Kfc vs Mcdonald's in Shanghai

2484 words 10 pages
Table of Contents

1.0 Executive Summary

2.0 Situation Analysis
2.1 Market Summary
2.1.1 Market Demographics
2.1.2 Market Needs
2.1.3 Market Trends
2.1.4 Market Growth
2.2 SWOT Analysis
2.2.1 Strengths
2.2.2 Weaknesses
2.2.3 Opportunities
2.2.4 Threats
2.3 Competition
2.4 Products Offered
2.5 Keys to success
2.6 Critical Issues

3.0 Marketing Strategy
3.1 Mission
3.2 Marketing Objectives
3.3 Financial Objectives
3.4 Target Markets
3.5 Positioning
3.6 Strategies
3.7 Marketing Mix
3.8 Marketing Research

4.0 Financials

5.0 Controls
5.1 Marketing Organization
5.2 Contingency Planning

1.0 Executive Summary

The fast-food market in Shanghai has become very competitive with the existence of both Western and Chinese cuisine oriented
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The growth statistics are expected to increase by over 10 percent annually during the next decade.

2.2 SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the companies and details the opportunities and threats facing KFC and McDonald’s.

2.2.1 Strengths
• High brand recognition, financial strength and strong performance in other international markets.
• Great locations in city centre that attract Shanghai’s large consumer market.
• Efficient and friendly staff that provide satisfactory service in McDonald’s.
• High quality product with a wide range of variety.
• High commodity and labor market

2.2.2 Weaknesses
• Late start of China’s fast-food industry
• Average waiting time is considered long, especially at peak hours.
• Staffs are not particularly warm or kind, sometimes even impatient in KFC.

2.2.3 Opportunities
• Customers’ loyalty shaped with KFC and McDonald’s ‘classic products’ although new products are introduced at a frequent intervals.
• Majority customers are attracted to the restaurants promotional activities.

2.2.4 Threats
• More domestic brands of Chinese fast-food copied the concept of the Western service model while maintaining the taste of traditional cuisines.
• Consumers are not confident of Western fast food’s nutritional quality.
• Increase in consumer’s price sensitivity.

2.3 Competition
The main competitors for KFC and McDonald’s are the major national fast food franchises.