around the world (KFC Vietnam 2008). ¢ KFC continues to be known as a best international brand in Vietnam’s fast food industry for over a decade with its popular network (The Saigon Occasions 2009).

This is very important to customer loyalty and is pivotal for the success in the franchise. ¢ The food top quality is a primary key power to KFC. Its quality is defined by the Yum! Brand and controlled by the regional franchises. The raw materials that offered from neighborhood suppliers, fulfilled a global regular for top quality meats. ¢ KFC includes a large number of eating places in primary locations including 45 restaurants in HCM city (17 restaurants in District one particular and your five in region 3) and 19 in Hanoi (KFC Viet Nam 2008). Furthermore, KFC Vietnam mainly was executed to open restaurants at grocery stores and trading centers. With good places, KFC’s advertising activities/PR have been very strong (Kotler et approach. 005) ¢ The digesting time for APPLEBEES recipes is very quick that brings more at ease to clients. ¢ APPLEBEES is rated as the highest among all chicken breast restaurant brands for the ease and selection in menu with Vietnamese traditional meals ” grain. ¢ APPLEBEES has superior financial income which is support by Yum! Brands. 3. 1 . two Weaknesses ¢ KFC eating places chains haven’t covered widely in Vietnam. It just concentrated upon large metropolitan areas especially concentrated too much upon HCMC (45 in total of 75 restaurants). ¢ APPLEBEES price is continue to high for the average income of Thai people specifically those who result from other provinces. ¢ APPLEBEES needs to pay much more attention to enhance the staff top quality by offering even more training. 3. 1 . several Opportunities Fast growth of 15-24 age group in Vietnam’s demographic which is the primary target segment of KFC (Figure 1) ¢ The rise of fast food developments in Vietnam market (CommonDreams 2009) ¢ The increase in the Vietnamese profits especially in HCM city and Ha Noi(Figure 2) three or more. 1 . 5 Threats ¢ The danger of solid competition in Vietnam’s take out industry. There are many competitors just like Lotteria, Jollibee, Pizza Hut and they will enhance their service, quality of foodstuff and grow their market share. ¢ The threat of new entrants of American fast food sequence such as McDonald, Taco Bell and Carl’s Jr is going to enter Vietnamese market. ¢ The competition may romantic the way that KFC render their menu with more traditional Vietnamese foodstuff to keep up the trends. ¢ The potential danger of chicken flu particularly in Vietnam that caused the increase in recycleables.

This can result in the drop in earnings of APPLEBEES. ¢ The government taxes to get franchising can easily increase each year. 3. a couple of Key Successful Factors KFC’s key success factors are definitely the strong brand, the secret menu and operating in good prime locations. These sustainable competitive advantages built KFC end up being the market innovator in Vietnam fast food market. 3. several Issue Analysis In this area of marketing prepare, SWOT analysis is used to define the main issues that the program must treat. The company need to consider the subsequent basic concerns:? Should APPLEBEES Vietnam expand the market share by elevating the number of eating places in HCM city, Anordna Noi, Vung Tau, Can Tho and many more regions? Will need to KFC Vietnam invest even more budgets to promote and marketing activities to growth their business brand name? Should APPLEBEES Vietnam concentrate on the children target audience by creating more kids programs? 5. Objectives After defining issues in the product line, KFC Vietnam need to decide on the plan’s aims. KFC’s advertising objectives happen to be:? To increase the quantity of KFC’s eating places from 75 at the present to 100 eating places in 2010? To develop the children courses by presenting 20 kindergarten corners in KFC eating places.? To increase the revenue twenty percent compare with 2009. 5. Web marketing strategy Appendix Figure1 Figure a couple of Reference CommonDreams. rg 2009, Vietnam: Climb of the New Fast Food Nation, viewed 31 December 2009,. Entrepreneur Multimedia 2009, KFC Corp Poultry, Entrepreneur, seen 27 January 2009,. GoodLand Informatics 2006, Project Stock portfolio, viewed up to 29 December 2009,. ICARD 2004, City customers crave hens and eggs, viewed up to 29 December 2009,. ITPC 08, Foreign titans dominate junk food market, seen 29 Dec 2009,. Kotler, P. Armstrong, G. Hoon Ang, S i9000. Meng Leong, S. Tiong Tan, C. K. Tse, D. 2006, ‘Market Segmentation, Principles of promoting ” A great Asian Point of view, 10th edn, Prentice Area, Singapore, pp. 193-196. Kotler, P. Armstrong, G. Hoon Ang, T. Meng Leong, S. Tiong Tan, C. K. Tse, D. 005, ‘Retailing and Wholesaling’, Concepts of Marketing ” An Hard anodized cookware Perspective, tenth edn, Prentice Hall, Singapore, pp. 364-366. KFC Viet Nam 2008, Store List, viewed 31 December 2009,. Look At Vietnam 2008, Once fast food can be localized, WordPress Skin, viewed 1 January 2010,. National Community Radio 2009, KFC Delivers Tasty Snacks to North Vietnam, looked at 30 12 , 2009,. The Nielsen Organization 2007, ‘Consumer Fact Pack’, Acnielsen. com The Saigon Times 2009, When take out is local, Mat Bao Company, looked at 30 December 2009,. Tran 2008, Expressing no to KFC, Vietnam News Organization, viewed one particular January 2010,. Tuoi Tre2009, Foreign giants dominate fast food industry, Moore Cop, viewed twenty-seven December 2009,. U.

S i9000 Commercial Assistance 2009a, ‘Market Overview’, PERFORMING in VIETNAM: 2009 COUNTRY COMMERCIAL GUIDEBOOK for U. S. FIRMS, March, pp. 2 . U. S Business Service 2009b, ‘Franchising Overview’, DOING BUSINESS in VIETNAM: 2009 COUNTRY BUSINESS GUIDE for U. H. COMPANIES, Mar, pp. seventy six. U. S i9000 Commercial Support 2009c, ‘Market Segmentation’, PERFORMING in VIETNAM: 2009 REGION COMMERCIAL GUIDELINE for U. S. FIRMS, March, pp. 18. Vietnamnet Bridge2006, KFC exec speaks on the regarding fried poultry, viewed you January 2009,. Vietnamnet Bridge 2008, The rise of fast food, viewed 29 January 2009,. LEGEND CASH COW QUESTION MARK DOG

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