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Kentucky Fried Chicken Corp. (KFC), world’s famous fried chicken chain, as a typical representative of Western fast food, is now known to every family in China. Yum! Brands, Inc., to which KFC belongs, ranked first on China’s top 100 catering enterprises list in 2014. However, other fast food brands home and abroad, such as McDonald's, Burger King, Pizza hut, Dicos, Kungfu and DN Dumpling, although are also developing at certain speed, but still can't catch up with KFC. Since reform and opening up policy has been adopted, especially after China’s joining the WTO, more and more Chinese enterprises have expanded business abroad. However, transnational operation is not easy. So, what is the secret of KFC, making itself in an invincible position? This paper takes KFC in Xuzhou as example, focus on KFC’s localization strategy, analyzes the factors which help KFC make great achievements, so as to give domestic fast food enterprises, especially those planning to expand business overbroad, some references.
At present, there are many researches home and abroad. Let’s talk about foreign works first. Besides some news, there are some articles talking about KFC. In Savage, Mike’s work, “KFC extends 'So real' campaign with Fruit Chan”, KFC hired film director Fruit Chan to direct its latest television commercial film. The film partners singer and actress Miriam Yeung with a local pop star. It is a part of the firm's "So real" advertising campaign in Hong Kong, China. It was designed to enhance the firm's brand image of being genuine and real. Iyengar, Rishi gave us a piece of information that “KFC plans to roll out edible coffee cups in the U.K”, which was made out of wafer lined with white chocolate and wrapped in sugar paper. Consumers can enjoy both coffee and the cup at the same time.
In China, most researches on KFC focus on its marketing strategy, advertising strategy, crisis management, cross-cultural management，localization strategy etc. For example, Ma Ruiguang explored KFC’s location strategy and analyzed the detailed steps of choosing a location in his paper “The Secret in KFC’s location choosing process”. Another example is a paper named “thinking of KFC’s localization marketing strategy in China”, which includes analysis on the brand, product, service and market positioning strategy of KFC, written by Meng Fanrui and Shi Fengjun. This paper will take localization strategy as the research direction, take KFC in Xuzhou as specific example，and explore KFC’s localization strategy in Chinese market as a purpose. This paper begins with the history and current situation of KFC and points out that the localization strategy is an important factor in the development process of KFC.
The third chapter introduces the concept and reasons of adopting localization strategy.
The fourth chapter shows the performance and characteristics of KFC’s localization strategy.
The fifth chapter concludes what enlightenment KFC’s localization strategy gives us.
Chapter Two General History of KFC
2.1General Introduction of KFC
KFC is American multinational fast-food chain, founded by Harland David Saunders in 1930 in Kentucky, and its main products are fried chicken, Hamburg, Egg tart, French fries, soft drinks etc.