Literature Review
Literature Review
Literature Review
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Literature Review
A synoptic review of the literature brings to
the fore insights into any past comparison
made between McDonald's & KFC.
A related article published by Vishal Krishna, BusinessWorld, 10 October 2009
on the Third Eyesight website which is a consulting firm states:
Indian shopping hotspots are sporting more and more golden arches these days.
If McDonald's is expanding like never before, not far away is KFC (Kentucky
Fried Chicken), though on a lesser scale. Their guests are young, their menus
glocalized, their branding established, and their menus are no longer over-priced.
After more than a decade in the highly fragmented quick service restaurant
(QSR) segment - only 20 per cent of the Rs 10,000-crore segment is organized McDonald's and KFC are growing at a nippy 20-25 per cent, despite the
slowdown.
"In a recession, we see ourselves as a good substitute for premium dining," says
Amit Jatia, managing director of Hardcastle Restaurants, a joint venture partner
of McDonald's. "We are rapidly expanding because we have tested the supply
chain for over 15 years and it has given us the opportunity to scale up."
McDonald's, which had 20 stores in India till 2002, today has 160. It plans to
open 200 more over five years, with an investment of Rs 500 crore. KFC, the
smaller player with 52 restaurants, plans to open over 100 more outlets in the
next two years.
Though McDonald's foray into chicken nuggets this year has taken it into KFC
territory, the companies give the impression of ignoring each other. "The Indian
market is very large for QSRs and our focus is on large portions of white meat,
while the competition focuses on different products," says Unnat Varma,
marketing director of Yum Restaurants, which has been developing KFC and
Pizza Hut in India. The pricing of its menus makes McDonald's a quick eatery
with the average per person spend at Rs 100. KFC's spend is higher, at Rs 125150.
In 2009, McDonald's guest count has crossed 30 million; in 1996, when it started,
the count was a little more than 200,000. KFC's annual guest count is expected
to rise from 3 million today to 5 million by the end of 2010.
Many Indian retailers have not turned cash positive because they burnt most of
their money on building the front-end. But, "McDonald's and KFC have got an
amalgam of things right," says Harish Bijoor, a Bangalore-based brand and
marketing consultant. "While McDonald's has converted millions of people with
its Rs 20 happy price menu, KFC has done it with its large portions as a QSRplus restaurant."
Link
Further the main scope of the study is to conduct a comparative analysis on two
of the major players in the food services industry, which is McDonalds and KFC.
The research tries to develop a case study which analyzes McDonalds and
KFC's strengths and their business process very closely with a greater emphasis
on how they do a better job than most competitors at serving their customers. In
addition to this a consumer research was undertaken with the objective of
assessing the service quality of McDonalds v/s KFC on the basis of:
Company Overviews
About KFC
His recipe is still a secret, but more than 2 billion of Colonel Harland Sanders' 'finger lickin'
good' chicken dinners are served annually in more than 82 countries around the world.
Nearly 50 years ago, Colonel Sanders set out to sell complete meals to time-strapped
families, calling his home meal replacements 'Sunday Dinner, Seven Days a Week.' Acquired
by PepsiCo in 1986, KFC is now a part of Yum! Brands Inc., which includes A&W, Long John
Silver's, Taco Bell and Pizza Hut.
About McDonald's
McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51
million customers each day. More than 70 percent of McDonald's restaurants around the
world are owned and operated by independent local businesspeople. Most standalone
McDonald's restaurants offer both counter and drive-through service, with indoor and
sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many
countries, often has separate stations for placing, paying for, and picking up orders, though
the former two steps are frequently combined. In some countries "McDrive" locations near
highways offer no counter service or seating. In contrast, locations in high-density city
neighborhoods often omit drive-through service. For free consultation Fill in form to the
right.
link
1. ACKNOWLEDGEMENT We would like to take an opportunity to thank all the people in
collecting all the necessary information and who have helped us in making of the project .
We are grateful to all of them for there time and wisdom. Our project becomes a reality only
because of cooperation of many people who had helped us completing this project . We
sincerely extend our gratitude to our Faculties who have given us this golden opportunity to
have an insight into the corporate world and who have been a source of guidance and
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support .Last but not the least THANKS to all who helped us make this presentation a
success.
3. Introducing McDonalds Objective Executive Summary & Mission Brief History Of KFC
Brief History OF McDonalds Its direct competitor KFC & Missionvision of Mcdonalds &
SWOT Analysis Some products of both companies vision of KFC
4. Reference Taken .. Recommendation Conclusion Survey Analysis Briefing of KFC
CONT. TABLE OF CONTENT Briefing Of Mcdonalds
5. Executive Summary The international market is flooded with various sectors and industries
that involve products of daily as well as occasional use for the consumers. The use of the
products can vary from industrial purpose to private consumption. One such thriving industry
in the modern world is the food and beverage industry. Food and beverage industry
combined with the hospitality sector makes up one of the most attractive target sectors for
MNCs. The concept evolved from the late 18th century. Now, the world cannot live without
the taste of a McAloo Tikki or the zing of a Zinger.
6. Cont. of executive summary This sector has slowly covered all income groups of
consumers. With growing competition the food giants have take their services to a higher
level with better decreased serving time, value for money prices and changing specialties in
their products . The following report is a comparative analysis of the services and SWOT of
McDonalds and Kentucky Fried Chicken (KFC).
7. To find out the details of everybodys favourite food trip destination MCDONALDS and its
direct competitor KFC. To find out Brief history of two of the leading fast food selling
companies Going through the rang of products these two are offering to all the foodoholics.
To go through the SWOT analysis of both the companies.. . To conduct survey analysis on
the consumers preference of food joint amongst McDonalds and KFC.
8. Introducing McDonalds and Its Direct Competitor KFC McDonalds and KFC are
everybodys favourite food trip destinations. When you like hamburgers, McDonalds is
always the top option. When you like fried chicken, KFC is always the first thing that comes to
everyones mind. The reason for this is these companies claim of particular products that
have became their trademark until now. The difference between McDonalds and KFC is
mainly the cuisine.
9. Brief History Of Mcdonalds The McDonalds restaurant concept was introduced in
California by two brothers named Dick and Mac McDonald of Manchester.The business was
founded in 1940 by these 2 brothers. It is the world's largest fast food chain, selling primarily
hamburgers, chicken, French fries and carbonated drinks. It was later modified and
expanded by their business partner, Ray Kroc who later bought out the business of the
McDonald brothers and went on and found McDonald's Corporation. Advertising has always
played a key role in the development of the McDonald's Corporation. Indeed, McDonald's
ads have been some of the most identifiable over the years. In 1962, McDonald's introduced
its now worldfamous Golden Arches logo. A year later, the company sold its billionth
hamburger and introduced Ronald McDonald, a red-haired clown designed to appeal to
children.
10. Cont. history of Mcdonalds McDonald's restaurants are found in 120 countries and serve
nearly 54 million customers each day.Most of the McDonalds restaurants offers both counter
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services and home deliveries upto certain distances.At the end of 2003 there were over 6oo
McCafes worldwide.
11. In 1952 Sanders started franchising his chicken business At that time he used to cook
and serve food for hungry travellers. KFC is based in Corbin,Kentucky,U.S. Founded by
Colonel Harland Sanders, in early 1930s. Brief History Of KFC & KFC operates more than
15,000 units in 109 countries and territories around the world.named it as KENTUCKY
FRIED CHICKEN.
12. Mission & vision of Vision:- To be the best and leading fast food provider around the
globe Mission :- McDonald's mission is to be the world's best quick service
restaurant.Providing outstanding quality, service, cleanliness, and value, so that we make
every customer in every restaurant smile.
13. MISSION & VISION OF Vision:- : To foresee that real future of long term growth and
adjust itself to the specific cultures of each country that are operating in. Mission:- The
mission of KFC is to extend its image of excellence, quality and service all over the globe
with an attaining a goal of maximizing profit.
14. McDonalds KFC
15. SWOT ANALYSIS
16. WEAKNESS Unhealthy food image. High Staff Turnover including Top management.
Customer losses due to fierce competition. Legal actions related to health issues; use of
trans fat STRENGTH Strong brand name, image and reputation Large
market share. Strong global presence. Specialized training for managers known as the
Hamburger University. Locally adapted food menus Huge advertising budget
OPPORTUNITY Increasing demand for healthier food Home meal delivery Full adaptation of
its new practices Changing customer habits and new customer groups
& beef oil Ignoring breakfast from the menu THREAT Saturated fast food markets in the
developed economies Trend towards healthy eating Local fast food restaurant chains
Lawsuits against McDonalds Direct competitor KFC
17. Competitor McDonalds' With the lifestyle of people changing due to growing awareness
about healthier food people now look for something healthy, low calories and delicious at the
same time. Franchise management globally is a challenge THREAT High fat and high
calorie food not good for health conscious people Introduce better vegetarian products
Introduce home delivery Venture into newer markets More spending on the resources and
development as well as introducing new food items and products. WEAKNESS Strong
trademarks recipes. OPPORTUNITY Good advertising and marketing Hygenic food and
quick service High number of products Huge popular brand name and high brand loyalty
STRENGTH
18. Positioning:- In India positioning of McDonalds has been directed as a Family
restaurant. Target Groups:-Mostly Children and Youth Segment:- For Burger lovers and
foodoholics USP:- High varieties of Burgers Slogan:- I'm lovin' it Sector :- Food
products Category:- Fast food selling Parent Company:-MCDONALDS Briefing of
McDonalds
18. 19. Positioning:- Favourite quick service restaurant brand Target Group:- Children and
youth from middle and upper class. Segment:- People willing to have a hygienic and
delicious non conventional meal at a restaurant. USP:- High variety in chicken meals.
Slogan:- Finger Licking Good. Sector:- Food Products. Category:- Fast food eating
joints. Parent Company:- KFC(Kentucky Fried Chicken) Briefing of KFC
19. 20. The report has been designed to study the consumer behaviour with respect to
McDonalds and KFC. A questionnaire was designed in order to understand the reasons of
the consumer perception towards the two food giants. Our method of going about the study
at hand involved the basic survey method, whereby we put forward questions to individuals.
This was carried out by a survey comprising of two questionnaires, one aimed at the
customers at either of the two food joints and the other for the employees employed at the
food joints. Our questions were designed to capture the market trends, the grounds behind
such a trend, the peripherals related to the functioning of the food joint, key marketing
strategies adopted and finally aimed at drawing the inferences and conclusions for the same
20. 21. Question 1.Which age group do you belong to? The first question was essentially
designed to throw light on the age group of people visiting/dining at the food joints. This gave
us an idea of the preference of a particular food brand among a given age group if any. For
e.g. the HAPPY MEAL available at McDonalds attracted the major portion of the younger
crowd. As a matter of fact as shown in the following questions, this particular strategy
drained almost the entire young consumer segment. Of the individuals surveyed a majority of
the individuals belonged to the 18-25 yr age group both voted for McDonalds as well as
KFC.
21. 22. Question 2. What is your profession? This question was essential in calculating the trend
of the customers who visit these food joints i.e. The working class of the people visiting the
respective places. The survey revealed that the majority of people visiting both the places i.e.
46% for KFC and 55% for McDonalds were students. This thus lays direct stress on the
strategies adopted by both the joints resulting in a heavy demand among the student group.
22. 23. Question 3.Are you a vegetarian/non-vegetarian? This was essentially designed to
demarcate the groups according to whether they were vegetarians or otherwise. It was a
preconceived idea that the vegetarians preferred McDonalds of the two while KFC proved to
be a nonvegetarian paradise. This thus showed a balanced market for McDonalds where as
a strong shift for KFC towards the non-vegetarian section
23. 24. Question 4.What is your saying on the pricing of the joint? In KFC 31% found the food
priced nominally and an equal amount of people surveyed i.e. 31% found inexpensive.
Hence it was concluded that it dropped down to the individual in the case of KFC and there
was no clear market trend. In McDonalds 46% found it nominally priced as well as value for
money while just 8% found it expensive. Hence in terms of comparative study it was
concluded that McDonalds was optimally priced although KFC wasn't overpriced either.
24. 25. Question 5.How much do spend on an average per visit? This question again was
concerned with the pricing as well as spending capability of the people. The results indicated
that a major section, i.e. around 52% voted for KFC and 42% for McDonalds.
25. 26. Question 6.Do you get drawn in by the television commercials of the food items? This
question was designed to get an idea about the publicity/advertising strategy of the food
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brands. This particular question analyzes the potency of the advertising strategies used by
the food brands in attracting or influencing the customers.
27. In India fast food market is strongly dominated by these 2 brands. But when it comes to
comparing these two brands the following study brings us to a conclusion that as far as
market presence and brand value is concerned McDonalds has definitely proved a point for
themselves. But KFC who re-entered in 2003 has shown a rapid progress and no wonder if
in the coming years KFC overtakes McDonalds in the Indian market share. Both the
foodgiants have given each other immense competition in terms of customer satisfaction and
promotional strategies.
28. The range of products and offers offered by each is remarkable in every context.
Although McDonalds has an upper hand with the vegetarian crowd because of its exclusive
products, KFC is slowly catching up to the challenge. KFC provides vegetarian alternatives
with an added advantage of a complete meal including rice and desert. Where McDonalds
fall into the snack option KFC had covered the meal area .Thus it is not quite evident which
one can be termed as better than the other.
29. KFC needs to re-vamp its vegetarian menu and add more options to it. The fried chicken
category already has more options and varieties as compared to the vegetarian section.
McDonalds could try to enter the meals category into its menu Both companies
need to work on their logistics and inventory management (as discussed with Branch
managers) Need to train their staff better in handling of the cooked food
30. Reference Taken Books :Marketing Management C.N.Sontakki Principle Of Marketing
Philip Kotlar & Kevin Keller Websites :www.google.com www.wikipedia.com www.kfc.com
http://www.mcdonalds.com
McDonalds vs KFC
30.McDonalds and KFC are two of the most popular fast food chains loved by
many around the world. When it comes to hamburgers, McDonalds is always
the top option whereas when it comes to fried chicken, KFC is always the first
thing that springs to mind. The reason for this is because the very products of
these two chains have become their trademarks and thereby, their identities.
The difference between McDonalds and KFC comes down to mainly the
cuisine that they serve.
31.What is McDonalds?
32.It was in 1940 that McDonalds first started their operations. The pioneer of
many things, the Speedee Service System introduced in their very first
restaurant is being followed in modern day fast food chains to this very day.
Their very first mascot was a man with a head of a hamburger wearing a
chefs hat, which was replaced by McDonalds ever popular clown man. It is
estimated that McDonalds currently serves 58 million customers each day in
119 countries. Their restaurants differ in their settings and facilities as some
offer drive thru services, and some have play areas for kids while some offer
counter service alone. McDonalds signature colours are red and yellow while
their most popular products are their famous hamburgers, breakfast offers,
desserts, chicken sandwiches and French fries. McDonalds also feature
products for vegetarian customers, as well. When it comes to regional
branches, McDonalds are known to offer certain products customized to suit
the food cultures of the respective regions. For example, McDonalds in
Portugal is the only branch that offers soup in the menu while McDonalds in
Indonesia offers McRice to its customers.
33.What is KFC?
34.KFC or Kentucky Fried Chicken was initiated during the Great Depression,
which was in the year 1930. It was first named as Sanders Court and Cafe,
after the name of Harland Sanders, the original creator from Kentucky. Their
current and most popular logo is the caricaturized image of Sanders with their
acronym, KFC. They are popular for their trade secret, their secret recipe
made from 11 herbs and spices that are known to add a finger lickin good
flavour to their chicken. Their basic products are fried chicken, chicken wraps,
sandwiches, salads and roasted and grilled chicken dishes as well as a
number of desserts.
35.What is the difference between KFC and McDonalds?
36.McDonalds and KFC are both popular fast food chains that have gained
immense popularity over the years. Differentiating between the two will help
obtain the best out of the products that the two brands offer their customers.
37. McDonalds is popular for its hamburgers. KFC is popular for its fried
chicken.
38. KFC was initiated in 1930. McDonalds was launched in 1940.
39. The logo of KFC features a caricaturized image of Colonel Sanders. The
logo of McDonalds is a large yellow M