KFC Case Study: addressing recessionary challenges by focusing on health and value
Datamonitor
September 10, 2009 15 Pages - SKU: DFMN2436364
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Introduction
This case study on KFC forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It examines how the company is attempting to encourage growth during the recession. The company has focused on value meals along with health and environmental initiatives, while emerging markets offer growth outside the stalling US market.
Reasons to Purchase- Gain insight into the methods used by important industry players to give them a competitive edge
- Identify specific areas for operational improvements
- Capitalize on the knowledge of experienced companies when entering a new niche or market
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- DATAMONITOR VIEW
- CATALYST
- SUMMARY
- ANALYSIS
- Fast food is growing in popularity around the globe as a good value meal option
- The fast food industry is encouraging people to trade down to cheaper food options during the recession
- Fast food retailers are attempting to capitalize on the recession by encouraging people who would not normally eat fast food to do so. In particular, they are encouraging consumers who would normally eat at higher-end, full-service restaurants to trade down in order to save money when eating out. Market players have attempted to retain these new customers through new initiatives. In the US, this has included the following:
- Consumers in MENA eat at fast food restaurants most often
- The UK and US are the keenest on fast food in the world
- KFC has looked to value meals, health and the environment to aid growth in the recession
- KFC has focused on value to encourage growth during the recession
- Concern over health in western markets has prompted the company to review its business in these areas
- Consumer concern for the environment has prompted KFC to reduce its food packaging
- KFC's marketing initiatives have encouraged consumer participation, while exploiting the growing popularity of internet discount vouchers
- The company is concentrating on developing its business in emerging markets such as China and India
- Conclusions
- APPENDIX
- Case study series
- Methodology
- Secondary sources
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: Consumer survey: the propensity to take active steps to eat more healthily more or less often, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008
- List of Figures
- Figure 1: Consumers in MENA are the most prolific users of fast food restaurants
- Figure 2: KFC UK has switched the packaging of its Fillet and Zinger burgers from cardboard to paper to reduce waste
- Figure 3: A significant proportion of consumers look to purchase minimally packaged goods occasionally
- Figure 4: US consumers have shown an increasing interest in online shopping coupons
- Figure 5: China is one of KFC's strongest foreign markets and is earmarked for significant expansion
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