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).

Objective
To find out the details of
everybodys favourite food trip
destination MCDONALDS and its
direct competitor KFC.
To find out Brief history of two of
the leading fast food selling
companies
Going 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 consumers preference of

Introducing McDonalds and Its

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

Brief History Of Mcdonalds

TheMcDonaldsrestaurantconceptwasintroducedin
CaliforniabytwobrothersnamedDickandMac
McDonaldofManchester.Thebusinesswasfoundedin
1940bythese2brothers.Itistheworld'slargest
fastfoodchain,sellingprimarilyhamburgers,chicken,
Frenchfriesandcarbonateddrinks.Itwaslater
modifiedandexpandedbytheirbusinesspartner,Ray
KrocwholaterboughtoutthebusinessoftheMcDonald
brothersandwentonandfoundMcDonald's
Corporation.Advertisinghasalwaysplayedakeyrolein
thedevelopmentoftheMcDonald'sCorporation.
Indeed,McDonald'sadshavebeensomeofthemost
identifiableovertheyears.In1962,McDonald's
introduceditsnowworld-famousGoldenArcheslogo.A
yearlater,thecompanysolditsbillionthhamburgerand
introducedRonaldMcDonald,ared-hairedclown
designedtoappealtochildren.

Cont. history of Mcdonalds

McDonald'srestaurantsarefoundin
120countriesandservenearly54
millioncustomerseachday.Mostofthe
McDonaldsrestaurantsoffersboth
counterservicesandhomedeliveries
uptocertaindistances.Attheendof
2003therewereover6ooMcCafes
worldwide.

Brief History Of KFC

KFC is based in Corbin,Kentucky,U.S.
Founded by Colonel Harland Sanders, in
early 1930s.
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
OPPORTUNITY
Increasing demand for
healthier food
Home meal delivery
Full adaptation of its new
practices
Changing customer habits
and new customer groups

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
THREAT
Saturated fast food markets
in the developed economies
Trend towards healthy
eating
Local fast food restaurant
chains
Lawsuits against
McDonalds
Direct competitor KFC

SWOT ANALYSIS OF KFC

STRENGTH

WEAKNESS

Huge popular brand name and

high brand loyalty
High number of products
Hygenic food and quick service
Good advertising and
marketing
Strong trademarks recipes.

High fat and high calorie food

not good for health conscious
people
Franchise management
globally is a challenge

OPPORTUNITY

THREAT

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.

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.

Briefing of KFC

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

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
McDonalds 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
McDonalds 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