KFC Marketing Research the Following Research Paper

  • Length: 9 pages
  • Sources: 15
  • Subject: Business
  • Type: Research Paper
  • Paper: #14755959

Excerpt from Research Paper :

Petersburg, 20080. This is because drive-through restaurants must be located in highly circulated areas by vehicles. In addition to this, such restaurants require special spacing facilities. These restaurants must usually provide at least five stacking spaces at or behind the menu board.

These spaces must be clearly delineated from other vehicular use areas. In addition to this, drive-through restaurants must ensure pedestrian connections. The speaker boxes of drive-through restaurants must be carefully oriented towards areas where the noise level permitted is higher.

Marketing Strategy

The reasons for introducing the drive-through service in China rely on the significant expansion potential that the fast food industry in this market provides. KFC has identified certain characteristics of its customers that determined the company to sustain this idea. For example, the company's customers have revealed increasing mobility, which requires a drive-through service (QSR, 2002). In addition to this, customers on the Chinese market have been reported to benefit from increased customer spending power and increased interest in purchasing vehicles.

By introducing drive-through restaurants, KFC intends to increase the number of customers. The strategy developed by KFC is based on increasing the convenience level of its customers. The introduction of the drive-through system in China is also intended to appeal to customers that are oriented towards the Western civilization (Bison, 2002).

But KFC should not stop at this point. The company's success on the Chinese market and the introduction of drive-through restaurants must lead to a developed strategy. For example, KFC should combine several facilities that its customers are interested in. In addition to the restaurant, KFC should combine its efforts with gas suppliers and develop a project consisting in a KFC drive-through restaurant, a gas station, and an auto maintenance outlet in the same unit (Trading Markets, 2009).

The fact that McDonald's did not recur to this strategy might seem problematic for KFC. This might be because its competitors have not observed the potential of this strategy in China. However, it is important that KFC supports its strategic decision with market analyses.

Another issue that KFC must address when trying to introduce the drive-through service on the Chinese market is represented by customers' willingness of accessing this service. The fact that KFC has a strong position on the Chinese market supports its intentions. As mentioned above, a higher number of Chinese intend to purchase vehicles, which increases the number of potential customers that KFC targets through this service.

Consumer Attitudes

KFC must study the introduction of this service based on the components of the consumer attitude:

Cognitive

Affective

Conative

Cognitive attitude

Consumers form their opinion on KFC's products on services from information they access through different media channels. Additional information is provided by the company through its website and promotional campaigns. Customers' direct experience is the most important aspect that determines their attitude (Schiffman & Kanuk, 2007).

Affective attitude

This is represented by customers' emotions and feelings about the KFC brand. The fact that KFC is one of the most preferred brands in the world reveals that consumers have a positive attitude towards KFC. The company can exploit this advantage.

Conative attitude

This component of customers' attitude must be significantly taken into consideration by KFC when developing the drive-through system strategy. The company is interested on the actions that customers might take when dealing with this service.

Conclusions

KFC is one of the most well-known brands worldwide. The company's global position helped KFC gain significant market share in China also. However, there is plenty of potential in the Chinese market can exploit. This can be achieved by creating competitive advantage. In order to reach this objective, KFC must develop its range of products and services. Therefore, KFC must consider the introduction of drive-through restaurants. The Chinese market conditions and the attitudes of customers towards KFC support this strategy.

Reference list:

1. Haq, M. (2011). Customer Satisfaction of KFC. Retrieved March 12, 2011 from http://www.docstoc.com/docs/69414951/Customer-Satisfaction-Level-of-KFC.

2. French, P. & Crabbe, M. (2010). Fat China: How Expanding Waistlines are Changing a Nation. Retrieved March 12, 2011 from http://books.google.ro/books?id=GafXlU9SrPkC&pg=PA115&dq=kfc&hl=ro#v=onepage&q=kfc&f=false.

3. Annual Report (2009). McDonald's. Retrieved March 12, 2011.

4. Drive Thru Facility or Use with Drive-Thru Service (2008). Land Development Regulations. Retrieved March 12, 2011.

5. Annual Report (2008). KFC. Retrieved March 12, 2011.

6. KFC Opens China's First Drive-Through Restaurant (2002). QSR. Retrieved March 12, 2011 from http://www.qsrmagazine.com/news/kfc-opens-chinas-first-drive-thru-restaurant.

7. KFC Opens China's First Drive-Thru Restaurant (2002). Retrieved March 12, 2011 from http://www.bison.com/press_kfc_09032002.

8. KFC Opens Drive-Through Outlet with Sinopec (2009). Trading Markets. Retrieved March 12, 2011.

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