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1987KFC was the first fast food restaurant in China.1990Pizza Hut spread into China Their parent corporation-Yum! Brands, Inc. developed the global marketing focusing on international expansion in China, Japan, Great Britain, and Canada as key growth markets. The following exhibit is showing the KFC and Pizza Hut’s stores in top 10 markets. (Yum!, 2013) Yum! Brands, Inc. Top 10 Markets - Stores (Year-End 2013)
KFC VS. Pizza Hut4KFCPizza HutTotalUSA4,4917,84612337China4,5631,2645,827Japan1,1813711,552Great Britain7846401,424Canada6633451,008Australia618299917Malaysia579332911Indonesia466297763South Africa736–736India299315614KFC and Pizza Hut expanded into global market and had successful achievements. It is obviously that China is the biggest international markets for both KFC and Pizza Hut. However, even if they have global strategies and launched all over the world, KFC is more successful than Pizza Hut in terms of the amount of stores in global market.SegmentationKFC and Pizza Hut primarily focus on demographic segmentation. In KFC and Pizza Hut, there is no age limit for customers in general. Gender is both males and females. Family lifestyle is almost all kinds of lifestyle. Another popular basis for demographic segmentation is income. However, in China, due to the usage of knives and forks, I think KFC is safer for younger than Pizza Hut. KFC finds its largest customers are young people. (Hatton, 2013) KFC targets the middle and lower classes. You can find KFC in third-tier cities. As for the higher price, Pizza Hut targets the upper middle class in top and second-tier cities in China. (2013)KFC and Pizza Hut market international stores and their products according to geographic needs of the customer. For instance, in north China, spicy flavor food is popular depending on climate. KFC and Pizza Hut produce spicy food which does not exist in south China.
KFC VS. Pizza Hut5In behavioral segmentation, according to the KFC’s China, Japan, and Africa website (2015), beside the original KFC recipes, KFC offers spicy beef rice in China, shrimp cutlet sandwich in Japan, and zinger wings in Africa. Pizza Hut offered octopus with quail egg in China and Mizza (rice pizza) in South Korean according to the local taste (America Fun Fact, 2012). In my opinion, in China, KFC did better in the localization of menu than Pizza Hut. Relationship with Other Functions and Brands of the OrganizationThe Global Nutrition Office in Yum! is building to improve nutrition; therefore, its brands,KFC and Pizza do have relationship with this functions. Their nutrition strategy focusing on foodsafety and quality- three main pillars—offering more choices, more transparency and making more nutritional improvement to ingredients.(Yum! Brands, Inc., n.d.) According to the Pizza Hut and KFC websites, it is easy to find the nutrition information. However, KFC provide the ingredient statement which Pizza Hut website is not providing. In my opinion, Pizza Hut needs to update its website and give information about its ingredient.