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KFC Case Study: Addressing Recessionary Challenges by Focusing on Health and Value Product Image

KFC Case Study: Addressing Recessionary Challenges by Focusing on Health and Value

  • Published: September 2009
  • 12 pages
  • Datamonitor

This case study on KFC forms part of a series of case studies, 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.

Key reasons to purchase this title

- 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

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
KFCs 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
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 KFCs strongest foreign markets and is earmarked for significant expansion

Format Properties
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