KFC vs. McDonald's BY- URMIMALA

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 support .Last but not the least THANKS to all who helped us make this presentation a success.

TABLE OF CONTENT

Executive Summary Objective Introducing McDonalds &Its direct

competitor KFC Brief History OF McDonalds Brief History Of KFC Mission & vision of Mcdonalds Mission & vision of KFC Some products of both companies SWOT Analysis

CONT. TABLE OF CONTENT

Briefing Of Mcdonalds Briefing of KFC Survey Analysis Conclusion Recommendation Reference Taken ..

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. 

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).

To find out the details of everybody’s favourite food trip destination MCDONALDS and its direct competitor KFC.To find out Brief history of two of the leading fast food selling companiesGoing 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 consumer’s preference of food joint amongst McDonald’s and KFC.

Objective

Introducing McDonalds and Its Direct Competitor KFC

McDonald’s and KFC are everybody’s favourite food trip destinations. When you like hamburgers, McDonald’s is always the top option. When you like fried chicken, KFC is always the first thing that comes to everyone’s mind. The reason for this is these companies claim of particular products that have became their trademark until now. The difference between McDonald’s and KFC is mainly the cuisine.

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 world-famous 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.

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 services and home deliveries upto certain distances.At the end of 2003 there were over 6oo McCafes worldwide.

Brief History Of KFCKFC is based in Corbin,Kentucky,U.S. Founded by  Colonel Harland Sanders, in early 1930’s. At that time he used to cook and serve food for hungry travellers. In 1952 Sanders started franchising his chicken business & named it as KENTUCKY FRIED CHICKEN. KFC operates more than 15,000 units in 109 countries and territories around the world.

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.

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.

Some of the products of both companies

McDonalds KFC

SWOT ANALYSIS

SWOT ANALYSIS OF MCDONALDS

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

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 & beef oil

Ignoring breakfast from the menu

OPPORTUNITY Increasing demand for

healthier food Home meal delivery Full adaptation of its new

practices Changing customer habits

and new customer groups

THREAT Saturated fast food markets

in the developed economies Trend towards healthy

eating Local fast food restaurant

chains Lawsuits against

McDonald’s Direct competitor KFC

SWOT ANALYSIS OF KFC

STRENGTH

Huge popular brand name and high brand loyalty

High number of products Hygenic food and quick service Good advertising and

marketing Strong trademarks recipes.

WEAKNESS

High fat and high calorie food not good for health conscious people

Franchise management globally is a challenge

OPPORTUNITY 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.

THREAT 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.

Competitor McDonalds'

Briefing of McDonalds Parent Company:-

MCDONALDS Category:- Fast food selling Sector :- Food products Slogan:- I'm lovin' it USP:- High varieties of

Burgers Segment:- For Burger lovers

and foodoholics Target Groups:-Mostly

Children and Youth Positioning:- In India

positioning of McDonalds has been directed as a Family restaurant.

Parent Company:-

KFC(Kentucky Fried Chicken) Category:- Fast food eating joints. Sector:- Food Products. Slogan:- Finger Licking Good. USP:- High variety in chicken

meals. Segment:- People willing to have

a hygienic and delicious non conventional meal at a restaurant.

Target Group:- Children and youth from middle and upper class.

Positioning:- Favourite quick service restaurant brand 

Briefing of KFC

SURVEY ANALYSIS

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

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 McDonald’s as well as KFC.

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.

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 non-vegetarian paradise. This thus showed a balanced market for McDonalds where as a strong shift for KFC towards the non-vegetarian section

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.

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.

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 brands. This particular question analyzes the potency of the advertising strategies used by the food brands in attracting or influencing the customers.

Conclusion

 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 McDonald’s in the Indian market share. Both the food-giants have given each other immense competition in terms of customer satisfaction and promotional strategies.

Cont. Conclusion 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.

RECOMMENDATIONS

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

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