KFC Case Study: addressing recessionary challenges by focusing on health and value

Published by: Datamonitor

Published: Sep. 10, 2009 - 15 Pages

Table of Contents

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

Abstract

• 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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