Student: Doan Thi Bich Hoai ID: A2127281

Introduction

As we can see, Everyday American and European people dine at Japanese, Thai,
Vietnamese or Chinese restaurants. Similarly, on the other side of theglobe, Asian people
enjoy their meals at French or Italian restaurants. To be more specific, foreign restaurants are
now more popular in Vietnam, especially Western style fast food with more than 200
restaurants nationwide. KFC, Lotteria are Jollibee, PizzaHut are just some brands to name. As
a matter of fact, more and more teenagers andyoung people go to fast food restaurants when
hanging out with friends and family

- In this research,fast foodis defined ashot food such as a burger that is quick to
cook or is already cooked and is therefore served very quickly in a restaurant.

(Cambridge Advanced Leaner’s Dictionary)

- Among brands mentioned above, KFC is the market leader with 100 restaurants till
theend of the year 2011, and account for 60 percent of fast food market share in Vietnam.That
is the reason why this brand is chosen for study to better understand fast foodmarket in
Vietnam.This study examines the case of KFC Vietnam through their product, price, place
and promotion strategies

1. KFC Corporation

1.1. Overview.

KFC Corporation, also known as Kentucky Fried Chicken is the world's most popular
chicken restaurant chain. KFC primarily sells chicken pieces, chickensandwiches, chicken pot
pies, crispy chicken strips, wraps and salads. KFC is part of Yum! Brands, Inc., the world's
largest restaurant company in terms of restaurant system,with more than 36,000 locations
around the world.

KFC, based in Louisville, Kentucky, is the world's most popular chicken restaurant
chain specializing in Original Recipe, Extra Crispy and Colonel's Crispy Strips chicken with
home-style sides and freshly made chicken sandwiches. Since its founding by Colonel
Harland Sanders in 1952, KFC has been serving delicious, already- prepared complete family
meals at affordable prices. Perfecting its secret recipe of 11 herbs and spices in 1939, for the
last 60 years, of being the chicken experts, KFC wore the title of being the market leader in its

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Student: Doan Thi Bich Hoai ID: A2127281

industry. Serving delicious and hygienic food in a relaxing environment made KFC
everyone’s favorite. Since then, KFC has been constantly introducing new products and
opening new restaurants for its customers. Up to now there are over 17,000 KFC outlets in
109 countries and territories around the world, serving millions of customers each day.

Food, fun & Festivity are all what attached to KFC, leading the market since itsinception;
People at KFC can proudly say, “We do chicken right”

1.2. Goals

 Build an organization dedicated to excellence.

 Consistently deliver superior quality, and value in our products andservices.
 Maintain a commitment to innovation for continuous improvement andgrowth,
striving always to be the leader the market place changes.
 Generate consistently superior financial returns and benefit our ownersandemployees.

1.3. Value

KFC’s commitment to provide the best food and best experience for the best valuethe
universal areas of customer expectation common to all cultures and all restaurantconcepts

 Cleanliness
 Hospitality
 Accuracy
 Maintenance of Facilities
 Product Quality
 Speed of Service

2. KFC Vietnam

KFC is known in Vietnam under the special name “Gà rán KFC” – a fast food
restaurant chain serving the meals made from chicken, hamburgers and the most famous meal
is fried chicken KFC entered the market for the first time in 12/1997 in Ho Chi Minh city.
Now this fast food restaurant chain has been in more than 18 provinces and cities of Vietnam.

 Time lines of first restaurants:

 12/1997 – Ho Chi Minh City
 06/2006 – Ha Noi

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Student: Doan Thi Bich Hoai ID: A2127281

 08/2006 – Hai Phong & Can Tho

 07/2007 – Bien Hoa – Dong Nai
 01/2008 – Vung Tau
 05/2008 - Hue
 12/2008 – Buon Ma Thuot
 11/2009 – Đa Nang
 04/2010 – Binh Duong
 11/2010 – Vinh, Nghe An
 05/ 2011 – Nha Trang – Khanh Hoa
 06/2011 - Long Xuyen – An Giang
 08/2011 - Quy Nhon & Rach Gia
 09/2011 - Phan Thiet
 12/2011 – Hai Duong
Source:www.kfcvietnam.com.vn 
In 2011, the total revenue of fast food industry was VND810 bn. and the growth rate
was about 26 percent. This growth rate makes fast food a very attractive market. The
following chart shows the current market share of KFC and its competitors

Source:http://nhipcaudautu.vn/article.aspx?page=1&id=4202-subway-da-den

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Student: Doan Thi Bich Hoai ID: A2127281

a.  Key product planning 

A product is anything that can be offered to a market that might satisfy a want or need

 KFC product is classified as consumer product as it has no intermediates.

 KFC offers specialty goods.
 The stock turn over of KFC is high
 Price and quality of the product is always compared
 KFC’s product includes
 Goods (Burgers, Chicken Meals etc)
 Services (cleanliness, quick service, parties)

A typical KFC meal consists of chicken, coleslaw and potato & gravy. All of
theingredients are of the highest quality and freshness. To ensure this, the company
setsrigorous standards for product uniformity and quality, which must be met by allsuppliers

b.Key product line

KFC product line includes all chicken based products

 Chicken (Original recipe chicken or Hotchicken)

-1 piece

-3 pieces

-6 pieces

-9 pieces

-18 pieces

 Burgers/Snacks

- Shrimp burger 

- Zinger burger 

- Flava roast burger 

- 3 pieces crispy Strips

- Flava roast chicken rise…

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Student: Doan Thi Bich Hoai ID: A2127281

 Combo

- Original recipe chicken

- Hot &spicy chicken

- Sandwich

-Chicky meal with gift

- Popcorn chicken

- Sharenijoy

 Side orders

- French fries

- Mashes potato

- KFC (Coleslaw)

- Sweet bun

 Desserts & Beverages

-KFC cone

-KFC sundae

-Hot pie

-Pepsi

-Milo

-Egg tart

3. The marketing mix in Viet Nam:

3.1. Product:

The most important thing in product strategy of KFC is to differentiate their  product

from other competitors in the same industry and gain competitive advantage inconsumers’
mind. KFC’s original recipe is what made Colonel Sanders and KFC famous.He developed
the secret formula of 11 herbs and spices which cost millions of dollar andit still defines
irresistible flavor of KFC today. Also, the products of KFC in Vietnam, aswell as all over the

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Student: Doan Thi Bich Hoai ID: A2127281

world, are produced with similar recipe. KFC not only makes itself unique from the others but
also varies its products to create an abundant menu. In addition to traditional dishes such as
fried chicken and hamburger, when penetrating inVietnam, KFC tried to provide more options
in order to satisfy Vietnamese tastes such asfillet fried chicken, sandwich, gravy chicken rice,
mixed cabbage and jumbo… The size of hamburgers is also smaller to fit Vietnamese
customers. The list of products isclassified in many categories to help customers feel free to
choose their favorite food.Moreover, adding shrimps, fishes to the menu makes customers
interested and curiousrather than only serving chicken.KFC not only focuses on developing
new products and changing the quality tocatch up with customers’ demand but also takes care
of customers’ health. The most obvious evidence is that in 2007, after two years of
experimenting, KFC found out that the normal oil contains high linolenic acid (8%) which
could cause heart attack. KFC’snew recipe targeted the health conscious customers.
Therefore, they introduced a savory blend of six secret herbs and spices and slow-grilled to
juicy perfection which has less fat, calories and sodium than the original recipe fried chicken.
This new recipe was applied in 5500 KFC restaurants around the world, including Vietnam.
Furthermore, in 2004, bird flu epidemic exploded in most of countries in Asia which affected
directly the sales of KFC in particular and other chicken-oriented restaurants in general. To
gain customer’s trust, KFC imported chicken from North America as well as made a
close processing to ensure food safety. Since KFC has long-term strategy in Vietnam, they
spend more time on gaining market share and getting the loyalty of customers here. KFC
Vietnam only chooses prestigious and quality guaranteed suppliers with certified
qualifications to express their concern of customers’ health

3.2. Price :

Price decision is a vital role to capture the market share. Although KFC extremely
succeeded in foreign markets and became one of the best in the fast food industry, they
virtually had no reputation when setting first step penetrating in Vietnam. And KFC was so
smart that they used low price strategy when coming to Vietnam in 1997 in order tocapture
the market share before other big competitors such as Lotteria, Mc Donald’srealized how
potential Vietnam was. The purpose of this low price strategy was that theywanted to retain a
large number of loyal customers. New customers were also attracted by this strategy, they
would be curious about the products and tried at least once. The other objective KFC
considered when using this strategy was to maximize their market share in comparison with

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Student: Doan Thi Bich Hoai ID: A2127281

other competitors in Vietnamese market. One famous slogan of low price strategy was “An
That No, Chang Lo Ve Gia”(Just eat all, Don’t Worry about Price)

Then, when there were more loyal customers, KFC increased their price gradually.As
we can see, this strategy was definitely effective since from 2006, KFC began to gain profit
and the number of loyal as well as new customers all grew significantly. In the fight of fast
food, KFC knew how to make itself more special than the others by possessing unique
competitive idea such as combining two portions into one called combowith lower price than
having 2 separate dishes

3.3. Place:

Today, the urbanization is growing very fast, most of the citizens become much busier and
more hurried. They do not have much time to prepare their meal at home.Therefore, fast-food
plays an important role in their daily life. It is easier to have meals in a very convenient and
quick way. Besides, the youth seems to be delighted with Western culture, they like modern
life style. That can explain why KFC Vienam only opened their stores mainly at commercial
centers, department stores in big city like Ho Chi Minh and Ha Noi.

KFC restaurants are designed to show both modern and quick service with eye-
catching decoration. Facilities are active and dynamic in red. When we go inside a KFC
restaurant we will see the brightness of KFC from logos to menu displays. All these designs
seem inviting to the youth.

Due to KFC placing itself close to schools, colleges, cinemas and supermarkets which
are mostly populated by the young and those who are in a hurry, KFC enjoys alarge number
of footfalls everyday. In Vietnam,, KFC mainly focus on big cities such as Ho Chi Minh , Ha
Noi, Da Nang and other high populated areas. Getting deeper in eachcity, KFC also try to
locate at central districts in order to offer the convenience for customers. For instance, in Ho
Chi Minh, KFC Vietnam open outlets at supermarkets,round abouts, Commercial centers in
District 1, 3, Phu Nhuan District, Tan Binh District,etc

3.4. Promotion:

Promotion is the method used to inform and educate the chosen target audience about
the organization and its products. The target customers of KFC Vietnam are teenagers and
young people. KFC Vietnam uses all types of promotion:

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Student: Doan Thi Bich Hoai ID: A2127281

- Advertising

- Sales Promotions

- Public Relations

- Events and Experiences

- Coupons, Discounts and Bundled packages

An organization finds most of its meanings and survival through promotion. At KFC,
promotion is the main tool to bring all chicken lovers’ attention towards itsdelicious one-of-a-
kind product, the Fried Chicken

3.5. Advertising

KFC's advertising strategy is focused on building brand image, and making it familiar
to consumers about a new popular but fast food in the world. KFC is not only advertising on
print media such as newspapers and magazines but also advertising onelectronic media such
as television and the Internet. Besides, KFC also regularly holdoutdoor advertising activities
through billboards, posters, signs, leaflets.

The logo of the smiling Colonel is probably one of the most recognized faces inthe
world and instantly brings the image of fried chicken to one’s mind.

KFC and its new company jingle, “finger licking good” is a frequent announcement on
televisions, billboards. The concept of showing a normal customer deeply involved in
devouring his piece of chicken usually turns on the drool ineverybody’s mouth and makes
them rush to the nearest KFC store.

In covid-19 pandemic, the slogan changed to “so good” that mean lots of things. “We find
ourselves in a unique situation—having an iconic slogan that doesn’t quite fit in the current
environment. While we are pausing the use of It’s Finger Lickin’ Good, rest assured the food
craved by so many people around the world isn’t changing one bit.” said Catherine Tan-
Gillespie, global chief marketing officer at KFC.

3.6. Sales Promotion

KFC uses the following method to further enhance its sales.

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Student: Doan Thi Bich Hoai ID: A2127281

- Premiums (VIP cards)

- Exhibits

- Coupons

- Entertainment

- Sales Promotion

All KFC outlets offer its customers with various forms of incentives to buy its
Chicken. Using coupons that one can acquire after spending a particular amount over a period
of fixed time, customers can enjoy the benefits of free meals or free add-ons. Additionally,
they provide meal vouchers and exciting offers in their printed ads,which customers cut and
bring along in order to have a discount on their receipt.KFC is also timely to have other
promotions on special cases of the year. Example KFC free shipping for every delivery order
during pandemic 2020-2021.

4. The KFC environment

I experienced in KFC Trung Hoa – Ha Noi, with some friends we visited that
restaurant for late lunch. It was the afternoon of April 24 th 2021, whole the experience was
good with five criteria in table below:
Tran Thy Thu Uyen Tung Lam Dang Yen Kieu Trang
Place vvvvv vvvvv vvvvv vvvv vvvv
Space vvv vvvv vvvv vvv vvv
Service vvv vvvvv vv vvvvv vv
Food vvvv vvvvv vvvv vvvvv vvvv
Price vvvvv vvvvv vvvvv vvvvv vvvvv
Annotate:

Excellent vvvvv
Very good vvvv
Average vvv
Poor vv
Terrible v

In the chart, firstly about the place of KFC, it is easy to find, very good location in
Trung Hoa street which is a golden, vibrant, bustling street include one high school, one

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Student: Doan Thi Bich Hoai ID: A2127281

secondary school, some officials. The customers was so easy to go for walk to that restaurant
also enjoyed another services like coffee shop, mini supermarket ,… However, the space of
KFC is minus point, it was unventilated space with the smell of frying oil filled and that was
quite perspicuous about tube house design of that restaurant. Beside that, we had different
comments to service. In my opinion, that was 3/5 due to staff forgot my sauce tray and made I
waiting so long for refund money. More interested in, Uyen, Lam and Yen had very nice
experience that no waiting, no forgetting, professional staff, hot pie for gift but I had just
ordered before they went 20 minutes. Unluckily, Trang had bad service since staff ordered
wrong items for her with extra money so the quality of service for customer depend on lots of
thing like: time to go ( rush hour in lunch, in after school time, in dinner, in morning,…),
professional staff or not,…. Futher more the quality of food and price were big on important
thing, as like customers voted the food was tasty and fresh with very comfortable price. In
that day, the restaurant had very well deal for customer in whole products from main dish to
drinking.

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Student: Doan Thi Bich Hoai ID: A2127281

Reference

http://www.klexpress.com/modules/general/index.php?page=news&act=detail&id=10

http://www.scribd.com/doc/86854290/kfcwww.facebook.com/KFCinIndia 

http://lighthouseinsights.in/kfc-india-launches-fiery-grilled-campaign.html

http://www.kfc.com

http://www.kfcvietnam.com.vn

http://www.vnnhahang.com/forum/t451-tim-hieu-chien-luoc-phat-trien-cua-kfc-tai-
vn.aspxwww.gso.gov.vn/default.aspx?tabid=407&idmid=4&ItemID=1346

 www.nextdiner.blogspot.com/2011/11/kfc-con-uong-thanh-cong.

 www.facebook.com/KFCVietnam www.pepsiworld.com.vn 

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