kfc to you....

KFC has a very long history and has the most recognizable brand in chicken. With over 50% of the market share it becomes very difficult for new companies who may want to enter the market. KFC has name recognition around the world and has been globally positioned for many years. KFC's secret recipe of 11 herbs and spices has made it the leader in chicken for the last fifty years. KFC sells three recipes: Original recipe, Extra Crispy, and Tender Roast. The many sales of KFC during the 1970's and 1980's lead to a very confusing direction and took the focus of the company off of its original strategy. During the 1980's and 1990's KFC struggles were much do to the inability to bring new products to the market quickly and it's innovation of new products. KFC fell behind the market in new products and was copying other fast food chains to stay competitive. KFC changed its strategy in the late 1990's, which included adding items to its menu. KFC then in an effort to address its declining market share began building smaller restaurants in non-traditional outle

Kfc Case Analysis
It is of critical importance that we develop a strong understanding of KFC’s current position and of the market in which it competes. The more comprehensive and well-founded our situational analysis is, the stronger our strategic marketing plan will be.

I. The character and attractiveness of the U.S. food service and fast-food industries in 1994
The fast-food industry is considered a subsection of the food service industry, or rather a submarket within a broader market. This broader industry, the US food service industry, is in what is known as the maturity stage.
Typically, the maturity stage exemplifies the following characteristics:
• Sales continue but at slower pace.
• Competition leads to decreased market share or prices.
• Competing products become very similar and differentiating product becomes both crucial and more difficult

The merger with PepsiCo was met with large cultural issues as the KFC employees were used to the previous strategy of a laid-back, self-governing environment, to an environment who demanded tighter control over operations. Other segments of the industry are turning to new menu offerings. ts, airports, shopping malls, and hospitals. They believed the franchisees knew the business better than they did. The second largest threat would be other chicken chains that are now adding other types of food to their product lines. The loss of market share and slowing growth also was due to the many mergers they went through during a limited time period. KFC established units that sold both Taco Bell and KFC or KFC and Pizza Hut. By the year 2000 more than 50 percent of KFC's restaurants were located outside the United States. As we will address further in this report KFC is continuing to expand in foreign markets, which is one of Yum!s goals for growth. took over KFC there seems to be a better relationship with the management of the two companies and a much more intense focus on the growth and expansion of the market. This brings up the point of what is KFC's defined market. KFC's strategy for growth, KFC began expanding in foreign markets as far back as the 1950's and are currently the 3rd largest fast food chain as of 2000Threats The largest threat KFC is faced with is the restaurant industry as a whole. The consumer continues to have many choices when it comes to fast food restaurants. By the year 2000 only 27 percent of the restaurants were company owned. The cultural differences took the focus away from the chicken business. Some topics in this essay:
As a result, firms need to place their efforts into encouraging competitors’ customers to switch to their product offering, increase usage per customer and even convert non-users into customers. At this stage, the primary goal of a given firm is to maintain market share. The food service industry, as is the fast-food industry, is typified by franchising which became well-established in the early 1950s. The concept held and in 1994 there were over 550, 000 restaurants and food outlets in America. Although the industry in 1994 was slowing, that is not to say that it was not growing. Food service industry sales were forecast to surpass $275 billion and this had grown at an estimated compound annual rate of 3.9% from 1988 till 1994. This billion dollar industry is dominated by the fast-food and full service segments who commanded annual sales of $86 billion and $85.5 billion dollars respectively. The fast-food segment is prima facie, a very attractive one. Not only did the segment grow 5.6%, outpacing almost all other food categories but its future is also promising with a forecast of 6.3% growth in 1994. In addition, the...