1、Segmentation, Targeting & PositioningKFC in China,1,Outline,2,Background,Big market share in China: 2,100 locations in 450 cities；a percentage cost chart of the KFC sales in 2009,3,Market Segment,Subset of a marketHave similar characteristicsNeed similar productsDistinct from other segmentsExhibit c
2、ommon needsRespond similarly to a market stimulusCan be reached by a market intervention,Characteristics,Reference: http:/en.wikipedia.org/wiki/Market_segmentation,4,Segment Bases,Reference: http:/www.businessteacher.org.uk/markets/market-segmentation/,5,Target Segment Psychographic,Stratum -early y
3、ears, target to upper and middle class -now, transfer to the public classLifestyle -fast paced, loving chicken,6,Target Segment Behavioral,KFC divides the attitudes of customers into several typesPromote new products continuously for customers who prefer trying new taste. e.g. Countless shrimpProvid
4、e special food during certain periods for customers who like seeking novelty. e.g. Qixi packageNormal meal for those customers who do not easily change their taste.,7,Geographic Targeting,KFC has outlets internationally and sells its products according to geographic needs ofthe customer.In China KFC
5、 focuses how geographically its customers demand different products.,8,Geographic Targeting,Example: Initial outlet: Four candidate cities: Tianjin, Shanghai, Guangzhou and BeijingCriteria: Risk-benefit analysisFirst mover advantageFinal decision:Beijing in 1987,Reference:http:/ Targeting,Family esp
6、ecially with children are mainly targeted.Age is between 6-65.Genderisbothmales andfemales.Familysizeis1-2, 3-4, 5+From special consumption to common consumption,Reference:http:/ Targeting,Taste:Localization!White meat to dark in its chicken burgersNo more coleslaw and mashed potato Etc.,Reference:h
7、ttp:/ Market Positioning in China,A position is the way a firms product, brand, or organization is viewed by the customers relative to the competition. Positioning is based on attributes of products and services.,Positioning features of KFC:,12,KFCs Market Positioning in China,Feature 1: Chicken coo
8、king expert,KFC positions itself as chicken cooking expert not only in China, but also in all over the world. (The worlds leading chicken fast food),Focus on and produce a variety of chicken products,Localization of chicken products in China,13,KFCs Market Positioning in China,Feature 2: Focusing on
9、 Serving families,KFC devote itself to serving customers in family group and enhancing the atmosphere of family.,Serving family meal set,Entertainment facilities for little children,14,KFCs Market Positioning in China,Feature 3: relatively high price,KFCs price position is in middle or high level in
10、 fast food industry in China.,Average price for personal meal is around ￥30( GDP per capita is ￥96 per day in 2011),15,Whats the difference_ KFC in the U.S,Outlets: about 5,200 (compare with McDonalds 18,590),16,Reference: http:/en.wikipedia.org/wiki/List_of_countries_with_McDonalds_franchises; http
11、:/ the difference_ KFC in the U.S,Target market: mainly focus on busy-working employees and young people in first and second tier cities.Reasons:The big cities are more developed with better transportation conditions and dense populations.Busy-working employees have a fast pace, they require saving
12、time on preparing food and having a full meal in a very short time. Younger people pay less attention on healthy-diets and are less willing to cook.Reference:http:/ the difference_ KFC in the U.S,KFCs product positioningAmerican style E.g. Home-Style Biscuits; Adapts its restaurants to local tastes,
13、 different cultural and political climates. Reference: http:/ http:/ Potatoes & Gravy,Have you seen them in China?,Whats the difference_ KFC in the U.S,KFCs price positioning A common meal of KFC is 7 dollars, while currently, in the U.S., the per capita income is 90 dollar a day, which is about 13
14、times the price of a meal in KFC. (The comparative price is much lower than that in China!)Why?Fierce market competition in the fast-food industry (e.g. McDonalds, Burger King); Americans attitude towards fast-food;Targeted group are from middle and low income levels;Reference: http:/ http:/ http:/ Sanders March on China http:/ http:/ http:/ MARKETING http:/ information from: http:/ http:/
