MARKETING STRATEGIES OF

MCDONALDS
VS
KFC

DISSERTATION
AMITY SCHOOL OF BUSINESS
NOIDA UP

SUBMITTED TO SUBMITTED BY
PRIYANKA. A. SINGH ADITYA DHEER
LECTURER,ASB BBA (M&S)-2
AMITY UNIVERSITY,NOIDA. A3914708029
 ACKNOWLEDGEMENT

I would like to express my gratitude to my institution AMITY SCHOOL

OF BUSINESS (ASB) for giving me the permission to choose my topic
for the dissertation in MARKETING STRATEGIES OF MCDONALDS VS
KFC.

I express my thanks & gratitude to my faculty guide who has

managed to get some time out of her busy schedule & helped me
with my dissertation report.I firmly believe that without her
commitment & support this report would not have been
completed.In this regard I am extremely grateful to my faculty guide

 PRIYANKA .A.SINGH (LECTURER) AMITY NOIDA.

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 ABSTRACT

This dissertation report entitled “MARKETING STRATEGIES OF

MCDONALDS VS KFC” is undertaken as a partial completion for my
BBA(MKT & SALES) course in AMITY SCHOOL OF BUSINESS (ASB) in
NOIDA UP.

Mcdonalds is the world’s largest chain of hamburger fast food

restaurants,serving more than 58 million customers daily.Mcdonalds
primarily sells hamburgers,cheeseburgers,chicken products,French
fries,breakfast items,soft drinks,shakes & desserts.The business
began in 1940 with a restaurant opened by brothers Richard &
Maurice Mcdonald in san Bernardino,California.The first Mcdonalds
restaurants were opened in United states,Canada,Costa
rica,Japan,Netherlands,Germany,Australia,France & Sweden.

Kfc is a chain of fast food restaurants based in Louisville,Kentucky in

the United states.Kfc primarily sells chicken pieces,wraps,salads &
sandwiches,while its primary focus is fried chicken.Kfc also offers a
line grilled & roasted chicken products & desserts.Outside north
America,kfc offers beef based products such as hamburgers or
kebabs,pork based products such as ribs & other regional fare.Kfc
was founded by colonel Harland sanders in 1952.

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 OBJECTIVE

The main objective of Mcdonalds are as follows:-

 To serve good food in a friendly & fun environment.

 To be a socially responsible company.
 To provide good returns to its share holders.
 To provide its customers with food of high standard,quick
service & value for money.
 The company vision is to be the uk’s best quick service
restaurants experience.
 The company is committed to maintaining & developing the
best food products in the quick service restaurants market.
 Committment to food safety & nutrition.
 To have biggest market share.
 To expand its business & be more popular worldwide.
 To increase variety on their menu list.
 To make its customers happy
 To have polite employees
 To beat its rivals such as KFC,Pizza hut,Subway.

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The main objectives of KFC are as follows:-

 To sell chicken & other products to its customers.

 To gain money so that they could buy food.
 To be more popular than other fast food chains.
 To expand its business & be more popular worldwide.
 To make more profit.
 To have polite employees.
 To make their customers happy.
 To increase variety on their menu list.
 To make their service faster & friendlier.
 To sell high quality products.
 To have biggest market share.
 To beat its competitors like Mcdonalds,Pizza hut,Subway.

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 CONTENTS

OBJECTIVE.........................................................................(4)
INTRODUCTION.................................................................(7)
 BRIEF ABOUT MCDONALDS & KFC...................(8)
 PRODUCTS OF MCDONALDS & KFC.................(10)
 MARKETING MIX OF MCDONALDS & KFC.........(12)
 CO-BRANDINGS OF MCDONALDS.....................(16)
SWOT ANALYSIS..............................................................(17)
RECOMMENDATIONS......................................................(25)
BIBLOGRAPHY..................................................................

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 INTRODUCTION

Mcdonalds is the world’s largest chain of hamburger fast food

restaurants,serving more than 58 million customers daily.In
addition to its signature restaurant chain,Mcdonalds corporation
held a minority interest in prêt a manager until 2008 & was a major
investor in the chipotle Mexican grill until 2006 & owned the
restaurant chain boston market until 2007.

A Mcdonalds restaurant is operated by either a franchisee,an

affiliate,or the corporation itself.The corporation revenues come
from the rent,royalties & fees paid by the franchisees as well as
sales in company operated restaurants.Mcdonalds revenues grew
27% over the three years ending in 2007 to $22.8 billion & 9%
growth in operating income to $3.9 billion.

Mcdonalds primarily sells hamburgers,cheeseburgers,chicken

products,French fries,breakfast items,soft drinks,shakes &
desserts.In response to obesity trends in western nations & in the
face of criticism over the healthiness of its products,the company
has modified its menu to include alternatives considered healthier
such as salads,wraps & fruits.

It was founded on may 15th 1940 in san Bernardino,California by

Richard & Maurice Mcdonald.Its headquarter is in oak
brook,Illinois,us & is situated worldwide.Mcdonalds restaurants are
found in 119 countries & territories around the world & serve 58
million customers each day.Mcdonalds operates over 31000
restaurants worldwide,employing more than 1.5 million people.The
company also operates other brands,such as piles cafe.

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KFC was founded by colonel Harland sanders in 1952 & is widely
known as the world famous fast food restaurant based in
Louisville,Kentucky us.KFC has been a brand & operating
segment.KFC primarily sells chicken pieces,wraps,salads &
sandwiches,while its primary focus is fried chicken.It also offers a
line of grilled & roasted chicken products,side dishes &
desserts.outside north America KFC offers beef based products such
as ribs & other regional fare.In april 2007 the company began using
its original name,KFC for its signage,packaging & advertising in us as
a part of a new corporate rebranding program.

KFC speciality is fried chicken served in various forms.Its primary

product is pressure fried pieces of chicken made with original
recipe,the other chicken offering extra crispy is made using a garlic
marinade & double dipping the chicken in flour before deep frying
in a standard industrial kitchen type machine.

Kentucky grilled chicken is targeted towards health conscious

sutomers.It features marinated breasts,thighs,drumsticks & wings
that are coated with seasonings before being grilled.It has less
fat,calories & sodium than the original recipe fried chicken.

KFC has two lines of sandwiches its regular chicken sandwiches &
its snackers line.The regular sandwiches are served on either a
sesame seed or corn dusted roll & are made from either whole
breast fillets,chopped chicken in a sauce or fried chicken strips.The
snakers line are value priced items that consists of chicken strips &
various toppings.In uk,Australia & newzealand,sandwiches are
reffered to as burgers,there is chicken fillet burger(a chicken breast
fillet coated in an original recipe coating with salad garnish &
mayonnaise) & a zinger burger as former but with a spicier coating
& salsa.

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The kfc twister is a wrap that consists of either chicken strips or
roasted chicken,tomato,lettuce & pepper mayonnaise wrapped in a
tortilla.In Europe the twister is sold in two varities:-

Grilled twister(chicken strips) & grilled Mexican twister.

KFC fillers are a 9 in 23cm sub,available in four varieties over the

summer period in Australia.shish kebabs are also being sold by kfc.

Wrapstar is a variant of the kfc twister,consisting of chicken strips

with salsa,cheese,salad,pepper mayonnaise & other
ingredients,contained in a compressed tortilla.

In some international locations,kfc may sell hamburgers,porks ribs

or fish.In us KFC began offering fish snacker sandwich during lent in
2006.The fish snacker consists of a rectangular patty of Alaskan
Pollock on a small bun & is the fifth KFC menu item.

Some of other products sold by KFC in other countries include

zinger burger,chilli cheese fries,parfait desserts,sara lee
desserts,krushers available in Australia,South Africa,India &
Newzealand are drinks containing real bits.They include classic
krushers,smoothie krushers & fruit krushers.

Other than fried chicken many KFC restaurants serve side dishes
like coleslaw,various potato based items including potato
wedges,French fries & mashed potatoes with gravy,biscuits,baked
beans,macaroni & cheese,macaroni salad,rice,steamed vegetables
& corn on the cob.

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 PRODUCTS

 Bahrain:-Mcdonalds restaurants in Bahrain,began in march

2008,sell Mccrisy, a meal consisting of 1,2 or 3 chicken stris
served in a wraer for a single stri or in a box for 2 or 3,with a
choice of barbecue,sweet & sour,or garlic sauce.like all
Mcdonalds restaurants all food served in Bahraini outlets is
halal.

 China:-Mcdonalds Chinese new year meal,grilled chicken

sandwich & twisted French fries.In china chicken Mcnuggets
come with the traditional bbq,sweet & sour & honey mustard
sauces,but there also a chilli garlic sauce.In china there are
specific Mcdonalds restaurants & counters for

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 icecream,beverages & desserts.They also include crisy chicken
wings on their menu which comes in 2,4 & 6 icces.

 India:-The Mccurry pan is a very popular dish across India.It is

an original creation of Mcdonalds India.Beef & pork products
are not served to cater to Indian religious sensitivities.chicken
along with fish are the only meat products used.Other items on
Indian menu includes chicken products such as Mcchicken
burger & chicken Mcgrill.The vegetarian burger menu consists
of Mcaloo tikki burger ,Mcveggie & Mc surprise.

 Indonesia:-Mcdonalds sells fried chicken,which is by far more

popular than the hamburgers.Mcrice is also offered a small
amount of steamed rice.Mcsou is a chicken flavoured sou with
bits of reconstituted croutons & vegetables.

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 MARKETING MIX

MCDONALDS:-

 Product:-The strategy for product is to provide entry level

product so that the customers can try new items & graduate to
higher rungs.Mcdonalds has intentionally kept its product
depth & product width limited.For Indian menu ham,beef &
mutton burgers have been removed.The company tries to
innovates its products according to the changing preferences &
tastes of its customers.
The product mix includes veg menu,non veg menu,beverages &
frozen deserts.
Veg menu includes Mcveggie,Mcaloo tikki,paneer salsa
wrap,crispy Chinese,veg Mccurry pan & pizza Mcpuff.
Nonveg menu includes chicken maharaja,mac
Mcchicken,chicken Mexican wrap & chicken Mcgrill.
Beverages includes cold coffee,ice tea,soft drinks,Mcshakes,hot
serves.
Frozen deserts includes soft serve cone,Mcswirl,soft
serve,flavour burst & floats.

 Price:-This is the most important part of the marketing mix for

Mcdonalds as this is the only part which generates revenue for
the company.
Mcdonalds came up with a very catchy punchline “aap ke
zamane mein ,baap ke zamaane ke daam”.This was to attract
the middle & lower class consumers & effect can clearly be
seen in the consumer base Mcdonald has.

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 Mcdonalds has certain value pricing & bundling strategies such
as happy meal,combo meal,family meal to increase overall
sales volume.

 Place:-The place mainly consists of the distribution channels.It

is important so that the product is available to the customer at
right place,at right time & in right quantity.
The structure is simple for Mcdonalds in India the outlets in
north & east India are run by Connaught plaza restaurant pvt
ltd & outlets in west & south India are run by hard castle
restaurant pvt ltd.There are 169 outlets all over India.

 Promotion:-The idea of company promotion is to promote

Mcdonalds as a global image.Brand globally & advertise locally
is the Mcdonalds promotional strategy.
Mcdonalds does it promotion through television,hoardings &
bus shelters.They use print ads & the television programmes
are also an important marketing medium for promotion.
Some of the most famous marketing campaigns of Mcdonalds
are:-
You deserve a break today,so get up & get away to Mcdonalds.
Aap ke zamaane mein,baap ke zamaane ke daam.
Food ,folks & fun”.
I am loving it is one of the most successful ad campaigns
launched in 2003.

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 KFC:-

 Product:-Kfc speciality is fried chicken served in various

forms.Kfc primary product is pressure fried pieces of chicken
made with original recipe.Products are generated based on the
geographical locations.
In Kfc feedback is taken from customers in order to know the
customers demands so that improvements can be made by the
company.Kfc focuses on pure & fresh food in order to create a
distinct & clear position in the minds of customers kfc has a
strong brand name & they are leading the market in fried
chicken.

 Price:-Kfc adopts cost base price strategy,pricing of the product

includes govt tax & excise duty & then comes the final stage of
determining the price of the product.
Kfc globally enters the market using market skimming.Their
products are priced high & target the middle to upper class
people.
Compared to its competitors kfc has a monopoly in fried
chickens,thus kfc has an upper hand in pricing their fried
chickens.

 Place:-Kfc have their outlets close to

colleges,schools,cinemas,malls & market which are mostly
populated by young & those people who are in hurry.In
addition they also have outlets close to muslim populated
areas.

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 They provide free home delivery to offices & homes,result in
several outlets to cater to the needs of people in & around the
city.Due to hectic lifestyle of the people the fast food concept
saves time of preparing food & gives the customer a full meal
quickly.

 Promotion:-Promotion is the main tool to bring all the chicken

lovers attention towards its delicious one of a kind product
fried chicken.They try to promote their product through
radio,television,billboards,flyers.
Kfc try to sponsor events in order to strengthen their company
image.

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 CO-BRANDING

Mcdonalds has major tieups with various companies as their co

branding strategy:-

 COCA COLA:-

 BARBIE:-

 HOTWHEELS:-

 DISNEY PIXAR:-

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 SWOT ANALYSIS
MCDONALDS:-

STRENGTH:-

 It has a strong global presence & is considered as a market

leader in both domestic as well as international markets.
 It is a global brand that owns 31000 restaurants serving in 120
countries.
 It uses economies of scale for reducing the cost as its huge
expansion diversifies the overall risk involved with the
economic performance.
 It earns revenue by fast food sales as well as a property
investor & a franchiser of restaurants.
 It has branded menu item i.e big mac,chicken mcnuggets,which
further promote mcdonalds.
 It is recognised as one of the worlds most recognized logos.
 It is recognised as a socially responsible & community oriented
firm.
 It adapts to the cultural differences regarding the region where
the restaurant is set up.
 It has located itself in major airports,cities,highways,tourist
locations,theme parks.
 It has an efficient food preparation style that follows the
process in a systematic way.

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WEAKNESSES:-

 It uses advertising that mostly targets children.

 Low width & depth of the product.
 High employee turnover.
 It has yet to accomplish going on the trend of organic food.
 Price competition with the competitors resulting in low
revenue.
 Lack of innovative products.

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OPPORTUNITIES:-

 It can adapt to the needs of the societies & undergo an

innovative product line.
 It can research ways to use green energy & packaging which
will work as a part of their promotional effort as well as fulfil
their social responsibility.
 It can create new product offerings,use mobile text messaging
to offer services that appeal to consumers.
 It can upscale some of its restaurant settings at luxurious
locations to attract more customers.
 It can provide optional items that are regarded to be the basis
of allergy for some.
 It can slow down the level of expansion in order to increase the
profitability of the organisation.

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THREATS:-

 The recession negatively impacts the holding position of the

firm regarding its revenue streams,even though they are quite
diversified.
 Foreign currency fluctuations are regarded to be a major
problem as it uses standard pricing for its food item.
 More restaurants that are increasing their food offerings &
declining their price.
 Health issues regarding the fast food chain.
 Heavy investments on promotional campaigns which decrease
the gaining of market share.
 Sued various times for unhealthy food,usually with addictive
additives.
 Emergence of major fast food competitors like burger
king,starbucks,subways,kfc,wendy’s.
 Expansion has made the firm vulnerable to slow the economies
of other countries.

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KFC:-

STRENGTH:-

 It is a very famous fast food chain outlet that started from

Louisville Kentucky.
 It has been known to be a leader in the chicken restaurant
segment with annual sale of more than a billion dollars.
 It has more than 50% of the market share in fast food industry
& new entrants are finding it very difficult to capture its share.
 It has gained enormous recognition as a reputable brand for
fast food & has globally positioned itself well in industry.
 It has a high global brand image compared to its other
competitors.
 It has a strong presence over its competitors with its primary
product fried chicken.
 It has strong location,store management,motivated work force
& franchises.
 It has a strong distribution network such as outlets in shopping
malls,airports etc.

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WEAKNESSES:-

 Kfc is not innovative because it serves only the chicken

products to the customers.
 It doesn’t offer any new or differentiated products.
 It felt after the market was offering new products because it
was doubling other fast food chains to remain competitive.
 Its merger with different corporations resulted in big cultural
problem for kfc employees such as merger with pepsico.
 The company is only focusing on few locations & is ignoring to
check standards at franchises in different countries.
 Kfc is facing problems to maintain the higher standards of
hygienic food & is being charged in different countries due to
poor standards of hygiene food.
 Some of the examples are as follows:-
 In 2007 a kfc outlet in newyork city was initiated to be rat
infected.
 In 2009 a kfc store in London was also charged with 13 food
hygiene fines.
 A court case in 2010 exposed poor hygiene at a kfc store in
Sydney,Australia.

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OPPORTUNITIES:-

 Changing demographics trends provides opportunity to

diversify into new products & locations.
 Increasing demand for foodstuff eaten outside the home.
 Expand globally to capture the untapped markets & increase
the revenue.
 The company can take advantage of Nafta(North American free
trade agreement).
 Expansion for the latin American markets.
 Consumers are becoming health conscious so they decided to
introduce new products line for this segment.
 To be environmently responsible because it will improve the
public image of kfc & will help it to increase its revenue.
 To diversify into other fast foods & meals.
 To open more outlets in metro to increase their presence.

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THREATS:-

 Kfc is facing strong competition from its competitors,such as

Mcdonalds,yum,subway & pizza hut.
 It is also facing competition from local restaurants in different
countries of the world.
 The company is facing problem in maintaining same standards
at their international franchises.
 To sustain a market leadership position in the global fast food
industry.
 Other players are turning to new menu offerings,locations &
outlets.
 Increase in number of health conscious consumers.
 Saturated fast food industry in the us market.

RECOMMENDATIONS
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KFC:-
 If kfc could increase company own restaurants,which
enables it to control quality,services & restaurant
cleanliness therefore more capital is needed.
 Kfc need to make sure that their restaurants offer a
diversified menu.
 To provide their customers with quality food,excellent
service & restaurant cleanliness.
 Kfc should always listen to their customers & try follow
new trends on market in order to satisfy their
customers.
 The company should try to develope new products that
customers want in order to increase their financial
performance & value.

Mcdonalds:-

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 To provide their customers with quality food & excellent
service.
 They should expand their business by innovating new menu in
their menu list.
 The billing counters should be expanded more so that the rush
in the restaurant is avoided.
 The service given by the employees should be fast & quick so
that the order can be reached at customers desk.


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 BIBLOGRAPHY

www.google.com
www.scribd.com
www.wikipedia.com

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