2. KFC Company information
Based in Louisville, KY
Parent company: YUM! Brands
Ranked #239 on Fortune 500 List
Each day, 12 million customers are served
36,000 locations worldwide
World’s most popular chicken restaurant chain
World famous for Original Recipe fried chicken
4. KFC Internationally
In 109 countries
5,200 in the U.S.
15,000 globally
Globally there are 300 products served
Grilled chicken in the U.S. to salmon sandwich in
Japan
5. Financial History
Own 39% market share of the chicken-on-the-
bone segment as of 2011
Video: http://bcove.me/oih2ju8r
7. Target Market: Brazil
Languages:
Portuguese (official)
less common: Spanish, German, Italian, Japanese,
English, and a large number of minor Amerindian
languages
87% urban population
55% of Latin American economy
Over 50% of population is under the age of 30
Hits the key demographic for KFC
8. The Target Market
Large gap between the rich and poor
26% population live below the poverty line (CIA
World Fact Book)
Literacy Rate: 88% male and female
Obesity Rate: 11%
52nd out of 70 ranked nations in the world
Generally a healthy nation
Consumer expenditure on food in millions
2011: $ 190,598.8
Expected for 2012: $ 199,582.2
9. The Target Market
Consumer behavior
Brazilians have good culinary sense
Strong food and drink traditions
Crucial for KFC to align with natives (BFFC)
Growth in Brazilian economy
emergence of a larger middle class with higher
income per person
consumers to spend more on indulging themselves,
rather than restricting their spends to basic
necessities
Brazilians are spending more on eating out
Seeking convenience
11. Industry Analysis
4 segments of market
Quick service
Take-aways
Mobile and street vendors
Leisure locations
12. Foreign Market Entry Method
100% franchised in Brazil
Aligned with BFFC (Brazil Fast Food Corporation)
Strategy
Joined a strong franchise within the market
They already know the Brazilian culture and marketplace
BFFC knows the tastes and culture of the food industry
Entered in the first quarter of 2007 with 4 restaurants
in Rio De Janeiro
Currently there are 18 locations
5 in Sao Paulo
13 in Rio De Janeiro
13. Wagner Rodrigues
Executive Officer of YUM! Restaurants International
in Brazil
“With Brazil Fast Food’s extensive knowledge of
the Brazilian fast food market, we believe that it is
the perfect company to entrust with the continued
growth, development, and consolidation of the
KFC brand in Brazil.” -QSR
14. Competitive Analysis
Within Brazil
McDonalds
Burger King
Subway
Local Chain Competitors
Bob’s
Giraffa’s
Habib’s
Potential: Any fast food company could come into
Brazil in the future and become a direct competitor
Wendy’s
Dairy Queen
Krystal’s
15. SWOT analysis: internal aspects
Strengths
BFFC alliance
Brand Equity is #2 in the world
Strong markets internationally already in place
The top international country-style chicken fast food
company in the world
Weaknesses
Fairly new in the marketplace (2007)
The risk that comes with franchising (i.e. loss of control,
consistency and quality)
Do not have a lot of healthy food options
16. SWOT analysis: external aspects
Opportunities
18 KFC locations
Absolute room for expansion long-term
Blue Chip for growth opportunity behind China, India and
African nations
5th largest country with over 170,000,000 people
Growing fast food market
Media availability in Brazil is the largest in South America
Threats
Future competitors entering the market
McDonald’s is the market share leader
CPI is 3.8
18. Product Strategy
Description
Global leader in chicken fast food
Quality: focus on improvements
Health aspects
KFC has re-launched its grilled chicken menu in the US, which is aimed at
satisfying consumers' needs for health and convenience. In doing so, it is
addressing consumer trends and countering concerns regarding fatty
offerings in the fast food sector.
Brand Name: Internationally known Kentucky Fried Chicken
Branding
Colors: red and white
Coronel Sanders
Image: Adaption verses Standardization
Doesn’t want to lose brand image, but mix “balance aggregation with
adaptation”
Standardizing of some products, but also tailoring to customer’s needs
19. KFC Products: menu in Brazil
Core products same as the U.S. (original, extra
crispy)
Unique dipping sauces to adapt to local taste
Culturally unique products
Farofa, black beans, parmiggano sandwich, I-Twist
20. Price Strategy
Standard of living
Optimism: Majority of citizens believe it is improving
Exchange rate: 0.52 Real = $1.00
Competitive pricing
Value pricing strategy: provide the best value per
competition
Par Value Pricing: pricing is based on the
competition
U.S. pricing vs. Brazil pricing
Brazil: 20 Reals, For 6 pieces of chicken 2 sides
U.S. $12.99, For 6 pieces of chicken, 1 large side, 3
biscuits
20 Brazilian reals = $10.4058 US dollars
21. Place/Distribution
Distribution
Goods direct to consumer
In store
Drive through
Delivery
Franchisees place food orders through BFFC’s
procurement department
Suppliers
Pilgrim’s Pride, Perdue Farms, Tyson Foods
Prefer to supply from within the country but use
contingency plans to ensure quality
Currently, 18 locations in Brazil
22. Promotion
Media availability
Largest and most developed of South America
Of 170 million people, only 2.3 million have cable
and 1.3 have satellite
71 million listen to the radio
75 million have computers but ONLY 5 million have
the internet
Media power: radio and television
Freedom of speech in the press
23. Promotion
Advertising Strategy
Brazil advertising is
known for creativity and
innovativeness (AEF)
Brazilians desire
entertaining advertising
Most desired
advertising is during
soccer games
Emphasize physical
beauty
Billboards, signs in the
streets also utilized
Emphasize price and
convenience
Combining meals and
discounts
24. Promotion
Corporate social responsibility initiatives
Coronel’s Scholars
Social Diversity
Supplier Code of Conduct
Packaging and the Environment
Animal Welfare Program
25. Animal Welfare Program
YUM! Brands does not own, raise, or transport
animals
Influence the way the supplied animals are
treated
Monitor suppliers
Council with highly respected experts in the
animal welfare field to advise KFC
Develops guidelines and audit programs for
suppliers in the broiler industry
Industry leading in poultry care and handling audit
program
Hinweis der Redaktion
http://www.yum.com/annualreport/
Yum brand
Anna
From that guyhttp://www.euromonitor.com/brazil/country-factfile